site daily during the three-year construction period, with workforce numbers peaking at approximately 1,300 workers in 2017. These numbers consist of construction personnel as well as individuals hired to maintain plant operations once it’s up and running.
SJ: What role have you been playing in this project? TW: My position is the Global Basestocks and Specialties Marketing Manager. Essentially, it’s my job to understand customer needs, and get the right products into the market. We [the marketing team] are designing product lines, selecting the products we want to produce – whether its EHC heavies or lights, etc. Our marketing department is also responsible for coordinating with additive companies and creating and communicating our marketing position. My team is managing all the marketing components, on a global scale, for Rotterdam.
Separately, we have strong and robust sales and supply organisations, in addition to a qualified team on the ground, which is responsible for building the assets.
SJ: You have unveiled a project in Singapore as well. Are you managing both Singapore and Rotterdam? TW: Yes, I oversee our marketing globally. We also have a project manager in Singapore who is managing the expansion through to completion and, is being supported by the construction team.
Once Rotterdam starts streaming, ExxonMobil will have three Group II production centres: Jurong, Singapore; Rotterdam, Netherlands and Baytown, Texas.
ExxonMobil is expanding the hydrocracker unit at its Rotterdam, Netherlands, refinery to upgrade heavier byproducts into cleaner, higher-value finished products, including EHC™ Group II base stocks and ultra-low sulphur diesel.
SJ: As well as press releases and presentations, what other methods are you using to promote Rotterdam and Singapore? TW: Sales puts a lot of effort into facilitating one-on-one customer meetings. ExxonMobil has already begun engaging customers on Rotterdam, and, we will begin engaging customers on Singapore now that the project has been announced. It takes customers a long time to prepare for a new product – they must consider different formulations, navigate the complexities of blend plants, in addition to, the new and upcoming automotive certifications. Because of this, we typically reach out to our larger customers as soon as we make an announcement.
SJ: There is talk in the UK that emissions from diesel cars are particularly bad for the environment, and there’s speculation of them being phased out. If this is the case, and as a consequence the diesel passenger car market declines, what will the effect be on ExxonMobil’s Group II production? TW: Our hydrocracker in Rotterdam is going to produce both diesel and base stock. If the market conditions change, requiring more base oil and less diesel, we’ll just adjust our run-rates to match demand, so we don’t anticipate this being a significant setback.
Of note, the Rotterdam refinery is already one of the most energy-efficient refineries in Europe, and our expansion project will increase its energy efficiency by a further five percent.
SJ: What does the development of Group II mean for Group I refineries in Europe? TW: In light of the new and upcoming engine specifications, ExxonMobil recognizes the industry is shifting to Group II. As such, it’s fair to assume that Group I demand will continue to decrease in the higher end of the passenger vehicle market. Interestingly, some formulators are mixing Group I and Group III together for passenger vehicle lubricants.
Our Rotterdam expansion project will enable ExxonMobil to provide Group II in-region. Soon, customers in Europe will be able to reliably access high performance base stocks designed to reflect tomorrow’s needs; produced locally.
While the industry is shifting to Group II, there are applications that still value Group I products. A heavy product works well in industrial and marine lubricants, for example. In addition, successful Group I players in the base stock industry are those who are efficient and can offer profitable niche products whether wax, bright stock, or, another type of extract.
SJ: But Group I can’t ever really finish for good, surely? TW: As I said earlier, ExxonMobil looks about 30 to 40 years ahead as part of our planning process. In the coming 30 to 40 years, we don’t anticipate there will be a time when the industry will claim “Group I is finished for good!”
As I’ve already mentioned, there are applications that value Group I, despite the overall shift to Group II that we are seeing. Instead of exiting the Group I market as other companies have done, ExxonMobil recognises the need for Group I, and this will continue into the future. Given this, we are continuing to offer customers a reliable supply of Group I base stocks through ExxonMobil refineries.
Continued on page 44
LUBE MAGAZINE NO.138 APRIL 2017
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