Premium Oils for Central Asia

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Gazprom Neft-SM has set up an office in Almaty, Kazakhstan, to market lubricants in Central Asia, with a focus on premium products and technical support.

Before 2010 most of the regions lubricant demand was met with low-quality GOST-specification motor oils, supplied in bulk. But since then, premium motor and industrial oil demand in Central Asia is growing, according to Gazprom-Neft-SM, Russian energy giant Gazproms lubricants arm.

The representative offices primary task is to increase the companys premium products sales, said Alexandr Truhan, Gazprom Neft-SMs general director. Gazprom introduced its synthetic and semi-synthetic premium brand G-Energy in Kazakhstan earlier this year.

Gazprom will also establish marketing and commercial programs, like opening a training center and technical services for business-to-business and consumer segments. Such kinds of services are already applied in Russia, Truhan noted.

The company will provide this support to a network of distributors in Kazakhstan and in other markets of Central Asia, including Afghanistan and Mongolia. The [Almaty] office is part of Gazprom Neft-SMs marketing approach, expanding in the international markets, said Levan Kadagidze, Gazprom Nefts commercial director.

Gazprom entered Central Asia in 2006, marketing motor and aviation fuels in the region through subsidiaries in Kazakhstan, Tajikistan and Kyrgyzstan, according to Kadagidze, and first introduced its lubricants there in 2008. Opening the lubricants office in Almaty is a step further in strengthening the companys position in the region.

Gazprom claims a 44 percent share of Kazakhstans finished lubricants market, supplying industrial lubes and greases in the region under the Gazprom Neft brand, and motor oils under the brand SibiMotor. The latter products come from the companys lubricants plant in Omsk, Russia, located near the Kazakhstan border.

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