LW-98-127 VHVI BASE OILS - PROFITABILITY, SUPPLY AND DEMAND

Description:

There is a need in recent markets for significant improvements in base oil quality. In particular, engine oils require high quality base oils in order to meet tight volatility specifications such as ACEA A3/B3 and proposed ILSAC GF-3. Formulations based on VHVI base oils from fuels hydrocracker residues may be more cost effective than other high quality base oils like PAOs in solving the recent market problems. The severe hydrocracking and hydro-isomerized dewaxing process (named UC0 lube process) developed by SK Corporation is one of the economic hydroprocessing routes to producing high quality VHVI base oils from fuels hydrocracker residue. The product quality resulting from the UC0 lube process is similar to PA0 in general performance. According to an application study, 15% PA0 in ACEA A3/B3 SAE low/40 formulation was able to be replaced with 18% VHVI base oils from the UC0 lube process and severe application like API CG-4/SH SAE lOW/40 heavy duty diesel oil was possible to develop utilizing the VHVI base oils. The demand of VI-IV1 base oils is increasing rapidly because of their availability increase. The supply capability of VHVI base oils has big potential while their price may not be so high. And severe hydrocracking process of VHVI base oil manufactures will maintain its position as a leading technology in year 2000.