OUR STORY
LubeHub, an integral part of Luberef, stands as a beacon of opportunity in Saudi Arabia's thriving downstream industries. Our strategic location adjacent to the Yanbu Facility offers investors a unique advantage - the proximity to Luberef's base oils and specialty products as feedstock.
With a commitment to Vision 2030, we invite you to join us in driving the localization of imported products, crafting 'Made in Saudi' excellence, and enhancing employment prospects across the nation.
Direct Feed of Luberef Base Oils
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Access To A World-Class Yanbu Ecosystem
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Access To Fast-Growing Markets In The Middle East And Africa
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Attractive Investor Incentives Available
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INVESTOR'S ADVANTAGE
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STRATEGIC LOCATION
Placed in Yanbu, LubeHub enjoys a pivotal location bridging the Middle East, Africa, and South Asia. This strategic advantage ensures you tap into burgeoning markets seamlessly.
DIRECT FEED
LubeHub's strategic significance lies in its provision of a direct, piped feed of Luberef's superior base oils. These base oils, renowned for their diverse physical and chemical properties, form the bedrock of quality in various downstream applications, offering unmatched versatility and reliability.
In addition to base oils, our integrated process yields a spectrum of invaluable specialty products, including asphalt, bright stock extract, slack wax, and drilling fluid. These specialty products, each with distinct end uses, amplify the breadth of opportunities for investors within LubeHub's dynamic ecosystem.
INVESTMENT OPPORTUNITIES
01
FINISHED LUBRICANTS
Construction of a blending plant to produce finished lubricants for use in a variety of automotive and industrial applications
Blended lubricants are prepared by blending base oils with a variety of additives depending on what the final application will be
Luberef Yanbu produces Group II base oils and brightstock that can be used to produce a wide variety of lubricants
Two major additive blenders are located within the Yanbu ecosystem
Market size40Million MT
Growth rate2%Per year
02
TRANSFORMER OIL
Construction of a blending and processing facility to produce transformer oil
Mineral base oils are processed to remove impurities, particles, and water to strengthen dielectric properties of the oil and reduce the flammability and oxidizing/corrosive properties
Transformer oil performance requirements are standardized under the ASTDM D3487 and IEC 60296 codes
Luberef Yanbu produces 70N Group II base oil as feedstock
Market size3.0Million MTGrowth rate5.9%Per year03
METALWORKING FLUID
Opportunity to set up a processing and blending facility for producing metalworking fluids for various industrial applications
Metalworking fluids are generally produced by blending and emulsifying base oil or water with chemical additives suited to specific applications
Some chemical additives are corrosion inhibitors, anti-mist agents, alkanolamines, biocides, stabilizers, dispersants, anti-foamers, dyes
Market size14.56Million MTGrowth rate3.7%Per year
04
WHITE OIL
Production of cosmetic, food, and pharmaceutical grade white oils which are further utilized to produce many common cosmetics such as lotions and creams. In addition white oils are used for myriad purposes including polymers, textiles, additives, and food & beverage
White oil can be produced from Luberef's lighter base oils either through further hydro-processing or sulfuric acid treatment
Market size2.21Million MTGrowth rate5.4%Per year05
RUBBER PROCESS OIL
Construction of a facility for production of Treated Distillate Aromatic Extract (TDAE) rubber processing oil
Rubber process oils are used as softeners in producing rubber
They help to reduce modulus and hardness and to increase elongation of natural and synthetic rubber compounds
The key application for rubber process oils is the manufacture of tires
Luberef produces bright stock extract as a feedstock
Market size4.19Million MTGrowth rate5.2%Per year
06
OIL-WELL DRILLING FLUID
Construction of a processing and production facility for drilling fluid by utilizing Luberef's drilling fluid feedstock
To produce drilling fluid, input materials (base oil and additives) are blended and mixed together in an emulsified form in different concentrations – depending on end-usage requirements
Specialty chemicals like barite, bentonite and others are added to enhance properties such as viscosity, friction, stability, emulsification, foaming, and abrasion
Market size13.600Million MTGrowth rate3.7%Per year07
LUBRICANT ADDITIVES
Opportunity to set up a blending facility to produce additive packages
Lubricant additives are chemicals that modify lubricating capabilities of base oils and provide further enhanced properties (such as lower/higher abrasion, pour point depression, anti-foaming, VI modification, etc.)
They reduce the overall cost of oil for a given application, extend the lifetime of industrial machinery, and increase energy efficiency
Luberef base oil can be blended with imported additive chemicals to produce finished additive packages
Market size20.4Million MTGrowth rate3.7%Per year
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08
POLY ALPHA OLEFINS (PAO)
Establish processing facility that make use of the (LAO) production in Saudi Arabia to produce Group IV base oil (PAO).
Offer (PAO) to the growing market of the synthetic lubricants in Saudi Arabia
Open the door for producing hydraulic fluids for Aircrafts and Military Equipment.
PAO is used in gear oils and other heavy-duty, high-temperature enclosed gearboxes, such as those used in wind turbines. PAO-based gear oils improve the efficiency of industrial gear systems compared with petroleum-based lubricants
Market size25Million MTGrowth rate3.0%Per year09
SYNTHETIC ESTER
Esters account for more than 50 percent of total demand for Group V base stocks in 2022, driven by growing demand in refrigeration oil, aviation turbines oil, and automotive end use segments
Esters have various applications in different industries. In the lubricant industry, esters are commonly used as basestocks due to their excellent lubricity, thermal stability, and biodegradability. They are used in a wide range of applications, including automotive, aviation, industrial, and marine lubricants. In the refrigeration industry, esters are used as refrigeration oils due to their low-temperature properties and compatibility with refrigerants. Esters are also used in the production of cosmetics, fragrances, and flavors due to their pleasant odor and low toxicity. Additionally, esters are used as solvents in various applications, including paints, coatings, and adhesives
Market size0.44Million MTGrowth rate1.1%Per year
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AVIATION & DEFENSE LUBRICANTS
Establish aviation lubricant blending plant. Aircraft engines relies substantially on high-quality lubricants to provide good performance in Jet engines, whether turbofan, turboprop, or turbojet. Lubricants are required to work under extreme temperatures and pressures without losing viscosity or lubricating characteristics under these conditions. Moreover, Lubricants must also be resistant to oxidation and stable even at high rotating speeds.
Economic development: The Middle East and Africa have witnessed rapid economic growth, increasing disposable income, and a growing middle class. This has resulted in higher demand for air travel for business and leisure purposes. Tourism, airline expansion, Cargo transportation, and open skies policies.
Regional Market1.06Million MTGrowth rate7.7%Per year11
RE-REFINED BASE OIL
Re-refining used oil has several benefits, including promoting sustainability and circularity, reducing waste and pollution, and conserving natural resources. Compared to traditional oil refining methods, re-refining consumes less energy and produces fewer greenhouse gas emissions.
It also requires fewer raw materials and generates less hazardous waste. Re-refining can produce high-quality base oil that meets or exceeds industry standards.
Market size11.15Million MTGrowth rate6.8%Per year
12
SPECIALTY GREASE
The industrial and equipment greases are used in the mining, agriculture, electrical, paper and pulp, food processing, and cement industries. also to protect various equipment from extreme pressure, corrosion of bearings, water absorption, and wash out, in the steel and paper industries.
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Market size3.08Million MTGrowth rate3.2%Per year13
BUTUMIN
The bitumen market in the Middle East and Africa is significant due to the region's large infrastructure development projects, growing construction industry, and extensive road networks. Bitumen, also known as asphalt, is a crucial component in road construction and maintenance.
The market for bitumen in both regions is expected to grow further due to ongoing urbanization efforts, population growth, increasing vehicle ownership rates, and government investments in infrastructure development.
Market size45Million MTGrowth rate6.7%Per year
** The information contained in this page is general in nature and should not be considered as professional advice for investors. Saudi Aramco Base Oil Company - Luberef does not make any representation, guarantee or warranty, express or implied, as to the quality, accuracy and completeness of the information provided herein. Luberef shall not be liable for any loss or damage arising from any party’s reliance or use of such information, and disclaims any and all liability related or arising out of use of the information to the fullest extent permissible by law.
Explore More
Find out more about our investment case and financial performance.
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We produce various Group I and Group II Base Oils and, as a result of our base oil production, various by-products.
We are one of the world’s leading suppliers of high-quality base oils and the only virgin base oil producer in the Kingdom of Saudi Arabia.
If you require any further information regarding our products, wish to join the Luberef team or have a media inquiry, please contact our team.
