Base lubricating oils are the main component in lubricants for motor vehicles and a wide range of other applications. These base oils or ‘base stocks’ are defined by their quality and fall into either Group I, the lowest quality, Group II, a mid range base stock, or Group III, the highest quality that can be produced from minerals.
Over the last decade there has been a steady increase in the use of Group III lubricating oils in passenger car motor oil. The quality of this grade of base stocks allows blenders to create motor oils that are specifically engineered for performance and durability.
In North America, the demand for Group III base oil is 16,000 barrels per day and growing. However, only 4,000 barrels per day are produced in North America, with the balance imported from Asia and the Middle East at a high cost.
Gen III’s Bowden facility will contribute 35% more capacity to the North American Group III market, providing lubricant blenders with a better alternative to foreign imports.