Capacity
Europe is a mature base oil–producing region, with total installed capacity estimated at 11.3 million metric tons per year, accounting for 17.6% of global capacity. Production is spread throughout the continent but is more densely concentrated in Western and Eastern Europe.
The market has seen declining API Group I production and demand and growing reliance on Group II and Group III, much of which is supplied through imports. New capacity is coming online, especially in Northern Europe with the opening of ExxonMobil’s Group II plant in Rotterdam, and several rerefineries. The Netherlands has combined capacity of 1,200,000.
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.
Italy has base oil capacity of about 969,000 t/y, mainly Group I, operated by Eni at its Livorno facility, with output serving both domestic and export markets.
Spain’s 1.35 million t/y of largely Group I capacity is led by Repsol, with production supporting domestic consumption and exports to Southern Europe and North Africa.
Russia has base oil capacity estimated at 2.66 million t/y, largely Group I, operated by Rosneft, Lukoil and Gazprom Neft. Production primarily serves domestic demand and selected export markets, although trade flows have been affected by geopolitical developments.
Exports
Europe is a net importer of base oils overall but remains an exporter of Group I grades, particularly from Southern and Eastern Europe. Export destinations include Africa, the Middle East and parts of Asia.
Italy, Spain and Russia are key exporters within Europe, shipping surplus Group I volumes when available. Export volumes have declined in recent years due to refinery rationalization and tightening environmental regulations.
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. Imports are sourced primarily from the United States, South Korea, the Middle East and Singapore.
Growth Drivers
European base oil demand is influenced by a mature automotive market, declining total lubricant volumes and a structural shift toward higher-performance lubricants. Demand growth is supported by increasing penetration of Group II and Group III base oils, driven by tighter emissions standards, extended drain intervals and OEM requirements. Industrial demand from manufacturing, renewable energy and specialty applications also supports consumption, partially offsetting declines in traditional segments.