Russia’s Gazprom Neft to supply 1,000t base oils to China in Q1

14 February 2014 06:23 Source:ICIS News

SINGAPORE (ICIS)--Russia’s Gazprom Neft plans to supply a total of 1,000 tonnes of Group I SN150 base oils to China on spot basis for delivery between late February and March, a Chinese importer said on Friday.

The cargoes were traded $930-940/tonne DAF (delivered at frontier) Erenhot, and will all be produced by the company’s 600,000 tonne/year Group I base oils plant at Omsk in Russia, the importer said.

The export was driven by robust downstream demand for low-viscosity base oils in the China market and amid supply shortage.

However, Gazprom Neft’s Group I base oils supply is expected to tighten in the first quarter of 2014 as the company plans to shut its Omsk plant in late March for a one-month turnaround, the importer said.

Gazprom Neft has no contractual buyers from China and supplies spot cargoes to the country occasionally. It last sold 1,000 tonnes of spot BS150 base oils cargoes to China in June 2013 at $1,070-1,080/tonne DAF Erenhot.

Gazprom Neft’s largest shareholder is Gazprom, which is among Russia’s five largest oil producers and it is the largest owner of power generating assets in the country.

By Whitney Shi