2026-10-14
- The American Petroleum Institute (API) has extended its emergency provisional engine oil licensing program for a second time, Lube Report reported on 2026-10-07. The length of the extension and its end date have not been disclosed.
- The program stems from the 2026-03-26 invocation of the emergency provision in API 1509 Section 6.9, and about 12 companies had applied as of June 2026, according to API.
- Missile and drone attacks on Middle East energy infrastructure and restricted transit through the Strait of Hormuz are cited as causes, with ADNOC, Bapco Energies and Qatar’s Pearl GTL reported as affected facilities.
- Holly Alfano, CEO of the Independent Lubricant Manufacturers Association (ILMA), said the supply crisis is far from resolved.
- On the same day, it was reported that Petronas may restart the API Group III Lube Base Oil unit at its Melaka refinery, though the timing has not been confirmed.
On 7 October 2026, Lube Report reported that API had extended its emergency provisional engine oil licensing program for a second time. The program allows engine oil manufacturers to adjust formulations temporarily when approved Lube Base Oil cannot be obtained because of Middle East supply disruptions. The duration of the extension and its end date have not been disclosed. On the same day, Lube Report also reported that Petronas may restart the API Group III Lube Base Oil unit at its Melaka refinery. While regulators extend a temporary measure, there is now talk of at least one supply source returning. This article summarizes both reports, the background, the status of the Petronas unit and the implications for the industry.
The emergency provisional licensing is a measure based on the emergency provision of EOLCS (Engine Oil Licensing and Certification System), which API operates. API invoked the emergency provision in API 1509 Section 6.9 on 26 March 2026; the provision was last invoked in 2020 during COVID-19, according to the report. ILMA is understood to have asked in March for a force majeure declaration.
Under the emergency provision, manufacturers may substitute Lube Base Oil or adjust formulations when approved components are unavailable. The permission is conditional, and the following must be submitted to API:
- An agreement with API
- Documentation of the supply problem
- Identification of the substitute material
- Technical data demonstrating no impact on performance
- A traceability code for the modified product
When the emergency period ends, manufacturers must either revert to the original formulation or obtain formal approval. About 12 companies had applied as of June 2026, a figure attributed to API’s Bill O’Ryan.
The supply crisis is attributed to missile and drone attacks on Middle East energy infrastructure and restricted transit through the Strait of Hormuz. Facilities reported as affected include ADNOC, Bapco Energies and Qatar’s Pearl GTL. ILMA CEO Holly Alfano was quoted as saying:
“API’s decision to extend emergency provisional licensing reflects the fact that the base oil supply crisis is far from resolved.”
Separately, Petronas operates an API Group III Lube Base Oil unit at its Melaka refinery. The unit produces Etro+ Lube Base Oil and began commercial operation in 2008. A turnaround had been planned for 1 June to 15 July, but the shutdown has lasted longer, and the reason for the outage and the restart timing have not been confirmed. Petronas did not respond to requests for comment.
Numbers
- Date emergency provision invoked: 2026-03-26 (API 1509 Section 6.9)
- Number of applicants: about 12 companies (as of June 2026, API’s Bill O’Ryan)
- Previous invocation of the provision: 2020, during COVID-19
- Extensions: second extension (length and end date not disclosed)
- Affected facilities: ADNOC, Bapco Energies, Qatar Pearl GTL
- Nominal capacity of the Petronas Melaka Group III unit: about 6,500 b/d (barrels per day), equivalent to about 247,000 to 300,000 t/y (tonnes per year)
- Commercial start-up of the Petronas unit: 2008
- Planned turnaround period: 1 June to 15 July
Timeline
- 2008 — Petronas Melaka Group III Lube Base Oil unit begins commercial operation
- 2020 — API 1509 Section 6.9 emergency provision last invoked, during COVID-19
- 2026-03 — ILMA requests a force majeure declaration
- 2026-03-26 — API invokes the API 1509 Section 6.9 emergency provision
- 2026-06-01 — Planned start of the Petronas Melaka unit turnaround
- 2026-06 — About 12 companies reported to have applied for emergency provisional licensing
- 2026-07-15 — Planned end of the Petronas Melaka unit turnaround
- 2026-10-07 — Lube Report reports the second API extension and the possible Petronas Melaka restart
Note
Group III is the API Lube Base Oil category covering high-viscosity-index grades made mainly by hydrocracking.