Group III diversification: PRS – a fighting grade group...
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CONFIDENTIAL © 2008 Carigali Business Development, PCSB © 2011 Petronas Marketing (Netherlands) B.V. All rights reserved. No part of this document may be reproduced, stored in a retrieval system or transmitted in any form or by any means (electronic, mechanical, photocopying, recording or otherwise) without the permission of the copyright owner. Group III diversification: PRS – a fighting grade group III
Transcript of Group III diversification: PRS – a fighting grade group...
CONFIDENTIAL
© 2008 Carigali Business Development, PCSB
© 2011 Petronas Marketing (Netherlands) B.V.All rights reserved. No part of this document may be reproduced, stored in a retrieval system or transmitted in any form or by any means (electronic, mechanical, photocopying, recording or
otherwise) without the permission of the copyright owner.
Group III diversification:
PRS – a fighting grade group III
CONFIDENTIAL
Group I/II and III
80 120
0
90
0,03
0
100
Sats(%)
Sulfur(%)
VI
Group IIIGroup II
Group I
Category Sulphur (%)
Sats (%)
Viscosity Index
Group I >0.03 and/or
<90 80 ≤ VI < 120
Group II ≤0.03 and ≥90 80 ≤ VI < 120
Group III ≤0.03 and ≥90 ≥120
Group IV Polyalphaolefins (PAO)
Group V All others not included in Group I, II, III or IV
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Driver to better base oils - emission
19881990
19911994
19982000
2002
20100.80
0.330.134
0
2
4
6
8
10
12
NO
x, g
/kW
-Hr
Particulate, g/kW-Hr
8.056.76.7
5.4
3.3
1.5
.013
14
1614.4
2007
0.27
Emissions Heading to the Vanishing Point!
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0
1
2
3
4
5
6
7
8
9
10
Projected group III base oil production (MT per Annum)
Group III production projections
Tatneft 50kt Slavneft 100kt Lukoil 170kt
SK +JX 1Mil tons
No data
Neste 400ktShell GTL1 700kt
Shell GTL2 600kt(2Q 2012)
Neste 500kt UAE
No data
No data
Repsol YPF 310kt (split group II)
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production vs projected demand
0
1
2
3
4
5
6
7
8
9
10
production vs projected demand (MT per Annum)
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Two group III brand strategy
Petronas Rotterdam Standard
- 4cSt projected 1Q2012- 6cSt available now
- ETRO 3 (2,5cSt only on spot)- ETRO 4 (4cSt)- ETRO 6 (6cSt)
TOP TIER Group III
FIGHTING GRADE group III
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VI
Sulfur(%)
Sats(%)
90
100
0,0300
120 121 122 123 124 125 126 127 128 129
4cSt group III limits
130
Room for a fighting grade group IIIPRS Gas to liquid
ETRO
0,0030
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VI
Sulfur(%)
Sats(%)
90
100
0,0300
120 121 122 123 124 125 126 127 128 129
6cSt group III limits
130
Room for a fighting grade group IIIPRS Gas to liquid
ETRO
0,0030
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SPLIT figting grade / Approved grades
2012 2015
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PETRONAS Group III Base Oils plant is able to provide stable quantity and quality
VGOHCB
Base oil
Solvent Extration
GI base oil
UCO
HCB
CDW/ HF
GIII Base Oil
80%
20%
Gas oil 50% Gas oil
VGO HDT/CDW/HF 50%
GIII Base Oil
Gas Oil
Group I Base Oil Refinery Group III HCB UCO Refinery Petronas Group III
Quantity variableCrude selectiveCompete with fuels
Compete with fuelsVariable UCO quantityVariable UCO qualityNo control to adjust quality
Own equity crudesCan control conversionCompliment fuel production
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Mono-NaphthenesDi-Naphthenes
Poly-Naphthenes
n-Paraffins
Iso-Paraffins
Oxidation Stability
VI
~180
~60
Poor Excellent
Saturates are made-up of many chemical components that determines base oil quality
Iso-Paraffins
SolvencyExcellent Poor
Branching95
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Saturates portion of Group III base oils exhibit wide variation in paraffins and naphthenes
0
100
A-4 B-4 C-4 D-4
6-Ring Naphthene5-Ring Naphthene4-Ring Naphthene3-Ring Naphthene2-Ring Naphthene1-Ring NaphtheneParaffin
Com
posi
tion
, %
A-6 B-6 C-6 D-6
4Cst products 6Cst products
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Application – More liberty for formulators
Automotive 10W-40 formulations without approval support (group II alternative)
Turbine oils
Hydraulic oils
.....
Group I – (77% Sats)
QualityGroup III – 95+ %wt satsApproved formulations Group II – 90+ %wt sats
Non -Approved formulations
Group III – 90+ %wt satsNon -Approved formulations
Approved formulations NON -Approved formulations
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Future synthetic base oil market
Will be split between synthetic base oils coming from
MINERAL SOURCES (ETRO, Yubase, S-oil, Nexbase, PC, Shell XHVI...)
Limiting factor will be the avail of high quality crude / Tapis (ETRO) / hydrocracker bottoms (Yubase, S-oil, Nexbase)
SYNTHETIC SOURCES
PAO : from XOM, Neste, ConocoPhillips, Tatneft...
Limiting factor will be avail of Ethylene
GTL : Shell production starts end 2011 / Sasol has the technology and the option to make base oils but does not have the installation.
No one limiting factor
Gas/coal or any other carbon source (included bio to liquid) can theoretically be used.
(Bio to liquid would make this product carbon neutral).
Combined GTL and the Mineral sources will make up the group III market.
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Other group III fighting grades
Other group III Refinery intermediate product
Solvent extracted hydrocracker bottoms
Rerefined products
How to differentiate PRS 6 from other fighting grades
No chlorine in PRS
Viscosity at 6cSt not 5,5cSt
Future improvement color now 2,5 ASTM D1500 will go down
Future improvement Noack now 11%wt will go down as well
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THANK YOU
Presentation Group III diversification: PRS – a fighting grade group III
CONFIDENTIAL
