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البحـث الأول

مجلة النفط والتعاون العربي

161

العدد

- 2017

أربعون

المجلد الثالث و ال

2016

أوابك العلمية لعام

ص لبحوث العلمية الفائزة بجائزة

عدد خا

97

87

II base oils is also getting smaller which will encourage the use of the latter at the

expense of the first.

Saudi Arabia & the UAE:

In terms of capacity the largest re-refining plants are in Saudi Arabia and the

United Arab Emirates. The two countries were driven by tighter environmental

regulation, improved quality of virgin oils and hence used oils, rising crude oil

prices before June 2014 which made re-refining attractive.

In the UAE, the collectors are in 20 companies and more numerous than

processors, which are in 8 companies

33

. Most collected used oil was burned for

energy, producing lower grade base oils or blending with other fuels

33

.

The domestic demand for lubricants in the UAE is estimated at 108 thousand tons

a year in 2015 and therefore the collectable used oil is probably not more than 55

thousand tons a year. Yet the “collected” used oil is estimated

33

to be between

200 to 250 thousand tons a year. The majority is believed to come from importing

used oils from other Arabian Gulf countries or even further afield. Perhaps even

some marine oils from the ports are also included here.

But there is now a law prohibiting the import of used oils into the UAE which

will put a strain on capacity utilization. This will impede further investment to

improve processing to produce better grades of base oils from used oil feed. It is

the opinion of this writer that the ban should be lifted and substituted by additional

testing and controls on the imported used oil and its utilization.

In the UAE collectors pay the generators a price for their used oil in Dirham/ 200

liter drums. The price is said to be somehow related to the crude oil price.

Data privately obtained from a large used oil generator is compared to Brent crude

oil rice in Fig (23) for the period shown from January 2015 to January 2016.

While in direction the relationship of between used oil and crude oil prices is clear

but a direct relationship with crude prices with reasonably stable differential is

not there. The average of the data is $50 and $22 for Brent price and used oil

collected price respectively. The fuel oil price in the same period was probably

around $40 a barrel and therefore it seems that used oil is priced below fuel oil

prices. This is a good policy because it prevents generators from adding fuel oil

to their generated oil. Cost of transportation has to be added for delivery to a re-