How Refinery Capacity Expansions Are Affecting SN150 Supply

In recent years, refinery capacity expansions have significantly reshaped global SN150 base oil supply. As demand for lubricants continues to grow in both developed and emerging economies, refiners are increasing production volumes to meet market needs. SN150, a Group I base oil, remains one of the most widely traded products in the lubricants sector due to its competitive pricing, versatility, and strong availability.

This article explores how refinery expansions across the Middle East, Asia, and other regions are impacting the availability, pricing, and competitiveness of SN150 base oil in 2025 and beyond.

1. The Importance of SN150 in the Lubricants Industry

SN150 plays a crucial role in lubricant formulations due to its:

• Balanced viscosity for both automotive and industrial oils.

• Wide applications, including hydraulic fluids, transformer oils, and process oils.

• Global trade presence, with the Middle East, Russia, and Asia as leading exporters.

• Cost competitiveness, making it attractive for emerging markets.

Because of these factors, refiners prioritize SN150 production during expansions.

2. Refinery Expansions Driving Global Supply

Several regions are investing heavily in new refining units and upgrading Group I/II capacity:

• Middle East: New projects in Saudi Arabia, UAE, and Iran are boosting SN150 output for export markets.

• Asia: India and China are expanding production to serve both domestic and regional demand.

• Russia & CIS: Despite geopolitical challenges, some refiners are maintaining SN150 exports to Asia and the Middle East.

• Africa: Emerging capacity, although small, is improving local supply and reducing imports.

These expansions mean that SN150 availability has improved in global markets, reducing volatility compared to previous years.

3. Impact on SN150 Prices

While refinery expansions have boosted supply, the effect on SN150 prices is mixed:

• Increased supply → downward pressure on prices in oversupplied regions.

• Freight costs & logistics challenges → continue to keep landed prices high in some markets.

• Regional imbalances → Asia remains cost-sensitive, while Europe is gradually shifting away from Group I oils, creating excess SN150 volumes.

4. Supply Chain and Trade Dynamics

The expansion of refining capacity is also reshaping trade flows:

• Middle East to Asia: Strong export growth as refiners supply India, China, and Southeast Asia.

• Intra-Asia Trade: Indian refiners are exporting more to African and Middle Eastern buyers.

• Turkey & Mediterranean: Remain important transit hubs for SN150 imports and distribution.

5. Comparison: Pre-Expansion vs Post-Expansion Supply

6. Long-Term Outlook (2025–2030)

• SN150 will remain essential in emerging markets due to cost advantages.

• Developed economies will continue shifting to Group II and Group III base oils, creating excess exportable supply of SN150.

• Price stability will improve, but logistics and geopolitical risks will continue to influence trade flows.

• Middle East refiners are expected to dominate global SN150 exports, leveraging proximity to Asia and Africa.