Gazprom Widens Lube Sales Reach

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Russian lubricants marketer Gazprom Neft-SM expanded its sales network to Germany, Ukraine, Turkey and Iraq, the company said last week.

Earlier this month the company started to sell its G-Energy motor oils in Germany. “Our official distributor there is DW Oil, one of Europe’s biggest importers of petrochemical products,” Gazprom Neft-SM said in a Dec. 19 press release. G-Energy motor oils in Germany were rolled out during the Essen Motor Show, Dec. 1 through 9, an important international automobile fair.

Gazprom Neft-SM is Russian oil major Gazprom Neft’s lube arm.

“The company’s agenda is an aggressive expansion of its product sales. At the moment lubes and technical fluids under the G-Energy brand are sold in 38 countries. We are trying to penetrate the market with high quality products, a flexible sales network and thorough technical support,” said Alexandr Truhan, the company’s general director.

Gazprom Neft-SM also sealed distribution deals for its passenger and commercial vehicle oils, as well as its industrial oils in Turkey and Iraq. The Turkish company Saskim Petrol Kimya is Gazprom Neft-SMs official distributor in the country. “The company owns a developed sales network around all Turkey, where it offers our passenger and commercial cars lubricants,” Gazprom Neft-SM said.

The company’s premium motor oils for gasoline and diesel automobile engines are also offered in official Toyota service centers in Istanbul and Gebze. Its commercial vehicle oil is sold at the wholesale points in Istanbul, the capital Ankara, the tourist and industrial hub of Izmir in Western Turkey. Gazprom Neft-SM’s industrial oils are supplied to Hekim Yapi, one of Turkey’s biggest construction companies.

G-Energy premium motor oils are extensively sold in Ukraine as well, according to the company.Gazprom Neft-SM’sofficial distributor there is the company ATL, which operates 52 auto part stores and 21 service centers in the Ukrainian cities of Kamenets-Podolsk, Korosten, Myrhorod, Pryluky and Ternopil.

Gazprom Neft-SMs total combined lubricants and base oils production in 2011 amounted to 409,000 metric tons. It held 11 percent of Russia’s lubricants and base oils market, according to VNII NP, a Moscow-based All Russia /Research Institute of Oil Refining.

The company operates a 250,000 t/y API Group I base oil plant in Yaroslavl, under the Slavneft joint venture with the Russian oil company TNK-BP, recently acquired by Rosneft. That facility is to be upgraded to produce 100,000 t/y of Group III base oil by 2014, to be shared equally between Gazprom and TNK-BP (Rosneft).

The company also operates a lubricants complex in Omsk, Western Siberia, that includes a plant with 240,000 t/y Group I capacity, and a 50,000 t/y lubricants blending facility.

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