HF Sinclair signs base oil supply deals with SK Enmove and Chevron

HF Sinclair Corporation (NYSE: DINO) announced that its Lubricants & Specialties segment has entered into long-term commercial agreements with SK Enmove, a Company-in-Company of SK On Co., Ltd., and Chevron Products Company, a division of Chevron U.S.A. Inc., to establish a base oil supply network across North America.

Under the agreements, SK Enmove will supply Group III base oils under its YUBASE brand, and Chevron will supply Group II base oils. HF Sinclair's Lubricants & Specialties segment will act as SK Enmove's distributor for YUBASE Group III base oils in key North American regional markets, while also distributing Chevron-branded Group II base oils in Canada and select parts of the United States.

The agreements are connected to HF Sinclair's previously announced plans to retire its base oil refining assets in Mississauga, Ontario. The transition to the new supply model is expected to be completed in the second half of 2027.

HF Sinclair's Lubricants & Specialties segment will continue to access Group I and specialty products from the company's Tulsa refinery, which combined with the new agreements is intended to provide a portfolio of Group I, Group II, and Group III base oils.

"These agreements represent an important milestone in the evolution of our Lubricants & Specialties business," said Matthew Joyce, Senior Vice President and President of the Lubricants & Specialties segment, according to a press release statement.

Jay Kim, CEO of SK Enmove, said the arrangement "strengthens our North American footprint by securing a highly reliable route to market." Alicia Logan, General Manager of Chevron Base Oils, cited the agreement as reflecting "our commitment to helping customers succeed through reliable supply, proven product quality, and deep technical expertise."

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