Chevron said it will begin Group III+ base oils production in the US, becoming the first domestic producer of these grades in North America.
The Group III+, named NEXBASE 4 XP, will be produced at Chevron's 25,000 b/d base oils plant in Pascagoula, Mississippi, from the fourth quarter of 2026.
Chevron will join Malaysian state-owned Petronas and South Korean Producer SK Enmove as the only global producers of Group III+, and could compete with these for market share in North America.
"NEXBASE 4 XP will be globally available, starting with hubs across Europe, which will help customers optimise supply logistics and costs," said Chevron base oils general manager Alicia Logan.
Use of Group III+ base oils in premium grade lubricants is rising as equipment manufacturers seek to meet the latest engine approvals.
The new production will add to Chevron's portfolio of Group II, Group II+ and Group III base oils. Chevron in 2022 acquired Finish refiner Neste's Group III business, including 250,000 t/yr of Group III nameplate capacity from Finland's 197,000 b/d Porvoo refinery and 180,000 t/yr or 45pc of base oil nameplate capacity from Bahrain's 262,000 b/d Sitra refinery through a joint-venture agreement with Bapco.
