PETRONAS has long integrated value-adding business initiatives to maximise corporate synergies and returns; thus, construction of a dedicated base oil plant, MG3, the first of its kind in Southeast Asia. Located within the Melaka Refinery Complex, MG3 uses PETRONAS' high-wax feedstock to produce high viscosity index (VI), low Noack Group III base oil (branded ETRO) for top-tier automotive and industrial lubricant formulation. Current production capacity stands at 6,500 barrels/day (300,000 metric tons/annum).

Typically, Group III base oil are produced from hydrocracker bottom, using unconverted oil (UCO) as feedstock. The MG3 plant is unique however as it produces high quality Group III base oil directly from Waxy vacuum gas oils. Characterised by low sulphur and nitrogen content, high wax content and a very high VI, the Waxy vacuum gas oils requires no further pre-treatment before being used as feedstock for high quality base oil.