Chevron and SK Enmove Partner with HF Sinclair on Base Oil Supply
Chevron and SK Enmove have signed long-term commercial agreements to supply base oils to HF Sinclair's Lubricants & Specialties segment.
The agreements, announced on Monday, will see Chevron supplying Group II base oils and SK Enmove supplying Group III base oils to HF Sinclair. The company will distribute Chevron-branded Group II base oils in Canada and selected U.S. regions, while also serving as SK Enmove's distributor for YUBASE Group III base oils in key North American regional markets.
The announcement comes after JobbersWorld reported in July that HF Sinclair planned to retire its Mississauga base-oil refining assets. The company has now reached agreements with two global base oil manufacturers, naming Chevron as the supplier of Group II base oils and SK Enmove as the supplier of Group III base oils.
The agreements mark a significant change in HF Sinclair's position in the North American base oil market, shifting from refining substantial quantities of Group II and Group III base oils in Canada to relying more heavily on products manufactured by outside suppliers. The company will maintain a strong Ontario presence, including its R&D laboratory, lubricant blending and packaging, supply-chain, logistics, and commercial operations.