Bitumen

Bitumen Shortage Due to Refinery Shutdown

noreply@blogger.com (Benzene International Pte Ltd) — Sat, 18 Feb 2012 04:29:00 +0000

PETROLEUM product shortages continue at some fuel stations in SA but the industry said yesterday that the situation had improved.

For some months now, the South African petroleum industry has been battling fuel shortages — particularly petrol and diesel.

"The situation has improved but supply remains tight. We are in a better position compared with earlier this month," South African Petroleum Industry Association executive director Avhapfani Tshifularo said yesterday.

"But there are still challenges with certain grades of petrol ."

There was, however, still a shortage of low-sulphur-content diesel, Mr Tshifularo said.

These shortages could be traced to maintenance and repair shutdowns at refineries last year.

"It is not easy to recover from that, especially if you are supplementing supply with imports, as imports can be subject to delays," Mr Tshifularo said.

He said the supply of jet fuel was adequate. "We are doing very well there. The stock levels are satisfactory — especially at OR Tambo International Airport," he said.

Refiner and marketer of petroleum products Chevron SA will today start a 43-day planned maintenance and safety shutdown at its Cape Town refinery.

The Chevron refinery has a capacity of 100000 barrels a day and produces petrol, diesel, jet fuel, liquefied petroleum gas, fuel oil, paving asphalt and other products.

The company has a network of about 800 retail outlets across SA.

Refinery shutdowns in the past have mainly affected the supply of liquefied petroleum gas and bitumen, as companies generally did not supplement these with imports, unlike petrol and diesel.

Last year’s refinery shutdowns took their toll on liquefied petroleum gas supplies.

The Department of Energy said last year that the unplanned refinery shutdowns were becoming a threat to security of supply of some petroleum products, especially liquefied petroleum gas and bitumen.

Bitumen shortages affect road construction projects as bitumen is used to produce the asphalt that is used in road construction.

The Chevron shutdown is due to end in the first week of April.

In a move to allay concern about fuel shortages during the shutdown at its refinery, Chevron said: "As an integral part of Chevron’s planning for this maintenance project, the Chevron refinery has gone through a period of building up stock levels as well as making arrangements to import additional finished product, to ensure an adequate supply of fuel products."

Chevron said the entire safety and maintenance inspection at its refinery would cost about R210m.

njobenis@bdfm.co.za
Source - http://www.businessday.co.za/Articles/Content.aspx?id=165242

Italy's Woes over Iran's Fuel Supply Cut

noreply@blogger.com (Benzene International Pte Ltd) — Mon, 06 Feb 2012 02:32:00 +0000

The European Union (EU) sanctions on imports of petroleum from Iran over the country's peaceful nuclear program can lead to the closure of Italian oil refineries, European oil industry sources say.

"Some Italian refineries are heavily dependent on Iranian crude and need to secure alternative supplies urgently... or they will run into serious difficulties," said Piero de Simone, director of Italy's oil industry organization.

According to analysts, at least five of Italy's oil-refining plants are making losses while the small refiners that rely on Iran's relatively cheap heavy oil to produce asphalt and bitumen are among the most vulnerable.

"This is why I am so angry. These EU sanctions are weakening Mediterranean refiners more than the Iranians," said an executive from a European refiner.

"The US and the UK play the tough guys, but we have to pay the consequences," he added.

On January 23, EU foreign ministers imposed new sanctions on Iran which include a ban on purchasing oil from the country, a freeze on the assets of Iran's Central Bank within the EU, and a ban on the sale of diamonds, gold and other precious metals to Iran.

Earlier on December 31, 2011, US President Barack Obama signed into law new sanctions against the Islamic Republic and announced that the United States would begin penalizing other countries for importing Iranian oil or conducting transactions with the country's central bank.

The United States, Israel and some of their allies accuse Tehran of pursuing military objectives in its nuclear program and have used this pretext to impose four rounds of UN Security Council embargos against Iran.

Iran, however, has refuted the allegations, arguing that as a signatory to the Nuclear Non-Proliferation Treaty and a member of the International Atomic Energy Agency, Tehran has every right to use nuclear technology for peaceful purposes.

MAB/MA
Source- http://presstv.com/detail/224588.html

Canada's OilSands A Boom or Bane..

noreply@blogger.com (Benzene International Pte Ltd) — Fri, 03 Feb 2012 03:20:00 +0000

Northern Gateway pipeline will hurt consumers and harm Canada's already weakened manufacturing sector

CEO and labour leader agree: Canada should upgrade bitumen rather than send value-added jobs to China and U.S.

EDMONTON, Feb. 2, 2012 /CNW/ - Building a pipeline to send millions of barrels of raw bitumen from Alberta's oil sands to refineries in China will make some oil companies richer - but those riches will come at the expense of consumers and non-energy businesses across Canada.

That's the main conclusion of a detailed report prepared by Robyn Allan, an economist and prominent businesswoman who was once named one of Canada's top 200 CEOs.
The report was filed this week as evidence to the federal panel currently considering Enbridge Inc.'s application to build the controversial Northern Gateway pipeline.

In her report Allan projects that the Northern Gateway pipeline, if approved, will reduce Canada's GDP, increase unemployment and put downward pressure on personal incomes because it will impose a two-to-three-dollar per-barrel increase in the price of oil - something she describes as a "price shock" that the Canadian economy can ill afford at this time.

"Somehow this project is being presented as 'nation building'" by people like Prime Minister Stephen Harper, writes Allan.

But "all available research, as well as the experience of most Canadians, points to just the opposite. Higher oil prices mean a decrease in family purchasing power, higher prices for industries who use oil as an input into their production process, higher rates of unemployment in non-oil industry related sectors, a decline in real GDP, a decline in government revenues, an increase in inflation, an increase in interest rates and further appreciation of the Canadian dollar."

Allan's report concludes that industry predictions that the pipeline will add $270 billion to the Canadian economy over the next 30 years are fatally flawed because they don't factor in the depressing effect of an across-the-board increase in oil prices.

Allan's report almost didn't see the light of day because the National Energy Board (NEB) refused to grant her status as an intervenor in the hearings. But the Alberta Federation of Labour (AFL) did have status and chose to submit Allan's report as part of its evidence.

"Both Robyn and I agree that the oil sands should be developed," says AFL president Gil McGowan. "But that development should not come at the expense of the rest of the Canadian economy.

"The good news is that there is a way to avoid the price shock that Robyn talks about. By doing more upgrading and refining in Canada, we can make sure that Canadians keep much more of the value created by development within the country. And, by developing markets in eastern Canada instead of Asia, we can ensure that Alberta's growth isn't coming at the expense of growth in other provinces."

In addition to Allan's report, the AFL submitted its own 42-page analysis which argues that the Northern Gateway pipeline, if approved, would close Canada's window of opportunity for "moving up the value ladder" for at least another generation.

"By increasing bitumen prices, the pipeline will remove the major competitive advantage that had traditionally been enjoyed by Canadian upgraders: access to cheap feedstock," says McGowan.

"In essence, the pipeline will dramatically undermine the economics of Canadian-based upgrading and refining. In the process, we'll be forced, again, into the role of 'hewers of wood and drawers of water.' Other nations will take the jobs and profits associated with adding value to our resources, and we'll be left with pollution and inflation. It may even drive existing Canadian refineries out of business. I fail to see how Stephen Harper and other boosters of the Northern Gateway pipeline can argue that this approach is in the public interest. The evidence clearly suggests that we will seriously regret opening the door to bitumen exports to China."

A copy of Allan's report, entitled "An Economic Assessment of Northern Gateway" can be found here. A copy of the AFL's brief on the same subject can be found here. Allan's bio can be seen here.
For further information:

Gil McGowan, President, Alberta Federation of Labour @ 780-218-9888 (cell)

To arrange interviews with Robyn Allan, please call Terry Inigo-Jones, AFL Communications @ 780-910-1137 (cell)

Source -http://www.newswire.ca/en/story/915085/northern-gateway-pipeline-will-hurt-consumers-and-harm-canada-s-already-weakened-manufacturing-sector

Green Roads - Coming Your Way

noreply@blogger.com (Benzene International Pte Ltd) — Fri, 03 Feb 2012 03:13:00 +0000

THE establishment of a Greenroads rating system – similar to that employed by the Green Buildings Council of SA - was discussed at the recent Conference on Asphalt Pavements for Southern Africa (CAPSA).
SSI Engineers & Environmental Consultants has been instrumental in bringing the Greenroads principles to South Africa having been involved with the USA based Greenroads Foundation for over a year and having recently concluded a memorandum of understanding with the foundation to localise the tool for South African conditions.

Greenroads is a collection of sustainability best practices, also known as credits which relate to the design and construction of roads. A company will receive credits for employing sustainable practices in the design and construction of roads, such as using reclaimed materials from existing pavements in rehabilitation, rather than new materials, or moving from hot-mix to warm-mix asphalt thereby lowering the carbon footprint of the project whilst minimising the environmental impact.

Delegates attending the CAPSA conference agreed that there was a need for a Greenroads certification scheme in South Africa, which will be used as a tool to assess the sustainability of road projects in the country.

A representative of the international Greenroads Foundation provided delegates with insight and information on how the system works in the USA.
Although an SSI initiative, the intention is to develop a true industry standard which requires the involvement and buy-in of as broad a spectrum of the roads industry as possible. Although the implementation of a Greenroads system is still a year away, SSI is considering applying the principles on a current project as a pilot for possible inclusion in a future Greenroads rating system.

An example of the ‘Green Roads’ technique is on the M5 in Durban where recovered existing asphalt was crushed, screened and stabilised and then placed on the roadway in a 150mm-thick layer followed by a 60mm thick asphalt-wearing course as the final surfacing.

SSI resident engineer Peter Jerome explained that only recycled asphalt materials were used, resulting in significant cost savings on the project. All asphalt recovered for reuse includes a 100%-recycled bitumen stabilised materials (BSM) layer, milled off asphalt haunch and recycled concrete kerbs. About 15% of the recycled asphalt added to the asphalt surfacing is delivered as Warm Mix Asphalt (WMA).
The benefits of using WMA at lower temperatures include a reduction in energy consumption, greenhouse-gas emissions, fumes, and odours generated at the plant and the paving site. Less obvious technical benefits include the reduction of short-term binder hardening, the reduction of mixture tenderness and a possible increase in the percentage of reclaimed asphalt pavement used in new asphalt pavement mixes.

SSI says it has embraced the principles of the Greenroads imitative and is actively promoting its adoption as an industry standard in South Africa.

Sustainable practices in the design and construction of roads, such as moving from hot-mix asphalt to warm-mix asphalt or using reclaimed materials from existing pavements in rehabilitation, rather than new materials, will minimise the environmental impact and lower the carbon footprint of projects.

Source - http://www.cbn.co.za/dailynews/5990.html

Another Bitumen Scam

noreply@blogger.com (Benzene International Pte Ltd) — Fri, 03 Feb 2012 03:09:00 +0000

NEW DELHI: Dissatisfied with incomplete replies and delays in submission of the Action Taken Report (ATR) against erring officials by MCD in response to irregularities cited in the CAG report on implementation of MP Local Area Development Scheme (MPLADS), the Union ministry of statistics and programme implementation has sent a terse reminder to the Delhi Government.

It has also sought that FIRs be lodged in cases of misappropriation of funds and suspected fraud.

Despite repeated reminders from the ministry the MCD, which is the nodal implementation agency for MPLADS in Delhi, is yet to furnish a final report.

The all-India review meeting with all MPLADS nodal officers is scheduled for February 6 at Vigyan Bhawan.

In the 2010-11 performance audit CAG report the 12 paragraphs pertaining to Delhi cited a host of issues ranging from the sub-standard quality of material used in roads to serious procedural lapses in the execution of various projects. For instance the audit found that in Delhi during 2004-09 the MCD executed 28 works for providing and laying 25 mm thick bitumen "mastic wearing course" for strengthening of roads by laying mastic asphalt through contractors.

In all these cases the contractor used a lesser quantity of bitumen leading to excess payment of Rs 66 lakh.

The reply by the MCD has failed to satisfy the ministry which has asked the MCD Commissioner to initiate action against officials responsible for irregularity and FIRs against contractors for suspected fraud in the MPLADS fund.

According to sources, the Department of Urban Development has sent repeated reminders to the MCD seeking a final status report.

The ministry in a letter, dated January 9, to the principal secretary, urban development, Chandra Mohan stated: "The ministry is required to submit the Action taken Report on the audit paras to the CAG before being submitted to the Public Accounts Committee. This is getting delayed and any further delay is likely to attract criticism from the PAC."

The ministry's letter further emphasized that of the 12 audit paragraphs pertaining to Delhi as per observation of the performance audit report of 2010-11, complete replies in respect of only 6 paras have been received. "From the replies received from the MCD, it has been noticed that the information provided against 6 paras are inadequate. It is pointed out that the ministry had sought replies by November 15 previously but the information never came. A fresh deadline of January 20 seeking a comprehensive action taken report is also long past.

Source - http://timesofindia.indiatimes.com/city/delhi/MPLADS-scam-Centre-wants-corrupt-booked/articleshow/11733910.cms

Bitumen Shortage in South Africa

noreply@blogger.com (Benzene International Pte Ltd) — Thu, 02 Feb 2012 04:58:00 +0000

SA is currently facing a bitumen supply shortage which has had drastic implications on road maintenance and road repairs over the past couple of months, according to Frost & Sullivan (F&S).

AFTER: The notoriously potholed and dangerous Sunrise-on-Sea road outside East London has been given a tarred makeover, much to the delight of residents.

One thousand tons per day of bitumen is currently required by the road construction industry in SA. However, only 30 to 70 tons per day is being produced, the consultancy firm said on Wednesday.

In SA, 600,000km of roads are unsurfaced and, in the long term, it is predicted that an average of four to six million tons per annum will be required.

There are a number of interrelating factors contributing to the shortage of bitumen supply. Firstly, the production of bitumen is costly, as technology used in the manufacturing process is high. Secondly, production plants need to be located in close proximity to the end user, in order for the bitumen producer to produce profitably, the company said in a statement.

"Onerous specifications to meet certain standards on national road projects can also prevent easy entry of new bitumen producers into SA," said F&S's chemicals, materials and food research analyst, Bhavisha Jaga.

"In addition, the closure of refineries, due to upgrading and maintenance of facilities, continues to place additional pressure on increasing the supply of bitumen. Chevron and Natref refineries, for example, have a limited bitumen supply, which adds to the US$14 billion road maintenance backlog."

The price of bitumen fluctuates in line with the dollar price of crude oil, as crude oil is imported largely from Iran. With instability in the Middle East, and a US and European Union embargo on Iran crude oil exports, the price of crude oil, now valued at US$110.80 per barrel, is set to rise, causing the price of bitumen to further increase.

"With a growing restriction on Iran crude oil exports, seeking alternative crude oil suppliers such as Angola, Nigeria, Ghana and Saudi Arabia, may be an expensive, but unavoidable, consideration for asphalt producers in the future," says Jaga.

Bitumen comprises 60% of the cost of asphalt production, which is used in road construction. The bitumen supply shortage will, therefore, strain future road maintenance projects, such as the Gauteng Freeway Improvement Project and N1 and N2 Winelands toll roads.

Smaller, yet significant projects such as the repairing of potholes, might end up being side lined as a result of the shortage of bitumen, as the primary focus will now be on major projects.

"Job losses for road contractors are likely to occur until there is a normalisation in the supply of bitumen," notes Jaga. "The losses will have a detrimental impact on the economy in the face of the government's plan to create five million jobs by 2015."

Plans are currently underway to resolve the bitumen shortage. These are being coordinated between the Department of Transport, South African National Roads Agency Ltd (Sanral) and the Department of Energy.

According to the Transport Minister Sibusiso Ndebele Sanral - which in 2010 accounted for 70% of bitumen used in the country - is engaging with the road construction industry to directly import bitumen from overseas.

The first shipment of bitumen of 4,500 tons was directly imported in November 2011. The import of bitumen can be expected to ease the high demand for bitumen, but logistical factors, aggravated by a weakening of the rand-dollar exchange rate, can impose higher costs on the bitumen industry.

F&S expects that, as the demand for bitumen in SA continues to increase, warm mix asphalt technology will most likely be used on the roads. This technology allows for asphalt to be recycled, which can reduce the demand for bitumen. There is also an increased likelihood of a bitumen product export market arising, as recycled asphalt technology is utilised.

Source - http://www.businesslive.co.za/southafrica/2012/02/01/sa-s-worst-bitumen-shortage-in-30-years-fs

Bitumen Shortage in South Africa

noreply@blogger.com (Benzene International Pte Ltd) — Wed, 25 Jan 2012 04:18:00 +0000

A shortage of bitumen which is used to produce asphalt for road surfacing has affected about 35 SA National Roads Agency Ltd projects, in addition to other major road construction projects, including the John Ross Parkway upgrade in Richards Bay and highway construction in Durban.

The shutdown of the Sapref refinery in Durban for unexpected maintenance is set to exacerbate SA’s bitumen shortage, further delaying construction and pothole repairs.Bitumen is a by-product of oil refineries and is used to produce asphalt for road surfacing. But due to high demand, in addition to planned and unplanned shutdowns of oil refineries, the bitumen shortage has worsened.

There have been bitumen supply constraints since the World Cup construction boom. Up to 35 SA National Roads Agency Ltd (Sanral) projects have been affected by the shortage, in addition to the John Ross Parkway upgrade in Richards Bay.

“Sapref’s shutdown is certainly going to have an impact and will make the current bitumen supply situation worse,” said Saied Solomons, chief executive of the SA Bitumen Association (Sabita).

“That’s the biggest oil refinery in the country… The Enref (Engen) refinery in Durban also only recently came back on line after the fire and maintenance shutdown late last year. However, there is very little new bitumen coming onto the market at the moment.

“The situation is dire and is significantly impacting on the industry. It is not just big construction and asphalt companies that are being affected but small companies too, which is having a ripple effect on other business sectors.”

Solomons said the association was in talks with refineries, as well as the departments of Transport and Energy, about solutions to the problem.One costlier alternative was to import bitumen, and some construction and asphalt companies had banded together to import about 4 500 tons recently.

“South Africa uses roughly 420 000 tons of bitumen annually now… It is difficult to say what the supply shortfall is at the moment. However, what I can say for sure is that the demand/supply at the moment is extremely tight,” said Solomons.

Brian Henwood, consulting engineer at Henwood and Nxumalo, which is working on the John Ross upgrade, said the situation was worrying.“The bitumen shortage has had a huge impact on business in the road-building industry, as all road projects have experienced problems because of the lack of supply.

“The bitumen shortage could start impacting on the sections of the new east-bound carriageway that are nearing completion,” he said.

Last month, in a written response to questions by the DA in Parliament, Transport Minister S’bu Ndebele said more than R1 billion worth of work would not be able to be completed by Sanral contractors in the 2011/12 financial year.

“Sanral, the Department of Transport’s roads agency that accounted for 70 percent of the road bitumen usage in South Africa during 2010, is severely affected by the shortage of bitumen… Various steps have been taken to address the short, medium and long term implications of the shortage of bitumen,” said Ndebele.

“The Department of Transport and Sanral have been actively engaging with the Department of Energy in an attempt to highlight to them the various problems related to the supply of bitumen from the existing refineries in South Africa and to find solutions for the medium to long term.

“Sanral has also been actively engaging with the road construction industry to directly import bitumen from overseas to overcome the local short-term supply constraints.

By Suren Naidoo and Marie Strachan

Source - http://www.iol.co.za/mercury/refinery-closure-fuels-bitumen-crisis-1.1215263

China Funds Pakistan Road Works

noreply@blogger.com (Benzene International Pte Ltd) — Wed, 25 Jan 2012 04:11:00 +0000

ISLAMABAD: National Highway Authority (NHA) has signed a contract with M/s China Road and Bridge Corporation for realignment of Karakorum Highway. Application for loan is under process with Economic Affair Division (EAD). Work will be completed in 2 years after commencement subject to availability, release of funds.

In a written reply, the Senate of Pakistan was informed here on Tuesday that NHA was allocated Rs 36.418 billion (local currency component) in PSDP 2010-11. Due to 50 percent cut on overall PSDP, the allocation was reduced to Rs 18.500 billion. To-date, Rs 17.362 billion has been released by Ministry of Finance. Funds to NHA are released as single line budget and not province or project-wise. Total amount required to complete ongoing projects is Rs 371 billion. As funds are not released on time, projects suffer from time and cost overrun.

Province-wise allocation for NHA projects included in PSDP 2011-12 is some Rs 39.900 billion that has been allocated for provinces, including Rs 33.531 billion local and Rs 6.369 billion foreign funding. Punjab Rs 11,067 local and 1,179 foreign component with total Rs 12.245 billion. Province of Sindh Rs 7.250 billion local and Rs 3.020 billion foreign funding making a total of Rs 10.270 billion. Khyber Pukhtunkhwa Rs 6.307 billion local and Rs 330 million foreign funding with a total of Rs 6.637 billion. In Balochistan Rs 8.092 billion local and Rs 695 foreign funding with a total of Rs 8.787 billion. Gilgit-Baltistan Rs 815 million local, Rs 1.145 billion foreign funding with a total of Rs 1.960 billion.

A massive landslide occurred on Karakoram Highway (KKH) across Hunza near Attaabad on January 4, 2010. The debris 86 huge boulders blocked River Hunza in a length of around 500 m. The blockage has created a lake, submerging 24 km length of KKH.

The contract for lowering the water level of the lake by 30m has been awarded to Frontier Works Organisation (FWO) by P&D Division. If this mission is achieved, around 7 km road length will be retrieved. FWO has so far managed lowering the lake level by 4m and has indicated that the task is likely to take next 2 to 3 low flow seasons (winters).

Meanwhile, NHA signed a contract with M/s China Road & Bridge Corporation on December-2010 for realignment of KKH. Application for loan is under process with EAD.

The work on Lowari Tunnel is halted and contract between NHA and contractor is stand terminated with effect from June 3, 2011, because the contractor issued a notice due to non payment of dues, However, the notice was challenged by NHA “The Engineer” has declared both the notices as in fractious. Contractor further issued the notice for Arbitration to NHA. He has proposed an amicable settlement, whose proceedings are in progress. Estimated Cost for the Project has been revised to Rs 18.132 billion With expected time of completion of 4 years Revised PC-I has been approved by ECNEC in its meeting held on November 11, 2011. Rs 145.3 million has been released, so far in current financial year that included Rs 84.15 million to contractor and Rs 25 million to consultant.

Roads constructed by NHA are based on international standard “American Association of State Highway and Transportation Officials (AASHTO) and comparable to any world class roads. Motorways like M-1, M-2 and M-3 are good examples in this regard. NHA has introduced many new technologies that cater both conventional, and nonconventional raw materials for maintenance and construction of roads for the first time in Pakistan on national highways and motorways: Hot and Cold Recycling of Asphalt Concrete Pavements, Polymer Modified Bitumen (PMB), Crumb Rubber Modified Bitumen (CRMB), Stone Mastic Asphalt Technology (SMA), etc. Incorporating a new technology or non-conventional raw materials for road construction needs careful evaluation of various parameters such as performance and costs. Therefore, NHA is employing various new technologies through test sections for monitoring and evaluation. During FY 2010-11 an amount of Rs 19.75 billion was approved for carrying out routine maintenance works and completing ongoing, committed rehabilitation and periodic maintenance works. staff report

* It is based on 85% funding in foreign currency from Chinese side, 15% in local currency by govt

Canadian Oilsands- What is the Impact for export?

noreply@blogger.com (Benzene International Pte Ltd) — Thu, 19 Jan 2012 06:54:00 +0000

Is sending raw unprocessed bitumen an urgent matter?

By John Phair

I’m writing in response to Ethical Oil’s ads in the last two issues of the Lakes District News.

These ads, part of a larger ongoing campaign, have appeared in newspapers throughout the Northwest.

I am not disturbed that they were published. Our newspapers need to function and to encourage discourse in our communities.

But I am insulted because the producers seem to gamble that I, my family, friends and neighbours are either stupid, too apathetic or too busy to engage, or otherwise chose willfully to ignore some now obvious facts.

Reminiscent of past marketing by such lobbies as the tobacco industry, among others, these ads sow confusion, disinformation, division, diversion, and doubt.

These ads point out that special interest groups are using foreign funds to do their work, to ensure that air and water and food will be available for the next generations.

It is now common knowledge that this funding is only a small portion of these organizations’ budgets, and is minuscule compared with the funding poured into promoting these pipelines, tankers and tar sands.

We now know that Enbridge has amassed $100 million for its proposal campaign, from Cenovus Energy Inc., MEG Energy Corp., Nexen Inc., Suncor Energy Marketing Inc., a subsidiary of Suncor Energy Inc., Total E&P Canada, the domestic arm of French giant Total SA and Sinopec of China, among others.

Foreign investors in Canada’s oil industry include China, Thailand, Norway, France, Korea and the United States.

I am disgusted that Enbridge and our government presume we will accept the latter as okay but the former as radical or worse. bI am deeply offended that these 'Canadian' companies expect me to believe that this and related projects are in the best interest of Canadians, all the people who live here.

I sincerely doubt that sending raw unprocessed bitumen to refineries in Imperial China is an urgent matter of Canada's national interest.

Source - http://www.ldnews.net/opinion/letters/137519643.html

Canadian Oil Sands Approval for Bitumen Extraction

noreply@blogger.com (Benzene International Pte Ltd) — Thu, 29 Dec 2011 03:22:00 +0000

CALGARY, Dec. 28, 2011 /CNW/ - Athabasca Oil Sands Corp. (TSX: ATH) is pleased to announce that MacKay Operating Corp. (MacKay Opco) has received full regulatory approval from Alberta Energy Resources Conservation Board and Alberta Environment and Water for the MacKay River commercial oil sands project.

Sveinung Svarte, president and CEO says, "To obtain approval in just over 24-months is an achievement and Athabasca is very pleased with the regulatory process. The company filed the application on December 10, 2009 and MacKay Opco received the final approval on December 23, 2011. To achieve this major milestone, MacKay Opco's Regulatory and Stakeholder Affairs team effectively dealt with all stakeholders to resolve their concerns and get this commercial oil sands project endorsed by the regulators and the Alberta government."

The MacKay River project is a 150,000 barrels per day (bbl/d) steam assisted gravity drainage (SAGD) project with Phase 1 expected to produce 35,000 bbl/d of oil. Construction of the project will begin next month with start-up targeted for 2014.

MacKay Opco is a Calgary-based joint venture between Athabasca (40%) and Cretaceous Oilsands Holdings Limited, a wholly owned subsidiary of PetroChina (60%). The company was formed to operate the jointly owned MacKay River oil sands leases.

Athabasca is a dynamic company focused on development of oil resource plays in Alberta, Canada. It has accumulated a large, high quality resource base suitable for extraction of extra heavy crude oil (bitumen) and light oil. The company is well financed and, with its excellent assets and talented people, Athabasca is poised to become a major Canadian oil producer. It is traded on the TSX under the symbol ATH.

Fule Supply to Improve says Shell

noreply@blogger.com (Benzene International Pte Ltd) — Thu, 29 Dec 2011 02:58:00 +0000

It is all good news from Shell. Singapore Shell has just announced that they are back in full production after the fire mishap a month ago and pls to note Shell SA made the following announcement.

SHELL SA said yesterday that it expected fuel availability at its Gauteng service stations to improve this week.Certain areas of Gauteng experienced fuel shortages after Shell’s Alberton fuel depot was shut down earlier this month for safety reasons following a fuel leak at the site.

"While the leak was immediately isolated, the depot remained closed until it was deemed safe to resume operations," Shell spokesman Elton Fortuin said yesterday. The fuel delivery backlog as a result of the problems at the Alberton depot has heightened the possibility of fuel shortages in other areas such as Mpumalanga and Free State as well.

The company yesterday said the Alberton fuel depot became fully operational this past weekend, with normal fuel delivery services commencing on Saturday.

"We still have a significant delivery backlog to clear and only expect fuel availability to improve at our Gauteng retail service stations during the course of this week. We regret the inconvenience caused to our retailers and the public," Mr Fortuin said.

Meanwhile, an outage at Sapref’s single-buoy mooring, a loading buoy anchored offshore, could worsen the fuel shortages. The buoy serves as a mooring and interconnection point for tankers loading or offloading gas or liquid products.The Durban-based Sapref refinery is the biggest crude oil refinery in southern Africa, with 35% of SA’s refining capacity.

"We have activated our contingency measures and are monitoring closely the potential impact the single-buoy mooring outage could have on our ability to supply fuel. We are also holding daily planning meetings to assess stock levels and prioritise fuel deliveries to ensure we minimise any supply disruptions during this period," Mr Fortuin said.Sapref said yesterday the Durban single-buoy mooring was taken out of service for unplanned repairs on Tuesday last week.

"Good progress has been made and it is expected that the repairs will be completed in a number of days, weather permitting," Sapref spokeswoman Cindy Govender said yesterday.Gauteng motorists recently experienced a spate of fuel shortages, mainly because of planned and unplanned maintenance shutdowns at some of the country’s refineries.

Other than petrol and diesel, the shutdowns led to a shortage of liquefied petroleum gas and bitumen. The shortages exposed the inadequacy of SA’s existing import facilities.The liquefied petroleum gas shortages affected, among others, the manufacturing, automotive and hospitality sectors, while bitumen is used to produce asphalt, used in road construction.
SISEKO NJOBENI

njobenis@bdfm.co.za

Source - http://www.businessday.co.za/articles/Content.aspx?id=161725

TIPCO Wins half the battle.

noreply@blogger.com (Benzene International Pte Ltd) — Mon, 05 Dec 2011 09:00:00 +0000

Nov. 30 (Bloomberg) -- Glencore International Plc’s Singapore unit has paid a $20.2 million arbitration award to Tipco Asphalt Pcl’s Thai Bitumen Co., which will withdraw a lawsuit seeking to liquidate the commodities trader in the city.

“Glencore Singapore has only just paid the principal sum of the award,” Thai Bitumen’s lawyer Lim Chee Wee said in an e- mailed statement today. “The only outstanding issue now is the recovery of interest and costs.”

Thai Bitumen filed a winding-up petition on Nov. 23 against the Singapore unit of Glencore, the largest publicly traded commodities company, claiming it should be declared insolvent for being unable to pay its debts. A closed hearing was scheduled for Dec. 9.

Charles Watenphul, a spokesman for Baar, Switzerland-based Glencore, didn’t immediately respond to an e-mail and calls to his office outside of regular business hours went unanswered.

Glencore was ordered to pay $20.2 million and interest to Thai Bitumen by arbitrator Kenneth Rokison on Sept. 21, according to the lawsuit. Glencore failed to deliver 600,000 barrels of Venezuelan crude oil to Thai Bitumen, breaching an October 2008 sale contract, Rokison ruled in the London arbitration proceedings.

Thai Bitumen, a unit of Thailand’s biggest asphalt producer Tipco Asphalt, and Glencore couldn’t agree on the interest amount to be paid on the arbitration award, according to court papers. Glencore’s lawyers claimed Thai Bitumen had over- calculated the interest by $42,785, according to court filings.

Glencore declared force majeure on the delivery to Thai Bitumen, a legal clause that allows delays because of an incident outside a supplier’s control, after a decision by Venezuelan state oil company Petroleos de Venezuela SA to cut production in 2008, according to the filing.

The Organization of Petroleum Exporting Countries, or OPEC, announced that they were cutting production in December 2008 after oil prices fell to their lowest in more than four years.

The case is Thai Bitumen Co. v Glencore Singapore Ltd. CWU152/2011 in the Singapore High Court.

By Andrea Tan

--With assistance from Ann Koh in Singapore. Editors: Douglas Wong, Suresh Seshadri

To contact the reporter on this story: Andrea Tan in Singapore at atan17@bloomberg.net

To contact the editor responsible for this story: Douglas Wong at dwong19@bloomberg.net

Bitumen Shortage to Ease with Far East Supply to KSA

noreply@blogger.com (Benzene International Pte Ltd) — Fri, 25 Nov 2011 03:20:00 +0000

To alleviate a nationwide bitumen shortage, road builders have resorted to importing a container load of the key ingredient in the production of asphalt.

Last week, an eagerly awaited shipment of 4200t of bitumen arrived on the Tasco 1, a bitumen and asphalt carrier belonging to Tipco Maritime. The cargo was brought in by specialist manufacturer Colas from a refinery in Singapore.

The bitumen load is being divided among Raubex, Much Asphalt and smaller contractors, who have been forced to halt road construction projects because supply of the product has dropped. Workers on site were asked to take leave over the periods when bitumen supply came to a virtual standstill in September and October. The disruption was experienced over 45 days and work was suspended for up to three weeks.
Bitumen is produced at a number of oil refineries, including Caltex, Natref and Sapref. But scheduled maintenance shutdowns and a fire at the Sapref refinery, which caused an unscheduled shutdown, had a serious effect on supply.

Though the constraints have not affected the cost of bitumen, since it is priced at a set rate, contractors’ costs have soared.

Much Asphalt CEO Phillip Hechter estimates that the problem has cost the industry as much as R2,5bn.
Raubex financial director Francois Diedrechsen says the company has had to use the shipment to “make the best of a bad situation”, but that importing is not sustainable .

Bringing the bitumen into the country is expensive and complicated. The product is also slapped with a 10% import duty upon its arrival in SA. Diedrechsen says the duty was put in place to protect local refineries that produce bitumen, but that under the current conditions it no longer makes sense.

He says that road contractors have difficulty storing bitumen, which needs to be kept in temperature-controlled facilities. None of the contractors has this kind of infrastructure. If Raubex did have storage facilities or was able to store bitumen at refineries, Diedrechsen says, it would import large quantities at a time.
Much Asphalt will transport the product to 17 small facilities around the country. Hechter says that were oil refineries to import bitumen and store it at their existing facilities, companies would be spared having to use a ship as a storage facility and incurring costly docking charges. But he believes importing is going to become standard practice.

Diedrechsen agrees, but says that if refineries could indicate to the industry exactly what they intended producing, the industry could make decisions about building the infrastructure to store bitumen. It can’t do this without certainty that local production would not suddenly increase, he says.
Part of the problem, says Hechter, is that the average age of SA’s refineries exceeds 30 years, and that unscheduled maintenance has become more frequent.

To compound the local supply problem, Engen recently exported 4000t of bitumen and so could release a mere trickle of bitumen into the national market, Hechter says.

Bitumen users have been forced to rely on supply from the Natref refinery, which also has production constraints, and a Caltex refinery in the Western Cape, which is far from road construction sites and produces only one type of bitumen, whereas the industry uses three.

Companies have had discussions with the SA National Roads Agency and the department of transport. Were import duties to be dropped, bringing bitumen in from outside would be more affordable.
Sanral CEO Nazir Alli says national roads absorbed about 70% of SA’s total bitumen supply in 2010.

Shortages have a big impact on its projects, as it is used in the final surface layer of a road.
Earlier this year, Sanral considered asking the energy department to declare bitumen a strategic mineral . This would force refineries to maintain a minimum reserve. However, it is unclear whether Sanral will resort to this measure.

Source - http://www.fm.co.za/Article.aspx?id=159523

Insufficient Funds for Bitumen

noreply@blogger.com (Benzene International Pte Ltd) — Tue, 22 Nov 2011 04:14:00 +0000

DMC Construction Plc has been ordered to pay 11.7 million Br by the Federal High Court Ninth Civil Bench in the past two weeks after it lost two suits brought against it by the National Oil Company (NOC) and Liby Oil for issuing a cheque that bounced.

NOC and Libya Oil brought their suits in September and October, 2001, respectively. NOC, established in April 2007 by Mohammed Ali Al-Amoudi and partners including its current CEO, Tadesse Tilahun, filed its suit in summery procedure in the beginning of September claiming 6.7 million Br for a cheque that was issued to it without having sufficient funds. The cheque, which was issued from United Bank, Lebu-Lafto branch, was presented as evidence along with a letter from the bank stating insufficient funds for not being able to pay on the cheque.

NOC had asked for the payment of the money including a nine per cent interest on the amount from August 30, 2011, the date payment was denied by the bank for lack of sufficient funds. While the suit was pending hearing, NOC had asked the court to freeze the assets of DMC claiming that the construction company was trying to transfer its assets to avoid liability.

Nuredin Keder, the presiding judge at the time, on October 11, 2011, had ordered bitumen asphalt mix found on road construction sites of the company in the Southern Regional State to be frozen during the litigation. The litigation came to end with the court, presided by Mekonnen G. Hiwot ruling, who replaced Nuredin after he was transferred, ruling in favour of NOC.

Three days after the court had ordered the freeze on DMC, owned by Daniel Mamo and Bethlehem Abebe, Oil Libya had brought a similar suit against it. The oil company, which entered into the local market after it has acquired all assets and downstream operations including liabilities and privileges of Shell Ethiopia Ltd in 2009, sued DMC for issuing a bounced cheque for five million Birr.

The payment was supposed to be for the supply of fuel products as agreed on a contract signed in December last year. However, the cheque issued from Nib International Bank (NIB) bounced when it tried to withdraw the money on September 20, 2011, the oil company said in its charge. Oil Libya also asked for the amount to payment of the amount it with interest calculated from this date it bounced.

Mekonnen, who also presided in the suit brought by Oil Libya, ruled in favour of the oil company.

DMC has been involved in many construction projects in the country, notable among which is the construction of asphalt roads in Hawassa town, 276Km south of Addis Abeba, which was created to change the face of the city. Although it was summoned in both cases to respond to the suits, the construction company did not.

It is to pay a three per cent commission until the money is paid back in full, the court also ruled. The plaintiffs have to file a judgement execution to collect the money they are owed by DMC.

Source

http://addisfortune.com/DMC%20Ordered%20to%20Pay%2011.6m%20Br%20for%20to%20Two%20Oil%20Companies.htm

Clean Bitumen- Communities Seek Protection

noreply@blogger.com (Benzene International Pte Ltd) — Wed, 02 Nov 2011 02:58:00 +0000

Bitumen communities seek FG’s protection

BENIN-COMMUNITIES in the bitumen belt has called on Federal Government to urgently convene a national stakeholders’ forum to address their aspirations and concerns. They also want government to commence dialogue with them with a view to creating awareness and unity amongst the host communities.
The bitumen producing states in the country are Ondo, Ogun and Edo.

Vanguard gathered that the country has the third largest bitumen deposits in the world with Venezuela and Canada, coming first and second, respectively.

The bitumen belt communities, which met in Benin, Edo State, yesterday, under the auspices of Bitumen Consultative Forum, organised by Environmental Rights Action/Friends of the Earth, ERA/FoN, also demanded for equity share in the revenue from bitumen proceeds as proposed in the Petroleum Industry Bill now before the National Assembly.

According to the communiqué issued at the end of the one-day meeting by Dr. Uyi Ojo: “We demand an MoU to specify communities’ roles and responsibilities, including benefits between government and oil companies.

“The government must ensure the protection of the people and ensure the sustainability of a healthy environment.”

They stressed the need for the local people to be adequately empowered, if and when they are relocated from their communities at the commencement of bitumen extraction in their areas.
They insisted that the evils visited on oil producing communities in the Niger Delta region should not be allowed in the bitumen belt. when extraction of the deposit commences, the communities called for upward periodic review of benefits accruing to communities.

By Gabriel Enogholase

Source - http://www.vanguardngr.com/2011/11/bitumen-communities-seek-fgs-protection/

Cash & Carry Policy for Bitumen

noreply@blogger.com (Benzene International Pte Ltd) — Tue, 01 Nov 2011 08:05:00 +0000

Quality of roads

Most of the refineries in Asia practice Cash and Carry approach for the purchase of bitumen since the contractors will get paid atleast 2 months later after paving and most of the government will not pay them in time.

However, in Trinidad, so far the contractors can get some credit but that looks like will change in the coming months. Pls read on....

Works and Infrastructure Minister Jack Warner wants to know where the bitumen being produced by Lake Asphalt of Trinidad and Tobago is being used, since road contractors are complaining that they can't get the material.

Warner is also concerned about the quality of the road works and fears that the highway from San Fernando to Point Fortin will not last, given the poor quality of work.
Warner raised the issues during a tour yesterday of Lake Asphalt, La Brea, where he met with several contractors.

Contractors were told that the company was instituting a "no credit" policy because Lake Asphalt was being owed millions, and could not collect.

Warner said some contractors "say they can't get bitumen. I want to know where the bitumen is going and who are the culprits behind it. I have to wonder why our roads so bad".

He said the surface on older highways lasted 30 years, but the roads being paved today "don't even last 30 months".

He said, "I cannot continue spending money that way. I want to know whether I have any reason to fear
about the highway to Point Fortin."

Chairman of Lake Asphalt, Kuarlal Rampersad, said the company was meeting all contractors' demands for material and he was surprised that they were complaining. He said a certificate of analysis was submitted with each truckload or batch of material coming from the Pitch Lake, La Brea.

Rampersad said, "One contractor purchased three million gallons and based on the records no jobs were done. That is why we are working closely with the ministry. One contractor was given a sweet-bread deal by paying (less) for asphalt while others paid the full price".

Rampersad said "by January 1 (next year) each contractor must register their business. They must partner with Lake Asphalt to purchase bitumen. That way it should be planned and scheduled before they come for asphalt".

Rampersad said the company was also introducing a "no credit" policy to curb instances of contractors not paying. He said one contractor owed $24 million.

By Innis Francis innis.francis@trinidadexpress.com

Source - http://www.trinidadexpress.com/business/Contractors_complaining_about_asphalt_shortage-132976038.html

Rubber Modified Asphalt

noreply@blogger.com (Benzene International Pte Ltd) — Tue, 01 Nov 2011 02:40:00 +0000

Liberty Tire Recycling Expert to Serve as a Speaker at the Fifth Annual Rubber Modified Asphalt Conference- Doug Carlson to Highlight Noise Reduction Effect from Rubberized Asphalt

By Liberty Tire Recycling

Published: Monday, Oct. 31, 2011

PITTSBURGH, based Liberty Tire Recycling, the premier provider of tire recycling services in North America, is pleased to announce that Doug Carlson, vice president of asphalt products, will serve as a speaker at the fifth annual Rubber Modified Asphalt Conference. Hosted by the Rubber Manufacturers Association; the Rubber Division of the American Chemical Society; the Scrap Tire Research and Education Foundation, Inc. and the Rubber Pavements Association, the conference is taking place November 3-4 at the Sheraton Austin Hotel in Austin, TX.

Titled "Noise Reduction Effect from Rubber Modified Asphalt," Carlson's presentation is scheduled for 8:00 a.m. on Friday, November 4. During this time, he will discuss programs implemented across Arizona, California, Texas and New Jersey. The presentation will also offer details on a European study that focused on how rubberized asphalt can contribute to quieter pavement.
"Noise pollution is an ongoing concern across our nation's highways. It can have a significant impact on the quality of life, particularly in communities adjacent to major roadways," said Doug Carlson, vice president of asphalt products, Liberty Tire Recycling. "Noise reduction is only one of the benefits of rubberized asphalt. It is also proven to resist cracking and rutting, enhance traffic safety, and reduce splash and spray in wet conditions."

Liberty Tire Recycling is helping to make many of the nation's highways and roadways safer and more durable through the creation of rubberized asphalt. The company provides crumb rubber to a host of municipalities and states. Paving contractors then mix the crumb rubber with traditional asphalt to produce a high-performance alternative to traditional paving materials. It also requires less construction and maintenance costs than traditional asphalt, which saves time and money for all involved.
Topics to be covered during this year's Rubber Modified Asphalt Conference include an analysis of the life-cycle costs of rubber modified asphalt, noise reduction attributed to rubber modified asphalt cold weather applications, performance grading, terminal blending, research on hybrid blends of rubber and an update on research recently concluded and rubber products used in highway and road maintenance.
For more information about Liberty Tire Recycling and the company's rubberized asphalt, visit

About Liberty Tire Recycling
Liberty Tire Recycling is the premier provider of tire recycling services in North America. By recycling more than 140 million tires annually, Liberty Tire reclaims about 1.5 billion pounds of rubber for innovative, eco-friendly products. The recycled rubber produced by Liberty Tire is used as crumb rubber and industrial feedstock for molded products; as tire-derived fuel for industrial kilns, mills and power plants; and as rubber mulch for landscaping and playgrounds. The company maintains a nationwide network of processing plants, and comprehensive door-to-door collection services. Liberty Tire Recycling is headquartered in Pittsburgh, PA. For more information, please visit www.libertytire.com.

Contact:	Jeff Donaldson
	412-642-7700
	jeff.donaldson@elias-savion.com

SOURCE Liberty Tire Recycling

Hot Bitumen- The Nature's Way

noreply@blogger.com (Benzene International Pte Ltd) — Mon, 31 Oct 2011 09:47:00 +0000

PITCH LAKE, TRINIDAD & TOBAGO

Once thought of as a punishment from the gods, this bubbling lake of pitch is perhaps Trinidad's greatest oddity. Birdwatchers will find it of interest as well for the species it attracts. The 40-hectare expanse of asphalt is 90 metres deep at its centre, where hot bitumen is continuously replenished from a subterranean fault. The lake, one of only three asphalt lakes in the world, has the single largest supply of natural bitumen, and as much as 300 tonnes are extracted daily. The surface looks like a clay tennis court covered with wrinkled elephant-like skin, and during the rainy season you can sit in its warm sulphurous pools.

The annual migration of the red land crab to the sea is a world-renowned spectacle. Photo: Greg Miles

The lake is 22km southwest of San Fernando near the town of La Brea; guided tours are available – high heels are not recommended.

Bitumen Distribution in Nigeria

noreply@blogger.com (Benzene International Pte Ltd) — Mon, 31 Oct 2011 09:46:00 +0000

Bitumen distribution: Marketers accuse PPMC of sabotage
From NOAH EBIJE, Kaduna

•
Photo: Sun News Publishing

Pipeline Products and Marketing Company (PPMC), an arm of the Nigerian National Petroleum Corporation (NNPC) has been accused by bitumen marketers of sabotaging the sales and distribution of locally refined mineral resource.

Management of PPMC was also accused of encouraging the importation of bitumen to the detriment of its Nigerian products, which, they said, had made the imported bitumen to thrive in the Nigerian market. The concerned marketers under the Oil and Gas Suppliers Association (OGSA), an arm of the National Union of Petroleum and Natural Gas workers (NUPENG) alleged before newsmen that the management of the Kaduna office of the PPMC deliberately refused to give them the bitumen even after paying for the allocation.

According to them, some importers of bitumen had petitioned the company complaining that after importing bitumen which they sold at about N145,000 per metric ton, the PPMC was selling its own bitumen for N75,000 per ton, putting them at a loss. Some of the marketers who spoke to newsmen on condition of anonymity said, “we were given allocation for bitumen which we paid for. We were asked to come for loading. But after loading only three trucks, we were sent out on the excuse that they want to increase the price of the product.

“We also observe that for the past three years, they will only give us products during the rainy season when road constructions are not going on. But during the dry season, they will deny us products.“The top management is in link with some importers. We later heard that these importers wrote a petition that the government asked them to import bitumen when there was none in the country and that while they are selling their own for N145,000 per ton, the PPMC is selling its own for N75,000 per ton.“So, what they want is for the PPMC to stop selling its own until they have finished selling the imported one. We believe that this is an act of sabotage on government efforts at rehabilitating our roads and this explains why road construction is so expensive in the country today.

“At the moment, there is enough bitumen in the store at the Kaduna Refining and Petrochemical Company (KRPC). In fact, the present stock can fill over 1000 trucks. The refinery is not producing at the moment because there is no place to store the products. “Most of us have our allocation papers which we have paid for. It has an expiring date and in most cases, they will refuse to renew it and for the past two months, they have refused to load our trucks.

“Even if they want to increase price, the normal thing has always been that a circular is released and before you leave the loading bay, you are made to pay the balance. But right now, the truth is that these importers want PPMC to stop selling so that they can exhaust their imported products.”

Source - http://www.sunnewsonline.com/webpages/news/national/2011/oct/28/national-28-10-2011-017.html

Microsurfacing

noreply@blogger.com (Benzene International Pte Ltd) — Mon, 31 Oct 2011 02:21:00 +0000

Microsurfacing offers a 25% savings in direct costs of roads in addition to being eco-friendly. Interview with Col.Rakesh Bhargava, VP, Yala Construction and Elsamex.

A perspective on how Microsurfacing technology adoption can make Indian roads superior in quality and at the same time be eco-friendly and lower costs.

Microsurfacing is a fast and a durable, pavement preservation technique that utilises the benefits of cold-mixes using rubber/polymer modified bitumen emulsion, fine aggregates and special additives, spread on the structurally sound pavement using special computerised paver. The technology utilises the advancements of Asphalt Emulsion technology. In an exclusive interaction with Projects Info, Col Rakesh Bhargava, Vice President, Yala Construction, offers an insight into this emerging technology

Give a brief background of the Microsurfacing technology, which is finding increased preference, for maintenance of roads in India

Microsurfacing has been introduced in India since 1999 -2000, though the technology has been in use the world over for a very long time as a routine form of maintenance in preference to conventional overlays of hot mix. This has been introduced in India under the brand name of Macroseal, by Yala Construction and Elsamex SA, Spain. The product, cold micro asphalt concrete has been used extensively in many countries like USA, Canada, Italy, Korea, Indonesia to name a few. Many million square meters of road have been resurfaced using this product with very good results over a period of time.

We carried a recent demonstration of the technology which can change Indian roads and the consistent problems of potholes post rains, at Gurgaon Expressway at chainage 37-250 on 22nd October, 2011.

Can you elaborate on the entry of this technology in India?

A study was initiated for use of bitumen emulsion (cold process) to maintain Delhi roads by the state government as a suitable alternative method for maintenance of roads in light of ban on hot-mix plants imposed by the Supreme Court. The study was conducted approximately ten years back, by Elsamex S.A, Spain with the active involvement of Central Road Research institute (CRRI), Delhi. In the study report, the specifications for the use of cold emulsion for maintaining various types of roads were standardised with the latest state-of-the-art technology. The study report was utilized by Delhi Public Works Department, New Delhi Municipal Council and Ministry of road transport and highways (MORT&H). Subsequently the technology was given a go ahead for maintaining the roads of Delhi. It has also been included the MORT&H specifications in clause 516 as slurry seal. IRC subsequently brought out IRC SP:81 - 2008 'Tentative Specifications for Microsurfacing'. NHAI has also issued a circular recommending Microsurfacing for renewal of wearing course for Maintenance of National Highways.

Please give an insight into the technology and the rationale behind usage of Microsurfacing

Microsurfacing is a fast and durable pavement preservation technique that utilises the benefits of cold-mixes using latex/polymer modified bitumen emulsion, fine aggregates and special additives, spread on a structurally sound pavement using special computerised paver, spread in a thin film. Microsurfacing provides cost-effectiveness, fast application and durability distress occurs and where pavement life extension is required before any casualty. The technology utilises the advancements of Asphalt Emulsion technology by special mix design done in laboratory with carefully graded crushed aggregates, polymerized bitumen emulsion, fillers and break control additives that provide complete sealing of surface. Hence this technique can be used for periodic renewals of roads in place of hot mix treatments with excellent results and longer type of Pavements.

Can you list various advantages of Microsurfacing vis-a-vis hot-mixing?

The prominent advantage of this technology lies in the fact that the cold micro asphalt concrete can be applied as a 6-8 mm thin layer. This greatly reduces material requirement. Microsurfacing can increase skid resistance, colour contrast, surface restoration and increase in service life of high-speed, heavy-traffic roadways. On airfields, dense-graded micro surfacing produces a skid resistant surface without loose rock, which may damage aircraft engines. Because of its quick set traffic properties, micro surfacing can be applied in a broad range of temperatures and weather conditions, effectively lengthening the paving season. The material used is non-polluting for environment as heating or hot-paving is not required. Application of Microsurfacing facilitates quick opening to traffic causing minimum hindrance to flow of traffic.

Please give an account on the cost-effectiveness of Microsurfacing

As far as costs are concerned there is a saving of 20 - 25 per cent in direct costs as compared to bituminous concrete. In addition there is a saving in the quantity of raw material used. This also means low energy cost for application of Microsurfacing. Over and above construction time can be minimised and roads can be opened for traffic within less time. It reduces the Carbon Footprints and is ecologically beneficial.

Notes to Editor

Yala Constructions is a part of Elsamex SA of Spain in India. Elsamex is the leading Road Maintenance company, with presence all over South America. It has a massive network of roads under maintenance and construction in its geographical spread across Europe, Americas and Asian region. It is a part of the leading IL&FS Transport Network Group.

Source- http://www.indiaprwire.com/pressrelease/construction-building/20111024101558.htm

Amazing Natural Phenomena on Bitumen

noreply@blogger.com (Benzene International Pte Ltd) — Fri, 28 Oct 2011 02:58:00 +0000

PITCH LAKE, TRINIDAD & TOBAGO

Once thought of as a punishment from the gods, this bubbling lake of pitch is perhaps Trinidad's greatest oddity. Birdwatchers will find it of interest as well for the species it attracts. The 40-hectare expanse of asphalt is 90 metres deep at its centre, where hot bitumen is continuously replenished from a subterranean fault. The lake, one of only three asphalt lakes in the world, has the single largest supply of natural bitumen, and as much as 300 tonnes are extracted daily. The surface looks like a clay tennis court covered with wrinkled elephant-like skin, and during the rainy season you can sit in its warm sulphurous pools.

Source: http://www.brisbanetimes.com.au/travel/the-worlds-most-amazing-natural-phenomena-20111027-1ml9n.html#ixzz1c2ckoSrk

Bitumen Shortage due to Shutdown

noreply@blogger.com (Benzene International Pte Ltd) — Mon, 24 Oct 2011 09:53:00 +0000

Refinery shutdowns ‘cause industrial crisis’

October 21 2011 at 05:00am
By Roy Cokayne

Roy Cokayne

Unplanned oil refinery shutdowns have caused severe shortages of liquid petroleum gas (LPG) and bitumen, pushing the car manufacturing and road construction and rehabilitation industries into crisis.

The crisis could cause massive job losses, particularly among small, medium and micro enterprises in the road rehabilitation and asphalting sectors.

Bitumen and LPG are by-products of oil refining.

David Powels, the president of the National Association of Automobile Manufacturers of SA (Naamsa), said yesterday that original equipment manufacturers (OEMs) were major users of gas for heating, particularly of the paint shop, and the fact that four of the six oil refineries were not producing it had caused a “catastrophe”.

Powels said there was a need for a focused, structured plan “to prevent the economy grinding to a halt”.

All the motor manufacturers were still producing, but the full effect of the crisis was not yet clear and manufacturers were “living from hand to mouth”.

Powels said Naamsa and the National Association of Automotive Component and Allied Manufacturers (Naacam), with the Department of Trade and Industry, were exerting pressure on the Department of Energy to turn up the heat on the refineries to plan shutdowns better and shorten them.

Roger Pitot, the executive director of Naacam, described the shortage of LPG as “a disaster” for component suppliers because some might run out of supplies today and would then have to stop production.

Pitot said the LPG shortage affected ovens for plastic components and electrocoat facilities for metal parts, which were produced on a just-in-time basis for OEMs “and the day after they stop producing, the OEMs will stop production”.

Some parts suppliers had forklifts that operated on LPG.

Simon Miller, the manager of corporate communications at gas distributor Afrox, said the LPG situation was having a serious effect on the hospitality, manufacturing and automotive sectors of the local economy.

“In some parts of the country we have totally run out of the product with little prospect of recovering the situation in the immediate term, but Afrox continues to engage with all parties in an effort to find solutions for our customers.”

Afrox was committed to doing all it reasonably could to cope with the shortage but demand was outstripping its limited ability to import LPG.

Avhapfani Tshifularo, the executive director of the SA Petroleum Industry Association (Sapia), said the LPG and bitumen shortages were caused by a combination of planned and unplanned shutdowns at the oil refineries.

Tshifularo said refineries informed the Department of Energy of their preferred dates of closing and the department compiled a schedule circulated to ensure two refineries were not down at the same time.

But Tshifularo said Sapref, the oil refinery owned by Shell and BP, had had a planned closure but experienced a start-up delay; a fire at Engen’s refinery resulted in it fast-tracking its shutdown and starting it earlier. There was also an unplanned shutdown at PetroSA, which was apparently caused by an electricity problem.

Tshifularo said that Sapia hoped Sapref’s refinery would be back in production within the next two weeks, Engen’s planned shutdown would run until the middle to end of next month and PetroSA would be back up by the beginning of next month.

The department failed to respond to a list of questions on Wednesday night.

Source - http://www.iol.co.za/business/business-news/refinery-shutdowns-cause-industrial-crisis-1.1161708

Surface Dressing of Roads

noreply@blogger.com (Benzene International Pte Ltd) — Thu, 20 Oct 2011 04:34:00 +0000

Council prepares roads in Weston-super-Mare for winter

By vickifitz | Tuesday, October 18, 2011, 10:53

North Somerset Council has been preparing the roads across Weston-super-Mare ready for winter. The annual programme of surface dressing is underway to protect the roads from icy conditions.

Deputy leader and executive member for highways at North Somerset Council, Elfan Ap Rees, said that surface dressing is a quick, low cost way of improving the condition and skid resistance of a road surface.

He said "It prevents water seeping into the foundations of the road and delays the need to carry out more extensive and costly carriageway repairs.

"We carry out surface dressing between the months of May and September as weather conditions need to be dry and warm to enable the bitumen to stick to the carriageway and ensure long-term stability of the dressing."

Roads which have been surface dressed are: part of West Town Road (A370), Backwell; Silver Moor Lane, Banwell; Ashey Lane, Blagdon; Bridgwater Road (A370), Coronation Road/Bleadon Road, and Shiplate Road, Bleadon; Burrington Coombe (B3134), Burrington; Blagdon Lane, Butcombe; Churchill Green/Sandmead Road, Churchill; Crookes Lane and Lower Norton Lane, Kewstoke; Broadmead Lane, Regil; and Tower House Lane, Wraxall.

The process involves spraying bitumen over the surface of the existing carriageway and covering it with a layer of stone chippings.
As the bitumen sets, the stone chippings are compacted in by the use of a roller and further assisted by vehicles travelling over the newly laid surface. Any excess chippings are then swept up.

The main contractor was Balfour Beatty and the cost for this year's programme is in the region of £270,000.

Source - http://www.westonsupermarepeople.co.uk/Council-prepares-roads-Weston-super-Mare-winter/story-13589924-detail/story.html

Cost of Toll Roads

noreply@blogger.com (Benzene International Pte Ltd) — Thu, 20 Oct 2011 03:06:00 +0000

DAVID GLEASON: Toll roads are costing us the earth

The tolls that will be charged for the use of roads upgraded in terms of Gauteng’s Freeway Improvement Programme have prompted a deluge of complaints

Why does it cost us so much to build or upgrade our freeways in South Africa?

I ask because the tolls that will be charged for the use of roads upgraded in terms of Gauteng’s Freeway Improvement Programme have prompted a deluge of complaints.

A report by Economists.co.za prepared in March highlights the extraordinary and grossly unacceptable costs attached to this programme. The construction costs are found to be 106% higher than those revealed by a database compiled by the American state of Washington’s transport department of US highway construction costs.

Worse, the Gauteng costs are no less than 228% more than World Bank-funded road construction projects in Africa, Asia and Eastern Europe. Why does it cost $15,4m a kilometre to upgrade 185km of freeway in Gauteng when it costs only $4,5m a kilometre to build a new 128km long highway in Senegal?

And, to put the tolls into a personal perspective, the report’s authors reckon the fees "are equal to an increase of 2% in the personal income taxes of Gauteng residents. This does not include the consumer price effect as toll fees are not part of the current inflation basket." Maybe not, but just watch what happens to the cost of the food you buy.

And what will it do to companies in the road freight industry? Economists.co.za reckons "the expected income from toll fees is equal to at least an increase of 10% in taxation" but it "could however be as high as a 30% company tax increase".

And it shouldn’t pass notice that there is a continuing bitumen shortage. This began when a fire at Engen’s Durban refinery required a shutdown that will last until November 23, and that complements a lengthy shutdown at the Sapref refinery. Bitumen stocks at Chevron’s Cape Town refinery have been depleted, and only the Natref refinery remains pumping limited quantities into the system.

Meanwhile, at least one company using bitumen to produce asphalt, Much Asphalt (a really curious company name), says 14 of its 17 plants around the country have been standing idle. CEO Phillip Hechter was quoted as saying the current shortage has cost the industry and customers about R2,3bn to date.

And I can’t let it pass that members of the Southern African Bitumen Association were marched in front of the Competition Commission and found to have colluded in setting the wholesale price of bitumen throughout the country. But the association was required to pay an administrative penalty of only R500000. In light of the swingeing penalties applied to other offenders, this is hard to understand.

I am sure the commission will defend itself by saying the sum doesn’t exceed 10% of the association’s membership fees and sponsorships. Since it was Sasol that ran along to beg immunity, it’s worth looking at who it colluded with — Chevron, Engen, Total, et al.

R500000? Oh, please.

Source - http://www.businessday.co.za/articles/Content.aspx?id=156382

15 Km Road Project awarded in Muscat

noreply@blogger.com (Benzene International Pte Ltd) — Wed, 19 Oct 2011 03:09:00 +0000

MUSCAT — The Ministry of Transport and Communications has awarded a RO 14.3 million road project in the Wilayat of Yanqul in Al Dhahira region to Khalid bin Ahmed and Sons. The project will link Al Murry and Al Ain villages, which currently has a track road connecting them.

The project comprises the construction of a single carriageway road of 12.3m wide asphalt with two bridges and more than 100 concrete box culverts. Talking about the challenges on the project, N Surendra Kumar, Managing Director, Khalid bin Ahmed and Sons (KAS) said many challenges would have come during the construction of the project. Availability of water for construction purposes is an issue. The company is also concerned over possible escalation of prices of main components like bitumen and steel.

The deadline for the project completion is December 2013. “When compared to our other two major projects currently being undertaken, the new project will be a relatively easy one. Although the contract period is only 24 months, KAS is confident that they can complete the project on time albeit all the challenges.

“Talking about the manpower on the project, the MD asserted that they will give priority to Omanis especially from the Dhahira region in order to boost the Omanisation drive within the company. Asked on why the company will give such a preference to the people from the region, Surendra Kumar said it will facilitate the people to work as well as attend to their personal needs since they are not far away from home.

KAS is one of Oman’s leading road infrastructure development companies established in 2000. Since then the company has been registering a steady growth and is poised to undertake major road projects within the Sultanate of Oman.

Source - http://main.omanobserver.om/node/69005