An agreement, established in 2003, between Nynas and Valero providing for Nynas to purchase and market the naphthenic production at Valero’s base oil plant in Three Rivers, Texas, has been dissolved. Valero is now marketing the naphthenic base oil produced at its 2,400 barrels per day Three Rivers plant on its own.
In May 2003, Valero Marketing and Supply Company and Nynas USA, Inc. announced that they had completed a long-term marketing agreement in which Nynas would purchase all of the naphthenic production at Valero’s Three Rivers base oil plant.
Bill Day, Vice President-Media and Community Relations, Valero told OEM/Lube News "I can confirm that Valero is currently marketing Three Rivers’ naphthenic oil itself"
Nynas announced earlier this year that it had taken over production and responsibility for the base oil plant and associated production units at the previously Shell Oil owned Harburg refinery in Hamburg, Germany. Please refer to our story dated January 6, 2014 "Nynas Starts Operation of Harburg Base Oil Plant". According to Nynas, the takeover of the Harburg base oil plant was the first step towards establishing a new core site with an annual production of specialty oils up to 350,000 tons, representing a forty percent increase in the company's supply capability of naphthenic specialty oils.
Nynas, from the takeover of the previously owned Shell Harburg refinery in Hamburg, Germany, and the its 7,800 b/d naphthenic plant at the Nynäshamn refinery in Sweden will provide the company with naphthenic base oils, as well as.an agreement with Isla refinery on Curacao contributing to Nynas’ overall manufacturing capacity. Nynas has a long-term marketing agreement to sell naphthenic base oils produced at the Rafineria Isla plant operated by PdVSA in Emmastad, Netherlands Antilles. That plant has 3,700 bpd naphthenic capacity. Neste Oil and Petroleos de Venezuela S.A. (PdVSA) are co-owners of Nynas.
Earlier this year, Endre Kallay, General Manager Nynas USA, said Nynas is initiating a new phase, and USA will play an important role in this new phase. "Besides being the largest market in the world, the American market is recognized by its technical excellency and its high end performance - Two concepts that fit the new phase of Nynas in USA. With the support of our Technical Center in Europe and a streamlined logistic system we will bring to US our world class products." said Kallay After 10 years in USA, this new phase emphasizes Nynas commitment with a long term strategy in the country.
Nynas is the world’s second-largest supplier of naphthenic base oils, only behind Ergon with 22,000 bpd of pale oil capacity in Vicksburg, Mississippi.