Light Equipment, Business Services, & Other

INVESTMENT OPPORTUNITY:

Blending of lubricating oils

Executive summary
◼ There is an opportunity to establish or expand a local facility for the blending of industrial, marine-
grade, and vehicle lubricating oils.
◼ This could be an opportunity for an existing local lubricant or chemical blending company or a new
supplier.
◼ Lubricating oils are an essential component in maintaining and increasing efficiency in
machinery.
◼ All rotating equipment requires lubrication and raw (petrochemical) components are relatively
standard.
◼ In total, the market size for lubricating oils in Qatar is approximately QAR 190M/yr, of which the
Energy sector consumes ~35 percent.
◼ Demand is likely to increase with aging and an increasing number of facilities in operation.
◼ Currently, approximately 75 percent of all lubricating oils are imported, despite Qatar having
extensive petrochemical facilities.
◼ Land allocation (and potentially an empty facility) in a free zone and support for low-cost
logistics, labor, and utilities could be provided.

LIGHT EQUIPMENT, BUSINESS SERVICES AND OTHERS INVESTMENT OPPORTUNITY: BLENDING OF LUBRICATING OILS 2
 Detailed opportunity description
Blending of lubricating oils
◼ Lubricating oils are used in multiple industrial
applications to reduce friction between surfaces in
• Text
contact.
◼ Lubricating oils are a chemical substance and typically
consist of 90 percent base oil and 10 percent additives
(e.g., anti-foamers, viscosity improvers).
◼ Typical types of petroleum-based lubricating oils for
industrial use include
 Gear oil
 Turbine oil
 Transformer oil
Lubrication of gears  Engine oil
 Hydraulic oil
 Marine-grade oil.
Localization opportunity
Business scope

◼ Purchasing of raw materials (e.g., base oil, viscosifiers, corrosion inhibitors) for petroleum-based
lubricating oils; importing and expediting of chemicals and blends
◼ Ownership and operation of mixing and blending facilities for producing
 Machinery lubricants (e.g., gears, turbines, transformers, engines)
 Marine-grade lubricants (e.g., water resistant, biodegradable)
 Engine oils (e.g., diesel, road vehicles)
◼ Small-scale laboratory for testing of products

Out of scope

◼ Manufacturing/blending of grease and coolants

◼ Large-scale laboratory

Capital intensity

Low (QAR 0-10M) Medium (QAR 10-50M) High (QAR 50M+)

LIGHT EQUIPMENT, BUSINESS SERVICES AND OTHERS INVESTMENT OPPORTUNITY: BLENDING OF LUBRICATING OILS 3
Market size
Estimated spend (Qatar only) on blending of lubricating oils, QAR M
Historic Forecast

Energy Non-Energy

230 241
208 219
180 189 199
153 167 167 170
140 147 154
115 121 127 133
84 95 101 108

69 72 66 62 65 68 72 75 79 83 87

2013 14 15 16 17 18 19 20 21 22 2023

Energy total maintenance spend, QAR B

6 7 7 7 8 8 9 9 9 10 10

Key highlights

◼ The market for blending lubricating oils is related to the total amount of machinery and mechanical
equipment in operation and is forecasted to be QAR 190-240M/yr in 2018-23.
◼ Demand is expected to grow further due to North Field expansion and an increase in heavy cargo
imports in Hamad Port.
◼ Currently, approximately 75 percent of lubricating oils are imported from international suppliers,
presenting Qatar with an opportunity to capture this segment by using its advanced
petrochemical industry.

Relevant stakeholders
Top 3 buyers Other demand

Top 3 buyers

LIGHT EQUIPMENT, BUSINESS SERVICES AND OTHERS INVESTMENT OPPORTUNITY: BLENDING OF LUBRICATING OILS 4
Disclaimer
The material, data, charts and pieces of information contained in this document (“Information’) is for
general information purposes only and should not be construed as an investment or commercial advice
or as a recommendation whatsoever. The user of the Information (“User”) is responsible for
independently verifying the Information and shall make his own determination as to how suitable the
Information is for his own usage and intent. User should not rely upon the Information as a basis for
making any business or investment decisions. Whilst Qatar Petroleum endeavours to provide and keep
the Information up to date and correct, Qatar Petroleum makes no representations or warranty of any
kind, express or implied about the content, completeness, accuracy, quality, reliability or suitability with
respect to the Information for any purpose. Qatar Petroleum expressly disclaims liability for errors and/or
omissions in the Information contained in this document and shall in no event be liable for damages
resulting from the use or reliance of User upon the Information. Any reliance the User of the Information
places on such Information is strictly at User’s own risk.

LIGHT EQUIPMENT, BUSINESS SERVICES AND OTHERS INVESTMENT OPPORTUNITY: BLENDING OF LUBRICATING OILS 5
Email: tawteen@qp.com.qa | Website: https://tawteen.com.qa