Total announced the opening Friday of a 310,000 metric ton per year blending plant in Singapore – the French energy giants largest lubricant production facility.
Total, the worlds fourth-largest lubricant supplier, said the plant will help it expand sales in the Asia-Pacific region, still seen as holding some of the global industrys best prospects for growth. Officials also noted that lubricants, though just a sliver of the oil industry in terms of volume, are relatively profitable.
[The plant] will allow us to expand our position as one of the top global players in this high-return business segment, Philippe Boisseau, a member of Totals Executive Committee, and president of marketing and services, said in a news release.
The Total plant is part of Singapore Lube Park, a joint venture with Sinopec and Shell. Each of the three oil majors will operate its own blending plant, but they will share infrastructure there, including power supply and port facilities. China national oil company Sinopec opened its plant in 2013, (and Shell opened its last year/while Shells is still under construction).
Lubricant marketers around the world have shifted attention to Asia-Pacific, where growing populations, economic development and rising living standards are driving growth in lube consumption. Total said a quarter of its lubricant sales are now in the region, and it aims to double its sales there. The company did not include a date for that target but said much of the increased volume would come from the Singapore plant.
The facility will make automotive lubricants – including engine oils for motorcycles and passenger cars – as well as industrial and marine lubes.
Analysts estimate Asia-Pacific now accounts for 43 percent of global lubricant demand. Total predicted the regions demand will increase 18 percent to reach 20 million tons per year by 2025, at which time that should account for nearly half of worldwide demand.