February maintenance tighten Russian base oils supplies

Russian base oils supplies tighten in February as refinery cut output amid seasonal maintenance according DYM Resources market survey.

Five out of eight Russian refineries with base oils units have maintenance in February which are affecting their base oils output. Around 1.7 mln tons or 64% of total Russian base oils capacity is affected (see the table below).

Producer Location Base oils capacity, 000t/yr
Lukoil Volgograd 550
Lukoil Perm 440
Rosneft Novokuibyshevsk 350
Rosneft Angarsk 250
Rosneft Ufa 240
Rosneft/Gazprom Yaroslavl 350
Gazprom Omsk 240
Tatneft Nizhnekamsk 190
Total 2610

It is one of the toughest maintenance for Russian base oils universe during the last 10 years” – Denis Varaksin, DYM Resources GmbH base oils and slack wax director commented.

Maintenance is affecting all four producers: Lukoil (Volgograd refinery), Rosneft (Novokuibyshevsk and Yaroslavl refineries), Gazprom (Omsk and Yaroslavl refineries) and Tatneft (Taneco refinery, located in Nizhnekamsk) and has impact both on Group I and Group III supplies.

Turnaround at the refinery does not mean that there will be no base oils production. The scale of the impact depends on what unit and for how long is shut down.

For example, Rosneft, second biggest Russia’s base oils producer, offered for export in February about 33 000 tons of base oils, or 25% smaller volumes compared to December 2017. The company has two of its four base oils units affected by maintenance.

Maintenance has already impact on prices: Baltic and Black Sea base oils prices have increased 10-20 USD per ton during last two weeks.

Maintenance on base oils units also limits waxes supplies. Prices for slack waxes and petrolatum has also increased by 10-20 EUR per ton in Russia in February compared to January this year.

Stocks are still available

Despite heavy maintenance some trading companies in the Baltic still have product available for loading from stocks accumulated in December 2017 – January 2018. During those months Russia was loading near record-high volumes of base oils for export.

2018 was supposed to be a year of improved Russian base oils availability as there is additional 100 000 tons of Group III base oils unit launched in Yaroslavl which should reach its planned capacity this year.

Russian domestic lube demand eased: after two years of aggressive import replacement Russian lubes stocks are high. High finished lubricants stocks push major producers to sell more base oils to the market.

DYM Resources is a trading firm focused on Group I and Group III base oils and slack wax supplies from Russian and Former Soviet Union (FSU) counties. The company specializes on flexi-container and trucks loadings. DYM Resources regularly loads for export SN 150, SN 350, SN 500 and BS-150 base oils. To contact us please visit our website or email us at

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Turkmenbashi base oil unit

Turkmenbashi Base Oil Unit Restarts After Maintenance at the Refinery

Production has restarted at the Turkmenbashi base oil unit after halting for maintenance, sources told DYM Resources.

Operations re-launched last week at Turkmenbashi, which is Turmenistan’s state-owned refinery.

“Base oils and slack waxes from Turkmenbashi refinery have great potential as they are still not widely known in the market,” said Denis Varaksin, DYM Resources base oil and slack wax director.

The Turkmenbashi base oil unit has the capacity to produce 80,000 tons of base oils per year, and is the only base oil producer in Turkmenistan. The refinery exports most of its base oils to Iran and the Black Sea market, mainly to Turkey and Kazakhstan.

The refinery produces three grades for export: SN 180, SN 350 and SN 600. All grades are available for loading with rail tank cars or tanker vessels from Turkmenbashi port. Base oils can be directly supplied from Turkmenistan to the Black Sea market via the Volga-Don canal and Sea of Azov with 2,000 to 5,000 DWT sea-river type vessels.

Exports of SN 600 base oils restarted this year after several years of absence of such loadings. The refinery is capable of producing SN 1200 base grade but did not export this product recently.

The Turkmenbashi base oil unit’s products are of the highest quality among other Group I base oil producers in ex-USSR countries. The product has a light color (less than 0.5 for SN 180 and SN 350 grades), a high viscosity index and low sulphur content.

DYM Resources started supplying Turkmenbashi slack waxes to Germany this year. The refinery was not producing slack wax during the second half of 2014 to the second quarter of 2016. Turkmenbashi produces slack wax from SN 180 and SN 350 base oils. The slack wax products have a viscosity of 3.8 to 5.6 cSt at 100 degrees Celsius.

Slack wax is a source for producing paraffin, wax emulsions, jellies and other products. Slack wax derivatives are used in construction, cosmetics, candle production and other industries.

DYM Resources is a niche oil products supplier focused on base oils, slack waxes, paraffin, ceresin and petroleum coke. The company has a presence in Turkmenistan, Russia, Moldova, Turkey and Europe, while it trades globally. The company is registered in Germany and is a “smart cost” company, by optimizing its costs to offer the highest quality services at the best value.

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