Lukoil’s lubricant arm intends to build two production facilities at its refining complex in Volgograd, Russia – one to make lubricant additives and the second to produce greases and metalworking fluids – according to documents filed recently with the local government.
On Sept. 12, LLK International, Lukoil’s finished lubricant business, published part of an environmental impact statement filed with the municipal government, stating “discussions are going on with the local government and the public” about plans for the two facilities. The statement said production capacity of the grease and metalworking fluids plant will be 45,000 metric tons per year. The impact assessment is subject to review by local regulators.
LLK did not respond by deadline to questions about the projects.
According to the impact assessment, the additives plant would produce succinimide chemical additives and additive packages. The other plant would use base oils supplied by pipeline from base oil units in the Volgograd refinery, which produce API Group I, II and III base stocks.
Succinimide additives are usually used as dispersants in production of oils for gasoline and diesel engines.
A number of Russian lubricant companies have announced expansion plans, hoping to fill supply gaps left by Western suppliers such as Shell, ExxonMobil, TotalEnergies and BP, all of which exited to protest Moscow’s invasion of Ukraine last year. They were followed by the four leading international lubricant additives suppliers – Infineum, Lubrizol, Chevron Oronite and Afton Chemical.
“Lukoil continues with its ambitious development in the Russian lubricant market,” Anatoliy Filatkin, managing partner at Moscow-based consulting firm B2X, told Lube Report. He added that the projects would bolster the company’s position in the grease and metalworking fluid segments, which he described as promising.
LLK is the largest lubricant marketer in Russia, covering around 40% of the nation’s 1.7 million metric ton lube demand in 2021. In the same year Shell had a market share of 14%-15%, according to some industry sources.
The Volgograd refinery has capacity to produce 270,000 t/y of Group I, 220,000 t/y of Group II and 30,000 tons of Group III base oils.
Volgograd is also home of Intesmo, a 50-50 grease production joint venture between Lukoil and Russian Railways, the state-owned rail transpiration monopoly. Capacity of that plant is 30,000 tons per year.
Lukoil also owns a controlling 50% stake in AddiTech, a lube additives JV in Novopolotsk. Belarus. Local oil company Naftan holds 47% of the JV, while 3% of the shares are held by the Novopolotsk government.