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Gazprom Neft Plans to Build North European Lubricant Blending Plant

Russia's leading lubricants producer Gazprom Neft announced that it plans to build a lube blending plant, its sixth, with 30,000 tonne capacity in Estonia, Latvia or Finland in order to conquer the North European market. It is reportedly a 30-40 million euro (US$38 to $51 million) investment and the company is holding talks with three partners for the location, the company's press service told Eesti Päevaleht ("The Estonian Daily"). The names of the partners were not revealed.

"I cannot comment upon this topic to the press in any way," said Tallinna Sadam board chairman Ain Kaljurand, who was in St Petersburg where the head office of Gazprom Neft is located.

In 2011, Gazprom Neft-Lubricants increased its share of Russia's packaged lubricating oil market to 10.5%, while the geographical reach of its sales expanded to 35 countries. In the next 10 years Gazprom Neft says it plans to increase its share in the Russian lubricants market of produced lubricants to 18%.

George Morvey, project manager with Kline’s Petroleum and Energy Practice. told OEM/Lube News that his firm estimates the Russia total finished lubricant demand in 2011 at 1,650 KT.

Gazprom Neft-Lubricants founded in 2007 is a subsidiary of Gazprom Neft. The enterprise currently has production assets in Western Siberia (Omsk), the European part of Russia (Yaroslavl), the Moscow region (Fryazino) and Western Europe (Bari, Italy) and the Novi Sad plant in Serbia..

Gazprom Neft-Lubricants' range of products includes around 300 varieties of lubricating oil sold under the Gazprom Neft, SibiMotor and G-Energy brands.


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