The planned facility will be capable of producing 500,000 tons per year of Group III base oils, as well as 100,000 tons per year of Group II base oils, and is scheduled to begin commercial production in 2013. Group II and III base oils are used for blending top-tier lubricants for car engines.

Lou Pucher, president of Shaw’s Energy & Chemicals Group, said: “Our recent involvement with Takreer began when our Residue Fluid Catalytic Cracking technology was selected for what will be the world’s largest RFCC unit.

“Today, our involvement continues as we enhance our project management consultancy credentials by supporting Takreer in the development of this base oils plant.”