You are on page 1of 20

Insight

The fuel and lubricant additives industry journal from


Infineum International Limited
ISSUE NUMBER 54 JUNE 2012

Your first
digital
Insight
magazine

Base stocks
Key issues shaping the global
base stocks market

Investing in technology
Salicylates deliver differentiation
to lubricant formulations

©Infineum International Limited 2012. All rights reserved.


In this issue
Editorial
I am very pleased to welcome you to the first digital issue
Going digital

01
of Infineum Insight magazine.
Making the most of the new
digital version of Insight By embracing this digital technology we can enhance our articles by adding
features including zoomable images, embedded charts and tables, video
footage and audio clips. In addition, you can search the whole publication
Talking base stocks and follow direct links to technology papers and websites so that you can
Insight looks at some of the key
questions that are shaping the
global base stocks market
02 go deeper into any of the topics that interest you. What’s more, this format
gives you the opportunity to send us direct feedback – whether you want to
comment on a feature in this issue, request further information, or perhaps
suggest topics you would like to see covered in upcoming issues.
Winter fuel quality

05
Look out for the interactive buttons like this throughout the
Exploring the southern
hemisphere data from the publication to help you get straight to the information you need.
Winter Diesel Fuel Survey
Two features in this issue take real advantage of the added functionality
that digital publications provide. As part of our Infineum Trends 2012
Premium technology

06
presentation, which is being delivered in the US, Europe and Asia Pacific,
Delivering performance way we were able to interview a number of our industry contacts from across
ahead of ILSAC GF-5
the globe on a wide range topics. We have used some of this material to
give a view of two key topics: aspects of the global base stocks market and
Fit for export the fast changing Russian lubricants market. We have been able to bring

09
these two features to life by including some of the original video footage
Middle East refineries turn
from the interviews.
to fuel additives to meet
export fuel specifications
One area of focus for the crankcase lubricants industry right now is the fast
changing specification landscape and in particular the implications that the
Insight interview
upgrade to the North American passenger car and heavy-duty engine oil
Maxim Donde on the
Russian lubricant market 12 performance standards will have on our industry. We plan to keep you
informed about the progress being made as we move through the category
developments in regular updates. For the latest view flip to page 17

Investing in technology Other features in this issue cover the results of our southern hemisphere

Salicylates offer advantages in


top tier lubricant formulations 15 Winter Diesel Fuel Quality Survey, the export of diesel from the Middle East,
the use of salicylates in passenger car and marine lubricants and the
North American top tier lubricants market. As always I hope you enjoy
reading the issue and would be delighted to receive your feedback.
Specification update Please use the link below to tell me what you think about the new digital
Progress on ILSAC GF-6
and PC-11 17 format or to comment on one of the features in this issue.

The Editor
Diary dates

18 Send your comments


to the Editor

Insight is the quarterly industry magazine for the fuels and lubricants additives
industry, published by Infineum International Ltd. The views expressed in Insight
may not necessarily represent those of Infineum.

©Infineum International Limited 2012. All rights reserved.


Making the most
of the new digital
version of Insight
The new digital Insight is a ‘read
anywhere’ publication. You can
view it on your PC or Mac, and on
your mobile devices, such as iPad,
iPhone or Android – and you won’t
need to install any new Apps.

Searchability
Use this tool to search the whole
publication for a particular word or
phrase appropriate to your interests.

Discover the Save it for later

digital advantages
You can bookmark a particular page
for quick reference – so that you can
find it again quickly and easily – these
bookmarks are personal to you.
The new digital version of Insight might look the same as
the print version, and it still contains the same industry news Without the Internet
and cutting-edge technological innovations, but as a digital If you can’t connect to the Internet
publication it puts powerful tools at your fingertips. or don’t want to read the publication
online simply download Insight to your
hard drive, USB drive or CD/DVD, and
read it offline.

Easy to share
Share the content quickly and easily with
colleagues via email or on your favourite
social networking sites.

In the future...
Future issues of Insight will be
catalogued and you will be able to
access and view previous copies
with just a couple of mouse clicks.

We would love to hear what


Rich content Quick links you think. Use this link to
give us your feedback.
We will embed audio, video, pictures We have added hyperlinks to help you get
and Flash animations to improve clarity straight to the information you need without
and to allow you to hear interviews and having to copy down long web addresses –
presentations direct from the source. everything will be one click away.
Insight June 2012

We are really excited about the new features that


going digital allows us to bring to you

©Infineum International Limited 2012. All rights reserved. 01


Talking base stocks
...at Infineum Trends 2012

As part of our Trends 2012 presentation, we asked a number of our industry contacts
to give their views on future industry trends and drivers. In this feature, Insight looks
at some of the key questions that are shaping the global base stocks market.
The base stock market is still recovering Maxim Donde, General Director of LLK Group I is expected to account for less
from the effects of the global economic International (Lukoil), gives us an insight than 50% of total base stock production
slowdown and is now entering a period into the picture in Russia. “The Russian by 2020 - although imports of Group I
of real uncertainty and rapid change. base oil market has always been a Group I products into Latin America, Asia and the
To get a good picture of this rather market, and I think that Group I will be Middle East may help sustain Group I
volatile market we spoke to a number of out there for some time. In the industrial production in North America and Europe.
industry players from around the world. market for example, the share of The challenge for the remaining Group I
While we talked about all aspects of the imported high specification lubricants is producers is how to compete in a market
market – Shell’s GTL plant, the uncertainties around 6% and the rest is still fairly low with increased availability of high quality
surrounding PAO, trends in Group I, II grade Group I based lubricants. It’s base stocks.
unlikely in the short term that the vast
and III supply – in this feature we focus on “Right now we’re still around 60%
quantity of industrial equipment here will
two key topics: the so called ‘decline of Group I in the world, and 30% Group II
be converted to something that needs
Group I’ and the ‘rise of green lubricants’. and about 10% Group III and Group III+,
higher quality industrial lubricants. That is
but I see that landscape shifting over the
Group I decline probably different for the passenger car
next decade,” says Claxton. “Although I
The increased demand for higher quality segment where Group III and IV will
still see a good future for Group I, they
finished products is driving the industry to replace the lower specification lubricants
won’t have the dominant role that they
use higher quality base oils, which means at a much faster rate.”
have today – it’s equilibrating more along
further closures of Group I plants seem Key success factors for many Group I the lines of one-third Group I, one-third
inevitable. This puts Group I in suppliers will be their ability to rebalance Group II, and one-third Group III,” she states..
increasingly short supply, and leaves a base oil cuts to favour high margin
void in the market as Group I currently speciality products and to find new
supplies some critical products including segments in which to deploy them.
bright stocks for marine and crankcase “Group I base oil will vanish from the
mono grade lubricants, transformer oils crankcase lubricant market sooner rather
and wax. than later,” says Henrik Holmqvist, Senior
Adviser, Neste Oil. “It’s already vanished
“In the US, people thought Group I would
from European PCMOs. So Group I in the
become obsolete as Group II grew and
future might be a speciality oil.” Claxton
flourished and hydroprocessing
agrees, “Europe has always been an
technology took off. But in fact that has
export hub for Group I to other parts of
not happened,” explains Amy Claxton,
the world, and to the extent that those
owner of My Energy. “As always, supply
Group I plants make heavy neutrals and
and demand are great equalizers. Prices bright stock, there’s still a very strong
for bright stock for example are in parity market for those products. This has given
with the highest Group III and Group III+, rise to a market space for some smaller
Insight June 2012

which means Group I plants that make companies that are more specialty-
heavy neutrals and bright stock continue minded to take up that niche and
to have a very reasonable return on continue to make these more unique
investment,” she continues. products from our Group I plants.”

02 ©Infineum International Limited 2012. All rights reserved.


Holmqvist confirms this picture, “In Green oils will see a rush of new production coming
Europe, in terms of demand, only the The green lubricants market finally seems in the Far East in the next 5-10 years.”
Group I plants producing speciality to be taking off. In the US, Valvoline Next Holmqvist is also upbeat, “I think there is
products will survive. The others will be Generation, Safety Kleen and Universal a bright future for re-refined oils. We are
phased out. Donde gives the view from products as well as increased re-refined seeing lots of activity with new plants
Lukoil, “Our objective is to be balanced in base stock availability are significantly being built. Present technology delivers
base oil and finished lubricant but I don’t increasing supply. We hear about potential very good product quality. I think they
think we’ll achieve a 100% balance of new re-refineries almost monthly – and can match Group II but not really
Group III, Group II and Group I. Perhaps not just in North America. In Europe for Group III or IV.”
we’ll be a seller of some quantities of example, the Total and Veolia joint
Group III in 2015 when our new Group III venture, Osilub, has a new plant which Knapp agrees with the quality limitations,
capacity increases, but we’ll probably will transform 120,000 metric tons of “We don’t believe that it’s possible to get
continue to be a Group I net seller for used engine oil per year into high quality to a point where we’ll be able to make a
the time being.” base oils, diesel fuel and asphalt. Using Group III from re-refined. We believe we
the latest technologies these plants can can make a very high quality Group II+
Plant conversions
produce Group II type materials profitably base oil, but there’s just not going be
With conversion to Group II production
while being consistent with ecological enough of those molecules available in
an option, we asked how likely it is that
contributions towards a more responsible our used oil to make a Group III.”
Group I facilities will be converted rather
use of fossil resources.
than being shut down. “There will always Bio-lubricants
be a home for Group I base stock in the With the number of re-refined producers Lubricants derived from sugarcane,
market, especially in non-automotive, continuing to grow we wanted to find vegetable and animal fats are also hitting
industrial, and process oil applications,” out what role they will play in the overall the radar screen. They have an appeal
says Joe Rousmaniere, CEO, PETRONAS base stock market and if they can match due to their biodegradability and because
Base Oil. “I don’t anticipate any the quality of Group III or IV. Curt Knapp, they are derived from renewable sources.
conversions from Group I to Group II Senior Vice President, Chief Marketing
Soybean oil is the most widely used
but I do expect that there will be regular Officer at Safety-Kleen, gave us his
feedstock and applications include
and permanent shutdowns of Group I thoughts. “Right now re-refined is a
transformer fluids, transmission fluids,
refineries in the coming years.” little under 5% of the base stock supply
gear and compressor lubricants, and
Holmqvist agrees, “I don’t think Group I and over the next couple years we think
greases. So, how significant will base
manufacturers will convert their facilities that is going to double. But, I personally
oils produced from biomass be on the
to Group II production because there is don’t believe that all of the plants that
lubricants industry over the next five
so much Group III in the market place. are scheduled in the US will be built.”
years? “Significant in terms of quantity?
I don’t see a big niche for Group II in Rousmaniere also has positive views of
No. But quality, Yes,” says Rousmaniere.
Europe. Investment costs to convert to the market. “The re-refined base stock
“This new breed of renewable base stock
a Group II unit would be too high.” business is thriving in Europe and North
will have to meet the stringent higher
America, and it’s a good thing. So much
quality new generation lubricant
However in Russia things are a little so that soon they are going to start
specifications – the base stock quality
different. “Today there is only a little bit running out of waste lubricants. But the
will have to match the specification
of Group III production, but right now real land of our opportunity for re-refined
requirements for the future to make it
there are quite a number of companies is in the Far East where this is practically
work,” he continues.
announcing their plans to change that,” unknown. Once the market understands
says Donde. “We are planning to expand that you can make top quality base stocks
our Volgograd refinery to produce from waste and that it is profitable, we
Group III we also have plans to convert
our Perm refinery from Group I to
Group II but these plans are somewhere
away from us yet.”
Insight June 2012

©Infineum
©Infineum International
International Limited
Limited 2012.
2012. All
All rights
rights reserved.
reserved. 03
Holmqvist adds, “I don’t think base oils
Hear the views of Amy Claxton, Henrik Holmqvist and
produced from biomass are going to play
a big role in the coming 5 or 10 years. Joe Rousmaniere captured for Infineum Trends 2012.
You have to understand that it’s a very
complicated process and it will be very
expensive. I think they have to enter the
top tier market because they are so
expensive compared to present products. Amy Claxton, My Energy
There would need to be some form of
legislation push to see more of this type of
base oils.” Knapp has a slightly different
take on biolubes and their potential
impact on his business. “Lubricants made
from vegetable oils are a concern to us.
If they become a large part of the market
place, they will find their way into the
used oil collection system. And we know
that a big slug of that is going to cause us
a lot of problems at our re-refineries.”
However, in our view, without significant
investment in infrastructure and a strong
regulatory push it is likely to be some
time before these green-oils move into
a more mainstream position in the
lubricants industry.

Other developments
It is important to recognise that the
Henrik Holmqvist, Neste Oil
impact of GTL has not been seen in the
market place yet. Shell’s second GTL train
is starting up in June 2012 and significant
sources of natural gas have been found
in North America setting the stage for
additional growth. “The door is opening
for natural gas in an economic proportion
that would support a large GTL plant
in the US,” confirms Claxton. “I would
imagine that the major oil companies
would be looking at that as part of their
portfolio and if gas prices stay low relative
to crude oil prices, some companies may
consider producing Fischer-Tropsch base
oils as Shell has done in Qatar.”

We will also see the impact of Chevron’s


new Pascagoulla refinery, which is on
schedule for start-up by the end of 2013 Joe Rousmaniere, PETRONAS Base Oil
and is expected to produce 1.2 million
tonnes of extra Group II capacity. In such
a fast changing world it is clear that the base
stock market must continue to evolve and
respond to the needs of the global market.

In addition to information on the global


base stock market, this year’s Trends
presentation looks at enhancements in
powertrain technology along with trends
in fuels and lubricants across a number
of vehicle applications.
Insight June 2012

Visit www.infineum.com for


further information and to request
a copy of the Trends DVD

04 ©Infineum International Limited 2012. All rights reserved.


Winter Diesel Fuel Survey
Exploring the data from the southern hemisphere

As a precursor to the full The data for the southern hemisphere is to continue for the foreseeable future.
challenging to analyse because the dataset We expect this increased use of FAME
Infineum 2012 Worldwide to be replicated in the results of the full
is quite restricted and the samples collected
Winter Diesel Fuel Quality are not always consistent from year to year, Winter Diesel Fuel Quality Survey.
Survey, which will be as several of the countries sampled may
Sulphur trends
have different grades circulating at the
published in October, fuels same time.
Another noticeable trend is the continued
overall lowering of sulphur levels, again
chemist Robin Hunt reveals mostly in the South American samples.
The Latin America region, which is the
some of the key findings of largest of the sample populations, does All southern hemisphere samples tested,
the data collected in the not have any regulatory body to help with the exception of Argentina, were
organise, steward and provide consistency below 400 ppm sulphur, with most below
southern hemisphere. 300 ppm. Argentinean samples had sulphur
to fuel specifications across the countries.
This means that fuel quality differences levels of 800 ppm, although we expect
The characteristics and quality of diesel
originate at the very beginning – at the upcoming legislation to lower these
fuels is continuing to evolve as regulations
specification level. figures to be more in line with other Latin
push for increased fatty acid methyl ester
American countries, a trend that we will
(FAME) use and further desulphurisation. This subset of the Winter Diesel Fuel
be looking for in the 2014 Survey.
Understanding the fuel quality and trends Quality Survey data highlights trends in
in various regions, especially as the fuel two of the usual big topic areas covered by Looking ahead
market expands through exports, is the full Survey – namely FAME use and fuel As we anticipated in the 2010 Survey,
increasingly important in order to meet sulphur levels. FAME use is still the main factor of interest
local requirements. in this subset of the 2012 Winter Diesel
Biodiesel trends Fuel Quality Survey. As more renewable
The Infineum Winter Diesel Fuel Quality The mandated volume of FAME that must
fuel regulatory mandates are introduced
Survey aims to provide a good overview be blended into diesel fuels is continuing
and FAME blend ratios rise towards (and
of the quality of automotive diesel in the to increase and as we would expect there
even beyond) 10% we expect to see a
global marketplace. Insight regularly is evidence of FAME in many of the survey
wider range of effects than the standard
publishes highlights from the full dataset. samples. However, no FAME was detected
lowering of HFRR. In the future it will be
But, with the analysis of the winter samples in the Australian or South African samples,
important to guard against oxidation,
from the southern hemisphere now while in South America, with the exception
stability and filterability issues along with
complete, we were keen to quickly share of Chile, 100% use of FAME was observed.
increased wax content that may not be
the findings from this subset to enable This is reflected in the continued lowering
apparent in current fuel samples.
readers to make well informed decisions. of High Frequency Reciprocating Rig (HFRR)
wear scar values in the region.
Sample collection Register your interest in
receiving the full Winter Diesel
In this dataset 39 samples were purchased This increased FAME use appears to be
Fuel Quality Survey in October
from service stations in seven countries. driven by local mandates. Argentina
This sampling method helps to ensure currently has a 7% voluntary blending
the fuels are representative of the fuel ratio, which is expected to increase via
purchased by the average consumer. a mandate to 10% in 2012. Add to this
Insight June 2012

Sampling points were selected so that the push for Brazil to increase blend
the fuels represented the production from requirements to 20% by 2020 and it
each refinery or region in a given country. is clear that this is a trend that is likely

©Infineum International Limited 2012. All rights reserved. 05


Going way beyond
ILSAC GF-5
Infineum’s premium technology
offers enhanced performance
Oil marketers in North America are looking for premium lubricants, formulated
with a combination of high quality base oils and premium additive technology.
These superior products go beyond conventional ILSAC GF-5 requirements,
offer real performance differentiation and deliver higher value to both the oil
marketer and the end consumer.

North America’s profitable premium rest of the North American passenger such as Mobil 1 extended performance,
synthetic motor oil market is dominated car motor oil market which is flat Pennzoil Ultra, Castrol Edge with Titanium
by several well known brands, which to declining. and Amsoil Signature Series.
include Mobil 1, Pennzoil Platinum, However, the impact of SAE 0W-20 and Today’s consumers are discerning and
Castrol Edge, Valvoline SynPower and dexosTM may limit the growth of the very demanding. They want to cut the cost
Amsoil. In this market segment the premium segment, and a lower tier full of motoring, reduce used oil and keep
combination of brand strength, premium synthetic is likely to emerge. So, although their cars reliably on the road for longer
approvals and high performance claims ‘synthetics’ remains a growth segment, between services. But, at the same time,
provide value to the end customer and marketers will need to find new ways to they are also looking for improved fuel
allow the oil marketer to command differentiate and maintain the profitability economy, better engine protection and
a premium price. The market for full of this value added segment. These trouble free motoring. However, the
synthetic oils is growing; unlike the include even higher performing products, consumer is not the only stakeholder with

Gone are the days when a lubricant branded


as a ‘synthetic blend’ brought value to the oil
marketer by commanding a price premium
Insight June 2012

06 ©Infineum International Limited 2012. All rights reserved.


Benefits of using next generation detergent inhibitor
in full synthetic products:
• Enhanced engine protection
• Stringent cleanliness
• Improved fuel economy (SAE 0W-20)
• Extended drain interval
• Blending flexibility

high expectations. OEMs are demanding than the one next to it on the shelf.
improved lubricant performance to However, to achieve this differentiated Infineum P5711
protect advanced engine hardware and performance formulators must choose
to enable them to meet environmental the right combination of high quality Infineum premium additive
legislation and offer longer warranties on base stock and carefully designed additive technology offers significant
their vehicles. To ensure oil quality meets package and, at the same time, balance performance advantages over
their exacting requirements many OEMs, cost and availability issues. conventional ILSAC GF-5 or dexos1TM
including GM, Toyota and Honda, are technologies. When used to create
introducing their own lubricant The combination of SAE 0W-20 viscosity full synthetic oils Infineum P5711
specifications or recommendations. grades with specifications such as delivers a number of benefits:
dexos1TM, which require a 13% NOACK • Extends oil drain intervals
Gone are the days when a lubricant volatility, make it extremely challenging • Improves fuel economy
branded as a ‘synthetic blend’ brought to formulate high quality, low viscosity (in SAE 0W-20)
value to the oil marketer by commanding differentiated products using conventional •  Delivers good fuel economy
a price premium. Today this claim says retention
Group II or Group II+ base stocks.
nothing specific about oil quality or •  Provides excellent oxidation
However, Group III supply is currently
performance and now applies to just stability performance
tight – although we expect this situation
about any motor oil that uses API •  Improves engine cleanliness
will ease as Neste Oil’s new supply reaches
Group III base stocks in its formulation and deposit protection
North America and as Shell’s GTL plant
– no matter how little. This has left •G
 ives outstanding sludge
comes fully online.
many marketers without a true mid-tier protection
product in their portfolio and many of The other part of the equation is using •  Exceeds ILSAC GF-5 and
the larger marketers are shying away the right additive package. In our view, dexosTM requirements
from describing their products as ‘part the use of next generation detergent •  Offers excellent low
synthetic’ or ‘synthetic blend’ because inhibitors in premium full synthetic temperature protection
there is just no value left in those terms. products allows lubricant marketers to •  Meets all GM4718M
deliver value and capture a higher price specification requirements
The North American lubricant market is
becoming increasingly segmented, with for their products. In combination with Infineum SV
ultra low viscosity oils for fuel economy, polymers it has a very broad
The use of premium Group III base stocks, viscosity grade coverage from
GM’s dexosTM oils, high-mileage oils, advanced viscosity modifiers and next SAE 0W-20 right up to SAE 5W-50,
re-refined oils and biolubricants, plus generation additive packages offer oil which provides better film
a growing number of private labels all marketers the ability to capture higher thickness for severe applications.
finding a space.
value through truly differentiated features
So with this increasingly complex and and premium performance. These high
Contact us to learn more about
overcrowded marketplace how do performance oils not only meet the
our top tier offerings and to discuss
marketers get any attention for their increasingly tough demands made by
future opportunities of working
Insight June 2012

product? In our view, focusing on a both OEMs and consumers, but also allow
premium ILSAC GF-5 oil gives marketers the marketer to more easily differentiate with us to differentiate your
a real opportunity to differentiate their their oil from the competition and help to products in the marketplace.
oil and tell consumers why theirs is better deliver improved returns.

©Infineum International Limited 2012. All rights reserved. 07


Fit for export
Middle East refineries turn to fuel additives
to meet export fuel specifications

As the Middle East ramps up its low sulphur diesel fuel production for the export market
John Maddox, Fuel Additive Deployment Technologist, Middle East & Africa, examines
the role that fuel additives play in ensuring the fuels meet regional specifications.
The refining industry in the Middle East However, ASTM D975 does not provide low temperature properties to ensure
is changing rapidly. New refineries are all the information that a refinery needs that the diesel supplied is suitable for
being built and others are undergoing to produce diesel for export to the US. the intended use. A number of tools
upgrades to allow the production of ultra Lubricity targets are clear, being set at can be used to help reach this agreement
low sulphur diesel. All of this activity adds 520 µm High Frequency Reciprocating including the Low Temperature Flow Test
capacity and increases the potential for Rig (HFRR) average wear scar diameter (LTFT) and Cold Filter Plugging Point
the region to export finished diesel to at 60°C, but cold flow requirements are (CFPP) test, which are used to estimate
other markets in the US, Asia and Europe. more complex and less well specified. vehicle low temperature operability.
However, these opportunities are creating The tenth percentile minimum air
The ASTM believes it is unrealistic to
challenges, as refineries work to meet temperatures can be used to help
specify low temperature properties that
the varied specifications of their global to estimate expected regional target
will ensure satisfactory vehicle operation
customers. Additives are now playing an temperatures for use with cloud
at all ambient conditions. Instead they
increasingly significant role in helping point, LTFT and CFPP test methods.
suggest that the fuel supplier and
the refiner to meet the specifications
purchaser should agree appropriate However, any diesel which enters the
requirement of the export destinations.
US pipeline system is subject to an
To enter the export market the refiner overriding agreement, which requires
must first gain a good understanding the cloud point to be below -9°C and
of the specifications required by the pour point to be below -18°C.
potential markets and make a decision
about which can best be targeted.

Understanding specifications
Specifications in most US states are
controlled by ASTM D975 and, although
seven different grades are specified, only
two grades containing 15 ppm sulphur
are of interest as export fuels. The first
is grade No. 1-D, which is a special
purpose light distillate for automotive
diesel engines. The second is grade
No. 2-D, a general purpose middle
distillate, which can also be used in
non-automotive applications.
Insight June 2012

©Infineum International Limited 2012. All rights reserved. 09


In Europe automotive diesel fuel quality all grades being set at 460 µm HFRR In Asia Pacific the market lacks the degree
is controlled by the European Standards average wear scar diameter at 60°C. of coordination seen in the US and
Organisation (CEN) under the EN 590 However, the cold flow requirement is Europe. However, the Singapore spot
specification, which provides a range of more complex. market, where both cold flow and
both temperate and Arctic grade options. lubricity requirements are clearly defined,
Cloud point is not specified in EN 590,
But potential exporters to Europe should but often forms part of exchange can provide some consistency for
be aware that local specifications, agreements and country specifications, exporters to target. Here CFPP is set to
including off-taker requirements, and must be considered by fuel -5°C and lubricity to 460 µm HFRR
exchange agreements and sometimes exporters. CFPP is set by individual average wear scar diameter at 60°C.
tax incentives, can cause the EN 590
countries according to a standard table
specification to be superseded. With cold flow and lubricity requirements
at levels from +5 to -20°C. But, having
being the two key performance
Europe faces similar uncertainties as in said that, local agreements can and
parameters that must be considered,
the US, although requirements appear do enforce more severe specifications,
it is important that the export refiner
to be better defined. The lubricity for example Germany’s winter
has some knowledge of the additives
requirement is clear and consistent for requirement of -22°C.
that will be needed to meet them.

Using cold flow additives


Refineries use cold flow additives to meet
CFPP targets and to improve refinery
economics. Without cold flow additives
the cloud point and CFPP of a diesel fuel
are quite close together. The use of cold
maximum cloud point flow additives widens the gap between
= increased profit the two parameters, allowing refineries
to raise cloud point and maximise the
economics of diesel production.
cloud point
However, it is not possible to expect
every additive to provide an economic
CFPP CFPP advantage. The additive must be precisely
matched with the alkanes that precipitate
when the fuel is cooled below the cloud
No cold flow additive With cold flow additive
point. Without this match the additive
diesel cloud point can may fail, which at best will result in poor
Insight June 2012

be elevated economics.

In Europe the financial incentives to use cold flow additives are high Selecting the right cold flow additive
is typically done through a complex

10 ©Infineum International Limited 2012. All rights reserved.


laboratory testing process that requires The key parameters to consider when early in the design phase to avoid real
representative diesel samples to be selecting a lubricity additive include: problems during project execution.
available. However, this test-based •  The additive chemistry; typically Pulling these factors together to strike the
approach is impractical for refineries a choice between ester or mono-acid best balance between supply, storage and
going through upgrades and for new
•  Off-taker preferences and requirements handling for each individual refinery is
builds, so a more speculative approach
•  The need to have multi-product critical to achieving successful application
needs to be taken in collaboration with a
pipeline approval of cold flow and lubricity additives.
knowledgeable and experienced additive
supplier at an early stage in the project. •  The maximum treat rate allowed Summary
to comply with pipeline approval The export of diesel fuel can be complex
Using lubricity additives
•  The required HFRR response because cold flow and lubricity
Vehicle manufacturers see lubricity as a
specifications are not straightforward.
critical parameter because certain parts A key element in the selection of both
However, careful use of additive
of the engine depend entirely on fuel for lubricity and cold flow additives is the technology is the most effective and
their lubrication. A fuel with poor lubricity balance that needs to be struck between economic way to meet HFRR and cold
will not meet HFRR specifications and supply security, storage and handling. flow specifications, but their use needs
can cause catastrophic levels of wear to These additives are often subject to long to be considered at the refinery project
critical pump components resulting in supply chains – in some cases as long design phase.
fuel pump failure. The lubricity of diesel
as 60 days. In addition, supply routes
fuel is defined by its ability to prevent Working closely with a knowledgeable
can be subject to trade restrictions and
or minimise wear in these critical areas additive supplier such as Infineum,
unplanned delays, which mean securing
and is a function of the way it has been with experience of refinery start-ups
supply from a local company can have
refined and blended. Hydrotreatment in the Middle East and a local
a high value.
to remove sulphur and the blending manufacturing capability, can contribute
of diesel with kerosene to improve low Before supply can be arranged the to the success of the project. In addition,
temperature performance both lower refinery must consider how it will store close working relationships can help
the fuel’s lubricity. the additives locally. This can be split to minimise implementation issues
between the additive supplier’s facilities associated with the use of cold flow
The use of lubricity additives is the
and onsite refinery facilities. and lubricity additives.
lowest cost way of meeting specifications
and retaining vehicle performance. However, it is important to ensure the
Although the addition of fatty acid tank sizes take account of the length of
methyl ester (FAME) is also an effective the supply chain, the additive treat rate
method, it is more expensive than using and how much diesel will ultimately be Contact our Middle East &
a lubricity additive, unless the use of produced. In our experience, additive Africa Fuels team for advice on
FAME is mandated as part of the diesel storage facilities, handling requirements optimising your refinery for
diesel export.
composition. and injection methods need to be agreed

A fuel with poor lubricity


will not meet HFRR
specifications and can cause
catastrophic levels of wear to
critical pump components
Insight June 2012

©Infineum International Limited 2012. All rights reserved. 11


Maxim Donde
on the Russian lubricant market

Russia is one of the world’s exciting growth economies. Valera Verstelle, Head of
Infineum UK Ltd’s Representative Office in Moscow, recently took the opportunity
to talk to Maxim Donde, General Director of LLK International (Lukoil), about his
perspective of the country’s fast changing lubricant markets.
As you would expect in a growing to grow,” he explains. “But we also have a thing of the past. GOST specifications
economy, vehicle production and sales in a desire to expand further. One area is have been out there for decades; right
Russia are healthy and industry analysts our marine lubricants project, which now I don’t think anyone would be
expect the country to overtake Germany started in 2008 and now has almost 2% investing their time to upgrade them.
as the largest car market in Europe by of the market worldwide, which we will I think the OEM claims will replace
2016. This forecast, and the fact that continue to expand.” them and the GOST specifications will
Russia has joined the World Trade be something of the past. I expect the
Today, the Russian lubricant market is
Organization, means western vehicle share of imported lubricants to grow,”
oriented towards sales of low quality
manufacturers have been rushing to he continues “something we will fight
Russian GOST and low quality API
invest in local production facilities in
technology lubricants. We asked Donde because this specific market segment is
order to capture a share of the market.
for his views on the future of lubricant very exciting to us because it is where
Russia is currently the fourth largest quality. “I don’t think you can talk about we make the most money. We intend
global lubricant market, with future the Russian lubricants market as one to compete with lubricants of the
growth expected to be significant as the homogeneous market. If you take same high quality – they will just be
vehicle population builds. However, the passenger car motor oil, we already domestically manufactured.”
recent economic turbulence has created see a huge percentage of high quality
For commercial transport the situation is
some uncertainty about the potential for lubricants and that’s a reflection of the
growth. We wondered if this uncertainty foreign auto manufacturers getting into different. Here he estimates the share of
might lead local lubricant companies to the country in a very aggressive fashion. imported high quality lubricants to be
expand their sales outside of Russia and Right now the estimates vary quite a bit, around 12%, with limited evidence that
therefore compete with the existing but everyone agrees that the share of the imported and high quality lubricants
major oil companies. imported lubricants is above 50%, so are growing. “Any growth will be
we no longer talk about these so called because sales of imported vehicles may
“When you say ‘local Russian lubricant
GOST lubricants as a major driving grow,” he explains. “We see quite
companies’ you probably mean Russian
force in the market. With the emergence aggressive behaviour from Russian
integrated oil companies, for example
of OEM claims they are likely to become domestic auto manufacturers in this
Rosneft, Gazprom Neft and Lukoil,” says
Donde. “I don’t think you can call these
companies ‘local’ because they are
pretty big, which makes them regional
majors with certain ambition for growth
outside Russia.” “Fuel economy is important to every economy in the world.
It is clear that Lukoil shares these
However it hasn’t been as important in Russia as in the
ambitions. “In the commonwealth of European markets because we have an abundance of
energy resources and the price of the energy has been
Insight June 2012

independent states of former Soviet


countries we have a significant presence lower and subsidised by the state for quite some time.”
and in many cases share common
language and culture, so it’s easy for us Maxim Donde, LLK International

12 ©Infineum International Limited 2012. All rights reserved.


Insight June 2012

©Infineum International Limited 2012. All rights reserved. 13


segment and that means that certain Oil drain interval is a different matter and have guessed that just five years ago –
lower quality lubricants will prevail. Donde feels this is already impacting the yet it is out there. It is a challenge
For example, local manufacturer GAZ Russian lubricant market. “Oil drain because we suddenly see people who
has a strong position, if you go out on interval is integrated with the purchase of drive really nice cars and they don’t want
the streets you’ll see their vehicles foreign made cars which have longer to buy locally manufactured lubricants.
everywhere, they offer decent quality drain intervals – suddenly people don’t We have invested a lot of money in
for decent price and I believe they will have to change their oil every 10,000 km. upgrading our production equipment,
hold their market share.” But the situation is different in the used developing new lubricants and obtaining
car market where cars are off-guarantee. approvals. But now we have to invest
Fuel economy is the main driver for the
We tend to change the lubricant, money in making sure the consumers
development of new top tier lubricants in
irrespective of the number of miles trust locally manufactured lubricants
Europe and we were keen to understand
driven, during the spring and autumn because right now people think ‘foreign
Donde’s views of how important fuel
because the difference in temperature car equals foreign lubricant’.
economy is in Russia. “Fuel economy is
could be as big as 60 degrees. People are
important to every economy in the Keeping abreast of this challenge is
used to the idea that summer and winter
world. However it hasn’t been as difficult, and Donde is not sure they
lubricants should be different, which
important in Russia as in the European are winning the race at present.
means I think the tendency for longer
markets because we have an abundance “It’s easy when you know you must
drain intervals for lubricants would be less
of energy resources and the price of the develop a new lubricant, get a new
apparent in Russia than in other markets.”
energy has been lower and subsidised by approval or find a new technology
the state for quite some time. I think the The pace of change in Russia is very fast provider, but how do you change the
rate of growth of fuel efficient equipment and adjusting to the changing market perception and understanding that
and behaviour will depend on how conditions has bought unexpected people have had for many years that
forceful the government is and the price challenges to companies like Lukoil. if you buy a piece of foreign
of fuel. Right now domestic cars are not “We did not expect foreign manufactured equipment you don’t take a chance
fuel efficient and we are not fuel efficient vehicles to be prevalent in the Russian on a local lubricant? This is something
in our behaviour, if the price of fuel market so fast,” he confirms. “Right now we fight against constantly and I don’t
goes up that’s going to force people more than 50% of cars in the streets in think we have the answer to it but
to change their behaviour.” the cities are foreign – no one would we’re working on it as we speak.”

“Right now more than 50% of the cars in the streets


in the cities are foreign – no one would have guessed
Insight June 2012

that just five years ago.”


Maxim Donde, LLK International

14 ©Infineum International Limited 2012. All rights reserved.


Investing in technology
Salicylates for top tier crankcase
and marine formulations

Salicylates are valuable, differentiated detergent components with advantages in


top tier lubricant formulations in a range of applications. Robin Scott, Automotive
Development Manager, and Eddie Wilkinson, Marine & Large Engines Technology
Manager, look at the progress of Infineum’s project to build new salicylate
production facilities in Singapore and at the advantages this technology delivers
to crankcase and marine lubricant formulators.
Salicylates are used to deliver detergency emissions system performance. Achieving They are designed to have low oil
in passenger car, heavy-duty, marine, this balance has become increasingly consumption, to burn a wide range of fuels,
gas engine and railroad engine lubricant challenging. And as chemical constraints and to offer safe, economical and reliable
formulations. Salicylate formulations differ are introduced and tightened in lubricant operation. The lubricant must be capable
from the majority of formulations using specifications across the globe, complex of neutralising combustion acids, dealing
phenate and sulphonate in that only a chemistry and sophisticated lubricant with water contamination, dispersing
single surfactant type is needed. The formulations are required. combustion products, handling the
salicylate soap provides both the required
The development of top tier formulations asphaltenes in the HFO (which can migrate
engine cleanliness and supports sufficient
that offer the desired performance to the lubricant), and controlling deposits
dispersed base to neutralise acid in the
benefits but with lower levels of sulphated on the piston undercrown and ring grooves.
engine. However, due to its potency,
ash, phosphorus and sulphur (SAPS) has Today, all trunk piston engine oils (TPEO)
a high level of formulation expertise is
been an area of considerable focus for the are formulated in Group I base stocks and,
required to use salicylate technology
additives industry. For example, Infineum in combination with salicylate detergents,
effectively. In addition, not all salicylate
has based its salicylate chemistry on a these offer excellent deposit control
technologies are the same. Infineum
produces a wide range of calcium and sulphur-free molecule and the resulting compared with lubricants formulated
magnesium salicylate grades because components deliver several advantages: with a combination of sulphonate and
differences in composition result in • Improved oxidation control phenate detergent technologies.
subtle variations in performance that • Strong acid neutralisation capability However, changing base stock production
must be addressed and optimised in
• Superior piston cleanliness trends, driven by the crankcase market,
the final formulation.
mean the use of base stocks with higher
•  Long drain capability even at
Salicylates on the road reduced SAPS saturates is increasing. In the future this
The progress that has been made to will result in marine lubricants being
reduce vehicle emissions over the Another advantage of calcium salicylates increasingly formulated in Group II base
years is impressive. Emissions of NOx, over their sulphonate counterparts is that stocks. The relatively inferior solvency of
hydrocarbons and particulate matter they can have a lower friction co-efficient Group II compared to Group I base stocks
have all been dramatically reduced which means, if formulated optimally
means the oil may be unable to handle
by aftertreatment innovations such with other components, they can deliver
the asphaltenes adequately, which could
as the three way catalyst and diesel fuel economy benefits.
lead to the formation of black sludge and
particulate filter.
Salicylates for marine piston undercrown deposits. Superior
Insight June 2012

Today’s top tier lubricants must deliver Medium speed, four-stroke trunk piston dispersion of asphaltenes is therefore
engine durability and sustained fuel engines used to power coastal and cruise becoming increasingly important for
economy without compromising ships typically run on heavy fuel oil (HFO). future marine TPEO formulations.

©Infineum International Limited 2012. All rights reserved. 15


Infineum investment
PCMO HDD Infineum recognises that supply security
Mid-SAPS SAE 5W–40 SAE 10W–40 is of vital importance in top tier lubricant
formulations and is investing in the
Specification CIaim Specification CIaim
construction of a new world-scale
A3/B3-08 salicylates unit in Singapore. The flexibility
E4-08 Issue 2
ACEA A3/B4-08 ACEA to increase capacity has been built into the
E7-08 Issue 2
C3-10
plant’s design, which will allow Infineum
API CF, SM, SN API CF to meet the needs of this growing market.
At the same time, the combination of
BMW LL-04 Cummins CES 20072 this new plant and existing production
facilities in France mean increased supply
GM dexosTM 2 DAF Extended drain reliability can be offered to our customers
around the world.
MB p229.51 Deutz DQC III-10
The project has successfully progressed
Porsche Approved MAN M3277 through the Front End Engineering
502 00 Design (FEED) and the selection of a
p228.5 contractor for the detailed Engineering,
VW 505 00 MB
p235.27
505 01 Procurement and Construction (EPC)
processes is complete. Field construction
MTU Type 3
is now expected to begin in mid-2012,
RDX, RLD keeping the project on schedule to meet
RVI
RD-2, RLD-2
the 2013 start up target.
LDF, LDF-2
Scania
LDF-3
Read our latest press
Volvo VDS-3 release on the project

Voith Class A
Request further
information on Infineum
Infineum’s salicylate-based products cover all the top tier specifications salicylate technology

Successful deployments performance by providing excellent acid


Infineum has developed several crankcase neutralisation and antioxidancy, which
and marine lubricant products using helps to keep the engine clean even when
salicylate technology, which have been high sulphur or biodiesel containing fuels
extensively tested in the field and are used. In addition, the technology offers
laboratory. This development work has fuel economy retention throughout the
revealed that it is not only essential to extended drain interval – something end
select the right salicylate for the right users value as they seek to minimise off
application, but also to ensure that the road time and reduce fleet running costs.
correct balance of salicylate and metal
In TPEO formulations salicylates provide
overbasing alkali are employed to ensure
excellent asphaltene handling and
that all the benefits of the technology
water shedding properties (critical
can be utilised effectively.
for marine engines using HFO),
In 2003, Infineum introduced its first and improved cleanliness,
passenger car mid-SAPS salicylate-based antioxidancy and base
product that met all the required number retention compared
specifications across a wide range of with sulphonate and phenate-
generally available Group III base stocks. based products. Development
Building on this experience, a low-SAPS and testing work in Group II base
product, which meets a unique combination stocks has demonstrated that salicylates
of claims including the ACEA C4-10, and a booster can deliver at least
MB p229.51 and Renault 0720
equivalent cleanliness performance to
Insight June 2012

specifications has been developed.


current Group I formulations. This means
In the heavy-duty diesel world Infineum Infineum is ready for the use of Group II
salicylates can deliver long drain base stocks in marine TPEO formulations.

16 ©Infineum International Limited 2012. All rights reserved.


Steve Haffner, Infineum Crankcase Market Manager,
reports on the upgrade to the North American passenger
car and heavy-duty engine oil performance standards.
Progress on ILSAC GF-6 has been slow, requirement for ILSAC GF-6 from 15% to redundant tests to see if some efficiencies
and it continues to appear that the 13% maximum. The ILSAC category still in testing can be gained. Mack is working
category timeline may slip. If this plans to increase the oxidation severity on the new Mack T-13 test, which is key
happens, the introduction of the new of the new Sequence III test. So, although to the new category timeline, and Detroit
heavy-duty and passenger car categories the specification may still require a 15% Diesel is working on a potential new
could overlap. Other significant maximum Noack volatility, engine oils piston scuffing test. The new Mack T-13 is
developments in recent months are may need to be at lower Noack volatility expected to replace the Mack T-12, T-10
as follows. levels in order to meet the desired engine and T-9 tests. The use of the Mack T-13A
test performance requirements. test to measure oxidation is also under
Passenger car developments consideration. An increase of 10°C for the
For ILSAC GF-6, Ford has reported We can also note that there have been oil and the oil gallery/sump temperature
that the Sequence VH sludge test no significant discussions on how viscosity plus a doubling of the time under the
development is proceeding on schedule grades below 2.6 HTHS would be high temperature portion of the test vs.
and Toyota has confirmed that the handled. Those products are not likely to the current Mack T-12 will significantly
replacement for the Sequence IVA is be backwards compatible for use in older increase the oxidation severity of this test.
also proceeding well. The Sequence VID engines, and it’s not clear that standard
Surveillance Panel is working on the engine tests will be capable of evaluating Three additional task forces are also in
evaluation of a new 2012 MY engine. these new grades. place. The shear stability task force is
While the work appears to be on looking at shearing of engine oils and
schedule, questions remain about Heavy-duty diesel category the impact of that in the market place.
the extent of the correlation of the data Turning to PC-11; The Engine It is currently trying to find oils that
with the current 2009 MY engine and Manufacturers Association (EMA) met cause issues related to low shear stability
the 2012 MY engine which will replace it. in March along with the New Category in the field to help in deciding on a test
Development Team (NCDT). Many of the protocol that might be used for PC-11.
The largest unknown continues to be existing API CJ-4 tests and limits will carry The oxidation task force has not made
the Sequence IIIG replacement. GM is through to the new category, including significant progress yet but will be
developing the oxidation/deposit test for the Cummins ISB and ISM, Mack T-11 looking to see what happens with the
dexos™. They have indicated that they and Cat C-13. Noack volatility limits will Sequence III replacement test. The
will not use the ASTM process for test also remain the same: 13% maximum biodiesel task force is taking a ‘wait and
monitoring. If the test is to be considered for SAE 15W-40 and 15% maximum for see’ approach to the need for a biodiesel
for inclusion in the ACC Code of Practice, SAE 10W-30 and lower viscosity grades. compatibility test and is monitoring recent
the specifics of their internal process for It should be noted, though that many test development activity in Europe.
test monitoring will need to be assessed OEM specifications will still require 13%
against the criteria in the ACC Code of maximum Noack volatility on the lighter The industry has not had significant
Practice. The API Lubricants Group is viscosity grades, which will likely require discussion as to how oils below 3.5 HTHS
responsible for determining if the GM higher viscosity index (VI) base stocks for would be integrated into the market. It is
test and its process are adequate for use those lighter viscosity grades. likely that these oils will not be backwards
compatible. These two new category
Insight June 2012

in the API 1509 standard.


The new C-13 aeration test will replace developments will have major implications
Another key development was that ILSAC the engine oil aeration test (EOAT) and for our industry; we will keep you
has decided not to lower the Noack a task force is being formed to look at informed of their progress in future issues.

©Infineum International Limited 2012. All rights reserved. 17


Diary dates
JUNE
18 - 20 NOx Reduction
June 2012 Insight
Detroit, US
Editor >
18 - 22 World National Oil Companies Congress Rose Gill
London, UK
European Co-ordinator >
18 - 22 European Biomass Conference and Exhibition Lucy Hick
(20th EU BC&E)
Milan, Italy
US Co-ordinator >
Marty Meyers
19 - 20 Transmissions in Vehicles 2012
Friedrichshafen, Germany Asia Pacific Co-ordinator >
Karen Woon
20 - 21 Petrochemical Asia 2012
Bangkok, Thailand Infineum International Limited
Europe / Middle East / Africa
21 - 22 Bunker & Residual Fuel Oil Conference
PO Box 1, Milton Hill, Abingdon
Houston, US
Oxfordshire, OX13 6BB UK
24 - 27 Combustion Generated Nanoparticles Conference
Registered in England >
Zürich, Switzerland No. 3623664 registered office PO Box 1,
Milton Hill, Abingdon, OX13 6BB,
24 - 28 ASTM Petroleum Products and Lubricants D02 Meeting
England
San Francisco, US
Tel: + (44) 1235 54 9501
25 - 27 European Bioenergy Conference 2012
Fax: + (44) 1235 54 9523
Brussels, Belgium

26 - 28 Diesel Emissions ARLA 32 Forum www.infineum.com


Sao Paulo, Brazil
Not all offices are listed.
27 - 28 Asian Base Oils & Lubricants Conference To locate your local sales
Singapore office please visit our website

AUGUST Email if you would like to


contact Infineum as a result
22 - 24 The Korean Society of Automotive Engineers
Baja & Formula 2012
of a feature in this magazine
Gunsan, Korea
27 - 31 Bioenergy from Forest – Conference and Exhibition
Jyväskylä and Jämsä, Finland © Copyright INFINEUM INTERNATIONAL LIMITED 2012.
All rights reserved.
SEPTEMBER Permission is given for storage of one copy in electronic means
for reference purposes. Further reproduction of any material is
prohibited without prior written consent of Infineum
04 - 07 Leeds-Lyon Symposium on Tribology International Limited.
The information contained in this document is based upon data
Leeds, UK believed to be reliable at the time of going to press and relates
only to the matters specifically mentioned in this document.
Although Infineum has used reasonable skill and care in the
05 - 07 3rd Diesel Emissions Conference preparation of this information, in the absence of any overriding
obligations arising under a specific contract, no representation,
New Delhi, India warranty (express or implied), or guarantee is made as to the
suitability, accuracy, reliability or completeness of the
information; nothing in this document shall reduce the user’s
responsibility to satisfy itself as to the suitability, accuracy,
11 - 12 SAE Heavy Duty Diesel Emissions Control Symposium reliability, and completeness of such information for its particular
use; there is no warranty against intellectual property
Gothenburg, Sweden infringement; and Infineum shall not be liable for any loss,
damage or injury that may occur from the use of this
information other than death or personal injury caused by its
13 - 14 SAE Emission Control from Large Ships Symposium negligence. No statement shall be construed as an endorsement
of any product or process. For greater certainty, before use of
Gothenburg, Sweden information contained in this document, particularly if it is used
for a purpose or under conditions that are abnormal or not
reasonably foreseeable, it must be reviewed with the supplier of
such information.
13 - 14 International AVL Conference Engine & Environment
‘Infineum’, ‘Dobanax’, ‘Paratac’, ‘Synacto’, ‘Vektron’, ‘Vistone’
Graz, Austria and the corporate mark comprising the interlocking ripple
device are trademarks of Infineum International Limited.

Design and production by >


Conferences at which Infineum is presenting a paper/sponsoring/attending - shown in white
Insight June 2012

IAS b2b Marketing, Clarence Mill, Clarence Road, Bollington,


Please keep us informed... If you are hosting an event of interest, Cheshire SK10 5JZ, United Kingdom
Tel: +44 (0) 1625 578578 E: info@iasb2b.com
please click here to send the details to the Editor. We will try to
publish details of relevant events in this column. Published by >
Infineum International Limited

18 ©Infineum International Limited 2012. All rights reserved.

You might also like