Shell Singapore
Shell Singapore, which announced in December 2020 that it will close its Group I base oil plant in Pulau Bukom, said it will extend its operation, “driven by the company’s intention to safeguard security of supply for its customers in a market environment with increased interruption of supply. scratchs.”
A Shell spokesperson added that “the Group II base oil plant is awaiting the final investment decision and we will share more details in due course”.
Group II base oils are more refined than Group I base oils. Group II base oils are produced using a hydrotreating process to replace the traditional solvent refining process used in the production of Group I base oils.
The main difference between Group I and Group II basics is the sulfur content and the saturates. Two main characteristics of Group I base oils are that they are composed of less than 90% saturates and/or more than 0.03% sulfur. Group II base oils must contain more than 90% saturates and less than 0.03% sulfur.
The higher percentage of saturates gives these lubricants better antioxidant properties than Group I base oils. Many finished lubricant formulations have moved from Group I to Groups II and III due to the latter’s superior properties and cost competitiveness.
The Shell spokesperson further explained that the Pulau Bukom Manufacturing Site in Singapore is “a strategic hub for Shell’s lubricant operations”.
The company’s previous announcement to shut down operations of its Group I base oil plant from July 2022 was driven by “Shell’s intention to increase the competitiveness of its lubricants business, balancing base oil supply demand and the overall global decline in Group I base oil demand”.
The Pulau Bukom Group I base oil refinery has a capacity of 360,000 tons per year. Shell planned to cut Pulau Bukom’s fuel refining capacity in half to 250,000 barrels per day (bpd) as part of its shift to low-carbon fuel alternatives following its shutdown.
In November 2020, Shell Singapore announced a 10-year plan on how the company could make significant investments in people, assets and capabilities to repurpose its core business and reduce its own CO2 emissions by about a third within a decade.
The announcement builds on Shell’s overarching ambition to be a net-zero energy business by 2050 or earlier, in tune with society and customers.
