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Advancements in bright stock refining technology
Timothy Langlais Global Technical Marketing Manager, Specialty Base Oils
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Outline
• About Ergon
• Bright stock market summary
• Refining technologies
• Economics of viscosity
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About Ergon
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Ergon Corporate Profile
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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
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Available Global Base Oil Storage - 2.1 million barrels - 88.2 million gallons - 286,440 metric tons
Global Distribution of Specialty Oils
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Bright stock market summary
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2015 Global Finished Lubricants Demand
7 Source: Kline & Company, 2015
764,000 B/D 37,800 kt/yr
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2015 Global Bright Stock Demand
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53,000 B/D 2,700 kt/yr Source: Kline & Company, 2015
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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
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…and associated bright stock production...
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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
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…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)
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…further increasing bright stock price premiums...
12 Source: ICIS Base Oils Asia Pacific
…and inviting investment/substitute solutions.
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Bright stock substitute costs/benefit balance
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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
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Refining technologies
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Generalized process flow diagrams
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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
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Typical Properties
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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
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Alternate GI technology yields high viscosity with exceptional color
17 Conventional GI Alternate GI
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Additional Typical Properties
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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
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Economics of viscosity
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Alternate GI bright stock extends formulation capabilities to higher viscosity grades…
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Group III
Generalized max viscosity
Group II
Conventional GI bright stock
Alternate GI bright stock
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… while reducing bright stock treat rates…
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20%
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…and formulation costs!
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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
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Blend properties remain acceptable
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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
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Potential Applications for Alternate GI
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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
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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
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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
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Tim Langlais Ergon Global Technical Marketing, Specialty Base Oils +1-281-202-3607 | office [email protected]