India’s base oil capacity is estimated at approximately 1.7 million t/y and is expanding rapidly, driven by investments in Group II and Group III production to reduce reliance on imports. Major refiners include Indian Oil Corp., Hindustan Petroleum Corp., Bharat Petroleum Corporation and Reliance Industries. Ongoing expansions by IOC and HPCL are expected to materially increase India’s higher-quality base oil output over the medium term.

South Korea is a major producer of high-quality base oils, with capacity heavily weighted toward Group II and Group III. Its four refiners – SK On, S-Oil, Hyundai Oilbank and GS Caltex – have combined capacity of approximately 6 million t/y, making the country one of the most export-oriented base oil producers globally.

Japan maintains a mature base oil sector with total capacity of about 1.5 million t/y, split among ENEOS, Idemitsu Kosan and Cosmo Oil.

Smaller regional producers include Taiwan, led by CPC Corporation, and Thailand, where Thai Oil and IRPC operate base oil facilities.

Exports

Asia-Pacific base oil exports are dominated by Group II and Group III grades, reflecting the region’s technological advantage in higher-quality production. Key export destinations include Europe, North America, India, China and Southeast Asia.

South Korea is the region’s largest exporter, accounting for approximately 40% of Asia-Pacific base oil exports. SK Enmove and S-Oil are the principal exporters. Japan contributes approximately 26% of regional exports, led by ENEOS and Idemitsu Kosan, with exports focused on high-performance and specialty base oils.

Singapore accounts for roughly 12% of exports, supported primarily by ExxonMobil’s Jurong base oil complex, alongside Shell’s regional trading and blending operations.

Imports

China is the largest base oil importer in the Asia-Pacific region, driven by strong lubricant demand growth and supply gaps in certain grades, particularly premium Group II and Group III. Imports are sourced primarily from South Korea, Singapore and the Middle East.

India is also a significant net importer, particularly prior to recent capacity expansions, with imports historically accounting for more than 50% of domestic demand. Major importers include IOC, BPCL and HPCL, as well as private lubricant blenders.

Smaller import markets include South Korea for select specialty grades, Thailand and Japan, reflecting specific product and quality requirements.

Growth Drivers

Base oil demand growth in Asia-Pacific is supported by continued expansion in the automotive sector, particularly in China and India, which together account for more than 50% of regional vehicle production. Additional growth is driven by rising industrial lubricant demand from manufacturing, power generation, infrastructure development and heavy machinery. These trends are reinforced by ongoing urbanization, industrialization and tightening lubricant performance standards across the region.