Gulf RAK Oil in March opened a grease and lubricants plant in Ras Al-Khaimah, United Arab Emirates. Officials said the facility will be used to make lubes marketed in the Middle East, North Africa, Pakistan and Eastern Europe.

The lubricant blending operation is a joint venture between Gulf, which is part of Hyderabad, India-based conglomerate Hinduja Group, and the government of Ras Al-Khaimah. The grease plant is a joint venture between the government, Gulf and Standard Greases and Specialties, a grease producer based in India.

Gulf said it chose the location be-cause of its proximity to Saqr Port, on the Persian Gulf. Officials noted that Gulf sister company Ashok Leyland already operates a grease plant in Ras Al-Khaimah.

The economic environment is very attractive and supportive, Gulf International Vice President Frank Rutten said. Theres a good fiscal arrangement, good inter-regional trade, and many businesses, including cement companies, based in the region.

The facility has capacity to make 10,800 metric tons per year of grease and 20,000 t/y of lubricants.

Gazproms Eye on Northern Europe

Gazprom disclosed in March that it plans to buy or build a lube blending plant in Scandinavia or the Baltic region. Officials also said the company aims to boost lubricant sales over the next 10 years, largely through growth in international markets.

Our foreign lubricants sale analyses have shown that there is a great interest for the companys premium products, Alexandar Truhan, Gaz-prom Neft-SMs general director, told Lube Report. Lubricants produced in our production facilities in Bari [Italy] and in Moscow, have been shipped in increased quantities to northern Europe. Gazprom Neft-SM is the lube division of Russian oil major Gazprom Neft.

In 2012, the Bari lubricant blending plant produced 30,000 tons, and the Moscow (Fryazino) plant produced more than 30,000 tons. Together, the two blending plants shipped 20,000 tons of finished lubricants to Finland last year.

The company wants another plant the same size in Scandinavia or the Baltics and would expect to pay 30 million to 40 million to acquire or construct one, according to some local reports in Estonia. But Truhan said its too early to provide the final sum because the company is still investigating the market specifics of owning and operating a production facility in Finland, Estonia or Latvia.

The company also places a priority on expansion in the Middle East using its distribution channels in Turkey. For example, last year we managed to start to ship lubricants to Kurdistan [an autonomous region in northern Iraq], and there is an increasing demand there for both the companys premium finished products and for the base oils, Truhan said.

However, Gazprom is concerned that the current export duty of 230 per ton turns out to be a big burden for every Russian lubricants marketer. Moscow legislators in 2011 introduced a flat export duty for base oils and lubricants, that taxes lubricant exportation similar to the way it taxes crude oil export.

Biodegradability Test Adopted

The CEC has adopted a new test to gauge the biodegradability of lubricants in aquatic environments. CEC-L-103 was developed with the aim of providing greater accuracy and convenience than the test it replaced, CEC-L-33.

The new method is conducted by prediluting the test lubricant with a special solvent and introducing it to a sample of water that has been taken from a natural source and enriched with mineral salts. The sample is left for 21 days then analyzed using a high-temperature gas-chromatographic apparatus. Proponents say the special solvent is an improvement on the solvent used in CEC-L-33 because the latter was carcinogenic and required special disposal measures. The new test also makes it easier to dilute the lubricant, they said.

Brussels-based CEC is the Coordination European Council for the Development of Performance Tests for Fuels, Lubricants and Other Fluid.

Tetrosyl Group Acquires QH Brand

Tetrosyl Group has acquired the QH (Quinton Hazell) replacement parts brand from the Administrators of the Klarius Group. The portfolio includes the CarPlan, T-Cut, Carlube, Bluecol, Wonder Wheels and Triplewax brands, among others. Tetrosyl is the largest producer of car care in Europe and Britains largest independent oil blender in the U.K. with annual sales of 170 million.