Chevron and SK Enmove to Supply HF Sinclair Ahead of Mississauga Base Oil Retirement
HF Sinclair has identified the two global suppliers that will support its base oil business as it prepares to retire the refining assets at its Mississauga, Ontario, facility.
Under long-term commercial agreements announced Monday, Chevron Products Company will supply Group II base oils and SK Enmove will supply Group III base oils to HF Sinclair’s Lubricants & Specialties segment. HF Sinclair will distribute Chevron-branded Group II base oils in Canada and selected U.S. regions and will also serve as SK Enmove’s distributor for YUBASE Group III base oils in key North American regional markets.
The announcement follows JobbersWorld’s July 28 report on HF Sinclair’s planned retirement of its Mississauga base-oil refining assets. At that time, the company said it had reached agreements with two global base oil manufacturers but did not identify them. The latest announcement names Chevron as the Group II supplier and SK Enmove as the Group III supplier. Together with continued access to Group I and specialty products from HF Sinclair’s Tulsa, Oklahoma, refinery, the agreements are intended to allow the business to continue offering Group I, Group II and Group III base oils.
A New Supply Model
The agreements mark a significant change in HF Sinclair’s position in the North American base oil market. Rather than refining substantial quantities of Group II and Group III base oils in Canada, the company will rely more heavily on products manufactured by outside suppliers while retaining key parts of its downstream operations.
HF Sinclair said it will maintain a strong Ontario presence following the planned retirement of its Mississauga base-oil refining assets, including continued operation of its R&D laboratory, lubricant blending and packaging, supply-chain, logistics and commercial operations. The company expects the transition to its new base oil solutions model to be completed in the second half of 2027, while Chevron’s distribution agreement with HF Sinclair takes effect May 1, 2027. That timing puts the replacement supply and distribution network in place ahead of, or alongside, the refinery retirement.
Chevron will supply Group II base oils to HF Sinclair’s Lubricants & Specialties segment, while HF Sinclair will distribute Chevron-branded Group II in Canada and selected U.S. regions. Chevron’s related distribution agreement makes HF Sinclair its exclusive Group II distributor in Canada and within HF Sinclair’s existing U.S. customer territories beginning May 1, 2027. Renkert Oil will continue distributing Chevron Group II outside that exclusive territory.
See the related Chevron distribution story for the full territory and product-line structure.
The arrangement gives HF Sinclair access to Chevron’s Group II portfolio while allowing Chevron to expand its Canadian and regional U.S. market presence. It also confirms that HF Sinclair intends to remain active in the base oil market following the planned retirement of Mississauga’s base-oil refining assets.
Capacity and Regional Significance
The Mississauga refinery has approximately 15,600 barrels per day of base oil nameplate capacity, divided between 11,600 barrels per day of Group II and 4,000 barrels per day of Group III. Group II therefore accounts for roughly three-quarters of Mississauga’s listed base-oil capacity, and Chevron’s supply role corresponds with the larger portion of the plant’s listed capacity mix.
That does not mean Chevron has committed to replacing all 11,600 barrels per day. Neither company disclosed contracted volumes, minimum commitments, supplied grades or originating plants. HF Sinclair has identified YUBASE as the Group III product family it will distribute, but it has not said whether the agreement will provide volumes equal to Mississauga’s 4,000 barrels per day of Group III nameplate capacity. Nameplate capacity also should not be confused with actual production, which can vary with operating rates, maintenance, product campaigns and market conditions.
Although Group III represents the smaller portion of Mississauga’s total capacity, it carries added regional significance. According to the Lubes’n’Greases 2026 Global Base Stock Plant Guide, the Americas have 8,400 barrels per day of listed Group III nameplate capacity. Mississauga’s 4,000 barrels per day represents approximately 48% of that total.
The comparison is a point-in-time measure based on the facilities and capacities included in the guide and will change as new units and expansions enter service. Even with that qualification, the figures illustrate the importance of HF Sinclair’s arrangement with SK Enmove.
SK Enmove is a major global producer of premium Group III base oils marketed under the YUBASE brand. SK Enmove said the arrangement combines its supply position with HF Sinclair’s North American logistics network and route to market. The supplier and product family are now known, but HF Sinclair has not disclosed which plants will supply the North American network, how the barrels will be transported, where inventories will be located or which grades will be available in each market.
What Customers Will Watch
The central supplier question has now been answered: Chevron will support Group II, and SK Enmove will support Group III.
Customers will now be looking for details on volumes, available grades, source plants, inventory locations, delivery arrangements and any approval or interchangeability considerations. Nothing in the announcements points to an immediate supply or quality problem. These are commercial and operating details that have not yet been made public.
The agreements give Chevron a broader Canadian and U.S. distribution footprint and provide SK Enmove with an expanded North American channel for YUBASE. More importantly for HF Sinclair, they establish the supply framework needed to remain active in base oils following the planned retirement of its Mississauga base-oil refining assets.