The Lubricant Producers Association of Nigeria has asked the national government to prevent one of its agencies from imposing a new fee on base oil imports, claiming they will drive up finished lubricant prices.
In most markets, base oil prices have risen significantly in the past two years, but in Nigeria, they have headed in the opposite direction. Local lubricant blenders say its because of a surge in the number of players importing to the country.
Contrary to global trends, African demand for API Group I base oils will continue rising in coming years and the grade remain the dominant choice of the regions lubricant market, an industry insider said at the ICIS African Base Oils and Lubricants Conference last month.
Chevron and Casablanca, Morocco-based energy company Akwa Group reached an agreement to create an African lubes hub in Morocco, the companies announced late last month.
Ghanas Tema Lube Oil Co. is progressing on a three-phase blending plant expansion project to double its lubricant production capacity from about 22,500 metric tons per year to 45,000 t/y, a company official told Lube Report.
State-owned Nigerian National Petroleum Corp. is entering the finished lubricant business, stating that it will commence blending and marketing finished products in the first quarter of this year.
11 PLC, formerly known as Mobil Oil Nigeria, says it is expanding and modernizing its lubricant blending plant in Lagos after a Nigerian company acquired the Apapa lubricant plant and the Mobil fuels and lubricants businesses in the country from ExxonMobil in April 2017. 11 PLC declined to disclose the cost or scope of the project.
African rerefiners agree that overcoming skeptical public perception of their rerefined base oils is a significant hurdle to growth. However, they debated about other factors - such as working with multinational companies and choosing the best production process - during a panel discussion at an industry conference in Cape Town, South Africa.
The African Continental Free Trade Agreement that went into force in May benefits Africas lubricants blenders by reducing tariffs and other barriers to doing business with other countries within the continent, industry insiders said Nov. 6 at a conference in Cape Town, South Africa.
Africa recycles less of its used lubricants into base oils than other regions, and several obstacles stand in the way of increasing that amount, industry officials said at a conference in Cape Town, South Africa, last month.
12Page 1 of 2