by Group III Base Oils

by Group III Base Oils
SK Energy Introduction
Backgrounds of Group III Base Oil
Trends of High Quality Lubricants
Summary
Holding
Company
• SK Holdings
Energy
&
Chemicals
•
•
•
•
•
•
•
SK Energy
SK E&S
SK Chemicals
SKC
SK Incheon Oil
Dopco
K-Power
Telecom
•
•
•
•
•
SK Telecom
SK C&C
SK Telink
SK Telesys
Helio
Trading
&
Services
•
•
•
•
•
SK Networks
SK Engineering & Construction
SK Shipping
Sheraton Walkerhill
SK Securities
Sales Ratio
• Sales :
73.7 billion USD
• Total Assets :
63.3 billion USD
• Employees :
About 30,000
* Includes the sales from SK Networks
(Data in 2006)
History
Korea Oil Company
1962-1982
Established in 1962 as Korea’s first domestic oil refining company.
Acquired by SK Group in 1982, and called YUKONG.
Name changed to SK Corporation in 1997.
Split into SK Holdings and SK Energy in July 1, 2007
YUKONG
Business Areas
1982-1997
Refining, Petrochemicals, Exploration & Production, Coal, Lubricants, etc.
Leading Energy & Petrochemical player in Korea
Largest refiner in Korea’s oil industry, holding over 1/3 of the market
share, and leading Petrochemical, Lubricant player in Korea.
1997- 2007
Globalization
Present
SK Energy is in a transitive phase, increasingly penetrating into
overseas markets with a view to becoming a major player in the AsiaPacific region.
SK Corporation(Former SK Energy) has been ranked as 98th in Fortune
Global 500 company list, 2007
Domestic market share: 34%
Ethylene:
CDU capacity:
Propylene: 540,000 Ton/Yr
Gas station:
1,115 m b/d
4,185
Lubricant: 4,000 B/D
Base Oil: 20,000 B/D
Grease: 6,000 Ton/Yr
BTX:
830,000 Ton/Yr
3,600,000 Ton/Yr
Engaged in 24 blocks
in 14 countries
Oil equivalent reserves
: 510 million Bbl
Production(E) : 25,000 B/D
 Production Capacity
•
Lubricants : 4,000 bbls/day
Grease : 6,000 tons/year
 No.1 player in Korea since 1968 in the
competition of worldwide majors
 Premium brand name is ‘ZIC’
 Has a 30% M/S in engine oil market
(Total 16% market share in Korea)
 Continuing to expand markets abroad
 Launched co-branding product named
‘ZIPEX’ with PT. PERTAMINA in Pakistan
 World Top 10 Base Oil Suppliers
•
Capacity : 20,000 bbs/day
 50% world M/S in Group III base oil market
 Brand name is ‘YUBASE’
 Has worldwide supply network for global
customers
 Found JV with PT. PERTAMINA for new
350,000MT/year capacity refinery in Dumai
API Category
Viscosity Index
Saturates
(%)
Sulfur
(%)
Group I
80-120
< 90
＞0.03
Group II
80-120
≥ 90
≤ 0.03
Group III
120 +
≥ 90
≤ 0.03
Group IV
PAO
Group V
All others
ASTM
Method
YUBASE 4
YUBASE 6
YUBASE 8
KV @ 40°C, cSt
D445
19.6
36.9
47.0
KV @ 100°C, cSt
D445
4.25
6.46
7.60
Viscosity Index
D2270
123
130
128
NOACK Volatility, wt%
D5800
14.7
7.1
5.0
Pour Point, °C
D92
-15
-12
-12
Flash Point, °C
D97
230
240
260
Item
[KMT]
30,000
2%
4%
7~8%
10~%
Group III
Group II
25,000
20,000
Group I
15,000
10,000
5,000
2000
2005
2010
2015
[BPD]
Source: Lubes n Grease, 2006
Chemical Type
n-Paraffin (Wax)
iso-Paraffins with
Branched chains
iso-Paraffins with
highly branched
chains (PAO's)
cyclo-Paraffinsingle ring with
long chains
Naphthenes, poly
condensed
Monoaromatics, l
ong chains
Polyaromatics
Structure
VI
Pour
Oxidation
Toxicity
Very High
~175
Solid
@50°C
Excellent
Low
High
~150
Good
Excellent
Low
Good
~130
Good
Excellent
Low
Good
~130
Good
Good
Low
Poor
~60
Good
Medium
Low
Poor
~60
Good
Medium
Medium
Very Poor
<0
Good
Very Poor
Very High
YUBASE
Group I
 High Isoparaffin Content
 Some Naphthenic Compound
 Small or Zero Aromatic
 Low Isoparaffin Content
 Some Naphthenic Compound
 High Aromatic
Low Temp. Performance: CCS Viscosity[cp]
Oxidation Performance: PCT[mg]
1)
2)
3)
ASTM D2270, + 0.3wt% Antioxidant
10.3% A3/B3 DI Additive + 10% VII
250'C, 1hr
2)
Oxidation Performance: RBOT[min]
Oil Consumption: Noack [wt%]
3)
1)
Features
• Low Wax
• Very High VI
• Low Volatility
• Narrow Boiling Ranges
• High Saturates
• Good Additive Response
• Very High VI
• Low Aromatics
• Low Aromatics
• Low volatility
Features
Reasons
• Better Low Temp. Performance
• Low Wax
• Very High VI
• Low Oil Consumption
• Higher Flash Points
• Low Volatility
• Narrow Boiling Ranges
• Higher Thermal/Oxidative
Stability (Longer life)
• High Saturates
• Good Additive Response
• Good Friction Behavior
• Wear Reduction
• Very High VI
• Low Aromatics
• Environmentally Friendliness
• Low Aromatics
• Low volatility
 Reduce Fuel Costs
 Reduce Lubricant Costs
Reduce
Personal and
Social Costs
 Reduce Emissions
 Reduce Maintenance Costs
2005
2004
ILSAC GF-4
US
Japan
API CI-4+
2009
2008
ILSAC GF-5
Gasoline
API CJ-4
Diesel
GM Dexron IIIH ATF
GM Dexron VI
ACEA C3, C2
MB 229.31
Europe
2007
2006
ACEA ??
MB 229.??
Gasoline
Euro IV
Euro V
ACEA E6
MB 228.51
Diesel
ACEA ??
MB 228.??
Legislation
Consumers
Global
Economy
OEMs
Lubricant
Manufacturers
Legislation
PM
(g/km)
Emissions Standards
- Passenger Car Diesel -
0.06
0.05
• Set Emission Target
Euro 3
0.04
• Reduce PM/NOx/SAPS
• Increase Fuel Economy
0.03
Euro 4
0.02
OEMs
US Tier 2 bin 5
0.01
Euro 5
0
0
0.1
0.2
0.3
0.4
0.5
0.6
NOx (g/km)
Source: Lubrizol
Legislation
P content
in oil
(wt%)
GF-1:
0.12 max
0.12
GF-2:
0.10 max
GF-3:
0.10 max
0.10
• Set Emission Target
• Reduce PM/NOx/SAPS
• Increase Fuel Economy
0.08
GF-4
0.08 max
0.06
0.04
OEMs
1990
1995
2000
2005
ILSAC : Phosphorus Content Limit
Source: Lubrizol
Legislation
Seq.VI F/E
improvement
%(vs.20W30)
Seq.VIB F/E
improvement
%(vs.5W30)
5W20 & 0W20
5W30 & 0W30
10W30
3
5
• Set Emission Target
• Reduce PM/NOx/SAPS
2
4
GF-4
3
GF-3
• Increase Fuel Economy
1
OEMs
0
GF-2
2
GF-1
SG
1990
1995
2000
2005
ILSAC : Fuel Efficiency Requirement
Source: Lubrizol
1
Legislation
• Set Emission Target
• Reduce PM/NOx/SAPS
• Increase Fuel Economy
• Newly Designed Engines
OEMs
• Severer Operating Condition
• After-treatment Devices
Lubricant
Manufacturers
High
LTHS
HTHS
Wear
Cranking, Startability
CCS, KV@40℃
HTHS, TBS
Fuel
Economy
MRV, Brookfield
Pumpability
Low
LTLS
Low
NOACK, KV@100℃
Oil Consumption
HTLS
High
Major
Performance
Test Item
x
Max. Viscosity
(Low Temp)
SAE 40
General Benefits of
Multi-grade Lubricants
Lubricating
Area

Good Startability

Better Bearing Lubrication

Reduced Oil Consumption

Better Fuel Economy
SAE 10W/40
Min. Viscosity
(High Temp)
SAE 10W
Low
x
High
High
Low Viscosity Index
High Viscosity Index
Low
Low
High
Solutions to Increase
Viscosity Index
 Viscosity Modifier
High
 High Viscosity Index Base Oils
Consideration Points
 Formulation Economics
 Toxicity
 Impacts on Other Performance
Low
Low
High
Seq.VI F/E
improvement
%(vs.20W30)
Seq.VIB F/E
improvement
%(vs.5W30)
5W20 & 0W20
5W30 & 0W30
10W30
5
2
4
GF-4
GF-3
3
0
GF-2
GF-1
2
1
1
Relative Fuel Saving
3
5W/30
10W/40
15W/50
15W/40
SG
20W/50
1990
1995
2000
2005
ILSAC : Fuel Efficiency Requirement
High Sheer Viscosity
Fleet Car Trial - Average Fuel Savings
Consumer
• Longer Drain Intervals
• Better Fuel Economy
• Price Efficiency
Lubricant
Manufacturers
 Cost Efficiency
 ‘Synthetic’ Claims
 Product Differentiation
 Operational Conveniences
Lubricant
Manufacturers
Features
•
Very Low Sulfur (≤ 0.03 %)
•
Very High Viscosity Index (120 + )
•
Excellent Low Temperature Performance
•
Low Volatility & High Flash Point
•
Excellent Thermal and Oxidative stability
Can be marketed as ‘Synthetic’
Group III Base Oils
2nd
1st
+7.5KBD
+7.7KBD
+5.5KBD
+3KBD
S-Oil
Neste
GS Caltex Petronas
?
GTL
[BPD]
Demand (Case 1 & 2)
Supply
Supply by SK energy
75,000
50,000
25,000
2003
2006
2009
2012
2015
Viscosity Index
NOACK
20
140
18
130
120
16
110
14
100
12
90
80
Gr-Ⅰ
100N
Gr-Ⅱ
100N
Gr-Ⅲ
New
4cSt YUBASE4
10
PAO4
Gr-Ⅰ
100N
Gr-Ⅱ
100N
Gr-Ⅲ
New
4cSt YUBASE4
PAO4
Technical Needs
Drive Towards Lighter Viscosity Multigrades
With Tightened Approval Specifications in Lube Industry
Limitation of using Harmful Additives to meet Demanding Performance
Marketing Needs
Drive Cost effective, ‘Synthetic’ labeling High Quality Lubricants
Is Encouraged by availability of large volumes of Group III/GTL production
Reduce
Personal and
Social Costs
London
SK Corp.
Tianjin
Tokyo
Houston
Jakarta
Branch Office
Storage Tank
Agent/Distributer