lubes. atmospheric tower reduced crude oil to lube refinery fuel refinery process crude oil lan sko...
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Lubes
AT
MO
SP
HE
RIC
T
OW
ER
REDUCED CRUDE OILTO LUBE REFINERY
FUEL REFINERY PROCESS
CRUDE OIL
LAN
SKO
HAN
LVGO
HVGO
LPG
VA
CU
UM
T
OW
ER
NM
PE
XT
RA
CT
ION
PR
OP
AN
ED
E
ASP
HA
L-
TIN
G
BITUMEN
150 SS500 SS
1300 SS
75 SS/ SPINDLE
RPO(AROMATICEXTRACTS)
DE
WA
XIN
GU
NIT
BRIGHT STOCK
WAX
HY
DR
OF
INE
R
150 BS
1300 N
500 N
150 N
75 SM
RCO
LUBE REFINING
BASE OIL TERMINOLOGY
• LUBES ARE HIGH VALUE PRODUCTS WITH BROAD VARIETY OF USES– Automotive: Engine oils, Automatic Transmission Fluids (ATF)– Industrial: Turbine oils, Hydraulic oils, Industrial Gear oils, Compressor oils, Refrigeration oils, Machine oils, Electrical oils, Drilling Fluids etc
– Medicinal: Food Grade oils, White oils,..
• REFINERIES PRODUCE BASE OILS OR BASE STOCKS– Finished Products are Blends of Base stock with(out) Additives
• BASE STOCKS ARE CALLED BY VARIOUS NAMES:– Neutrals (100N, 150N, 600N,...) Bright Stocks– Grades (SAE 5, 10, 30, ..; ISO 22, 32,...)
• MOST COMMON LUBE NAME IS NEUTRAL– Number is the Viscosity @ 40 or 100oC
• BRIGHT STOCK IS HEAVY LUBE PRODUCED FROM RESIDUE– Name Refers to Appearance and Typical Viscosity is 2,500 SSU @ 100oF
• GRADE NAMES MAY REFER TO VISCOSITY OR TO TRADEMARKS
BASESTOCK PROPERTIES AND DEFINITIONS
• BASE STOCK COMPOSITION DETERMINES PERFORMANCE OF FINISHED PRODUCTS
– Viscosity Index or VI• Higher VI improves Volatility, Fuel Economy, and Operating Range
– Saturate Content• Higher Saturates improves Oxidation Stability and Soot Handling
– Wax Content• Lower Wax Improves Operating Range• Lower Wax improves Low Temperature Performance
– Pour Point– Cloud Point
• AMERICAN PETROLEUM INSTITUTE (API) BASESTOCK CATEGORIES
API Group Sats Sulfur VI TYPICAL MFG PROCESS I <90% >0.03% 80-119 Solvent Processing II >90% <0.03% 80-119 HYDROPROCESSING III >90% <0.03% 120+ WAX ISOME, H/C, GTL IV N.A. N.A POLYALPHAOLEFINS
(PAO) V ALL OTHER BASE STOCKS
KEY LUBE OIL PROPERTIES
• VISCOSITY (MEASURE OF FLUIDITY)– Range from ~ 4 to 20 cSt @ 100oC for Neutrals up to 32 cSt for Bright Stock– Brookfield Measures Low Temperature Fluidity on Finished Oils @ -40oC
• VISCOSITY INDEX (INVERSE MEASURE OF CHANGE OF VISCOSITY WITH • TEMPERATURE)
– Ranges from ~85 to ~105 for most Base stocks, Higher for Speciality Grades– (ex: Exxsyn ~140, PAO ~150, XHVI~140+, Ultra S ~ 125)
• POUR POINT (TEMPERATURE AT WHICH FLUID BECOMES NEARLY SOLID)– Typically from -9 to -24oC– Cloud Point is Temperature at Which Wax Crystals Appear
• VOLATILITY (MEASURE OF OIL LOSS DUE TO EVAPORATION)– Noack Volatility Measures Actual Evaporation (Typically 20-35 wt%)– GCD Volatility Measures Front End of Boiling Curve (e.g 10% @375oC)
• COLOR (APPEARANCE) AND STABILITY (MEASURE OF COLOR CHANGE IN LIGHT)
• CONRADSON Carbon (MEASURE OF CARBON RESIDUE LEFT ON IGNITION)
• SATURATES, AROMATICS and ASPHALTENE CONTENTS
CLASSIFICATION OF LUBRICANTS
GENERAL CATEGORIES
SPECIFIC APPLICATIONS
PHYSICAL SPECIFICATIONS
STANDARD SPECIFICATIONS
PERFORMANCE REQUIREMENTS
USERs SPECIFICATIONS
TYPE OF BASE OIL
INDIAN LUBE REFINING CAPACITY
» TMTPA
• HPCL, Mumbai - 330
• IOC,Haldia - 200
• CPCL, Chennai - 240
• BPC, Mumbai - 180
• TOTAL - 950
LUBE MANUFACTURING
Lube Refinery
Blending Plants
Function
Base Oils
Viscosity IndexPour PointFlash Point
Lubricants
ImprovedImprovedNo change
Oxidation Stability
Additives
Key Properties
CUSTOMERS
Special Properties
BLENDING CAPACITIES
BLENDING PLANT CAPACITY (TMTPA)
MAZAGAON 180
SILVASSA 60
B’ BUDGE / RAMANAGAR
30
CHENNAI 30
SEWREE 10
TOTAL 310
GENERAL CATEGORIESAUTOMOTIVE LUBRICANTS
INDUSTRIAL LUBRICANTS
GREASES SPECIALTIES
ENGINE OILS
TRANSMISSION
OILS
TURBINE OILS
HYDRAULIC OILS
COMPRESSOR OILS
REFRIGERATION OILS
SPINDLE OILS
CYLINDER OILS
GEAR OILS
TEXTILE OILS etc
WHEEL BEARING
CHASSIS
INDUSTRIAL
CUTTING FLUIDS
METAL ROLLING OILS
RUBBER PROCESS OILS
RUST PREVENTIVES
HEAT TRANFER FLUIDS
METAL DRAWING COMPOUNDS
QUENCHING OILS etc
FUNCTIONS OF ENGINE OILS
o PERMIT EASIER STARTING
o LUBRICATE AND PREVENT WEAR
o REDUCE FRICTION
o PROTECT AGAINST RUST AND CORROSION
o KEEP ENGINE INTERIORS CLEAN
o COOL ENGINE PARTS
o SEAL COMBUSTION PRODUCTS
o BE NON-FOAMING
o AID FUEL ECONOMY
GREASES COMPOSITION
BASE OIL + THICKENER + ADDITIVES
MINERAL SOAP ANTI-OXIDANT
SYNTHETIC NON-SOAP ANTI-CORROSION
VEGETABLE EP/ANTI-WEAR
TACKINESS AGENT SOLID FILLER
WHY USE A GREASE?
• A GREASE OFFERS UNIQUE CHARACTERISTICS WHICH MAKES IT PARTICULARLY USEFUL IN MACHINE ELEMENTS
STAY WHERE IT IS PUT ALLOWS UNATTENDED SERVICE FOR LONG PERIODS (SEALED FOR LIFE) REQUIRES LESS FREQUENT APPLICATION FOR
AREAS OF POOR ACCESSIBILITY SEALS OUT CONTAMINANTS OPERATE OVER A WIDE TEMPERATURE RANGE SOLID ADDITIVES CAN BE USED WITHOUT CONCERN OF SETTLING OUT LOW LEAKAGE MEANS THEY ARE EFFECTIVE IN
WARM EQUIPMENT
NLGI CLASSIFICATION OF GREASES
NATIONAL LUBRICRATING GREASE INSTITUTE
NLGI NO. ASTM PENETRATION @ 25OC*1 310-3402 265-2953 220-2504 175-2055 130-2606 85-115
* After working 60 strokes.
MAJOR INDUSTRIAL GRADES• ENKLOS• TURBINOLS• PARTHANS• SEETUL• SPINTEK
• KOOLKUTS• RUSTOPS• HYTHERMS• ELASTOS• METAQUENCH
MARKET SHARE (PSUs)(2005-06)
• MARKET LEADER IN GROWTH : 35.1% AGAINST INDUSTRY GROWTH OF 12.7%
HPC Figures exclude base oil sales to BPC / IOC
CO. CURR (TMT)
HIST (TMT)
% VAR
% MARKT SHARE (CURR)
% MARKT SHARE (HIST)
HPC 291.8 216.0 35.1 33.3 27.7
BPC 113.7 115.4 (1.5) 12.9 14.8
IOC 454.2 421.0 7.9 51.8 54.1
IND 877.6 778.8 12.7 100.00 100.00
SECTORIAL CONTRIBUTION
LUBES MARKET1250 TMTPA
INDUSTRIAL450 TMT
AUTOMOTIVE800 TMT
RET OUTLET170 TMT
BAZAAR580 TMT
DIRECT500 TMT
2S 2/3W 150 TMT
GEAR OIL100 TMT
CAR 30 TMT
D E OILS350 TMT
4S 2W45 TMT
OTHERS75 TMT
Growing
CORE SECTORS• Sector Percentage• Auto OEM - 7• Cement - 3• Power - 4• STU - 8• Rubber -9• Colliery -4• Defence - 4• Railways -10• Metals - 10• Others -41
LUBE MARKET : MARKETING CHANNELS
RETAIL OUTLETSAUTOMOTIVE OILS AND GREASES
RESELLERS/JOBBERSAUTOMOTIVE OILS AND GREASES
C&F AGENTSFOR SMALL AND MEDIUM INDUSTRIES
LUBE DISTRIBUTORSFOR BAZAAR TRADE
DIRECT SALES TO CONSUMERS
DEVELOPMENT OF NEW CHANNEL BAZAAR : LUBE DISTRIBUTORS
• BAZAAR : 40% VOLUMES : CASTROL AND OTHER PLAYERS
• PSUs TOO STARTED DEVP.
• BAZAAR REMAINED UNCATERED
• NEED FOR EXCLUSIVE LUBE DISTRIBUTOR CHANNEL
• SHIFT IN BUYING HABITS OF CUSTOMERS : NEW GENERATION VEHICLES : MECHANICS ACTING AS INFLUENCERS
• CHANNEL PICKED UP 25,000 KL WITHIN THREE YEARS
LUBE DISTRIBUTOR
• EXCLUSIVELY CATERING TO LUBE SHOPS, GARAGES, AUTHO. SERVICE CENTRES
• INFRASTRUCTURE : DELIVERY VEHICLE, STAFF, SHOWROOM / OFFICE AND GODOWN
• COMPUTER• FMCG TYPE OF MARKETING : POPs,
INVENTORIES, ORDER TAKING, SUPPLIES AND CREDIT / COLLECTIONS
DIRECT SALES - LUBES
• OEMs, CORE SECTOR ( STEEL. COAL, POWER, CEMENT, SUGAR ETC.,), RAILWAYS, DEFENCE ETC.,
• MOSTLY TENDER BASED EXCEPT LOCALISED SMALL REQUIREMENTS
• SALES SUPPORTED BY TECHNICAL SERVICES – CES, PES, CONDITION MONITORING, TRAILS, ENERGY AUDITS ETC.,
• PRICE HEDGING – SUPPORT TO CUSTOMER THROUGH FIXED PRICE : INVENORY MANAGEMENT : COST SAVINGS
LUBE NETWORK RETAIL AND DIRECT
• RETAIL OUTLETS : 5,000 PLUS : DIRECTLY CATERING TO END USER / CUSTOMERS AND MECHANICS
• LUBE DISTRIBUTORS : 150 PLUS : HAVING A BASE OF 80-100 BAZAAR SHOPS PER D’TOR WHO IN TURN SERVICE THE END USERS / MECHANICS
• LUBE CFAs, COLD, COD AND LUBE AND OTHER DEPOTS
RETAIL LUBES MARKETING
• Packaging• Lube Incentive Schemes• Advertising and Product Promotion
Campaigns • Launching of new Brands• Genuine oil tie-ups• Network Development• Micro Marketing • Mechanic Contact Program
ENVIRONMENT
• Long-term growth estimated at 3-4% p.a.
• More than 25 players of repute in the Market
• Over 500 small local blenders