Dallas-based energy firm HF Sinclair plans to end base oil refining at its Mississauga, Ontario facility by 2027, effectively shutting down Canada’s largest producer of the refined oils that power engines, turbines, and industrial machinery nationwide.
The news was met with sharp criticism from Unifor, the union representing the site’s workers, which warned the decision threatens domestic supply chain security.
The Mississauga facility is the largest base oil producer in Canada, boasting a production capacity of approximately 15,600 barrels per day. It also serves as the nation’s only significant source of Group II and Group III base oils—the refined components essential for manufacturing engine oils, hydraulic fluids, and industrial lubricants.
Under HF Sinclair’s transition plan, Canadian demand for these base oils will instead be supplied by two unnamed global manufacturers alongside HF Sinclair’s refinery in Tulsa, Oklahoma.
While base oil refining will cease, the Mississauga location will continue operating as a blending and packaging site for imported base oils under the Petro-Canada Lubricants brand.
READ: Parkland appoints Michael Jennings to its Board of Directors