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January 16, 2018

Volume 3 Issue 7

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Q8 to Toll Blend for Gazpromneft-Lubricants

Russia’s Gazpromneft-Lubricants signed a lubricant toll blending agreement with Kuwait Petroleum International’s Q8 Oil to increase its production volumes and presence in Europe.

Q8 Oil operates a 220,000 tons per year blending plant in Antwerp, Belgium.

“The growing demand for our production and the geographical expansion in Western and Northern European markets has led us to enter this partnership for foreign production development with a leading lube marketer in Europe,” Alexander Trukhan, Gazpromneft-Lubricant’s general director, said in a Jan. 10 news release.

The company said that because it already operates a 36,000 t/y blending plant in Bari, Italy,  at full capacity it decided to start the toll blending project with KPI to meet the growing demand for Gazprom’s oils in Europe. “Besides that, the plant’s location in Italy is logistically not favorable when offering our products in the more distant markets of northern Europe,” spokeswoman said.

Trukhan said this project is an important step towards implementing the company’s strategy to develop a global lubricant business.

Under the agreement, Gazpromneft-Lubricants can use Q8 Oil’s production facility to make Gazpromneft, G-Energy and Gazpromneft Ocean branded products.

The Q8 Oil plant in Antwerp produces automotive, industrial and marine engine lubricants. The company operates two more plants in Italy and Sweden. The plant in Italy is located south of Milan and specializes in production of metalworking fluids, while its Sweden plant is part of a joint venture and is operated and managed as a separate company.

In Europe, Gazprom owns another lubricant plant in Novi Sad, Serbia, focused on supplying the Balkan region.

In 2016 Gazpromneft-Lubricants held a 15 percent share of Russia’s 1.6 million t/y lubricant demand.   

Operating under the Q8 brand, KPI refines and markets fuels, lubricants and other petroleum derivatives outside Kuwait. The company focuses its main activities on Europe and the Far East.

Photo courtesy of Kuwait Petroleum (Q8Oils)

Toll blending at Q8 Oil’s Antwerp blending facility will allow Gazprom to keep up with growing European demand and up its presence in the region.