Forward to friend Subscribe contact OATS alt oats OATS Bulletin. Issue 93 – June 2008

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1 . Total and CEPSA combine for lubes and fuels marketing drive in Portugal
2 . Exxon sells out to Galp in Spain and Portugal
3 . ExxonMobil sells to Cosan in Brazil
4 . Russian lubes companies go for base oil upgrades
5 . Neste Oil launches unique renewable diesel
6 . America’s DOT aims to increase CAFE fuel efficiency standards
7 . New nano coating manufactured in Europe
8 . Fuchs sets up lubes plant in India
9 . Commentators fear too few US companies are REACH-aware
10 . New worldwide lubes report
11 . UEIL 2008 Lubes Congress
12 . Practical environmentalist to test solar-powered rickshaws



1. Total and CEPSA combine for lubes and fuels marketing drive in Portugal

France’s Total is merging its operations in Portugal, including some 141 retail sites, with those of Cia Espanola de Petroleos SA (CEPSA), its Spanish partner. CEPSA is Spain’s second-largest petroleum company, which has more than 1,650 outlets across the Iberian Peninsula. Total has been a shareholder in CEPSA since 1990 and currently has an interest of almost 49%. In Portugal, the merged interests will be managed by CEPSA, which has operated in the country for some forty years. It opened its La Rábida Refinery in Huelva in 1991, and owns supply and storage facilities, including a depot at Matosinhos, near Oporto. The newly created combined business will have a market share of about 11%, and a network of 300 service stations in Portugal − to be co-branded CEPSA/Total − that will sell lubricants branded Total, CEPSA and Elf. Both companies see the move as a way of improving sales of lubricants, bitumen, aviation fuels and liquefied petroleum gas.
More at: Total release

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2. Exxon sells out to Galp in Spain and Portugal

Portugal’s Galp Energia, which was formed in 1999, is to acquire Esso Espanola S.L. and ExxonMobil Portugal Holdings BV from ExxonMobil Corp. The deal is said to include about 130 service stations. The company says that it will also acquire the majority of Exxon’s lubricants business in Iberia from ExxonMobil Petroleum & Chemical BVBA. It plans to combine the acquired assets with its own distribution business to create ‘significant economies of scale’. Last year, Galp also bought AGIP Portugal and AGIP Spain from Italian Energy group Eni for marketing oil products in Portugal and Spain.
More at: Galp release

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3. ExxonMobil sells to Cosan in Brazil

News agencies are widely reporting that Esso Brasileira de Petroleo Ltda., in Brazil, has been sold by ExxonMobil International Holdings to the Brazilian ethanol giant Cosan S.A., although at the time of writing neither party has issued a statement. The purchase, which is valued at $826 million, is said to include a lubricants plant in Rio de Janeiro, and a controlling stake in a lubes terminal in Duque de Caxias. In addition, Cosan and ExxonMobil have also entered into long-term agreements that will allow Cosan to resell Mobil 1 and use other Esso and Mobil lube brands in Brazil. Previously, ExxonMobil had about a 10% share in a Brazilian lubes market that is said to be worth some 1.07 million metric tonnes annually.

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4. Russian lubes companies go for base oil upgrades

In Russia, Taneco has revealed plans to build a new Group II and Group III base oil plant at Nizhnekamsk in the Tatarstan region by 2011. News agencies report that this division of the Russian oil company Tatneft has signed a $2 billion, 25-month loan to finance the first phase. When operational, the plant is expected to make 100,000 metric tonnes of basestock per year.

There are also reports that Gazprom’s Sibneft-Omsk Refinery in Omsk is to upgrade its base oil plant in four phases, in order to make Group II and Group III base oils, to be fully operational between 2013 and 2015.

Turkmenbashi Oil Processing refinery in Turkmenbashi, Turkmenistan, is looking to increase its Group II capacity by up to double the current amount.

Lukoil is similarly looking to double, at least, its Group III production at Volgograd.


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5. Neste Oil launches unique renewable diesel

As part of its published strategy to grow its oil refining business alongside its premium-quality renewable diesel operations, Finland’s Neste Oil has launched what it claims to be ‘a unique renewable diesel’ into the domestic market. The company also says that it is the first in the world to bring out such a product that suits all diesel motors. The product contains at least 10% renewable fuel, in a formulation based on its NExBTL component, which has a 40-60% lower level of greenhouse gas emissions over its entire lifecycle compared to fossil diesel. Neste has oil refineries at Porvoo and Naantali, with a combined crude oil refining capacity of about 260,000 barrels per day.
More at: Neste release



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6. America’s DOT aims to increase CAFE fuel efficiency standards

In America, the Department of Transportation has announced new fuel efficiency standards for passenger cars and light trucks for the period 2010-15. The aim is to increase average fuel economy for passenger cars from the current 27.5 mpg to 35.7 mpg, and from 23.5mpg to 28.6 mpg for light trucks. This is seen as putting pressure on engine oil manufacturers to come up with greater energy-conserving formulations, and give more impetus to carmakers to exceed Corporate Average Fuel Economy standards, thereby earning credits. If the plan works, says the DOT, some 55 billion gallons of fuel will have been saved, and carbon dioxide emissions will have been reduced by 521 million metric tonnes. The proposals are covered at: NHTSA announcement


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7. New nano coating manufactured in Europe

In Europe, an EU project named Foremost (short for ‘Fullerine-based opportunities for robust engineering making optimized surfaces for tribology’) has manufactured a lubricating coating using nanotechnology. The project is being run by a consortium that includes Fuchs, Renault-Nissan, and Rolls-Royce. The coating uses nanoparticles, known as inorganic fullerines, which are nested spheres that lubricate moving parts by rolling between them like tiny ball bearings. This technology was researched and developed by the Nes Ziona, Israel research arm of ApNano Materials Inc., a manufacturer of solid lubricants, whose headquarters are in New York, USA.
Foremost is funded by the EU’s Sixth Framework Program for Nanotechnologies and Nanosciences. Its purpose is to make radical improvements to coatings and lubricants that will significantly reduce friction and wear, thereby substantially saving on energy, extending operational life, reducing maintenance, and cutting down the environmental impact of machines, automobiles and trucks, etc. The new coating that has been developed is to be marketed to industrial firms and used by consortium members.
Further details are at: Nano Tech news


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8. Fuchs sets up lubes plant in India

News sources in India have reported that Fuchs Lubricants, a wholly owned subsidiary of Fuchs Petrolub of Germany, is to invest £10 million in a new manufacturing plant there for making lubricating oils and greases. The plant, which will be set up at Ambarnath in Maharashtra, near Mumbai, is expected to be operational in 2009 and will manufacture some 20,000 tonnes of lubricants per year. Chennai and Kolkata are also said to be in Fuchs’s sights for similar developments once Ambarnath is up and running.
More at: Business Line article




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9. Commentators fear too few US companies are REACH-aware

Fears are growing for US companies, and in particular North American lubes exporters, who may fail to register their products under REACH, the EU’s chemical registration scheme, within the six months period allowed from 1 June 2008. We have previously reported on American industry commentators’ beliefs that fewer than half US medium-to-large chemicals companies are aware of the implications of REACH, and how non-compliance will affect the business of everyone in their supply chain. Those commentators are now saying that, amongst smaller companies, there is an even greater amount of ignorance about their potential exposure to REACH. Failure to register relevant products will quite simply mean that American companies will be unable to export to the EU. Your first step to becoming REACH-literate could be ACEA news
or GM info

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10. New worldwide lubes report

A new report from Research and Markets analyses the worldwide markets − based on US, Canada, Japan, Europe, Asia-Pacific, Middle East, and Latin America − for lubricating oils and greases in millions of gallons. World Lubricating Oils & Greases Markets does so in the following segments: automotive lubricants, industrial lubricants, synthetic lubricants, and greases, and provides forecasts for each region to 2015. In addition, the report profiles 383 companies including many key and niche players worldwide. For full details, including a comprehensive listing of contents, go to Research and Markets report

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11. UEIL 2008 Lubes Congress

The UEIL Annual Congress 2008, entitled Lubricant Raw Materials – Technology and Supply, will take place 23 to 25 October in Warsaw, Poland (previously booked for Krakow). It will be the first conference for UEIL’s new General Secretary, Milagros Mostaza-Corral, who recently took over from Axel Rindborg.
More info available soon: UEIL.org


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12. Practical environmentalist to test solar-powered rickshaws

It is reported from Kuala Lumpur that S.R. Nithy, a Malaysian-Indian who lives in Houston, Texas, is planning to travel some 7,483 kilometres through the Indian sub-continent on a solar-powered, three-wheeler rickshaw. Nithy is a great cyclist who once worked in a bicycle shop, and has so far accomplished some nine cycling feats on five continents, mostly in order to raise awareness on social issues. He says that there are about six million rickshaws in Asia, which between them consume millions of litres of petrol and lubricating oil. He wants to road-test the solar-powered alternative, and aims to begin his planned journey, which will last for one year, in 2011. It will take in Colombo, Mumbai, Islamabad, New Delhi, Kathmandu, Dhaka and Bangalore.
More at: NST article


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