Chevron Products Company, a division of Chevron U.S.A. Inc., has signed a base oil distribution agreement with YPF S.A. (YPF), a vertically integrated Argentine energy company headquartered in Buenos Aires, Argentina.
YPF, which has been well established in Argentina since 1922, has an intimate understanding of the challenges and opportunities in the market. YPF will keep in its inventory Chevron Neutral Oil 100R, 220R and 600R at its facilities, which are strategically located for Argentina’s lubricant blenders.
Argentina is the third largest lubricants market in Latin America. Demand for premium quality lubricants is growing in that market, according to Chevron, although the market primarily uses Group I base oils in their lubricant formulations.
Currently there is no Group II or Group III base oil production in South America. With two in-region supply hubs and a large portfolio of qualifications, Chevron is providing the region with reliable local supply, and an economical path for upgrading product quality as demand for Group II base oil grows.
YPF was chosen as Chevron’s Group II base oil distributor because of its depth of market experience coupled with a full range of logistical and technical support services. By adding Chevron Group II/II+ to their base oil supply network, YPF can help customers navigate the changing needs of the lubricants market while reducing supply chain complexity.
“YPF’s breadth of service and commitment to operational excellence make it an ideal distributor for us in meeting the needs of Argentina’s lubricant marketers,” said Tracey Gardiner, vice president, Chevron Base Oils. “They understand the market’s needs, and we believe that, with our Group II/II+ base oils in the tank, YPF can help customers optimize formulations, while shortening their supply chain. That means customers can minimize their base oil inventory while blending higher performing lubricants.”
Since its founding, YPF has distinguished itself as a fully integrated petroleum company specializing in the exploration, production, refining and commercialization of petroleum products. “We are very excited to represent Chevron premium Group II base oils. With it we can offer lubricant blenders the opportunity to upgrade their current portfolio of lubricant products,” said YPF Lubricants and Specialties Director Eduardo Castellote. “We are committed to working with customers to help them understand the benefits of adding Group II to their supply chain and how to optimize formulating strategies as they transition through the maze of changing specifications.”
“Chevron’s extensive qualifications portfolio coupled with YPF’s in-region technical support can help formulators seamlessly integrate Group II base oils into their supply chain,” said Mauricio Martín, vice president, YPF Downstream.
This is Chevron’s second Group II supply hub in South America and its 17th hub globally. It has three plants producing Group II base oils, located in Richmond, California, and Pascagoula, Mississippi, U.S.A., and a joint venture Group II base oil plant with GS Caltex in Yeosu, South Korea.