Spanish base oils under force majeure after power cut

Market: Oil products
07/05/25

Spanish firm Repsol declared force majeure on its domestic base oil operations last week, the day after a massive power outage disrupted industrial infrastructure across the Iberian peninsula, the company told Argus today.

Repsol has since resumed production at its Spanish base oil plants, but the force majeure remains in place. Its duration will depend on how successfully output can be ramped up and whether the base oil material meets quality specifications, the company said.

The nationwide blackout disrupted operations at Repsol's 80,000 t/yr Group I unit in Puertollano and its 135,000 t/yr Group I and 630,000 t/yr Group II and III units in Cartagena. It shares the Cartagena units in a joint venture with South Korean producer SK Enmove.

The power outage in Spain has further tightened already constrained global Group III supplies. Bahrain's state-owned Bapco is carrying out a 45-day turnaround at its 400,000 t/yr Group III unit in Sitra, and SK Enmove is poised to start maintenance at its 1.3mn t/yr Groiup III plant in Ulsan, South Korea in mid-May.

Europe is a net importer of Group III product, with only 13pc of the region's estimated 7mn t/yr of nameplate base oil production capacity dedicated to the higher-quality grade. Tight supply, combined with seasonally high finished lubricant demand due to the spring oil change, is likely to continue to support Group III prices.

By Christian Hotten & Gabriella Twining

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