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Leading Change in


the Middle East Luberef Expansion enters the home run


Saudi Aramco Base Oil Company - Luberef, a joint venture between Saudi Aramco and Jadwa Industrial Investment is currently entering the home run on an ambitious expansion project that will see advanced new facilities commencing operation in 2016. Gerard Heaton, Luberef’s Sales & Marketing Manager, provides an overview of the expansion project and reflects on the journey to date.


Luberef operates base oil refineries at Jeddah and Yanbu, producing Group I base oils and is a leading market player within the M. East base oil and lubricant industry. Luberef’s Expansion project covers the construction of a new Group II base oil plant at its Yanbu refinery that will see its production of base oils double to close to 1.2 million metric tons per year.


Luberef’s Expansion is not just about the new Group II plant, as it is also revamping, debottlenecking and upgrading some its existing assets to improve logistics infrastructure, as well as to make effective use of the Yanbu Group I base oil plant, which is retained. In this regard, one of Luberef’s plans is to use these facilities to double its Brightstock production, providing a key source of supply to meet future market needs at a time when closures of Group I plants are tightening supply of heavy viscosity


base oils. With Yanbu conveniently located on the Red Sea coast, Luberef can readily supply both Eastwards and Westards. The commissioning of the Yanbu Luberef Group II plant is scheduled to commence during the 2nd quarter 2016, with the new range of Group II base oil available for sale during 3rd Quarter 2016. Downstream refinery investments are long lead time projects and “it is a good feeling to be on the home run even though there are still many challenges ahead as we progress towards the Group II plant start-up”, says Gerard.


The Expansion project brings economic growth to Saudi Arabia, through increasing the volumes of base oil exports, as well as by creating approximately 200 new long term jobs.


Within the global base oil and lubricants industry Group II base oils and the production technology are established and well known, but Luberef is the first producer of Group II base oils within the M.East that are used for blending the majority of lubricants. Luberef’s expansion is therefore acting as a catalyst for change within the region and Luberef has assumed the role as a facilitator of change. This will enable Lubricants blenders and marketers to enhance the quality of products that they offer to their customers and consumers within the M. East region.


12


LUBE MAGAZINE NO.131 FEBRUARY 2016


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