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Advancements in bright stock refining technology
Timothy Langlais Global Technical Marketing Manager, Specialty Base Oils
Outline
• About Ergon
• Bright stock market summary
• Refining technologies
• Economics of viscosity
2
About Ergon
3
Ergon Corporate Profile
4
Vicksburg, Mississippi (USA) ISO 14001:2004 / ISO 9001:2008 / REACH Compliant
Naphthenic Refinery
Base Oil Capacity: 22,000 b/d (1,150 kt/yr)
Newell, West Virginia (USA) ISO 9001:2008 / REACH Compliant
Paraffinic Refinery
Base Oil Capacity: 6,000 b/d (297 kt/yr)
• Privately (family) owned and operated
• Headquarters: Jackson, Mississippi, USA
• Employees: >2,600
• Largest naphthenic base oil refiner in the world
• 60+ companies under the Ergon Umbrella
5
Available Global Base Oil Storage - 2.1 million barrels - 88.2 million gallons - 286,440 metric tons
Global Distribution of Specialty Oils
Bright stock market summary
6
2015 Global Finished Lubricants Demand
7 Source: Kline & Company, 2015
764,000 B/D 37,800 kt/yr
2015 Global Bright Stock Demand
8
53,000 B/D 2,700 kt/yr Source: Kline & Company, 2015
9 Source: Lubes ‘n’ Greases 2015 Guide to Global Base Oil Refining, LNG Research
Trends in finished lubricant technologies threaten conventional Group I refineries…
Group I decline
Group II & III Growth
Global Basestock Supply by Product Types, 2005 to 2015
…and associated bright stock production...
10
API Classification
Group III
Group II
Group I
Light Neutral
Yes
Yes
Yes
Medium Neutral
Yes
Yes
Yes
Heavy Neutral
None
Yes
Yes
Bright Stock
None
Yes*
Yes
*Group II bright stock remains shorter in supply and lighter in viscosity than conventional bright stock
…in a market that demands viscosity…
11 Source: Kline & Company, 2015
*Includes Mexico
Def
icit
| S
urp
lus
Regional BS Supply & Demand Balance, 2015 (actual) to 2025 (projected)
…further increasing bright stock price premiums...
12 Source: ICIS Base Oils Asia Pacific
…and inviting investment/substitute solutions.
Bright stock substitute costs/benefit balance
13
Material Relative Price $/MT
Equivalent BS replacement
Performance Advantage Performance Disadvantage
Bright Stock 850-880 1:1
PIB 1,900-2,300 5:1 + Wide viscosity range + Clean applications
- Material handling - Poor solvency
High viscosity PAO
4,500-6,500 1:1 + Good VI + Oxidation stability
- Seal compatibility - Poor solvency
PAG 4,000-5,500 1:1 + High VI + Water soluble + Varnish resistance
- Limited compatibility - Poor solvency
Formulators determine the technical need and product value provided for specific applications
Refining technologies
14
Generalized process flow diagrams
15
Paraffinic Crude Oil
Distillation
PDA
Solvent Extraction
Solvent Dewaxing
Hydrofinishing
BS
Conventional Group I
Naphthenic Crude Oil
Distillation
PDA
Hydrotreating
Catalytic Dewaxing
Hydrofinishing
BS
Alternate Group I
Hydro-processing now represents >45% of global base oil production
Typical Properties
16
Parameter ASTM Conventional GI Alternate GI
Viscosity, SUS @ 100 °F D2161 2,200-2,800 4,900-5,300
Viscosity, cSt @ 100 °C D445 30-33 37-47
Viscosity, cSt @ 40 °C D445 465-495 940-970
Viscosity Index D2270 92-100 80-85
Viscosity-Gravity Constant D2501 0.809 0.819
Pour Point, °C D5950 -15 to -1 -15 to -1
Flash Point, °C D92 288-305 285-300
Color, ASTM D6045 2.0-8.0 2.0-4.0
Sulfur, % D4294 0.2-5.0 0.07
Process technologies yield a range of viscosity, VI, color and sulfur values
Alternate GI technology yields high viscosity with exceptional color
17 Conventional GI Alternate GI
Additional Typical Properties
18
ASTM Conventional GI Alternate GI
Saturates, HPLC, wt% D7419 75 (typ) 64 (typ)
Molecular Weight D2502 690 680
Aniline Point, °C D611 122 (typ) 122 (typ)
Carbon Type Analysis, %Ca D2140 5 7
Carbon Type Analysis, %Cn D2140 28 28
Carbon Type Analysis, %Cp D2140 67 65
Polycyclic Aromatic Compounds, wt% IP 346 <3 <3
Advanced refining technology recovers heavy paraffinic molecules found in naphthenic crude
Economics of viscosity
19
Alternate GI bright stock extends formulation capabilities to higher viscosity grades…
20
Group III
Generalized max viscosity
Group II
Conventional GI bright stock
Alternate GI bright stock
… while reducing bright stock treat rates…
21
20%
…and formulation costs!
22
Americas ISO 460 Blending Options Oil A Oil B Oil C Oil D
Traditional GI BS 100% - - - HyGold 5000BS - 85% 80% 71% GII – 100/120 - 15% - - GII – 200/220 - - 20% - GII – 600 - - - 29% Base oil cost, $/MT 992 920 893 918 Savings (vs Oil A), $/MT - 72 99 73 31 May ICIS SPOT FOB USGC averages: BS @ $992/t, 100 @ $511/t, 200 @ $498/t, 600 @ $740/t
Blend properties remain acceptable
23
Americas ISO 460 Blending Options Oil A Oil B Oil C Oil D
Traditional GI BS 100% - - - HyGold 5000BS - 85% 80% 71% GII – 150 - 15% - - GII – 500 - - 20% - GII – 600 - - - 29% Viscosity, cSt @ 40 °C 465 469 465 461 Viscosity Index 95 82 81 86 Flash Point, °C 304 226 233 238 Pour Point, °C -9 -13 -12 -17 Color, ASTM 4.0 1.3 1.2 1.0 Sulfur, % 0.14 0.05 0.05 0.05
Potential Applications for Alternate GI
24
Application Comments
Grease High viscosity can improve yield in light of lithium supply constraints
Marine Alternate GI BS provisionally approved for use in 2 & 4-stroke marine applications
High viscosity/monograde engine oils
Alternate GI provisionally approved for use in 20W-50 and monograde engine oils
Industrial Oils • Improved economics where viscosity and appearance remain critical
• Suitable for use in high viscosity industrial gear oils, hydraulics, etc.
Process Oils Viscosity, appearance, excellent fogging performance
In summary…
• Conventional Group I refineries, including the associated bright stock production, remain threatened by trends in automotive finished lubricant specifications
• Market conditions invite innovation/substitutes for bright stock
• Alternate GI technologies allow formulation flexibility and create economic value
25
26
Contact Information
Hideo Takitani Ergon Sales & Marketing, Latin America +55-11-96847-1099| office [email protected]
Gerardo Maldonado Ergon Sales & Marketing, Latin America +1-281-630-5562 | office [email protected]
For further questions, technical or commercial, please contact us.
North & South America | Phone: +1 601 933 3000 | ergonnsa.com
International| Phone : +32 (0)2 351 23 75 | ergoninternational.com
27
Tim Langlais Ergon Global Technical Marketing, Specialty Base Oils +1-281-202-3607 | office [email protected]