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-Lubricants 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 Gazproms oils in Europe. Besides that, the plants 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 companys strategy to develop a global lubricant business.

Under the agreement, Gazpromneft-Lubricants can use Q8 Oils 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 Russias 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.