ExxonMobil will discontinue manufacturing Group I lubricant base stocks and associated waxes at its Beaumont, Texas refinery by 2Q16, a company spokesperson told OEM/Lube News last Monday. The company said the global base stocks market is transitioning to higher performing base stocks, driven by increasingly stringent performance requirements for next-generation engine lubricants.
As a result of this shifting market, ExxonMobil said it will discontinue manufacturing Group I lubricant base stocks at its Beaumont refinery. All impacted employees will be redeployed within the site, the company said.
ExxonMobil spokesman Christian Flathman told OEM/Lube News "ExxonMobil will continue to supply and market Group I lubricant base stocks and associated waxes, which are manufactured at both our Baytown and Baton Rouge refineries in the U.S., as well as other locations worldwide."
"We recently expanded our manufacturing of higher performing base stocks (e.g., Group II and Group II+) at our facilities in Baytown, Texas, and in Singapore and are evaluating a potential investment in Rotterdam to meet growing customer needs", said Flathman.
"Our Beaumont refinery remains an important part of our integrated business model as evidenced by the recent announcement to expand an existing crude unit and downstream treatment units at the Beaumont refinery by approximately 20,000 barrels per day. The ExxonMobil Beaumont Lubricant Oil Blending Plant will continue full operations", said Flathman.
The Beaumont refinery, the smallest of three ExxonMobil base oil refineries in the United States, produces 10,000 bpd of Group I base oil, according to the latest report from the American Fuels & Petrochemical Manufacturers (AFPM) on Lubricating Oil and Wax Capacities of Refiners and Re-Refiners in the Western Hemisphere.
The Baton Rouge refinery, ExxonMobils largest Group I base oil plant, produces 16,000 bpd.
The Baytown refinery produces 9,800 bpd of Group I base oil as well as 11,700 bpd of Group II base oil. The company announced the completion of the expansion of its Group II and Group II+ base oil production in Baytown last April.
