Showing posts with label Oxidized Asphalt. Show all posts
Showing posts with label Oxidized Asphalt. Show all posts

September 29, 2016

Global Bitumen Market

The global bitumen market is forecast to grow at a Compound Annual Growth Rate (CAGR) of four percent between 2015 to 2020, and the world’s largest energy traders such as the Vitol Group and the Trafigura Group Pte. are in a race to increase their market share.

The bitumen market was valued at around $75 billion in 2014 and is expected to reach $94 billion in 2020, according to a report by Zion Research, titled, “Bitumen (Paving Bitumen, Oxidized Bitumen, Cutback Bitumen, Bitumen Emulsion, Polymer Modified Bitumen and Others) Market for Roadways, Waterproofing, Adhesives, Insulation and Other Applications - Global Industry Perspective, Comprehensive Analysis and Forecast, 2014 – 2020”.

Bitumen is a semi-solid form of petroleum, which is used to make asphalt for roads, waterproofing for roofs, insulation, and adhesives. It is either obtained by distillation of petroleum or is available naturally, such as in Canada’s oil sands.

Bitumen is used mainly in road manufacturing. A surge in road construction activity in Asia will propel growth for the product going forward. 75 percent of the global consumption of bitumen was used for road construction in 2014.

Waterproofing of roofing and building construction was the second major consumer of bitumen in 2014. Increased construction of homes to cater for the growing population is likely to add to the bitumen demand in the future.

Along with roofing, polymer modified bitumen (PMB), which is used as a chemical additive and adhesive, will witness rapid growth compared to other forms of bitumen.

Trucks, trains, and barges have been used traditionally to transport bitumen from refineries to local consumers; however, a drop in supply from the aging refineries in the U.S. and Europe has necessitated the use of oceangoing tankers, to supply the material from its source of production to the end consumer.

Vitol, the largest independent oil-trading house teamed up with U.S.-based Sargeant Marine Inc., which distributes asphalt to customers worldwide to form Valt, which operates the world’s largest dedicated asphalt fleet, handling parcel sizes from 20 metric tons up to 37,000 metric tons through its fleet of fourteen specialist vessels, according to its website.

“It used to be mostly a small distribution business,” Chris Bake, a senior executive at Rotterdam-based Vitol, said in an interview. “Now it is more of a whole arbitrage business requiring a global reach and shipping capacity,” reports Bloomberg.

Trafigura group is also not far behind. Its Singapore-based unit, Puma Energy has added four new bitumen vessels, taking the total number of vessels to 11, which cater to the Asian markets.

“We see a definite upward trend in the number of nautical miles for bitumen,” said Valt Chief Commercial Officer Nick Fay, who estimates an annual increase of about 7 percent. “All the new refineries that are getting built don’t make bitumen,” reports Bloomberg.

The Guvnor Group is planning to invest in the Perth Amboy asphalt refinery and storage facility in New Jersey, which has been shut since 2008, reports Bloomberg.

There is hardly any public information about the bitumen market, which makes it ideal for the large energy traders, who use their energy expertise and global connection to supply to far-off markets.

“There is a perception that the world is going to be more disconnected -- supply and demand-wise -- and we are there to help connect the dots,” Klintholm said.

Nonetheless, increased use of asphalt for roads and environmental concerns with bitumen manufacturing could pose a risk for the growth of the bitumen industry in the future.

By Rakesh Upadhyay for Oilprice.com

June 22, 2016

Chile Road Projects Tender

Chile is pushing ahead with infrastructure development. The Ministry of Public Works intends to award five to seven projects during 2016. 

The Ministry of Public Works has also set a target of having 12-13 major infrastructure projects being awarded and worth a total of US$6 billion by the time the current administration comes to the end of its term.

One road project due to be awarded shortly is for the phase two of the Vespucio Oriente link. The tender is expected to open in July 2016. 
The projects for the Ruta de la Fruta, El Loa link and the road from Los Vilos to La Serena will also be put to tender in 2016. Meanwhile the tender process for the $1 billion Costanera Central project will be put out to tender in 2017.

First publishedon www.WorldHighways.com

May 18, 2016

NHAI to convert 1,205 km of State Highways into National Highways

The Detailed Project Report for laying of a road connecting Anantapur in Rayalaseema with new Capital City of Amaravati will be ready in two months, said Transport and R&B Minister Sidda Raghava Rao.

The straight road, to be funded by the Centre, is expected to cost about Rs.18,000 crore and once ready, the travel time between the two cities will be just six hours.

A team of officials comprising Roads &Buildings Principal Secretary Sam Bob, Engineer in Chief and others left for San Francisco on a study tour on execution of such projects, he said.

Addressing a media conference here on Tuesday, Mr. Raghava Rao detailed the work done by the department ahead of the Andhra Pradesh Government completing two years on June 8.
While the length of roads under R&B is 45,000 km, nearly 4,000 km single-lane roads were widened into two-lane roads.

“While the 10-year rule by the Congress left the roads in a shambles, Chief Minister N. Chandrababu Naidu took it upon himself to improve their condition in the State and also lay new roads. Roads are the basic infrastructure required for the industrial development”, he said.

The Government’s objective was to connect rural areas to mandal headquarters, mandals to district headquarters and the district headquarters to the new Capital City Amaravati.

In the current financial year another 2,517 km of single-lane roads would be widened into two-lane roads, 38 km of two-lane roads would be developed into four-lane roads.

Road bridges

The department also proposes to construct nine Road Over Bridges and 25 bridges. Special repairs would be taken up on 2,412 km of roads.

The National Highways Authority of India gave a commitment to convert 1,205 km of State Highways into National Highways. The Roads &Buildings Department allocated Rs.3,000 crore during current fiscal for development of State highways and link roads.

In the 2014-15 fiscal, 1,336 km of roads were widened into two-lane roads and another 3,089 km of roads were repaired and three Road over Bridges and another 20 bridges constructed.
In the 2015-16 financial year, 2,636 km single-lane roads were developed into two-lane roads and special repairs were carried out on 2,890 km of roads besides constructing five RoBs and 18 bridges.

World Bank funds

The roads being laid with World Bank funds such as Rajahmundry to Kakinada were monitored and the contractors who do not execute quality work removed. The R&B also took over 5,420 km of Panchayat Raj roads recently and tenders were being called shortly to develop 545 km of roads.

For the Krishna Pushkaram, R&B would spend Rs.389 crore on improvement of roads and the works completed by July-end, he said.

Source- The Hindu

April 22, 2016

Highway Project Model

Introduced last year by the Union ministry of road transport and highways, acceptance of the hybrid annuity model or HAM for tendering of road projects by the National Highways Authority of India (NHAI) was initially weak. It continues to remain so.

For instance, the first bid under the HAM model, for four-laning of the Solan-Kaithalighat section in Himachal Pradesh, had no takers. The bid terms had to be revised.

Till date, five projects totalling 279 km (Rs 6,700 crore in value) have been awarded. The FY16 target for HAM was set at 1,400 km. Experts, however, say with more than half of NHAI’s project pipeline lined up under HAM and the government having addressed the sector's key concerns, this is likely to pick up.

After the first bid failed, the government addressed some of the key impediments, particularly on forest clearance and land acquisition. Further, HAM, often referred to as a mix of the Build, Operate, Transfer (BOT) and Engineering, Procurement, Construction (EPC) models, addresses the concerns on both.

Under the latter model, a winning contractor builds the road project and hands it over to the government after completing the construction. Under BOT, he builds the project and operates (collects toll, maintains the road) it, handing it over on completion of the concession period.

Primary concerns such as land acquisition, traffic risk and inflation in BOT projects have been adequately addressed in HAM. Further, with NHAI pitching in 40 per cent of the capital, the project equity risk is likely to be lowered to 18 per cent (as against 30 per cent for BOT) of the project cost, resulting in a superior return profile to that under BOT.
Highway contracts: Hybrid annuity projects to gain pace
HAM scores over EPC for the government as well. From 100 per cent cost of capital to be borne by NHAI under EPC, the exposure is reduced to 40 per cent under HAM.

The question is whether companies would opt for HAM in its new avatar. Virendra Mhaiskar, chairman, IRB Infrastructure, terming HAM a deferred EPC payment structure, feels it might not offer good operating margins or a return creation opportunity vis-a-vis the current BOT model that his company prefers. “Just to wet our feet and find out how really the process happens, we (IRB) might participate in a few bids under HAM but for now, we are not looking at it in a big way,” he said.

Experts say the approach on HAM will depend on a company's stance and current needs. It would have little to do with any concern over the project or model.

Santosh Yellapu of Angel Broking says, “How companies want to build their order books would determine if they want to bid for HAM projects.” According to him, larger companies such as IRB Infra, Ashoka Buildcon and IL&FS Transportation Networks might not participate in the current round of HAM bids, as their current order book is comfortable. Smaller companies such as MBL Infrastructures, MEP Infrastructure Developers and Welspun Corporation, whose order book is in the process of being strengthened, might have more appetite.

A report by ratings agency ICRA adds that features of the HAM model are expected to elicit a favourable response, especially from large EPC players and some BOT ones. Even so, despite a large part of the concerns being addressed, there are other issues influencing companies. Analysts at Emkay Financial Services point to the large difference between L1 (lowest bid price) and L2 (second lowest price) as signifying that no developer wants to bid aggressively.

Some are more optimistic. Kunal Seth of Prabhudas Lilladher feels the larger entities might be warming up to the idea. Also, with BOT projects unlikely to see any meaningful return for older entities such as Gammon, GMR Infra and HCC, given the strain on their finances, some experts feel the trend of declining bids under the BOT model could go on. As more bids open under the HAM model, it might compel the larger ones to change their operating strategy.

For example, the pipeline for EPC projects, though higher than BOT, is less than half that for HAM. “Instead of bidding for three-four small road projects, a large HAM project might be more rewarding for the bigger players as well,” says Seth.

Source- Business Standard

February 22, 2016

Coastal Road Phase 1

The Maharashtra Coastal Zone Management Authority (MCZMA) is yet to give its final nod for the Rs 12,000-crore coastal road project, but the BMC is gearing up to begin work on it and will be rolling out the work tenders for the first phase in three months. The decision to roll out the work tenders was taken after the peer review report on the first phase.

“The peer review report for phase 1 of the coastal road project is complete and the tenders for the first phase stretching from Priyadarshini Park to Bandra will be out in three months,” said Additional Municipal Commissioner Sanjay Mukherjee. Apart from Coastal Regulation Zone (CRZ) clearances, the civic body is also awaiting clearances from the Navy as well as the Coast Guard, before actual construction of the coastal road begins.

The current BMC budget has made an allocation of Rs 1,000 crore for the project.
The Maharashtra Coastal Zone Management Authority (MCZMA) is yet to give its final nod for the Rs 12,000-crore coastal road project, but the BMC is gearing up to begin work on it and will be rolling out the work tenders for the first phase in three months. Apart from Coastal Regulation Zone (CRZ) clearances, the civic body is also awaiting clearances from the Navy as well as the Coast Guard, before actual construction of the coastal road begins.

The current BMC budget has made an allocation of Rs 1,000 crore for the project. The decision to roll out the work tenders was taken after the peer review report on the first phase. It is a detailed study of the project and covers the shortcomings of the consultant’s report. It was submitted on February 17.

“The peer review report for phase 1 of the coastal road project is complete and the tenders for the first phase stretching from Priyadarshini Park to Bandra will be out in three months,” said Additional Municipal Commissioner Sanjay Mukherjee.

Apart from making recommendations on the number of lanes, the report also includes a data analysis for different times of the day.

Source: http://indianexpress.com/article/cities/mumbai/maharashtra-work-tenders-for-phase-i-of-coastal-road-in-3-months/

February 18, 2016

Global Bitumen Market @ 72 B and is Growing

ALBANY, New YorkFebruary 8, 2016 /PRNewswire/ --
The global bitumen market will expand at a CAGR of 3.90% from 2014 to 2020. The market was valued atUS$71.44 billion in 2013. It is expected to reach US$93.38 billion by the end of 2020, according to a research report released by Transparency Market Research. The report titled "Global Bitumen Market - Industry Analysis, Size, Share, Growth, Trends and Forecast, 2014 - 2020".
According to the research report, the global bitumen market is primarily driven by the growing rate of use in construction of roadways around the world. The report states that there is a rapid increase in the rate of creation of roadways and other related activities, creating a high demand for the global bitumen market. Polymer modified bitumen, a type of bitumen, is highly preferred due to the advantages it provides, such as high porosity, high skid resistance, and low noise. All three properties are the most sought-after ones in the global roadways industry, giving PMB an advantage over other materials.
The global bitumen market's growth rate is, however, restrained to a high degree by the environmental hazards created by the use of bitumen. The report segments the global bitumen market in terms of products and applications, and also provides a geographical dissection. By products, the global bitumen market was dominated by PMB in 2013. The segment held more than 65% of the market for that year and is expected to be the fastest-growing segment for the report's forecast period. PMB is also used for waterproofing purposes.
The report states that more than 80% of the global bitumen market, from the perspective of applications, was dominated by road construction in 2013. Other applications of bitumen arise in automotive, adhesives, paints and enamels, and the roofing industries. From a geographical point of view, the global bitumen market was led by North America in 2013. North America took up over 30% of the global bitumen market in 2013, a market share attributed to expansion of state infrastructure. However, the report states that the fastest growth rate in the global bitumen market for its given forecast period will be held by the Asia Pacific region owing to rapid rate of industrialization.
The key players of the global bitumen market are Villas Austria GmbH, Valero Energy Corporation, Shell Bitumen, Petroleos Mexicanos, Nynas AB, NuStar Energy, JX Nippon Oil & Energy Corporation, Marathon Oil Company, Indian Oil Corporation, ExxonMobil, China Petroleum and Chemical Corporation ChevronTexaco Corporation, British Petroleum, and Bouygues S.A., The report states that the global bitumen market is highly competitive and fragmented due to the presence of a large number of regional players.
Get Sample Report, Segments or table of Contents as per your Requirements: http://www.transparencymarketresearch.com/sample/sample.php?flag=CR&rep_id=295
Key segments of the Global Bitumen Market 
Bitumen Market - Product Segment Analysis 

Bitumen Market - Application Analysis 
Roadways 

Waterproofing (Roofing) 

Adhesive 
Insulation 
Others (including decorative and industrial applications) 
Bitumen Market - Regional Analysis 
  • North America
  • Europe
  • China
  • Asia Pacific (Excluding China)
  • Rest of World (RoW)

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January 16, 2016

Green Bitumen from Canada

PACIFIC FUTURE ENERGY, which is planning to build the world’s “greenest bitumen-to-fuels refinery” in Canada has announced plans to transport bitumen to the refinery by rail in a near-solid “neatbit” state.
The company initially announced that it would build the C$15bn (US$10bn) refinery on the British Columbian coast back in 2014, and would export refined products, rather than raw bitumen, to Asia. It has now submitted a full formal project description, produced by SNC Lavalin, to Canadian regulators. The refinery will refine bitumen from oilsands in western Canada.
Bitumen is usually transported by pipeline as “dilbit”, a diluted, more fluid version containing about 70% bitumen and 30% diluent, or by rail as “railbit”, which contains around 88% bitumen. Pacific Future Energy, however, believes that transporting neatbit, which is as the name suggests, 100% bitumen, is more environmentally sound. 
The company describes neatbit as having “a consistency similar to peanut butter”, which does not flow unless heated. It has very low flammability, is stable, and is classified as non-dangerous for transport. In the rare chance of a train derailment or a crash, the bitumen could not flow anywhere and would be much easier to clean up, minimising environmental damage. 
First Nations groups and environmentalists alike have criticised plans for pipelines through pristine landscapes. In addition, Pacific Future Energy has pledged to use TC-117 railcars, a new model specifically designed for oil transport.
Pacific Future Energy has selected an area known as the Dubose Flats in which to build the 200,000 bbl/d refinery. The refinery will be powered by wood waste biomass, from the local forestry industry, and the company claims its net carbon emissions will be near zero. 
Exporting refined products will pose less of a risk than raw bitumen to the marine environment in the case of a spill. The refinery is expected to create 3,500 jobs during construction and 1,000 during operation.
“Not only would our proposal provide a value-added way to get Canadian oil to growing world markets, but it would also protect both Canada’s land and marine environments from the effects of a heavy oil or bitumen spill,” said CEO Robert Delamar.
Pacific Future Energy will consult with Canada’s First Nations, the Canadian Environmental Assessment Agency the British Columbia Environmental Assessment Office and the public as it finalises plans for the refinery. The company hopes to begin construction in 2018, with startup scheduled for 2021.
Several other bitumen refining plants are planned on the British Columbia coast, including by Eagle Spirit Energy and newspaper tycoon David Black.

December 21, 2015

Roads that De-Ice themselves

As winter approaches, shops, cities and householders are stocking up on salt, gravel and sand in anticipation of slippery roads. However this annual ritual in colder climates might quickly grow to be pointless. Researchers report in ACS’ journal Industrial & Engineering Chemistry Analysis a brand new street materials that would de-ice itself.

Each winter, when climate forecasters predict snow or icy circumstances, native governments deploy vans that mud roads with salt, or different chemical mixtures to assist forestall ice build-up. Residents escape their very own provide to maintain their walkways and driveways from freezing over and turning into dangerously slick.

However the de-icer does not keep on the streets for lengthy. Melting snow and automobiles driving by wash or pressure it off, making re-application crucial. To interrupt this cycle, Seda Kizilel and colleagues needed to see if they might devise a method to ice-proof the street itself.

The researchers began with the salt potassium formate and mixed it with the polymer styrene-butadiene-styrene. They added this combination to bitumen, a serious element of asphalt.

The ensuing materials was simply as sturdy as unmodified bitumen, and it considerably delayed ice formation in lab research. The brand new composite launched de-icing salt for 2 months within the lab, however the results might final even longer when used on actual roads, the researchers observe.

In that occasion, the salt-polymer composite can be evenly embedded all through the asphalt. Thus, as automobiles and vans drive over and put on away the pavement, the salt might regularly be launched—probably for years.

Extra info: Derya Aydın et al. Gelation-Stabilized Useful Composite-Modified Bitumen for Anti-icing Functions, Industrial & Engineering Chemistry Analysis (2015).

Summary
Ionic salts as anti-icing brokers have been extensively used to get rid of accumulation of ice on asphalt surfaces. Nevertheless, salt may be simply eliminated by rain or cars and requires frequent software on roads.

Apart from this financial consideration, anti-icing brokers compromise the mechanical properties of asphalt and have a adverse influence on dwelling organisms and the setting when utilized in giant quantities.

Incorporation of hydrophilic salts into bitumen, a hydrophobic asphalt binder, and managed launch of particular molecules from this hydrophobic medium can present an efficient answer for decreasing ice formation on pavements.

Bitumen has beforehand been modified by numerous polymers, together with styrene-butadiene-styrene (SBS) for improved power and thermomechanical properties. Nevertheless, an anti-icing perform was not thought-about in these earlier designs. In a earlier research, we developed a useful polymer composite consisting of potassium formate (HCOOK) salt pockets dissolved in a hydrophilic gel medium and dispersed in a hydrophobic SBS polymer matrix.

Right here, we developed an revolutionary technique to acquire polymer composite-modified bitumen and investigated additional the anti-icing properties of the practical bitumen. We improved incorporation of this polymer composite into bitumen and demonstrated correct distribution of the composite inside bitumen by means of morphological and rheological evaluation.

We characterised the anti-icing properties of modified bitumen surfaces and demonstrated vital will increase in freezing delay of composite-modified bitumen in comparison with base bitumen in a temperature- and humidity-controlled chamber. As well as, we characterised the discharge of HCOOK salt from polymer composite-modified bitumen and noticed salt launch inside the vary of 1.07–10.eight% (w/w) in 67 days, relying on the composite content material. The outcomes show the potential of this polymer composite-modified bitumen for anti-icing performance and for industrially related purposes.

Source- Sunnews Journal

October 30, 2015

Bitumen Blend Loosing out to Cheaper Crude Oil But Gaining over straight run Fuel Oil


Demand for imported crude, petroleum bitumen blend and straight-run fuel oil by independent teapot refineries in China's eastern Shandong province was more or less steady this week, despite narrowing refining margins on lower local oil product prices.

But teapot refineries that have recently been granted both import quotas and import licenses for crude oil continued to take in crude cargoes, particularly largest Shandong teapot refiner Dongming Petrochemical.

The 7.5 million mt/year (150,000 b/d) Dongming has received a 240,000-mt cargo shipped from the Gulf of Mexico at Rizhao port early this week, adding to imports of 350,000 mt earlier this month. The latest shipment brings the total volume of crude imported under its import quota of 6 million mt/year to 2.84 million mt.

Adding on to the volume received by four other Shandong teapot refineries with import quotas, teapot refineries have imported a total of around 3.74 million mt of crude since end-July, when Dongming took its first cargo.

The four refineries are: Sinochem Hongrun Petrochemical, Kenli Petrochemical, Yatong Petrochemical and Lihuayi Petrochemical -- better known as Lijin.

For November, the 3.5 million mt/year Yatong Petrochemical is taking in a crude cargo much larger -- possibly a VLCC -- than its first import cargo comprising 60,000 mt of Indonesian Duri crude in mid-October, said a source from the refinery. But details, including the crude grade, of its planned November import could not be ascertained.

Meanwhile, the 3.5 million mt/year Lijin Petrochemical, which is scheduled to restart from an ongoing full turnaround in early November, has not fixed any imported crude cargoes for the coming month so far.

Shandong's teapot refineries are able to crack crude and fuel oil, but they have been using less imported fuel oil since November 2014 because of relatively high procurement costs.

After the government granted teapot refineries access to imported crude, crude has been the top feedstock choice, while bitumen blend is still considered favorable for those that have no access to both domestic and imported crude.

THREE BITUMEN BLEND CARGOES HEARD FIXED FOR NOV SO FAR

Demand for petroleum bitumen blend among Shandong teapot refiners remained thin over the week, with around three cargoes heard so far fixed for November delivery.

This compares with an estimate 530,000 mt of bitumen blend imports, in five cargoes, into Shandong ports in October.

The latest arrival is a 97,000-mt cargo from Malaysia into Rizhao port this week, taken by the 3 million mt/year Yuhuang Petrochemical. The supplier was heard to have resold the cargo to Yuhuang -- which earlier had no plans to buy bitumen blend for October -- after the original buyer decided not to take the cargo.

Still, overall estimated bitumen blend imports in October were lower than September's imports of 1.1 million mt in 12 cargoes.

The fall in bitumen blend imports was attributed to more teapot refineries being allowed to import crude, freeing up domestic crude supply to other refiners and displacing the share of bitumen blend in refiners' feedstock mix as a result.

Adding to this, Shandong customs officials have been scrutinizing imports of bitumen blend more closely since end-September in a bid to identify misrepresented fuel oil cargoes. This has led some teapot refineries to suspend their import activities for the time being.

Premiums of November-delivery common grade bitumen blend cargoes are now heard lower, at around $20-$25/mt to the Mean of Platts Singapore 380 CST high sulfur fuel oil assessments on a CFR basis, from MOPS 380 CST HSFO assessments plus $27-$30/mt, CFR, last heard for October cargoes.

Common grade bitumen blend has a density of 0.98-0.99 kg/l, sulfur content of 2%-3% and carbon residue of 12%-14%.

And in the domestic spot market, bitumen blend prices were heard to have fallen to around Yuan 2,200/mt this week, from Yuan 2,300/mt last week, due to weak buying interest from teapot refiners.

Teapot refineries in Shandong -- China's main buyers of imported straight-run fuel oil before November 2014 -- have largely switched to comparatively cheaper bitumen blend that does not incur consumption tax and import tariffs.

ONE M100 FUEL OIL CARGO FIXED FOR NOVEMBER, POSSIBLY TO SHANDONG

On Russian M100 fuel oil, western trader Mercuria was understood to have chartered the Cap Laurent to load 100,000 mt of M100 fuel oil from Russia's Kozmino this week to northern China, possible to Shandong.

And on Thursday, a 90,000-mt combination cargo of M100 and straight-run fuel oil had arrived at Longkou port. Regular M100 importer Hengyuan Petrochemical was heard as the buyer.

M100 fuel oil cargoes for early November delivery were heard talked at premiums of around $50/mt to MOPS 180 CST fuel oil assessments on a CFR basis, steady from last levels heard for October, but down from premiums of $55/mt for September.

Still, teapot refiners see the latest premium levels as too high, sources said.

Meanwhile, eyes are on Russian state-owned Rosneft's upcoming M100 term supply for loading over January-December 2016.

Rosneft currently has a term contract for 2.8 million mt of M100 for loading over January-December 2015 from Nakhodka or Vanino with Mercuria, at a term premium of around $85-$88/mt to MOPS 180 CST HSFO assessment on a FOB basis.

--Staff, newsdesk@platts.com
--Edited by Irene Tang, irene.tang@platts.com
 
 Singapore (Platts)--29 Oct 2015 723 am EDT/1123 GMT
-- Source Link

October 21, 2015

Bitumen Market Research Report 2015

Global Bitumen Market (Paving Bitumen, Oxidized Bitumen, Cutback Bitumen, Bitumen Emulsion, Polymer Modified Bitumen and Others) for Roadways, Waterproofing, Adhesives, Insulation and Other Applications -

Industry Analysis, Size, Share, Growth, Trends and Forecast, 2014 - 2020
102 pages   Published Date: 2014-09-09  

Bitumen is primarily used as a binder in road construction along with other applications such as electronics, waterproofing for roofing, and in adhesives due to its resistance to water, insulation properties and high durability.

The properties of bitumen can be altered by adding polymers to it, thereby increasing its application scope. Bitumen is known as “asphalt” or “asphalt cement” in North America.

However, “asphalt” is a term used for a mixture of sand, small stones and other filler materials in the rest of the world. This mixture contains about 5% of bitumen. The mixture is known as “asphalt concrete” or more particularly “blacktop” in North America.

Bitumen is available in a number of grades based upon the standard mentioned by certain tests such as penetration test. Bitumen 80/100, bitumen 60/70 and bitumen 40/50 are the most commonly used bitumen, where the numerical values represent hardness of bitumen.

Softer bitumen represents greater penetration units.

Similarly, VG-10, VG-20, VG-30 and VG-40 are the viscosity grades of bitumen. Thus, different grades of bitumen are often represented as bitumen 80/100/VG-10.

Infrastructure activities to improve road networks in developed and developing nations are expected to drive the growth of the bitumen market. Furthermore, increasing applications of polymer modified bitumen (PMB) as chemical additives and adhesives in household and road construction are anticipated to boost the demand for bitumen. Additionally, rising construction activities for industries, commercial buildings and housing are estimated to drive the demand for bitumen over the next six years. However, environmental issues associated with the extraction of bitumen from oil sands are projected to hamper market growth. Increasing substitution of bitumen by concrete is also likely to adversely affect the bitumen market. However, development of bio-based bitumen or bio-bitumen and its commercialization over the next few years is expected to offer opportunities for the bitumen market. Furthermore, development of bio-bitumen is anticipated to ease the production pressure on the depleting fossil fuel reserves.

Paving grade bitumen, which is used in roadway application as a binder for asphalt, was the largest consumed type of bitumen in 2013. It accounted for over 65% of the market share in 2013.

Polymer modified bitumen (PMB) is expected to be the fastest growing segment of the market due to its increasing demand in road construction and roofing applications. Polymer modified bitumen is increasingly used in construction of roadways and waterproofing applications as it offers various advantages such as heating at lower temperatures, ability to increase porosity of roads and enhancement of performance of the applications.

With over 80% share in 2013, road construction was the largest application segment for bitumen due to its high viscosity and stickiness.

Other applications of bitumen include its usage in roofing industry, paints and enamels, adhesives, automotives and decorative applications, and as an insulator in electrical and electronics industry.

Focus of national governments of China and India on improving road network and the consequent inclusion of the same in the five-year plans is anticipated to fuel growth of bitumen in Asia Pacific over the next six years.

However, waterproofing is expected to be the fastest growing application of bitumen during the forecast period, due to growth in infrastructure activities in developing countries such as China and India.

North America was the largest consumer of bitumen in 2013 due to the significant network of roads in the U.S. The region accounted for over 30% of the market in 2013.

Redevelopment and repair of existent roads accounts for the primary consumption of bitumen in this region. This is in contrast to emerging economies where the consumption is driven by development of new infrastructure.

However, Asia Pacific (including China) is expected to be the fastest growing market for bitumen during the forecast period due to rapid industrialization in the region. This is expected to drive infrastructure development in the next few years.

The bitumen market is highly fragmented, with the top eight companies accounting for approximately 39% of the total market share in 2013. Leading bitumen manufacturing companies include Shell Bitumen, NuStar Energy, ExxonMobil, Marathon Oil Company and Valero Energy Corporation.

Source - Transparency Market Research

October 8, 2015

Nigeria Missed the Bus Again - This time Not Crude But Bitumen

Iriele is a small community situated in Ondo State and the indigenes have high demands for development. Over the years, they have dreamt of the day when bitumen would be exploited, creating job opportunities, infrastructure and economic prosperity. The people of this town consider bitumen as a God endowed heritage which should be harnessed immediately to create jobs, deliver infrastructure and reduce the hardship they face daily. 

Those dreams have not become reality up till now, denting their hopes and leaving them frustrated as the indigenes of these towns wait endlessly for the government to attract the needed investment.

In the light of the foregoing, is the wider debate about Nigeria’s rich mineral reserve and the failure of the government to properly utilise the wealth of the nation to the betterment of lives of the citizenry. This belief is voiced by majority of the ordinary people in this bitumen bearing community including border communities like Agbabu and Ilubirin.

Nigeria is the sixth largest bitumen deposit in the world with most of the reserve found in Ondo State. However, there’s a wider debate about Nigeria’s rich mineral reserves and the failure of the government to properly utilize the wealth of the nation to the betterment of lives of the citizenry.

This belief is voiced by majority of the ordinary people in this bitumen bearing community including border communities like Agbabu and lIubirin. They have argued that since 

Nigeria’s crude might no longer generate sufficient revenue to run the nation’s economy, there should be an alternative to fall back on. In the perspective of these pro-bitumen agitators, bitumen is a guaranteed option as Nigeria re-defines its roadmap to economic recovery.

A lawmaker representing the Irele-Agbabu State Constituency in Ondo State House of Assembly, and one of the key proponents of bitumen Honourable Afolabi Iwalewa, thinks that the wobbly situation of Nigeria’s oil is a wakeup call for the exploitation of bitumen:

“ Any moment from now, crude oil will fade off. Look at what is happening now with the talk of oil theft. Every state is crying now, even the Federal Government is crying that it is not getting what it used to get from oil. What is the Federal Government doing, and why can’t we find another alternative? If crude oil is not going to fetch us what we project (in terms of revenue), why can’t we switch over to bitumen?”

Another standpoint of Honourable Iwalewa’s pro-bitumen advocacy is that the non-exploitation of the resource is causing people in these communities a lot of trouble because they have to cope with the reality of spill ravaging precious farmlands where bitumen is found so close to the surface that a simple shovel can excavate the glossy black substance.

Bitumen is found in tar sands, which is also a combination of clay, sand and water. A heavy black viscous substance, oil-rich bitumen is extracted from tar sands, which is then refined into oil. The bitumen in tar sands cannot be pumped from the ground in its natural state; instead tar sand deposits are mined, usually using strip mining or open pit techniques, or the oil is extracted by underground heating with additional upgrading.

In essence, it involves a complex process that will certainly disrupt their lives and livelihoods beyond what they can imagine. This is what the people of the bitumen bearing communities in Ondo State are calling for when they appeal for the exploitation of the resource in their soil.

Taking a closer look at the experience of Canada, the biggest producer of tar sands globally, shows that exploitation has actually resulted in serious damage to the local communities and the environment. The clearing of vast area which is a component of the mining process is responsible for the Canadian moon-landscape we see in Alberta, Canada, where large forest with pristine trees that sprawled across its landscape now looks more like a waste land ravaged by the exploration of bitumen.

In spite of all of the warnings pointing at the dangers of venturing into tar sands exploitation, especially the apparent impacts of livelihoods of ordinary people due to the far reaching implications for the environment, including the lands and water bodies, the people in the bitumen bearing communities have inclined to brush these opinions aside.

Olofun of lrele, Oba Olarenwajulebi, the octogenarian traditional ruler of the Irele community, for instance, criticizes talk of possible environmental hazards if bitumen were to be extracted in the area. He brags about of what his realm would look like if development were to prevail, using bitumen as the tool.

“If development were to succeed the way the people of this area want it, this town would have looked like Lagos. I say so because bitumen will provide a lot of employment for all the youths in this area, not in Irele alone, but all over the Southern senatorial district and even in the whole of Ondo State. The bitumen deposit here is a very huge one. It is the second largest in the world, according to the survey conducted by some experts,” he enthused.
And on the Canadian experience he explained: 

“In Canada, they do it in Calgary, and I have been there. They don’t drive away communities, and they replenish the soil. Where they mine the bitumen, they mix the soil with some chemicals, and restore it for the farmers to go back there and farm. And when those people were working here, I talked to them and they told me that even if they have to relocate some communities, they will have to build some fine buildings for them, and that the exploitation won’t affect much of their lands. It is something that they will dig from the ground; and it won’t affect us adversely.”

There’s no doubt that the allure of jobs, development and the improvement they envisage that bitumen development would give to their communities has strengthened their resolve to continue campaigning for the exploration of their God-given wealth. Any attempt to make the pro-bitumen agitators to consider the consequences is usually met with cold shoulders.

However, a geologist at the Federal University of Technology, Akure, Ondo State, Professor Peter Odeyemi offered a much more balanced picture of the realities on the ground. Odeyemi, who was a member of the defunct Federal Government’s Bitumen Implementation Committee (BIC) made a poignant observation when he noted that the mere presence of a resource does not necessarily translate into commercially viable deposits.


“The first thing is that how much is there? We don’t know! We need to carry out further work in that area in the first instance. Secondly, exploration can be carried out by an oil company because bitumen is a hydro-carbon but also there are difficulties (technical difficulties). If an oil company is going to carry out an exploration there, there is an interest, financial one. This company will calculate how much it’s going to get. It will also look at certain technical issues and the ease of exploitation. This is so because although both of them are hydro-carbon, one is easier to exploit than the other.

Also,how will you exploit without exposing the soil to direct rain fall impact, denudation, erosion and degradation. So they have generation of enlightened professors and everything. The place is highly enlightened and the environmental issues are potent here like in Europe. If you look at the Niger Delta, the people just welcomed oil companies with open hands not knowing that oil companies are devils. They are only interested in profits. They are not in any way interested in environmental sustainability, in flora, in fauna and even in the development of the people,” he said.

He continued: “Our problem is not bitumen; our problem is corruption. What do we do with the money we have been getting from oil? The one we are exploiting, what are we doing with it? The people are getting poorer; there is no electricity, water, healthcare, and education. This is despite the fact that we are making trillions of dollars. So, if we now exploit bitumen and add another trillion, we are just going to multiply the corruption,” Odeyemi concluded.

There is no doubt that the exploration of bitumen will have a heavy toll on the environment of Iriele, and neighboring Agbabu and IIlubirin Communities in Ondo State. Water will be polluted, farmlands destroyed, large expanse of forest will be brought down and communities destroyed. Is this kind if cost these communities are willing to pay or are their alternative development paths that communities can take that will have more sustainable economic impact? As the federal government plans to diversify the economy, and explore mining of solid minerals as an alternative, there’s no gainsaying that the environment must be protected even as the nation seeks improved economic fortune.


Inwerogu wrote from Lagos

September 24, 2015

Bitumen Roads still Better ?

THE second stage of the Hindley St West redevelopment will retain the bitumen road surface after the disastrous results when slippery pavers were installed last year.
The council’s city design and transport manager, Daniel Bennett, said the second stage of the redevelopment, between Register and Morphett streets, would include wider footpaths, more lighting and tree planting but not use pavers on the road.
The pavers used in the first stage did not provide enough grip for motorists, particularly in wet conditions, and the speed limit had to be slashed to 10km/h to ensure safety.
A special “grit coating” was trialled on sections of the pavers in January, before being installed in April, when the speed limit was increased to 30km/h.
The $2 million second stage is still in the concept design phase but the council expects it to start in 2016.
Lord Mayor Martin Haese said the project was vital to the ongoing revitalisation of the West End.
“It supports recent developments, such as the SA Medical and Health Research Institute, the new Royal Adelaide Hospital and UniSA, as well as encouraging more people to the area,” he said.
“The hard work put into developing the footpath upgrade with the community will help improve links within the West End Precinct to new developments on North Terrace.
“This process to renew and invigorate Hindley West really has been a team effort with the local community playing an important role.
“I’m sure we’ll all be very proud of the end result, with great new elements like greening, lighting and outdoor dining spaces.
“Collaborating with the community on these exciting improvements to our public spaces leads to further private investment that creates new jobs and exciting opportunities for our city.”
Mr Bennett said the second stage of the project would be jointly funded by the council and the State Government.
“We were very pleased to receive $1 million from the State Government and (the) council will be matching that funding,” he said.
Mr Bennett, said no decision had been made on how to permanently fix the slippery pavers from the first stage of the redevelopment.
“At the moment we are still assessing it (the grit treatment) and we will decide whether to patch it, reapply it or to find another solution,” he said.
The first stage cost $4 million and included contributions from the Adelaide City Council along with state and federal governments.
The development was criticised at the time by local traders because of delays and a loss of foot traffic while construction was ongoing.
Originally published as Slippery pavers dumped from Hindley St second upgrade
Source - theaustralian.com.au