New capacity is emerging, particularly in Northern Europe, including ExxonMobil’s Group II plant in Rotterdam and several rerefining facilities. The Netherlands now has combined base oil capacity of roughly 1.2 million t/y.

Major Base Oil Producing Countries in Europe

Germany

Germany is one of Europe’s largest base oil producers, with capacity estimated at approximately 973,000 t/y, predominantly Group I. Key producers include H&R Chemische and Avista.

Italy

Italy has base oil capacity of about 969,000 t/y, mainly Group I, operated by Eni at its Livorno refinery. Production supports both domestic demand and exports.

Spain

Spain accounts for 1.35 million t/y of largely Group I capacity, led by Repsol. Output supplies domestic markets and exports to Southern Europe and North Africa.

Russia

Russia has estimated base oil capacity of 2.66 million t/y, primarily Group I, operated by Rosneft, Lukoil and Gazprom Neft. Production mainly serves domestic demand, with exports affected by geopolitical developments.Germany is one of Europe’s largest base oil producers, with capacity estimated at approximately 973,000 t/y, primarily Group I, led by H&R Chemische and Avista.

European Base Oil Exports

Europe is a net importer of base oils overall, yet it remains a significant exporter of Group I grades, particularly from Southern and Eastern Europe. Key export destinations include Africa, the Middle East and parts of Asia.

Italy, Spain and Russia are the region’s primary exporters, shipping surplus Group I volumes when available. However, export volumes have declined due to refinery rationalization and stricter environmental regulations.

European Base Oil Imports

Europe is one of the world’s largest importers of Group II and Group III base oils, reflecting limited domestic production of higher-quality grades.

Major importing countries include Germany, France, the United Kingdom, the Netherlands and Italy. Supplies are sourced mainly from the United States, South Korea, the Middle East and Singapore.

Growth Drivers in the European Base Oil Market

European base oil demand is shaped by a mature automotive sector, declining overall lubricant volumes and a long-term shift toward high-performance lubricants. Growth is supported by rising adoption of Group II and Group III base oils, driven by:

• Tighter emissions and fuel-efficiency standards
• Extended oil drain intervals
• OEM performance requirements

Industrial demand from manufacturing, renewable energy and specialty applications continues to partially offset declines in traditional lubricant segments.