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Bitumen road

Russian Bitumen Production up 21% in 1H 2018

Bitumen is the principal material used for road construction. Close to 95% of all “paved” roads in the world are estimated to have bituminous surfacing.

As per analytical data published by CREON Energy, bitumen production in Russia reached 5.92 million MT in 2017, 10.3% higher than the year before. For the first 6 months of 2018, the total production of bitumen is already 21% higher than in the corresponding period of the previous year. The total volume of production in 2018 could therefore reach 6.9 million MT, the highest result of the last 5 years. The main producers of bitumen in Russia are Rosneft, Gazpromneft, and Lukoil.

Bitumen production in Russia

  • mln Mt

This increase in the volumes of bitumen production is principally due to substantial expansion of internal road construction in the last years. At the same time, a window for export supplies still exists.

In addition, the growth rate of polymer-modified bitumen (PMB) production is more than 10% each year. According to analytical data, this volume should exceed 5% of the total bitumen volume by the end of 2018. Due to its high quality, this product is largely exported in big bags, and the main country of export is currently Chile.

PMB production in Russia

  • ths Mt

In August 2018, the Russian government decided to complete a so-called “tax maneuver,” meaning that the export duties for oil and heavy petroleum products will gradually decline to 0% by 2024. This will have a big impact on bitumen markets, and the current export duty for bitumen (Oct. 2018) is set to 137.50 USD/Mt. The first decrease of export duty at 20% will start on 01.01.2019, with a corresponding decrease every year until 0% is reached in 2024.

Export duty reductions may thus lead to more attractive export prices for bitumen, along with growing volumes of production.

In addition, PMB and other bitumen products (specialties for road construction like polymer bitumen joint tapes, mastics, and sealants etc) already have 0% export duty.

DYM Resources is an international trading company, focused on providing high-quality services in niche oil products supplies.

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DYM Resources Begins Sale of Bitumen Specialties for Road Construction

DYM Resources has begun to sell high-quality polymer-bitumen materials for road infrastructure, airports, and general construction that are intended to extend the service life of bitumen concrete and cement concrete surfaces.

The range of bitumen specialties offered by DYM Resources is as follows:

• Polymer-bitumen joint tapes

• Mastics and sealants for airports, roads, and bridges

• Waterproofing, liquid rubber, protective restoring compounds, etc.

All above-mentioned products meet EU quality requirements and have corresponding certificates.
For the past 10 years, these bitumen specialties have been widely used in all federal roads and airports in Russia, which has led to the first successful export supplies. DYM Resources expects exported volumes to continue to grow in 2019, thanks to the launch of its warehouse program along with the direct supplies to key construction projects.

Along with Bitumen specialties, DYM Resources has also begun to supply polymer modified bitumen (PMB), which increases the life cycle of road pavement to be two to three times longer than with normal bitumen. The presented PMB has CE certification and 0% export duty, making it of especial interest to European customers.

DYM Resources is an international trading company, focused on providing high-quality services in petrochemical supplies. Please contact us to get more information about bitumen and bitumen specialties offered by DYM Resources.

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Turkmenistan Starts Bitumen Export to Uzbekistan

Seidi Oil Refinery has begun exporting bitumen to Uzbekistan. The first batch consists of 675 tons of the product. The agreements lay out that Turkministan will import an estimated 10,000 tons of bitumen in total.

Seidi Oil Refinery’s current bitumen plant was installed three years ago by the American company Westport Trading Europe Ltd. The plant’s capacity allows it to process 118,000 tons of fuel oil per year, yielding about 37,000 tons of bitumen and associated gas oils.

Bitumen is also manufactured in the Central Asian region near Turkmenistan and exported from Kazakhstan. There are two main bitumen plants on its territory: Caspi Bitumen and Gazpromneft Kazakhstan.

According to the information provided by KAZINFORM, an international news agency of Kazakhstan, Caspi Bitumen exported 650 tons of bitumen to Uzbekistan in 2017.

In Tajikistan, the launch of an oil refinery has been announced for September 2018. The project was started in 2014 and organized by the Tajik-Chinese joint venture TK-Oil. The plant is meant to begin manufacturing with the production of a diesel fuel, low-octane gasoline of AI-80 and AI-92 grade, as well as construction bitumen.

Over the last 10 years, several attempts have been made to launch mini-refineries in Tajikistan, in the regions of Kanibadam, Isfara, Shakhrinav, and Khatlon. None of the attempts proved successful.

DYM Resources is a international trading company focused on developing high-quality services in the base oil, wax, and petcoke and bitumen markets.

For enquiries, please contact us via our website.

Photo: oldinvest.zed.kz
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Turkmenbashy refinery coking unit

Turkmenistan Sold 25,200 Tons of Bitumen for Export in 1H 2018

Turkmenistan’s refineries started bitumen export sales in early 2018 and sold 25,200 tons of bitumen from March to June.

Turkmenistan began bitumen production in 2015, but did not export the product until early 2018. Today, two refineries can produce bitumen in Turkmenistan: Seidy Refinery has the capacity to produce 37,000 tons of bitumen per year, Turkmenbashy Refinery can produce more than 200,000 tons per year and plans to increase production with the launch of new delayed coking and deasphaltizing units.

Bitumen Sales 2018 (mt)

  • Amount (mt)

“Bitumen is in high demand in Central Asia due to massive road construction plans, especially in Uzbekistan, Tajikistan and Kirgizstan,” comments Denis Varaksin, director of DYM Resources.

Bitumen is sold on an FCA refinery basis with loading into rail tank cars. Traders report that it is difficult to find suitable rail tank cars for bitumen transportation due to lack of equipment with “steam-heating coats” that help to heat the product during unloading.
Bitumen was sold in cargoes of 2000 to 7200 tons with a loading period between two to ten months. Export prices were stable from March to June 2018.

90% of bitumen is used in road construction, with the remnant going into construction industries as a waterproof material. The global bitumen market comprises around 107 million tons.

DYM Resources is a trading company focused on developing high-quality services in the base oil, wax, and petcoke and bitumen markets. The company works in Russia, Belarus, Kazakhstan, Uzbekistan, and Germany.

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