Russian lube marketer Gazprom Neft Lubricants announced the opening of its first G-Energy Service-branded auto service center in Russia, part of its broader regional expansion into the automotive aftermarket.
The station is located in the city of Balakovo, Saratov oblast, and is equipped with two oil change bays. It offers our key products such as G-Energy-branded synthetic and semi-synthetic oils, as well as technical fluids, Gazprom Neft Lubricants said in a Jan. 19 press release. The products offered are for cars under warranty and post-warranty.
The company is Russian oil major Gazprom Nefts lube arm.
The project calls for opening more car service stations. The company will provide technical support for equipment purchase, personnel training, marketing and external design of the stations. We already opened four service stations – three in Italy and one in Georgia, the company said.
It plans to expand such service in other ex-Soviet states, Western Europe, and some countries in the Middle East and other markets where the company operates. In the coming months, Gazprom Neft is scheduled to open three more fast lubes, one in the countrys northern capital of St. Petersburg and two more in Orenburg and Bataysk, in southern Russia.
The company aims to open 40 car service stations total in Russia by the end of 2015.
We are confident in actively developing this business because we see it has great importance for the market. Furthermore, not a single Russian oil major has experience in running quick lube stations, nor are any investing in the automotive aftermarket segment, said Alexandr Trukhan, head of Gazprom Neft Lubricants.
Gazprom first promoted this project in July when it pledged to open 15 such centers in Russia by the end of 2014. But the unfavorable economic situation, ruble devaluation and international sanctions against the countrys energy sector have slowed some investments.
Another hindrance is the fragmented automotive aftermarket in Russias big cities, where many oil change and car wash centers have opened since 2005. Operated by different local owners, they hold the largest chunk of the market in their prospective cities. As a result, other companies that want to set up auto service center networks usually fail in their efforts.
Moscow-based Gazprom Neft Lubricants held a 14 percent share of the countrys lubricants market in 2013, producing 490,000 metric tons of base oils and lubricants, according to the company.