Hyundai and Base Oil production kicks off

The plant has the capacity to produce around 13,000 barrels per day, or 650 kilotonnes of API Group II base oils per year. Construction was completed in just 20 months, close to two months ahead of schedule and successful commercial production of base oils began in July 2014.

“As the demand for higher quality lubricants is on the rise in Asia, the region is shifting away from Group I base oils towards increased use of Group II and Group III base oils,” said Mark Gainsborough, executive vice president, Shell Lubricants.

“This plant contributes significant Group II base oil supply to Shell’s supply chain in the region, helping us grow our premium lubricants business in Asia, especially in China and Northeast Asia.”

This is the fourth base oil production plant for Shell in the region, after Pulau Bukom in Singapore, Kaohsiung in Taiwan and Yokkaichi in Japan.

Shell base oil production plants in Asia work alongside Shell’s network of 19 blending plants in the region, to deliver high quality Shell finished lubricants. The company has blending plants in China, Singapore, Thailand, Malaysia, the Philippines, Vietnam, South Korea, Pakistan and India.

Shell is also in the process of building two new blending plants in Asia, one in China and one in Indonesia.

Hyundai and Shell Base Oil Co Ltd is a joint venture company formed by Shell (40%) and Hyundai Oilbank (60%).