Base Oil - Pertamina PDF
Base Oil - Pertamina PDF
Base Oil - Pertamina PDF
By Budiarto Tedja
Lubricant Marketing
Marketing & Trading Directorate
Jakarta 2007
FUNDAMENTALS & DEFINITION
Page 1
Mineral Base Oil Classification
• Crude sources
• Paraffinic
• Naphthenic
Page 2
Base Oil for Lubricant Requirement
• Minimize/Reduce/Prevent
o Friction
o Wear
o Corrosion
• Act as Engine Coolant
• Low Consumption
• Enhance Fuel Economic
Page 3
Two Basic Need
Page 4
Fraction of Various Crude Petroleum Product
Gasoline
Kerosene
LPG Stove Oil
Furnace Oil
Auto Diesel
Residual Bunker Diesel
Regular Diesel
Dist. Bunker Diesel
Catalytic Cracker Charge
Thermal Cracker Charge
Industrial and Bunker Fuel Oil
Lube Oil and Wax
Jet Fuel Paving Asphalt
-100 0 100 200 300 400 500 600 700 800 900 1000 Residue
Degrees Fahrenheit
Page 5
API Base Stock Definition
Page 6
CLASIFICATION & SPECIFICATION
Page 7
Lubricant Base Stock
• Mineral Oil
• Synthetic
• Vegetables and Animal
Page 8
Base Oil Properties
Page 9
Nomenclatur of Base Oil
• Neutrals
– SUS* Units at 100°F
• Bright Stocks
– SUS Units at 210°F
• Naphthenics
– VI <80
• Example
– 100N = 100 SUS at 100°F or 4.0 cSt at 100°C
Page 10
Mineral Base Oil – General Properties by
Crude Source
Page 11
BASE OIL are divided into five groups
API classification based on chemistry – specification
Group I Group II Group III Group IV Group V
Page 12
Mineral Base Oil – General Properties by
API Types
API Group Typical chemical composition General physical properties
I Straight/branched chain carbon : 50-70% KV@40oC : 8 to 170 cSt
Cyclic carbon : 20-50% Viscosity index : 90-100
Aromatic carbon : 5-10% Pour point : -15 to 0oC
Sulfur : <0.1% Air release : Varied
Nitrogen : <200ppm Solvency : Good
II Straight/branched chain carbon : 50-80% KV@40oC : 8 to 140 cSt
Cyclic carbon : 20-50% Viscosity index : 95-110
Aromatic carbon : <1% Pour point : -15 to -6oC
Sulfur : 1ppm Air release : <5 mins
Nitrogen : <10ppm Solvency : Poorer than Group I
III Straight/branched chain carbon : 100% KV@40oC : 13 to 46 cSt
Cyclic carbon : 0% Viscosity index : >110
Aromatic carbon : 0% Pour point : -24 to -15oC
Sulfur : 1ppm Air release : <3 mins
Nitrogen : <10ppm Solvency : Poorer than Group I
Page 13
Base Stock Performance Attributes
Page 14
CORRELATION WITH LUBRICANT
Page 15
Lubricant Design
Wear Corrosion
Properties
Low
Temperature
Behavior Chemical
Activity
Oxidation Acid and Sludge
Friction Viscosity Stability Formation
Reduction Base Oil
Properties
Demulsifying Surface
Activity Volatility
Ability
Solvency Residue
Foaming Formation
Tendency
Additive
Compatability Seal Compatability
Page 16
Base Oil Quality Influencers
Reduced Emissions
Emissions
Converter
Compatible
Page 17
API Group Vs Fuel Economy
% Fuel Economy
API Group Improvement
I 0.90
I 0.94
II 0.97
III 1.14
III 1.42
IV 1.36
V 1.57
Page 18
Solving The Performance Puzzle
Page 19
Key Base Oil Properties for Industrial
Lubricants
Page 20
Challenge of Fuel economy and use of
Multi-grade Engine Oils
0W-20
Lower 5W-20 Group III
Viscosity
5W-30 Group II+
10W-30 Group II Base
Oil Quality
10W-40 Mixed Base Oil
15W-40 Group I+
20W-50 Group I
Mono
Page 21
PRICE REFERENCE & PUBLICATION
Page 22
Price Reference
• Lube Report : Base Oil Group I, II, III Publication from USA
o Gulf Coast
o West Coast
o East Coast
Page 23
ICIS-LOR Price (FOB Singapore)
1070
1030
990
950
910
870
Harga (US$/MTon)
830
790
750
710
670
630
590
550
510
470
430
390
350
Page 24
BASE OIL SUPPLY & DEMAND
Page 25
BASE OIL Demand Interlinked Drivers
Base Oil
Cost effective lubricants Customer Quality Government Governments have legislated
• Reduction in running requirements legislation
Demand Strict emission levels which
costs Driver OEMS to develop
New technology
OEM
Technology specifications
Page 26
Base Oil Supply & Demand
Produksi Nasional
1,000,000
900,000
800,000
Konsumsi Nasional
700,000
V o l u m e (K L )
600,000 600,000
500,000 500,000
400,000 400,000
Volume (KL)
300,000 300,000
200,000 200,000
100,000 100,000
0
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Group III 2,804 3,811 4,540 5,400 5,628 6,318 7,322 8,975 10,830 12,220 14,439
4,673 6,669 8,254 10,350 14,539 19,321 23,535 28,608 34,895 41,163 51,568
Group III 0 0 0 0 0 0 0 360,000 360,000 360,000 360,000
Group II
Group I 304,024 370,620 399,906 434,250 448,833 451,136 455,443 458,467 460,225 462,692 460,381 Group II 0 0 0 0 0 0 1,774 7,800 10,220 12,300 15,410
Tahun
Group I 338,775 473,297 410,365 500,527 489,613 439,333 503,946 500,200 499,780 501,700 502,102
Group I Group II Group III
Tahun
Note : Page 27
DOMESTIC BASE OIL PRODUCER
• Pertamina = Pure Base Oil from Crude Oil and the Capacity is
450.000 KL/Yr (90% from National Production), produced in
Cilacap
• PT. Wiraswasta Gemilang Indonesia (Penzzoil) = Recycle
Base Oil from Used Oil in Jakarta
• PT. AGIP Indonesia = Recycle Base Oil from Used Oil in
Surabaya.
Page 28
Base Oils Demand from 2005 to 2010
• Estimated growth of base demand from 2005 to 2010 is
3.5% per year.
KL
700,000
600,000
500,000
Base Oils
400,000
Pertamina BO
300,000 Other BO
200,000
100,000
0
2005 2006 2007 2008 2009 2010
Page 29
Base Oil Demand by API Groups
Page 30
Base Oil Demand by API Groups
Page 31
Base Oils Production by Grades in 2005
With current Pertamina lubricants sales, all grades are in
excess. But off-take agreement with Shell makes HVI 160S
very tight. Pertamina still can sell other grades for local
blenders and for export.
KL
160,000
140,000
120,000
100,000
Production
80,000 For Pertamina
Excess
60,000
40,000
20,000
0
HVI-60 HVI-95 HVI-160S HVI-650
Page 32
Base Oils Production by Grades in 2010
Due to the increase of lighter base oil market share, in 2010
excess production maybe only for HVI 650
KL
160,000
140,000
120,000
100,000
Production
80,000 For Pertamina
Excess
60,000
40,000
20,000
0
HVI-60 HVI-95 HVI-160S HVI-650
Page 33
BASE OIL Global Demand
Global
Global Base
Base Oil
Oil Supply
Supply Global
Global Base
Base Oil
Oil Demand
Demand
KBD KBD
900 900
800 800
700 700
600 600
500 500
400 400
300 300
200 200
100 100
0 0
2004 2010 2015 2020 2004 2010 2015 2020
Page 34
BASE OIL Global Production
Est. 2005 Paraffinic + Napthenic Capacity Utilisation est.
GI 81%
GII 88%
GII 87%
Napht. 85%
Africa 2% Latin America
Middle East 5%
Asia Pacific
5% 29%
FSU 11%
Europe 22%
North America
26%
Capacity Utilisation est.
Asia Pacific 82%
N. America 87%
Europe 90%
FSU 65%
N/M East 85%
L.America 80%
Africa 82%
Page 35
Yubase Supply & Demand
25,000
Demand
20,000 Supply
-
'06 '07 '08 '09 '10 '11 '12
Unit: B/D
Page 36
PRICE TREND
Page 37
Price Trends
for 5 years before & after
(USD/MT)
$5.25 1,200
(USD/Gal) 1,100
Group III
1,000
Group II+
$3.36 900
Basestock & additive cost
Group II
$2.92 800
Group I
700
$2.58
$2.54
600
500
400
300
04
05
04
05
04
05
03
04
05
g-
g-
y-
y-
b-
b-
v-
v-
v-
PAO
Au
Au
Group I Group II Group III Ma
Ma
Fe
Fe
Group II+
No
No
No
[US Market Price]
Page 38
Domestic Price Trends
for 5 years before & after
API Grade Type 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
US$/MTON US$/MTON US$/MTON US$/MTON US$/MTON US$/MTON US$/MTON US$/MTON US$/MTON US$/MTON US$/MTON
Group I HVI 60 (SN 130) 360 379 390 431 471 533 561 590 620 652 686
HVI 95 (SN 260) 375 404 419 443 485 602 643 687 733 783 836
HVI 160 (SN 500) 389 423 440 462 490 620 662 707 755 807 861
HVI 650 (150 BS) 450 464 490 538 562 829 920 1,021 1,134 1,258 1,397
Group II VCBS 60 (SN 150) 385 419 434 520 568 703 762 826 895 970 1,052
VCBS 160 (SN 500) 420 441 460 497 546 688 740 797 857 922 992
Group III 4 Cst ? ? 718 759 763 900 947 996 1,048 1,102 1,160
6 Cst ? ? 712 753 773 892 935 980 1,027 1,076 1,128
Page 39
Price Trend 2002 - 2005
USD/MT
1000
900
800
700
600
500
400
300
200
100
0
2002 3 5 7 9 11 2003 3 5 7 9 11 2004 3 5 7 9 11 2005 3 5 7 9 11
Page 40
Pricing Driver
Market Price
(USD/MT)
1,000
Value Based EHC 45
900 Increase
Value Based
800 Decrease SN150
700
600
Diesel
500 WTI
400 DUBAI
LSWR
300
200 Cost Based
Cost Based Increase
100 Decrease
Page 41
FUTURE TREND
Page 42
Gr III Base Oil in the Future
Better
Lower Group III
Volatility
Fuel Economy Viscosity
Base Oil
Oxidation
Stability
Thermal
Stability
Longer of Life
Page 43
MARKET TREND GROUP III DOMESTIK
16000
Nasional, KL
14000 Pertamina, KL
12000
10000
8000
6000
4000
2000
0
2005 2006 2007 2008 2009 2010
Page 44
Base Oil in The Future
• Global finished Lubricants Demand is expected to grow at a AGR of approx. 1.0%-1.5% p.a
between 2005-2015.
• Market Base Oil Demand is forecasted for mirror this growth. Asia, Latin America & Africa are
expected to account for almost 96% of this growth
• A number of legislative, technological & supply trends are forcing a quality upgrade with
increasing need for Group II/III formulation to meet this demands
• Therfore, Global Demand for Group I base stock is expected to decline at approx. 0.5%-1%
p.a. while Group II & III demand is expected to grow by approx. 7%-8% p.a. respectively
• Base Oil Global Capacity is expected to rise to reach more than 50mln MT by 2015. Global
Base Oil Market is therefore expected to remain in surplus
• Most of the capacity additions are in Asia-Pac & Middle East, whose share of BO capacity is
expected to rise.
• There will be significant changes within different slates with G I surplus still rising, Group II
surplus expected to decline While G III surplus will rise mainly driven by Gas projects.
• GI surplus will be mainly in North America, Europe and partly Asia Pacific, putting pressure
on non-cost competitive base oil plants. The flow of trade will continue to be heavily
influenced also by freight market conditions.
Page 45
Refining Trend Vs Lube Base Impact
• LUBE BASESTOCKS ARE LESS THAN 1% OF GLOBAL REFINING OUTPUT
• REFINING DECISIONS CAN HAVE UNINTENDED CONSEQUENCES FOR LUBES
Page 46
GTL BASE OIL potential new capacity 2006-2015
(Announced project)
80 5500
6000
Page 47
ATTACHMENT
Page 48
Pertamina Group I Base Oil
Specification
Items Test Methods HVI 60 HVI 95 HVI 160 HVI 650
Ash Content, % wt, max ASTM D 482 0.01 0.01 0.01 0.01
Page 49
Pertamina Group II Base Oil
Specification
Items Test Methods VCBS 60 VCBS 95 VCBS 160
Appearance Visual B&C B&C B&C
Cloudiness, 3 hrs SMS 2556 No Cloud No Cloud No Cloud
Spesific Gravity ASTM D 1298 Reported Reported Reported
o
Viscosity Kinematic at 40 C cSt ASTM D 445 Reported Reported Reported
Viscosity Kinematic at 100oC cSt ASTM D 445 4.0-4.8 5.02-6.14 9.10-11.79
Viscosity Index ASTM D 2270 113-120 113-120 100-110
Sulfur Content, % wt, max. ASTM D 2622 0.01 0.01 0.01
Automatic Content, % wt, max. ASTM D 2007 2.0 2.0 2.0
Saturated Content, % wt, max. ASTM D 2007 98.0 98.0 98.0
Flash Point PM cc, min ASTM D 92 210 210 215
Pour Point, max ASTM D 97 -12 -9 -9
Color, max ASTM D 1500 0.5 1.0 1.5
Copper Corrosion max ASTM D 130 1-A 1-A 1-A
TAN, mgKOH/gr, max. ASTM D 664 0.02 0.02 0.02
Condradson Carbon Residue, %w, max ASTM D 189 0.01 0.01 0.01
Ash Content ASTM D 482 0.005 0.005 0.005
Noack Volatility, max ASTM D 5800 13 13 5
Page 50
Pertamina Group III Base Oil
Specification
Items Test Methods UCBS 3 UCBS 4 UCBS 8
Appearance Visual B&C B&C B&C
Spesific Gravity ASTM D 1298 Reported Reported Reported
Viscosity Kinematic at 40oC cSt ASTM D 445 Reported Reported Reported
Viscosity Kinematic at 100oC cSt ASTM D 445 2.81-3.43 3.96-4.84 6.89-8.42
Viscosity Index ASTM D 2270 128 128 128
Sulfur Content, % wt, max. ASTM D 2622 0.004 0.004 0.004
Aromatic Content, % wt, max. ASTM D 2007 2.0 2.0 2.0
Saturated Content, % wt, max. ASTM D 2007 99.0 99.0 99.0
Flash Point PM cc, min ASTM D 92 204 210 210
Pour Point, max ASTM D 97 -21 -15 -15
Color, max ASTM D 1500 L0.5 L0.5 L0.5
Copper Corrosion max ASTM D 130 1-A 1-A 1-A
TAN, mgKOH/gr, max. ASTM D 664 0.01 0.01 0.01
Condradson Carbon Residue, %w, max ASTM D 189 0.01 0.01 0.01
Ash Content ASTM D 482 0.005 0.005 0.005
Page 51