Exxon Mobil recently said that due to the slowdown in regional economic growth, the demand for lubricants in Asia will greatly slow in the next few years, and the market will shift to high-quality base oils.

XB Cox, an Exxon Mobil global base oil and special product program manager, said: “Although the Asia-Pacific region continues to be a global growth market, the growth rate has slowed down, especially in China. So we expect that Asian lubricants will be moderate in the coming years. Growth, and demand will shift to higher performance lubricants."

ExxonMobil expects the demand for high quality Class II base oils in Asia will grow rapidly in the next few years. Cox said: "The Asian market has shown a trend toward high-performance lubricants, so ExxonMobil is rapidly expanding its base oil production capacity and is moving from Group I base oils to Group II base oils." It is reported that Group II base oils It is generally better than Class I base oil because of its lower sulfur content and improved performance, but at a relatively high cost.

ExxonMobil has completed the expansion of Singapore's lubricant base oil refinery, and has increased its supply of Class II base oil to the Asia-Pacific market since January 2015. After the expansion was completed, ExxonMobil Singapore's Group II base oil production capacity increased by 400,000 tons/year to 1.6 million tons/year. At the same time, ExxonMobil's Rotterdam refinery in the Netherlands will begin producing Class II base oils in 2018, but this will depend on regulatory agencies and final investment approvals.

A consulting agency stated that in the next five years, global II and III base oil production capacity will increase by 6.7 million tons/year. Among them, about 25% of new production capacity will come from the Asia-Pacific region. These new production capacity will further increase the excess capacity of Group II and Group III base oil in the Asia-Pacific region.

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