A research study predicts that Russias grease production will grow at an annual rate of 5 percent to 7 percent after 2014, when new plants are scheduled to be opened. By 2020, domestic grease production will meet 80 percent of the nations demand, the study says, up from less than 60 percent today.

Russias grease production totaled 42,000 metric tons in 2011, valued at 1.6 billion rubles (41 million), Olga Voloshina of InfoMine, a Moscow based consultancy, told the WRA Base Oils and Lubricants in Russia and the CIS conference in March. From 1999 through 2011, grease prices in Russia quadrupled to more than 40,000 rubles per ton by the end of 2011, according to InfoMine.

Domestic producers cannot meet Russias demand for higher quality greases, so end-users rely on imported products. InfoMine found that grease imports into Russia accounted for up to 45 percent of total consumption in 2010 and 2011. The bulk of greases imported into Russia come from Ukraine-based grease producer Agrinol. Other countries supplying grease to Russia include Finland, Germany, the Netherlands and the United States. Since 2009 the share of high-grade greases imported from Netherlands, Sweden, Japan, Canada and other countries … increased, Voloshina said.

In the past 10 years, thickener types have begun to change in Russia. Production of complex and mixed soap greases, as well as organic and inorganic thickener-based greases, increased in 2011, compared to 2000, Voloshina said. She added that Russian grease quality remains far behind Western Europe and the U.S., where the main grease products are lithium-based.

More than 70 companies manufacture greases in Russia, Voloshina continued. The largest, and their share of Russias grease production, are shown in the chart.

Grease consumption in Russia in 2011 amounted to 52,000 tons, 25 percent higher than in 2010. Demand could reach 75,000 tons in 2015. In the medium term, the share of hydrated greases will continue to decrease, and the share of more advanced products will increase. By 2020 the share of lithium greases in Russia could exceed 50 percent.

Delfin Accused of Skirting Embargo

The U.S. Department of Commerce

ordered a temporary halt to exports by lubricant manufacturer Delfin Group USA, alleging that the company violated an embargo by supplying lubricants or lubricant additives to Iran. The order, issued February 25, contends that Delfin conspired to send products to Iran by way of the United Arab Emirates. Such orders, which are filed by the Department of Commerces Bureau of Industry and Security, aim to stop potentially illegal activity pending investigations and prosecutions.

Delfin, located in North Charleston, South Carolina, U.S., said one of its shipments unintentionally ended up in Iran, although it denies violating the embargo to the extent that the government alleges. Delfin Group USA is part of Moscow-based Delfin Group Russia, which bought the North Charleston site from Chevron in 2007. The U.S. subsidiary manufactures automotive and industrial lubricants and also toll blends and packages lubes for other companies.

In its complaint, the Bureau of Industry and Security claims that beginning in mid-2010, Delfin and its chief executive officer entered a conspiracy with Do-It FZC in Sharjah, U.A.E., along with other companies, to skirt the U.S. trade embargo with Iran. According to the allegations, Delfin shipped polymers and lubricating oils or lubricating additives, including airplane engine oils, to Do-It. The government claims the shipments were repackaged and relabeled for trans-shipment to Iran.

The company denied that it intended or knew that any of those products were bound for Iran, said John Gordon, vice president of operations. He said agents from several U.S. government agencies raided Delfins offices recently to search for records. He added that Delfin is cooperating fully and expects the case to be resolved in the coming months.

Shell Looks to Expand in Ukraine

Shell Russia is setting its sights on Ukraines lubricants market once its 180,000 t/y blending plant in Torzhok begins full production, the company said. The Russian plant will supply Shells premium Helix line of passenger car motor oils and its heavy-duty Rimula brand of engine oil. The plant will produce around 90 different types and brands of lubricants, the company said.

Ukraine is a very important market for us, said Sergey Lomov, director of Shell Oil Products Ukraine, a new company assigned to develop Shells lubricants business in the country. Its creation will allow us to improve effectiveness and increase the companys share of the Ukrainian lubricants market.

The company will expand Shells network of official finished lubricants distributors. It will also establish direct contacts with major Ukrainian and international original equipment manufacturers to expand its position on the domestic retail market. Shell also plans to open a warehouse to store its products in Ukraine.

Shell lubricants are currently used as factory fill in the Kremenchug, Ukraine, plant that assembles Chinas Geely cars and South Koreas SsangYongs SUVs. It also supplies Bogdan Motors, the Cherkassy, Ukraine, car manufacturer that assembles Hyundais.

Valvoline Jumps into Russia

U.S. lubricants and chemicals producer Ashland Inc. and Russias TNK-BP signed a five-year agreement to distribute Valvoline passenger car products in Russia. Financial terms were not disclosed.

While the deal focuses on supplying passenger car motor oils, it includes transmission oils, brake fluids, car and engine care products and coolants, according to Jennifer Knoblach, Ashlands communications manager for Europe, the Middle East and Africa. Valvoline can rely on an extensive network of facilities worldwide to serve the needs of the Russian market, which primarily will be supplied via facilities in the Netherlands and the U.S.

Moscow-based TNK-BP, Russias third-largest oil company, is a 50-50 joint venture between BP and the AAR (Alfa Group/Access Industries/ Renova) consortium, a group of Russian businessmen. Because Valvoline is BP Castrols global competitor, the agreement caused a stir in the Russian media over why the JV sealed a deal with a BP competitor.

The lubricants business is not part of the JVs shareholder agreement, said Alfredo Barrios, executive vice president for downstream operations. Thats why BP Castrol products are not used by TNK-BPs lubricants segment, he added.

Russia is the biggest passenger car lubricants market in Europe, Sam Mitchell, president of Ashland Consumer Market, said in a press release announcing the agreement. [Because] it is still growing year on year, Russia represents a significant opportunity for motor oils, particularly with the increasing popularity of Western cars, Mitchell said.

He added that Valvoline premium products will have access to 15,000 retail stores across the country. The company expects its sales in Russia to expand significantly over the next five years, both in volume and share. Ashland is also looking at the possibility of opening production facilities in the country.

Oxea Enlists IMCD

Oxea, a manufacturer of oxo intermediates and oxo derivatives, has appointed Rotterdam-based IMCD Group as exclusive European distributor for its line of alkyl amines. These chemicals are used to manufacture rubber additives, polymers, dyes, corrosion inhibitors and fuel additives. Michael Harbich, European marketing manager at Oxea, said, By working with IMCD, we strengthen our market position and reach new customers. This appointment is in line with our strategy to grow our derivatives business further.

Trocki Joins Morris Lubricants

Morris Lubricants announced that Jan Trocki has been appointed general manager of marketing and technology. Trocki, who also serves as chairman of the Technical Council at ATIEL (the Technical Association of the European Lubricants Industry), is based at the companys Shrewsbury, U.K., headquarters.

Trocki has held senior managerial positions with BP and Castrol. At BP, he was North Europe marketing manager for European Fleet Services, OEM Eastern Europe marketing development manager. At Castrol, he was international OEM business manager and OEM technical manager. For the past three years, Trocki was technical manager at SK Lubricants Europe BV.

Shamrock Adds Two Latvian Storage Tanks

Shamrock Shipping and Trading announced that it has put two additional storage tanks into operation in Latvia. The chemical storage facility with tanks ranging from 400 to 3,000 cubic meters can tranship, store and repack base oils, finished lubricants, petroleum and chemical products. Total capacity is 19,000 cubic meters or about 160,000 barrels.

Shamrock also increased container loading capacity, with the ability to load vessels with deadweights of up to 15,000 tons. The company says the storage facility is the Baltics most technologically advanced chemical terminal, with the capability to reload any type of liquid cargo, including oils, fats, and oleochemicals. It is used to tranship cargo between European markets as well as to other continents.

BASF Launches Wax Plant

BASF commissioned a new oxidized polyethylene wax manufacturing plant at its Ludwigshafen, Germany, site. The low-density polyethylene wax that forms the basis of the oxidized waxes comes directly from the sites polymerization plants. The company did not disclose the plants cost or capacity.

As well as extending the capacity, we have also invested in modernizing the existing plant for polyethylene waxes, said Stefan Beckmann, senior vice president for home care and formulation technologies, Europe. Demand for high-quality waxes and oxidized waxes is growing worldwide due to the increased production and processing of plastics. We will be able to satisfy this increasing demand when the new oxidation plant for waxes in Ludwigshafen goes into operation.

BASF supplies its waxes in the form of powder, fine powder, granules and pastilles under the Luwax brand name. BASF spokeswoman Ruth Wirschem explained that oxidized polyethylene waxes are used in many different applications, including PVC profiles, pipes, fittings, and sheets. Because of their amphiphilic structure, Luwax OA grades form thin films on the metal surface of the processing equipment and between the PVC primary particles, and in that way eliminate diffusion of additives and help to avoid plate-out, Wirschem said.

Petroyag Appoints Two

Helen Soulantika has joined Petroyag as management consultant to expand and diversify the industrial lubricants product line. The company said she will widen the range of applications for its products, especially in metal processing/forming neat and emulsifiable oils as well as corrosion protection lubricants. Soulantika brings more than 30 years experience in industrial lubrication, having served at Mobil Oil Hellas, Esso/Eko SA, Century Oils Hellas, and Fuchs Lubrifiants.

The company also announced that Olivier Franck is now general manager consultant. In this role, he will assist Petroyag in expanding its international markets and identify new cooperative opportunities with strategic partners. Franck brings 16 years of experience to the position, having worked at Johnson and Johnson, ExxonMobil Chemical and Chevron.

Fujairah Terminal Nears Opening

Gulf Petrochem Group is set to launch operations at its Fujairah oil terminal project in October, according to a company official. The Sharjah-based company finalized the deal with the Fujairah government in January. Phase one of the oil terminal project is on schedule and will have a capacity of up to 1.2 million cubic meters of storage. The Fujairah Government has a 12 percent stake in the project.

Sanjeev Sisaudia, group chief executive of Gulf Petrochem Group, said the oil terminal covers 112,233 square meters, which includes 73,269 square meters of expansion capability. The two oil terminals at the Fujairah port will have seven berths for large tankers and 12 berths for small tankers. The companys focus will mainly be on the Fujairah oil terminal during the second half of this year, he said. The project is expected to leverage the strategic location and infrastructure of Fujairah to benefit our clients in the region.