COVER
FEATURE
Group I Base Oil
alternatives for the
African Markets
Prof. Thomas Norrby
D
ue to swiping changes in
the technology landscape,
an appetite for significantly
larger volumes of paraffinic
base oils of API Group II and Group III is
growing, fuelled by ever-increasing demands
on automotive engine oil performance. This
has led to a massive expansion of Group II and
Group III capacity during the last 15 years.
These modern base oil production units are
more often than not of world-scale capacity,
and these products are traded extensively
around the world. Group II and Group III base
oils are, of course, also increasingly offered to
the African market.
Mineral base oils differ in production
process and properties. Also, the differences
in production process lead to differences in
production cost and yields. The traditional
solvent refining utilized to manufacture
“Solvent Neutral” Group I base oils is especially
cost sensitive, compared to e.g. modern
hydro treatment methods employed in the
manufacture of Group II base oils.
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A combination of production considerations
and evolution of market requirements drives
the profound changes that are re-shaping the
global base oil industry.
Economies-of-scale and new capacity
investments in Group II and Group III
production worldwide has brought a sea
change to Europe’s previous role as swing
producer and net exporter of Group I base oils.
Considerable economic pressure is likely felt by
the remaining African base oil refiners. African
lubricant blenders, on the other hand, will find
themselves competing for evet-scarcer Group
I base oils for import into Africa. World-wide,
70% of Group I fluids are utilized for industrial
lubricants, 30% for engine oils. In Africa,
though, the remaining need for Group I for
engine oils will remain high, due to several
reasons: many older generation road vehicles
in the fleets, challenging logistics and the need
for low-cost and