2026-10-09
- Alexandria Mineral Oils Company (AMOC) disclosed to the Egyptian Exchange (EGX) that it has completed a production trial for API Group II base oils.
- Its Acid Gas Treatment Project has finished mechanical works and is in trial operation, at an estimated cost of US$250,000.
- The unit is expected to reduce carbon emissions by about 28,500 tons per year and save about US$2.5 million annually through lower natural gas consumption.
- Egyptian lubricant demand is estimated at 623 million liters in 2025, rising to 711 million liters by 2031.
Alexandria Mineral Oils Company (AMOC) has completed a production trial for API (American Petroleum Institute) Group II base oils and, in the same disclosure, said its acid gas treatment unit is now in trial operation, according to reports based on the company’s filing. Egypt Oil & Gas reported the news on 29 September 2026 citing AMOC’s disclosure to the Egyptian Exchange (EGX), and Lube Report (Lubes’N’Greases) followed on 7 October 2026. The step comes at a time when the Strait of Hormuz remains mostly closed to ship traffic and high-quality base oil supply is tight, which makes any new Group II capability in North Africa noteworthy for regional lubricant supply.
AMOC was established in May 1997 as an Egyptian joint stock company. Its portfolio includes base oils, transformer oil, automatic transmission fluids, fully refined solid and liquid paraffin wax, low-sulfur gas oil, naphtha, liquefied petroleum gas (LPG), and fuel oil blends. The disclosure covers two separate items.
The first is the Group II base oil production trial. AMOC said the trial is part of its effort to expand production of high-quality base oils and improve its competitiveness in local and international markets. The company explained that Group II oils have lower sulfur content, higher saturates and a higher viscosity index (VI) than Group I oils, and it described the trial as “a significant strategic milestone.” It added that the new capability will diversify its product range and provide more flexibility in production and marketing. Base oil is the main raw material for engine oils, industrial lubricants and specialty oils.
The second item is the Acid Gas Treatment Project. Mechanical works, including equipment and instrument installation and the required testing, are complete, and the unit is now in trial operation. The trial aims to stabilize operating conditions, monitor equipment performance and assess laboratory results for the treated gases. The unit processes acid gases from the MDDU unit instead of sending them to the acid flare system.
The filing and the follow-up report do not state the capacity of the Group II production line or the acid gas unit, the licensor or technology provider, the contractors, the plant location, the start and end dates of the trials, or measured trial results beyond the expected figures below. This article therefore sticks to what has been disclosed publicly.
- Estimated cost of the Acid Gas Treatment Project: US$250,000
- Expected carbon reduction: about 28,500 tons per year
- Expected annual savings: about US$2.5 million, from lower natural gas consumption
- Acid gas source: MDDU unit
- Egyptian lubricant demand estimate: 623 million liters in 2025, rising to 711 million liters by 2031 (Mordor Intelligence estimate cited by Lube Report)
- Company founded: May 1997
The acid gas project is small in capital terms, yet the company expects annual savings that are ten times its estimated cost, which suggests a short payback if the figures hold. These are expected values supplied by the company and need to be confirmed by trial results. Egypt is one of North Africa’s larger lubricant markets, and automotive demand accounts for most consumption.
Timeline
- 2026-09-29 — Egypt Oil & Gas reports, citing AMOC’s EGX disclosure, that the Group II base oil trial is complete and the acid gas unit is in trial operation
- Late September 2026 — Group II production trial completed, according to Lube Report
- 2026-10-07 — Lube Report Global (Lubes’N’Greases) reports the Group II trial completion
Note
The API Group classification rests on sulfur content, saturates content and viscosity index; a higher VI means viscosity changes less with temperature. MDDU is the name of an AMOC unit mentioned in the disclosure, and the report does not define it further.