Aramco Luberef eyes commercial output from expanded facility by Q4


Saudi Aramco Base Oil Co, Luberef plans to start commercial production of high-quality base oil from its expanded Yanbu facility in the fourth quarter, the company’s chief executive said.
“Luberef now is in the phase of the mechanical completion and commissioning activities of the project which is targeted to be on commercial production by the fourth quarter of 2017 to produce high-quality group two (GII) base oil,” Salahaddin Dardeer, president and CEO of Luberef, said.
“The product will be catered for both the domestic and international market, with priority to local market demands,” Dardeer said in a written response in English to Reuters queries.
Base oil is used mainly to lubricate car engines.
Luberef, a joint venture between state oil giant Aramco and Jadwa Industrial Investment Group, has an annual capacity of around 500,000-600,000 metric tonnes of oil lubricants from its Yanbu and Jeddah refineries. That would double with the expansion of Yanbu. The expansion will take Luberef’s total Yanbu refinery production to 900,000 tonnes per year of GI and GII base oil.
The current capacity of the Yanbu refinery is 300,000 tonnes per year of GI base oil. The expansion will enable Luberef to produce an additional 600,000 tonnes per year of high-quality GII base oil, he added. Dardeer said the company would supply products to markets in the Middle East, the Indian sub-continent, Asia and Europe, “with the majority supplied into our core market regions of Middle East and India”.—Reuters

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