The world’s biggest crude oil producer, Russia only has nine base oil plants and produced 2.4 million tons of base oils and lubricants in 2011, placing it among the top five global lubricants producers, according to Oleg Tsvetkov of the Moscow-based All Russia Research Institute of Oil Refining (VNII NP).

Russia last year consumed 1.6 million tons of base oils and exported the remaining 800,000 tons.

“However, in 2011 the country imported around 400,000 tons of base oil, or one quarter of the total consumed base oil,” Tsvetkov told RPI’s Lubricants Russia conference held here in November. “Around 98 percent of the country’s output is [API] Group I base oil. Unfortunately [TNK-BP’s] Ryazan base oil plant was shut down a couple of years ago, while [Tatneft’s] Group IV base oil plant in Nizhnekamsk is expecting to resume in 2015,” Tsvetkov said. The Russo-British joint venture, TNK-BP, was recently acquired by Rosneft, the country’s biggest crude oil producer, while Tatnetft’s Nizhnekamskneftekhim plant in Nizhnekamsk stopped its polyalphaolefins (PAOs) production in 2010 due to the feedstock supply issues.

According to VNII NP, Russia’s nine base oil plants are equipped with the following technology: four trains with selective treatment and four trains with hydro treatment; three trains with low temperature dewax, slack wax hydroisomerisation and hydrocracking technologies; one train with hydrogenation of low viscosity fractions for basic hydraulic and transformer oils and two trains with catalytic dewax.

The institute expects the country’s Group I base oil demand to remain high, and by 2020 will constitute 60 percent of the total base oil demand. Group II and III base oils by 2020 will comprise 25 percent and 12 percent of the total demand, respectively, and Group IV and V base oils (naphthenic) will comprise 1 and 2 percent, respectively.

The country is also expecting quite a few capacity upgrades and development of new Group II and III base oil plants.

“Rosneft announced base oil plant upgrades at its Novo-Kuibyshevsk and Angarsk refineries, with total capacities of 660,000 tons, while Tatneft is expecting to commence its new Nizhnekamsk 190,000 tons per year Group II and III base oil plant by the end of next year,” Tsvetkov said.

Additionally, Slavneft refinery (a JV between Gazprom Neft oil major and the former TNK-BP), is expecting a 100,000 tons Group III base oil capacity upgrade at its Yaroslavl refinery in the next few years, while Tatneft’s Nizhnekamskneftekhim is expecting to resume its 10,000 t/y Group IV base oil production by 2015.

Last year the country produced 660,000 tons of motor oils, half of its 2001 output of 1.3 million tons, according to Tsvetkov, who cited a gradual fall in productivity coupled with the increasing role of the imported lubricants. “The imports of finished lubricants in Russia have seen especially big increases during the crises in 2009 and 2010. The third reason is the general end users’ distrust for the domestic finished products for use in Western made or imported equipment, machinery and cars.”

On-road and off road vehicle engine oils held the biggest share (58 percent) of the country’s production in 2011, followed by industrial oils (33 percent), power generation oils (7 percent) and other (2 percent). The sale of passenger cars and light commercial vehicles in Russia in 2012 is expected to be over 2.7 million units, according to VNII NP.

Lukoil is Russia’s biggest lubricants marketer, and in 2011 held 48.2 percent of country’s total base oils and lubricants production. It was followed by Rosneft at 20.1 percent and Gazprom Neft at 10.9 percent. Slavneft, Bashneft and Russneft in 2011 held 10.3 percent, 8 percent and 2.6 percent, respectively, of Russia’s total base oils and lubricants production.

Because 60 percent of Russia has winter conditions all year around, and 20 percent of it is above the Arctic circle, VNII NP found that PAO products should have strategic role for the country.

Lack of domestic PAO production is a big issue for Russian machinery and equipment, and should be of great concern for the Russian state as well,” Tsvetkov contended, adding that the country’s scientific community should appeal to the big oil majors to diversify PAO production. “Rosneft should take the lead and add at least 15,000 t/y of Group IV base oil production in its capacity upgrades, whether in Angarsk or in Novo-Kuibyshevsk. This is the first time since 1972, when PAO production was established in Angarsk under VNII NP technology, that Russia is not producing PAOs for an extended time.”

However, the biggest problem the Russian lubricants industry is facing is the establishment of a modern national center for lubricants testing, according to VNII NP.

“Tests under API and ACEA specifications are missing in Russia today. And the typical testing program of our institute is the qualification tests of motor, transmission and hydraulic oil in accordance with [the obsolete] GOST 17 479, 1-3 specification. Also there is a set of motor oil tests [established in the early 90s] in accordance with [the country’s] STO AAI 003-08 specification. But tests under specifications of API and ACEA cannot be done in Russia today and it is a very big minus for the industry,” Tsvetkov concluded.