On October 4th 2021 an independent base oil supplier Neste from Finland announced the sale of its base oil business to Chevron Global Energy Inc. Neste is one the world’s biggest Group III base oil producers that has a refinery in Porvoo with a capacity of 250’000 tons per year. Chevron Corporation is one of the world’s leading integrated energy companies.
Chevron is buying a very attractive business: Group III base oil prices more than doubled since June 2020 and surpassed 2000 USD/mt in North American market in August-September this year. Stricter environmental requirements push car manufacturers to use high quality lubricants which stimulates demand for Group III base oils.
Group III base oils are produced by hydrocracking, hydroisomerization, and hydrotreating, which make this grade purer. These oils have greater than 90 percent saturates, less than 0.03 percent sulfur and a viscosity index above 120. The product has water white colour and good low temperature properties.
The main applications for base oils group III are high-performance engine oils, drive line fluids and industrial lubricants. These products can be found in the lubricant, construction, and chemical industries.
The main Group III producer in Russia is Tatneft with Taneco refinery that can produce 186’000 tons of Group III VHVI-4 and Group II HVI-2 base oils. Legion Oil & Gas LLC has regular stock of Group III base oils available for prompt loading in trucks and flexies.
Currently Chevron produces Group II base oils at three plants with a joint capacity of 2.2mn tons a year. Buying Neste’s base oil business means adding OEM approved Group III and Group III+ grades to their portfolio.
Legion Oil & Gas LLC has been Neste’s partner for the last few years, buying Group III base oils from them. Other than that, Legion Oil & Gas LLC has strong business relationships with 30+ refineries globally and supplies base oils to more than 20 countries worldwide.
The company offers flexible payment terms, timely deliveries, and competitive prices. To order Group III base oils please send your request including grade, quantity, and destination to info@legionoilandgas.com.
