US Vertex Energy will expand Group III production capability at its Mobile, Alabama, refinery by 6,000 /day, the company said.
The expansion is distinct from Vertex’s existing re-refined Group III production, using a crude-derived hydrocracked vacuum gas oil (VGO) stream from the Mobile refinery to produce conventional Group III.
Vertex said it has produced a high-pressure lubricants hydrotreating unit, and it plans to begin production in 2029.
US reliance on imported Group III has come under a microscope in the wake of the structural loss of Middle East production due to the US-Iran conflict.
Shell-Qatar Energy’s Pearl gas-to-liquids (GTL) site in Ras Laffan, Qatar – the world’s largest single Group III production site – sustained damage in military strikes and will take a year to repair, according to Shell.
Around 30% of the US’ base oil imports in 2025 came from Qatar, specifically GTL.
The Vertex project adds to domestic Group III production capability alongside projects by ExxonMobil, Chevron, and ReGen III.
Vertex said it expects conventional Group III production will combine with the company’s RRBO to make Vertex the leading Group III producer in North America.
“This project reflects a major milestone in our continued focus on improved profitability and margin stabilization,” Vertex CEO Mark Smith said. “We believe the planned investments, combined with our existing hydrocracker, give Vertex a compelling pathway to supply the conventional Group III market and support customers seeking reliable domestic supply.”
Base oils are used to produce finished lubes and greases for automobiles and other machinery.
Major US producers include Motiva, Chevron, Excel Paralubes, and ExxonMobil.
Source: ICIS,
