stability, better or more rapid water separation, and lower foaming tendency. High oxidation stability significantly

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1 Figure 1 Figure 2 Industria ois are produced in a broader viscosity range than automotive ubricants (eft). Most of these industria oi viscosity grades (right) can be covered using Group II base oi aone ( Fuy Capabe ), or by bending in an additiona voume of another Group ( Partiay Capabe ). have exceent ow-temperature properties and, because of their extremey ow residua norma-paraffin content, respond readiy to pour point depressants (PPD). As with Groups I and III base stocks, carefu seection of the correct PPD is important in optimizing the fina formuation. Let s now ook at three industria oi segments that have benefitted from the physbubbes are present. In addition to compressibiity probems, circuating excessive air can aso cause pump cavitation and erratic movement of machine parts. High-purity base ois ike Group IIs are ess ikey to stabiize microfoams, and tend to have better air-reease times as measured by ASTM D3427. Low-temperature Properties. Group II base ois ica and chemica properties of Group II base oi, beginning with hydrauic ois. Comparing Hydrauic Oi Performance (Same additive package and treat rate for a ois) ISO 32 ISO 46 Test Group I Group II Group I Group II RPVOT (ASTM D2272), min to 25 psig drop TOST (ASTM D943), hrs to 2 TAN 2,520 5,917 2,016 6,460 Foaming Sequences* (ASTM D892) Sequence I 10/0 0/0 0/0 0/0 Sequence II 30/0 0/0 30/0 0/0 Sequence III 50/0 10/0 10/0 0/0 *Each Sequence conditions the oi differenty. The two numbers signify initia foaming tendency/foam stabiity. Zero is best. Source: Chevron Base Ois Hydrauic Systems Group II base ois are a good fit for hydrauic ois, especiay since most of the hydrauic oi voume fas within the ISO range. Possibe advantages of Group II based formuations over Group I formuations incude higher oxidation stabiity, better or more rapid water separation, and ower foaming tendency. High oxidation stabiity significanty extends the ife of hydrauic ois. In Rotating Pressure Vesse Oxidation Tests (RPVOT, ASTM D2272), hydrauic ois formuated with Group II base stocks demonstrated significanty onger oi ife than Group I formuations (see tabe, eft). Enhanced water separabiity is another factor. Any moisture that enters the hydrauic system, whether through contamination or condensation, may emusify, promoting rust, which wi increase friction and wear. Group II based formuations can minimize this. In fact, due to their exceent water separabiity and resistance to foaming, such formuations Continued on page JULY 2012

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3 Continued from page 30 usuay require no or minima amounts of demusifiers. rate rapidy from water or air with no or minima assistance from demusifying additives or anti-foaming agents. Turbine OEMs have stringent oxidation-reated specifications for turbine ois. Two of the most common tests are the RPVOT and the Turbine Oi Stabiity Test (TOST). Both tests are commony used in the industry as measures of oxidation stabiity and service ife. When turbine ois are propery reformuated from Group I to Group II base ois, TOST vaues can tripe. Varnish has become an issue in some turbine oi systems, where unwanted deposits can adversey affect the operation of servo vaves, bearings, fiters and other components. Whie some have bamed varnish on the base oi used, this is usuay a Power Generation Turbines Turbine oi, in both gas and steam power generation systems, provides cean and coo ubrication to bearings and frequenty acts as the working fuid in associated hydrauic systems. Most turbine engines require ois in the ISO 32 or 46 viscosity grades. A owerviscosity fuid may be needed to ubricate high-speed shafts, whie an ISO 68 or ISO 100 fuid may be needed for geared-turbine equipment. It is we recognized in the industry that turbine ois formuated with Group II base ois have much onger ife than those formuated with Group I. As with hydrauic ois, Group II based turbine ois wi sepagross oversimpification. Varnish in turbine ois can vary from one appication to the next, and the many causes are currenty under investigation in severa abs. Mutipe root causes for varnish formation have been postuated, incuding microdieseing, certain additive types, eectrostatic discharge and overextending oi drain intervas. Avoiding varnish formation requires the deveopment of a robust formuation both in terms of additives and base oi that propery baances the (sometimes opposing) requirements for oxidation resistance and ow-varnish tendency. Natura Gas Engines Natura gas engines used in industria appications operate at high oads, high temperatures and for ong periods of time, whie exposing the oi to severe oxidation and nitration conditions. The engines are often in remote ocations and must run with minima operator attention, so engine reiabiity is critica. There are no industrywide tests for evauating natura gas engine oi performance. Instead, OEM approvas are granted ony foowing fied trias. Here too, Group II base ois have proven to be an exceent, cost-effective fit. Most gas engines use an SAE 40 viscosity grade oi or, in some cases, an XXW-40 mutigrade. As a resut, the base oi bend of these ubricants can be mosty or a Group II. Group II base ois aso enabe a formuator to maintain the same additive treat rate as woud be used with a Group I base oi and achieve Raffene 'T'ires, Ink s, Adhesives, Grease Raffex? Rubber, Road Ois, San Joaquin Refining Company "WWI' Hynap Lubc! Base Ois, Meta working Hytrans Vii,??? T Vr, pa Transfimner, Insuating is F%w Napso'?? / z i G?Y?i Driing; Fuid In?ecticidcs. Sovents UV THE ONLY NAPHTHENIC N RF.??NERON N THE WAS T COAST 3129 Standard St., Bakersfied, C A / T: / F: JULY 2012

4 FRAUGHT TIMES FOR FREIGHT What do cargo markets, export trends and tonnage avaiabiity mean for base oi shippers? BY ADRIAN BROWN In order to fuy understand the base oi shipping market, it is firsty necessary to reaize that base ois are mosty transported on chemica tankers. The reason is that the majority of these buk cargoes measure typicay between 1,000 and 10,000 metric tons (200 to 2,000 barres). A few cargoes are arger, but aside from some recent gas-to-iquid base stocks from Qatar, none are greater than 20,000 tons. With their abiity to perform mutipe segregations, chemica tankers are the weapon of choice for base oi shippers. So when we refer to chemica tankers, we by definition refer to base oi carriers too. A number of drivers determine freight in the base oi shipping market. First perhaps is the state of the word economy. Utimatey, demand for both petrochemicas and base ois reacts to the word economy, and that in turn defines shipping demand. Whist there is a very negative feeing within Europe where at this writing the average GDP is expected to decrease by 0.5 percent in 2012 there are some positives to be drawn from economies such as China, where growth currenty is 7.5 percent. That may be down from before, but sti represents expanding demand for materia and therefore shipping space. Regions such as India, Latin America, South America, Southeast Asia, Russia and even the United States are a predicted to see growth in their economies. Cosey inked to word economic activity is the price for crude oi. Crude is an important driver for chemica feedstock prices, which recenty have been very voatie, and utimatey shapes consumer demand and therefore how much materia is shipped wordwide. Crude oi has a secondary function, too, as it aso dictates the price for bunker fue, one of the key drivers for freight. According to DVB Bank, the voume of chemicas to be shipped during 2012 wi rise by 4.4 percent to just short of 190 miion metric tons wordwide, with a further 5 percent increase in Much of that demand wi come in the shape of deep-sea shipments rather than coasta movements, and what that means is that the ton-mie wi increase i.e., voyages wi Photo: Nordic Tankers 34 JULY 2012 LUBES N GREASES 35

5 36 JULY 2012 FOAM BAN Deoamers Munzing FOAM BAN Defoamers o r Non-aqueou I I] & Automotive Pac ages Siicone, modified sioxane,fuorosiicone and poyacryate defoamer;technoogies :for : Hy drauic fuids Additive packages Gear ois Turbine ois Transmission fuids Compressor ois Engine ois L W e Nep You Add Atd Vaue to Every Drop _'wa These are just a few of our products-and we continue to expand our additives portfoio., Contact us to.discuss Y'ourneeds PETROLEUM CHEMICALS The ternative kibe oi additive oom Visit wwwpetc emgroup.com; Ca us: Or emai: saes@petchemgroup:com i i Continued from page 34 typicay be onger and empoy each ship for onger. Much of this new demand wi be focused on exports from the Midde East, where shipping demand has been growing constanty year-on-year, with some miion tons shipped during January to September Shifting to tonnage suppy, assuming a maximum trading ife of 20 years for a vesse (though some majors specify 15 years, and some even wi not accept a ship oder than 10 years), we can see that the feet has grown steadiy over the past four years and currenty numbers just over 2,200 vesses in the 5,000 to 40,000 deadweight ton (dwt) sector. This equates to some 39 miion dwt. It is aso a fairy modern feet, with many ships added since the year (See graph, page 38.) However, ooking forward, we can see that there wi ony be around 130 new ships of this size added to the feet in 2012, with just a handfu of new orders for 2013 and The reason for this is that ship owners have no incentive to invest in new tonnage. Amost without exception, every singe chemica tanker is operating in the red, and has been for the past three years. Operators have ampe tonnage aready, and if they cannot make money with the ships they aready have then they do not need more ships. Furthermore, banks are reuctant to expand their shipping portfoios since they are aready too exposed as it is, not just with chemica tankers but amost a other forms of shipping. If we are to assume a maximum 20-year ife for a chemica tanker, so too we must deete existing ships from the ist once they reach 20 years od, and this diminishes the feet by some 90 vesses to the end of The picture therefore is one of a modern feet, but with very few new additions over the next coupe of years. Taking a ook at the ream of Medium Range (MR) tankers the workhorses of the crude oi market we see a simiar picture. Ship owners there are aso making substantia osses, whie the composition of the feet is made up of a ot of modern tankers. Some 155 ships are due to enter the MR market to the end of 2014 but not a wi come, as owners are keen to cance the moment the shipyard runs ate in its deivery schedue. The point is that chemica tankers can easiy enter the oi sector and offer to carry crude cargoes, but not vice-versa. MR crude carriers, unequipped with tanks in the desired capacities meeting Internationa Maritime Organization requirements, and without fuy trained chemica crews, wi find it harder to make the transition into the chemica trade. We must aso grasp what is happening in the vegetabe oi sector, since chemica tankers are the ship of choice for vegetabe ois. With a growing word popuation, there is an ever-growing need for more vegetabe ois; tota word production reached just over 179 miion tons in This year, a further 6.6 miion tons wi be added in the growing season up to October 2012, of which some Continued on page 38

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