Premium Business Segments
3.72 ↑11.04 %
4.42 ↑46.36 %
1,75 ↓0,57 %
0.48 ↓2.04 %
Oils and lubricants
1.24 ↑5.98 %
In order to improve performance in petroleum product sales, Gazprom Neft has a number of separate business divisions for the sale of jet fuel, lubricants, bitumen materials, petrochemicals, and ship bunkering.
Individual strategic development plans have been developed by the Company for each segment. The prime objectives for these business units are increasing sales efficiency, expanding geographical reach, and increasing premium market share.
Total sales in premium segments in 2014 amounted to 25.78 million tonnes. The main growth areas are bunkering and sales of motor fuels, jet fuel, and lubricants. Sales of jet fuel increased due to an increase in the number of airports in Russia and abroad where the Company operates. Marine fuel sales volumes increased due to growth in the bunkering market in the Far East and the Black Sea, and the expansion of the Company's customer base at the Baltic ports.
25.78 million tonnes
sales via premium channels in 2014
Sales in premium segments, million tonnes
The Company’s Gazprom Neft Marine Bunker subsidiary handles sales of light and dark grades of marine fuel for sea- and river-going vessels. The Company currently has the broadest geographical reach of any bunkering operator in Russia: 20 marine and 13 river ports, as well as a developed terminal network, give the Company one of its strategic competitive advantages. The Company is a leader in the Russian bunkering market, with an 18.6% share.
Gazprom Neft Marine Bunker supplied bunker fuel to cruise liners housing client groups, spectators, and staff during the 22nd Olympic Winter Games and 11th Paralympic Winter Games in 2014 in Sochi.
Andrey Vasilyev CEO, Gazprom Neft Marine Bunker
Since 2015, new ECA (Emission Control Area) requirements have come into force prescribing the use of more environmentally friendly fuels with a sulphur content not exceeding 0.1%. This has caused an increase in demand for low-sulphur fuels. In this regard, we are focusing on the development of a new market segment for bunkering LNG, and by 2025 we plan to have gained a firm foothold in this area.
growth in jet fuel retail sales in 2014
Gazprom Neft-Aero, a Gazprom Neft subsidiary, is engaged in small-scale wholesale and retail sales of jet fuel, as well as the provision of services for aircraft fuel and lubricant supply. Gazprom Neft-Aero is a leading aviation fuel retailer in Russia. It has the largest sales network among Russian vertically integrated oil companies, with 40 of its own refuelling facilities in Russia and the CIS. Since 2008, Gazprom Neft-Aero has been a strategic partner of the International Air Transport Association (IATA) for the supply of aviation fuel. Gazprom Neft is the sole supplier of aviation fuel at 28 aerodromes owned by the Russian Ministry of Defence.
Production and sales of oils and lubricants
Gazprom Neft Lubricants sells its products in Russia and abroad through the network of Gazprom Neft filling stations, and also supplies retailers, online stores, maintenance centres, and car manufacturing assembly lines. The Company owns production assets in Western Siberia (Omsk), European Russia (Yaroslavl), Moscow Region (Fryazino), as well as in Western Europe (Bari, Italy) and Serbia (Novy Sad).
The Company's integrated management system is certified in compliance with ISO 9001:2008, 14001:2004, and OHSAS 18001:2007. In 2014, the Company completed the certification process for ISO/TS 16949 (requirements for suppliers of components for car manufacturing assembly lines). Gazprom Neft Lubricants’ sales in 2014 amounted to 475,000 tonnes. The 3% drop compared with 2013 was due to scheduled repairs at Omsk Lubricants Plant and YANOS.
In 2014, Omsk Lubricants Plant commissioned an automatic oil mixing station with a capacity of 180,000 tonnes per year. It also launched a new lubricants production site (5,000 tonnes per year). The new production plant is the largest in Russia in terms of total mixing and packaging capacity.
Anatoly Cherner Gazprom Neft Deputy CEO, Downstream
The introduction of this new, cutting-edge production technique at the Omsk Lubricants Plant will enable Gazprom Neft to produce high-tech motor oils in Russia that are just as good as their Western equivalents, and to provide Russian consumers with top-quality products. At this new Russian site, we have applied all the experience that we have accumulated through managing our assets in other countries. The next major project that is planned at the Omsk Lubricants Plant for 2018 is the start of production of basic oils with a high degree of purity. This will mean that we will no longer need to import raw materials in order to produce high-quality oils, and this will strengthen our position among competitors in Russia and the CIS.
- In October 2014, Rosavtodor, SIBUR, and Gazprom Neft signed a cooperation agreement at the Road International Exhibition and Forum. In December, the companies adopted an action plan for
2015–2016under the agreement to promote the use of modern materials in the road industry and improve the quality and longevity of Russian roads.
- On 2 July 2014, Gazprom Neft and the Moscow Government signed a cooperation agreement to provide innovative bitumen materials for road construction in the capital.
Gazprom Neft is one of the largest manufacturers and suppliers of bitumen products. Sales of bitumen materials in 2014 reached 1.75 million tonnes. Gazprom Neft increased sales of premium bitumen products by 16,000 tonnes to 42,000 tonnes. In order to strengthen its leading position on the bitumen materials market during the reporting year, the Company established a subsidiary to manage its bitumen business: Gazpromneft — Bitumen Materials, which will bring together all business management functions for the Company's bitumen operations.
The new company’s main role is to implement Gazprom Neft's long-term bitumen business strategy, which aims to improve asset management efficiency, achieve a leading position in Russia in terms of the application of cutting-edge technology, and develop promising business areas.
During the reporting year, the Moscow Refinery began trial operations at Russia's first facility for the production of a new generation of polymer-modified bitumens (PMBs), to be marketed under the G-Way Styrelf brand name. The plant, constructed by a joint venture between Gazprom Neft and France’s Total, is designed to produce 60,000 tonnes of PMBs and 7,000 tonnes of bitumen emulsions per year.
The integration of Ryazan Experimental Petrochemicals Plant, which was acquired in 2013 (during the reporting year it was renamed Gazprom Neft — Ryazan Bitumen Binders Plant) has enabled Gazprom Neft to assume a leading position on the Russian market for modern bitumen materials. Today, the Ryazan Bitumen Binders Plant is the largest site in Russia for the production of polymer-modified bitumen binders and bitumen emulsions, and is a future-orientated enterprise equipped with the latest facilities. The plant has the capacity to produce up to 300 tonnes of polymer-modified bitumen binders and bitumen emulsions per day and up to 60,000 tonnes per year.
share of Russian bitumen market in 2014
42,000 tonnes sales of premium bitumen products in 2014