Russian Base Oil Exports Grow in March

11.11.2021 News
Russian Base Oil Exports Grow in March

After dropping in January and February this year, base oil exports in Russia increased in March to 113kt up from 98kt in February. This is 13% more than in March 2020 and the biggest figure since at least 2015. Considering the fact that a few plants were on maintenance, it is a significant growth. Compared to the first quarter of 2020 when 318kt of base oils was exported, in the first quarter of 2021 this number is 3% higher: 328kt.

The most considerable increase was in Ukraine (+25%), Kaliningrad (+33%), and Liepaja (+58%) base oil exports. Increase in export to the West was caused by extreme tightness in the base oils market, especially in neutral grades starting from SN350, SN400 and SN500 and to heavy grades such as SN900, SN1200 and bright stock or BS-150.  When key western suppliers struggle to offer any product on the spot, Russia remains one of the few outlets where base oils are still available for spot purchase.  

March increase in export was driven mostly by Lukoil. After a maintenance-caused drop in January, base oil exports of Lukoil’s refinery in Volgograd increased for second month in a row. In March Volgograd refinery exported 27kt of base oils which is 22% more comparing to February. The Volgograd refinery has a refining capacity to make 520.000 t/y of Group I and 30.000 t/y of Group III. Lukoil plans to start production of Group II base oils with viscosities of 5 and 7 cSt in 2021.  

Lukoil’s refinery in Perm exported 26kt of base oils which is 15% more than in the previous month. The refinery has a capacity of 400,000 t/y.   

Rosneft’s Angarsk refinery exported 10kt in March which is 40% more than in February. The refinery capacity is 250,000 t/y. 

Refineries owned by Gazpromneft decreased export loading in March: Omsk by 1120 tons and Yaroslavl by 1480 tons, both base oils units had maintenance works during this month. 

Loading to Russian domestic market also increased in March compared to February by 26730 tons to 144 460 tons. All refineries expect of Omsk and Ufa increased loading to domestic clients by rail.  

Russia exports Group I, light grades of Group II and Group III base oils such as VHVI-4, VHVI-6 and VHVI-8. For base oils inquiry please send you request via website form or to email info@dymresources.com

Related news