We use cookies
to help provide you with a good experience on our website. By continuing to browse the website, you are agreeing to our use of cookies.

Base oil shortage in Ukraine

CIS BASE OILS AND LUBRICANTS

Base oil shortage in Ukraine

Ukraine is bracing for limited availability of key base oil products through this summer as plants in Russia and Belarus start regular maintenance cycles and base oil demand increases in Russia, according to an oil association in Kiev.

Russia and Belarus are Ukraine’s main base oil suppliers. Source; Lubes'N'Greases

In Russia, the Gazprom Neft’s Omsk 260,000 metric tons per year API Group I base oil plant is about to begin a scheduled maintenance turnaround in February, while Slavneft’s 150,000 t/y Group I plant in Yaroslavl will begin a temporary shutdown in March. In Belarus, maintenance on Naftan’s 198,000 t/y Group I plant is scheduled to start in April.

Ukraine imported 143,200 tons of base oils last year, down 19% from 2019, according to the Ukrainian association of lubricant producers, known as Masma. The bulk came from its bigger neighbor Russia. The largest Ukrainian base oil importers are LLK Ukraine, the official importer of Lukoil products to the country, the Berdnyansk-based Azmol and DMS Trade from Zaporozhye.

As in most markets, lubricant demand in Ukraine fell last year in the face of the COVID-19 pandemic. The Ukrainian market has begun to recover, but the Russian market has undergone a similar rebound since December, causing more of the base oil produced in Russia to remain there and less to be available for export to Ukraine. Mamsa said recently that it expects the shortage to last throughout the spring and summer.

At the moment, in Ukraine the availability of Group I base oils is an issue. We are speaking about products such as solvent neutral 500 and bright stock.

NaftoRynok energy newsletter

Mamsa added that the current shortage of Group I base oils in Ukraine and in Europe is being aggravated by regular maintenance scheduled at some of base oil plants in the Mediterranean region, such as Tupras in Izmir, Turkey.

Relevant news

BLACK SEA
OIL & GAS
Ukraine Oil & Gas
Industry Guide 2021
Association of Gas Producers of Ukraine (AGPU) published the Ukraine Oil & Gas Industry Guide 2021 – a unique analytical introducing Ukraine’s Oil&Gas sector and available investment opportunities.
BLACK SEA
OIL & GAS
Ukrainian Naftogaz released its new corporate strategy-2025
Naftogaz Group launched a 3-pronged corporate strategy, which sets goals for the transformation of the company by 2025.
BLACK SEA
OIL & GAS
UAH 1bln to the State Budget of Ukraine from Open Electronic Bidding by the End of the Year
The State Service of Geology and Subsoil of Ukraine plans to submit a total of 150 investment proposals for open electronic bidding.
BLACK SEA
OIL & GAS
Naftogaz attracts international investor to increase gas production in depleted fields
The partnership between Naftogaz and Expert Petroleum will generate at least an additional 300 mcm of gas within five years from 13 small fields in Western Ukraine.
BLACK SEA
OIL & GAS
Drop in Russian gas supply to Ukraine could affect Romania
ANRE reported
BLACK SEA
OIL & GAS
Trident Acquisitions offers $1 bln of investment in in tender to develop Black Sea shelf section via PSA