Fuels & Lubes International 1997 – Issue #1

Annual base oil demand growth forecast at 3.5 Pct.
LONDON — Base oil demand for the Asia-Pacific Region will reach 10.5 million tons by the year 2001, representing 34 percent of the world’s total demand, according to a forecast by Mobil Sales & Supply Corp.’s manager for lubes and special products, Harland Bulow.

Survey indicates Asian PCMO concerns
SINGAPORE — The Asia-Pacific region represents the world’s fastest growing lubricant market, but geographically proximity is the primary unifying factor in this market. In terms of operating conditions, national specifications, equipment source and age mix, etc. there is extreme diversity, quite unlike that in the advanced markets.

Deregulation, environment, among topics at the 3rd Fuels & Lubes Asia Conference
SINGAPORE — The environment and deregulation are among the key topics at the 3rd Annual Fuels & Lubes Asia Conference, which is being held at the Regent Hotel here January 19 to 22.

Low Sulfur Diesel Fuel: The Impact in Asia-Pacific
SINGAPORE — As the different regions of the world move to low-sulfur diesel fuel, there are concerns about the lubricity of processed diesel, its impact on equipment and how to measure and correct unduly low lubricity when necessary.

Lubricity of low sulfur diesel fuel in Japan
Toyota Motor Corp’s Masanori Okada reported on Japanese studies on the effects of de-sulfurization on the lubricity of diesel fuels at the 3rd Annual Fuel & Lubes Asia Conference in Singapore this month.

ASTM Adopts HFRR, SLBOCLE
ORLANDO, FLa. — The ASTM Committee D-2 on Petroleum Products adopted the High Frequency Reciprocating Rig (HFRR) test and the Scuffing Load Ball on Cylinder Lubricity Evaluator (SLBOCLE) test as standard methods at its meeting here last month.

Screening test for lubricity additives
There are four possible negative side effects from the use of lubricity additives in low-sulfur diesel, according to Adibis’ Michael Attfield.

New players set to enter Philippine market
MANILA — In preparation for oil industry deregulation in March 20, new players have divulged plans to enter oil-related businesses in the Philippines.

China’s lube market enters consolidation phase
The Chinese lubricants industry has entered a new phase of consolidation which will have a profound impact on base oil supply and demand in China and the rest of the Far East, states Joe Rousmaniere of Houston, Texas-based Lithcon Petroleum.

Worldwide engine oil specification system
Currently the Asia-Pacific nations rely on a mix of European, Japanese and North American engine oil specifications, although the most common are those of the American Petroleum Institute (API)/International Lubricant Specification and Approval Committee (ILSAC).

Asia Pacific
Many passenger car motor oil (PCMO) products are sold that claim to meet API categories that are obsolete and for which engine tests are not available to document performance.

CPC develops high-performance turbine oil
As higher performance steam turbine power plants have come into operation in Taiwan, Chinese Petroleum Corp. (CPC) found that the traditional “circulation” oil used for turbine lubrication no longer provided adequate performance.

How much of a role does fuel play in reducing emissions?
The emissions reduction efforts in the U.S., Europe and Japan have achieved major successes over the past 20 years.

Japan Auto-Oil Program
On a tact similar to Europe and the U.S., Japan is developing its own auto/oil program labeled the Japan Clean Air Program (JCAP).

Asia-Pacific Regional News
Esso Eastern Inc. signed an agreement with Eastern Investment Co., a commercial enterprise of the Vietnamese government, to establish a joint-venture company.

Total has signed an agreement with the Petroleum Authority of Thailand (PTT) to build a lubricants plant.

Nippon Oil C. has signed contracts to market British Petroleum PLC and Agip Petroli SPA brand motor oils at Nippon’s gasoline outlets nationwide.

Taiwan’s state oil monopoly, Chinese Petroleum Corp. announced that it will begin its long-awaited privatization as early as July this year, and complete the process on schedule by July 2000.

In response to increased competition from Caltes, Esso, Mobil and Shell, China Petrochemical Corp. (SINOPEC) is undertaking to improve its position by establishing flagship blending facilities, China OGP reports.

Uniwide Holdings, Inc. (UHI) has submitted a proposal to set up convenience stores at Petron gasoline stations.

Caltex (Phils.) Inc. is adopting a “leaner but fitter” strategy. The company, which has the largest number of service stations nationwide, has embarked on a “rationalization scheme”.

A Taiwanese parliamentary panel adopted a non-binding resolution barring Chinese Petroleum Corp. (CPC) from increasing local oil prices before March 1.

Mitsui Engineering and Shipbuilding Co. will install a hydro-desulfurization unit at Bangchak Petroleum Plc’s oil refinery in Bangkok.

Prior to price decontrol, South Korea delivered a year-end bombshell by increasing gasoline price 12 percent,t o encourage energy conservation and to help narrow the current account deficit.

Hyundai Motor Co. is interested in buying a 22 percent stake in a joint-venture plant in China.

Toyota Motor Corp. will begin selling pleasure boats and marine engines in the spring.

The three oil companies in the Philippines expect to incur losses of about P500 million (US$19 million) with the lifting of the 90-day forward foreign exchange cover starting January.

Samsung Engineering & Construction, part of the Samsung Group, said it will build an ethylene plant in Thailand for Thai Petrochemical Industry.

China’s car market will be plagued by overproduction, slack demand and weak prices this year, as it was in 1996.

JGC Corp. of Japan has received an order to build an ethylene plant worth $300 million for Titan Petrochemical Sdn of Malaysia.

Toyota Motor Corp. said that it has not decided on making cars in India.

The Ministry of Economic Affairs appointed Vice Economics Minister Lee Shu-jou as chairman of the state-owned Chinese Petroleum Corp.

The prospects for Vietnam’s first oil refinery in Dung Quat BAy moved forward with the opening ceremony in Quang Ngai.

Japanese motorcycle makers will cut production in China by 10 to 30 percent during this fical year.

South Korea’s petroleum products demand increased 6.3 percent to 641.1 million barrel in the first 11 months if 1996, from 603.2 million in the year-earlier period.

Taiwan’s parliament cut out fending for state-owned Chinese Petroleum Corp.’s plan to move the company’s Number 2 naptha cracker to Indonesia and for a proposed US$16 million solvent production plant in Vietnam.

Philippines’ Petron Corp. signed a memorandum of understanding with Ssangyong Oil Refining Co. to conduct a feasibility study for a grassroots refinery in Bataan, north of Manila.

Petron Corp. and First Philippine Holdings Corp. (FPHC) are conducting a feasibility study for an oil pipeline on the main island of Luzon.

Indian Oil Corporation established a joint venture with Mobil Corp., Indo Mobil, to develop LPG infrastructure facilities across India.