Bitumen Overview India

CONTENTS OIL SECTOR OVERVIEW INDIAN ROAD SECTOR BITUMEN AND ITS PROPERTIES VALUE ADDED BITUMEN

OIL INDUSTRY OVERVIEW 1st year of deregulation

PETROLEUM PRODUCTS DEMAND Historical Going forward Consumption grew at a CAGR of 3.4% p.a. over the last 5 years Production registered a CAGR of 12.5% p.a. during the same period Demand expected to grow at a CAGR of 3.7% p.a. during next 5 years Demand registered over 5% growth during FY2003 Source: Company estimates FY03 MOP&NG Sub-group report for X Plan submitted to Planning Commission Source: PPAC, FY03 company estimates

CRUDE SELF SUFFICIENCY The gap being met through imports Self sufficiency levels declined over the years Source: Hydrocarbon Vision 2025

INDIAN ROAD SECTOR

Total – 3.3 MILLION Kms INDIAN ROAD NETWORK NATIONAL HIGHWAYS 58,112 Length ( km ) NATIONAL HIGHWAYS 58,112 STATE HIGHWAYS 1,37,119 DISTRICT ROADS 4,70,000 RURAL ROADS 26,50,000 Total – 3.3 MILLION Kms INDIAN ROADS CARRY 85 % OF PASSENGER TRAFFIC & 70 % OF FREIGHT TRAFFIC

ROAD CONSTRUCTION SHIFTS TO HIGHER GEAR HIGHWAYS BUILT 1947-97 2 Kms / Day PROPOSED NHDP LENGTH 14000 Kms DAILY PROGRESS 1998-03 5 Kms / Day DAILY EXPENSES OF NHDP 10 ML. USD FINAL PROGRESS OF NHDP 11 Kms/Day ASSURED FUNDING MECHANISM IN PLACE

MAJOR PROJECTS JAN 1999 – TARGET OF DEC 2004 FOR 4/6-LANING OF 5846 KMs HIGHWAY IN FIRST PHASE - GOLDEN QUADRILATERAL SECOND PHASE ON 7300 KMs NE-SW CORRIDOR TO BEGIN ON JAN 2004 WITH TARGET OF DEC 07 SIMULTANEOUS DEVELOPMENT OF PORT ROADS, RURAL ROADS, STATE ROADS INTENSIFIED B.R.O. PROJECTS

BITUMEN AND ITS PROPERTIES

BITUMEN DEMAND GROWTH Bitumen demand is likely to grow at 12% per year for next five years At this rate the demand in year 2004-05 would be 3900 TMT

BITUMEN SEASONALITY

Bitumen - An introduction LAST RESIDUE OF CRUDE OIL TREATED TO PRODUCE BITUMEN. USED IN BUILDING AND PAVING SINCE ANCIENT TIMES. OLDEST ADHESIVE KNOWN TO MAN. USED IN 3500 B.C. AS MORTAR FOR BUILDING STONES AND PAVING BLOCKS IN MESOPOTAMIA. USED FOR WATER TIGHTENING OF RESERVOIRS, CANALS, BATHING POOLS & EMBANKMENTS OF RIVERS IN INDUS VALLEY.

Bitumen - An introduction (Contd.) Streets of Babylon constructed in 2000 B.C. still in good shape. Used for Mummification in 300 B.C. Rock Asphalt used for flooring/sidewalks in France in 1800 A.D. First road surfacing done in New Jersey in 1870 A.D. From 1900 onwards Bitumen produced from Refineries being used extensively.

Types of Bitumen Conventional Bitumen Bitumen Emulsions Paving Grade Bitumen Industrial Grade Bitumen Bitumen Emulsions Modified Bitumen

Production Process Produced by fractional distillation of Crude oil. Crude Oil heated to 300 – 350OC in distillation column. Lighter fractions separated at different column heights. Bottom product called long residue. Long residue heated upto 450OC in Vacuum distillation column. Bottom residue (short residue) used for manufacturing Bitumen. Hot air is blown through short residue OR blended with superior quality bottom products to achieve desired consistency / penetration.

Advantages of Bituminous Roads Initial saving : fast construction + low cost. Ageless – rehabilitation is inexpensive. Stage Construction - in ribbons, not in slabs. Safe: High skid resistance + Good Visibility Better riding quality Less wear & tear of vehicle, Low noise while cruising Can be fully recycled.

Engineering Properties of Bitumen A visco-elastic material : Deformation under stress a function of temperature & loading time. At high temperature & loading it behaves as viscous liquids, whereas at very low temperature or low loading it behaves as elastic solids. In the intermediate range of temperatures / pressure, more typical of the conditions in road service, bitumen has visco-elastic behaviour.

Elemental Analysis Carbon 82 - 88 % Hydrogen 8 - 11 % Sulphur 0 - 6 % Oxygen 0 - 1.5 % Nitrogen 0 - 1 %

Composition of Bitumen Chemical composition depends on origin of Crude Oil and refining process. Chemical composition is extremely complex. Astronomically large number of Molecules with different chemical structures. Not feasible to attempt a complete analysis of Bitumen. Elemental composition of Bitumen provides little information of the types of molecular structure present in Bitumen.

Properties of Bitumen IS 73 : 1992 Characteristics 80/100 60/70 30/40 Specific gravity at 27OC 0.99 0.99 0.99 Softening Point OC 35 to 50 40 to 55 50 to 65 Penetration at 25OC, 100gm, 80 to 100 60 to 70 30 to 40 5 secs., 1/10 mm Ductility at 27OC, in cm min. 75 75 50

BITUMEN TESTS AND THEIR SIGNIFICANCE PENETRATION TEST / SOFTENING PT. INDICATES CONSISTENCY LOSS ON HEATING / THIN FILM OVEN TEST RATE OF HARDENING ON ROAD DUCTILITY TEST AFFINITY FOR AGGREGATES

Tests….. TRICHOROETHYLENE SOLUBILITY VISCOSITY / SPECIFIC GRAVITY INDICATES PURITY OF BITUMEN VISCOSITY / SPECIFIC GRAVITY

Penetration TRAVEL IN dmm OF A SPECIFIED NEEDLE UNDER 100 g Wt. FOR 5 SECONDS INTO BITUMEN AT 25 C. DENOTES CONSISTENCY

Softening Point 3.5 GM STEEL BALL PLACED ON SAMPLE OF BITUMEN IN BRASS RING BATH TEMP RAISED AT 5 DEGREES PER MINUTE

DUCTILITY Gives an indication of the extent to which a sample of the material can be stretched before breaking. Length in cm. at breaking point is ductility

FLASH POINT Used to measure the temperature to which a sample of bitumen may be safely heated The flash point is the temperature reached when the vapour causes an instantaneous flash.

Recommended Handling Temperatures Characteristics 80/100 60/70 30/40 Min. Pumping Temp.27OC 105 110 125 Mixing/Coating Temp. OC 150 to 163 150 to 163 160 to 175 Laying Temp.OC 130 to 160 130 to 160 140 to 160 Spraying Temp.OC 170 - - Max. Safe Hdlng. Temp. OC 175 175 175

Selection of Grade of Bitumen Choice of Bitumen is based on Climatic Conditions - Maximum & Minimum temperature & rainfall. Intensity of Traffic - Number of vehicles per day & axle load of vehicles.

Applications of 80/100 Grade Less viscous grade. Used in all climatic conditions. Suited for traffic load of less that 1500 commercial vehicles/day. Better suited for high altitude/snow bound regions irrespective of traffic intensity.

Applications of 60/70 Grade More viscous grade. Higher softening point. Suited for traffic intensity of more than 1500 commercial vehicles/ day. Can withstand heavier axle loads. Suited for areas where difference between min. & max. temp. is more than 25 o C. Reduced stripping of Bitumen from Aggregate in presence of water. Better suited for highways, expressways & urban roads.

Applications of 30/40 Grade Suited for traffic intensity of more than 1500 commercial vehicles/ day. Suited for areas where difference between min. & max. temp. is less than 25 o C. Used in metropolitan areas / airport runways.

VALUE ADDED BITUMEN Binder of the future

RELATIVE PRICING OF VALUE ADDED BINDERS BITUMEN 10000 EMULSION 11000 CRMB 12500 NRMB 13500 PMB 17000

WHY MODIFIED BITUMEN? INCREASING DEMANDS ON ROAD INSISTENCE BY CLIENTS INCREASING NUMBER OF VEHICLES INCREASING AXLE LOAD INSISTENCE BY CLIENTS DESIRE TO MAINTAIN HIGHER SERVICEABILITY LEVEL CHANGING PATTERN OF CONTRACTS INCLUDES LONG TERM MAINTENANCE

Modifiers under use Polymers Rubbers Plastics Thermoplastic Synthetic Elastomers SBS, SBR etc. Polymers Rubbers Plastics Crumb Rubber Natural Rubber (Latex) Plain Chemically Treated Thermoplastic EVA

EMERGING DEMAND AN ASSESSMENT

CURRENT MARKET FEATURES DOMINATION BY CRMB VALUE FOR MONEY BINDER TEST TRACKS / RESEARCH WORK SHOW EXCELLENT RESULTS HIGH COST OF PMB A DAMPENER INSISTENCE BY CLIENTS ON REFINERY MODIFIED BINDERS HIGH GROWTH RATE ASSURED EMULSION MARKET STAGNATED TACK COAT ORIENTED HIGH VOLUME APPLICATIONS YET TO BEGIN

CRUMB RUBBER MODIFIED BITUMEN

Crumb Rubber Modified Bitumen + Additives (Modifiers/Treated Crumb Rubber)

What is Crumb Rubber Modified Bitumen? Crumb Rubber Modified Bitumen is Conventional Bitumen with treated Crumb Rubber Additive at high temperature which results in Lower susceptibility to temp. variation Higher resistance to deformation at high temperature Better Age Resistance Properties Higher Fatigue Life of Mixes Better Adhesion Properties

Why Treat Crumb Rubber? Be compatible with Bitumen. Blend with Bitumen properly & thoroughly. Improve temperature resistance of Bitumen. Resist degradation of Bituminous mix. Be capable of being processed by conventional mixing plants and laying machinery. Produce coating viscosity at application temp. Maintain premium properties during storage,application and in service. Be cost-effective considering life cycle cost.

Test and Trials with CRMB Central Road Research Institute, New Delhi. Highway Research Station, Chennai. Gujarat Engineering Research Institute, Vadodara. Indian Institute of Technology, Kharagpur. Municipal Corporation of Delhi. Research Station, P.W (R&B) Dept., Hyderabad., Andhra Pradesh.

Circular Test track study conducted by Highway Research Station, Chennai

Tests conducted in Circular Test Track Study Surface Evaluation Skid resistance Texture depth Depletion values

STUDY RESULT CRMB mixes indicate better resistance to deformation at high temperature - 1.5 times higher values of stability, Marshall quotient and stiffness modulus. Higher indirect tensile strength and stiffness modulus - better resistance to cracking in structural layers. Modified mixes in structural layers take higher traffic stresses due to higher values of stiffness modulus. Tensile strength ratio before and after conditioning in water is higher - superior resistance to moisture damage.

CIRCULAR TEST TRACK STUDY CONCLUSION The Highways Research Station has opined that the performance of modified bitumen stretch improves by 1.7 times than the conventional bitumen stretch.

Guidelines on use of Modified Bitumen MORTH letter No. RW/NH-34041/36/90-S&R(Vol. II) dated April 21, 1999 advised all States/UTs to use Modified Bitumen upto 10% for all works “as it has been proved by field trials that the life of the road increases by 1.5 times”. IRC released new Specifications vide publication No. IRC-SP:53:2002 FOR USE OF MODIFIED BITUMEN in road development activities in India. MORTH vide letter No. RW/NH-34041/36/90-S&R(Vol. II) dated 17, January 2000 requested all States to start using MODIFIED BITUMEN. MORTH letter No. RW/NH-34041/36/90-S&R(Vol. II) dated April 14, 2000 requested MOP&NG to start Modified Bitumen production at Refinery level.

Guidelines on use of Modified Bitumen MORTH vide their letter No. RW/NH-35072/1/2001-S&R( R ) dated June 21, 2001 has requested all States to encourage use of Modified Bitumen in view of its various advantages and improved performance over conventional Bitumen. MORTH vide their letter No. RW/NH-33041/3/2001-S&R dated June 13, 2002 has stated that “It has been decided that keeping in view its advantages, polymer/rubber modified bitumen may be adopted in surfacing for the whole length, subject to availability”.

CRMB Performance on Road

DEFORMATION OF SURFACE IN UNMODIFIED SECTION

PATCH WORK IN UNMODIFIED SECTION

POT HOLE IN KM-144 –UNMODIFIED

TRANSVERSE CRACKING –UNMODIFIED SECTION

A VIEW OF MODIFIED (CRMB) SECTION

CLOSE-UP OF MODIFIED SURFACE

GOOD SURFACE CONDITION OF MODIFIED SECTION

GOOD SURFACE OF MODIFIED BC

Grades of CRMB

Tests on Crumb Rubber Modified Bitumen Penetration Softening Point Elastic Recovery Thin Film Oven Test

Selection Criteria

Recommended Handling Temperatures Stage of Work Viscosity, Poise Temp. Range, OC Binder at Mixing < 2 170 - 180 Mix at Mixing Plant < 4 145 - 165 Mix at Laying Site < 5 130 - 150 Rolling at Site 10 – 1,000 115 - 135

HANDLING OF CRMB CRMB should ideally be used in hot condition. When supplied in drums, it shall be agitated properly in melted condition for 10 - 15 minutes before use. Mixing & rolling temperature should be approx. 10OC higher than conventional temperature. Pneumatic tyre rollers should be avoided.

Field Trials Carried on CRMB NH-1 NEAR AMBALA SECUDERBAD-KUKATPALLI ROAD BLR-KANAKAPURA HIGHWAY NH-4,CHENNAI-BANGALORE ROAD NH-5,CHENNAI-CALCUTTA NH-8 at RAJIV CHOWK,NEAR GURGAON NH0-1 A at UDHAMPUR, JAMMU NH-25,LUCKNOW-JHANSI INNER RING ROAD, HYD INSIDE HRS CAMPUS,CHENNAI

Satisfied Clientele P W D - Maharashtra P W D - Madhya Pradesh Major Private Contractors in Maharashtra Ketan Constructions – Ahmedabad Vadodara Expressway Contractors in Orissa, A.P. & Gujarat.

BITUMEN EMULSIONS

EMULSIONS IN DAILY LIFE MILK MEDICINES PAINTS ICE CREAM

BITUMEN EMULSIONS ?? BITUMEN EMULSION = BITUMEN+ EMULSIFIER/ADDITIVES + WATER WATER = CONTINUOUS PHASE BITUMEN = DISEPERSED PHASE FREE FLOWING DARK BROWN LIQUID

EMULSIFICATION BITUMEN MILLED INTO FINE PARTICLES & HELD IN MOLECULAR SPACES OF WATER USE OF CORRECT EMULSIFIER / CHEMICALS FACILITATE PROPER EMULSIFICATION

COLAS S.A. OF FRANCE LARGEST CONSTRUCTION COMPANY IN THE WORLD EXPERTS IN ROAD CONSTRUCTION MANPOWER 40,000 TURNOVER > 40, 000 CRORES

HINDUSTAN COLAS LIMITED INCORPORATED IN JULY 1995 AS A JOINT VENTURE COMPANY. HINCOL EMULSIONS VERY WELL RECEIVED ALL OVER INDIA: FIRST PLANT AT MUMBAI IN 1996. SECOND PLANT AT DELHI IN 1998. THIRD PLANT AT CHENNAI IN 1999. FOURTH PLANT BEING COMMISSIONED IN VIZAG.

PROJECTED DEMAND IN ‘000 MT BITUMEN EMULSION YEAR DEMAND DEMAND % 2002-03 2900 70 2.4 2003-04 3500 105 3.0 2004-05 4000 160 4.0 INTERNATIONAL NORM - 15% AVERAGE

WHY LOW CONSUMPTION IN INDIA ??? QUALITY AWARENESS INCLUSION OF SPECS IN DSR GEOGRAPHICAL CONSTRAINTS MYTH OF EXPENSIVENESS NO MAJOR MANUFACTURER

TYPICAL USES OF EMULSIONS IN FRANCE TACK COAT 12 % SURFACE DRESSING 40 % PATCH WORK 15 % GROUTING 13 % OTHER 20 %

WHY USE EMULSIONS ?? ECONOMY ALL WEATHER APPLICATION (IDEAL FOR MONSOON APPLN.) WORKER FRIENDLY ENVIRONMENT FRIENDLY EFFICIENCY

TYPES OF EMULSIONS RAPID SETTING MEDIUM SETTING SLOW SETTING

APPLICATIONS POT HOLE REPAIRS TACK COAT PRIME COAT SURFACE DRESSING PREMIX / LIQUID SEAL COAT 20 MM PREMIX CARPET FOG SPRAY/FOG SEAL/SLURY SEAL

PACKAGING RECONDITIONED DRUMS NEW DRUMS BULK

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FUTURE ENERGY SCENARIO Gas to replace the demand for oil and is expected to constitute 20% of the energy supply by 2025

INITIATIVES BY GOVERNMENT GOVERNMENT’S VISION : TO CREATE ROAD NETWORK WHICH IS BEST IN THE WORLD. INITIATIVES : LEVY OF Rs. 1 PER LTR. CESS ON DIESEL AND PETROL EFFECTIVE 1999 FOR CENTRAL ROAD FUND ( $1.2 BILLION PER YEAR) PLUS FUNDING BY ADB / WB PLUS PRIVATE SECTOR SPECIFIC FUND ALLOCATION FOR NATIONAL HIGHWAYS, STATE HIGHWAYS, RAIL OVER BRIDGES, RURAL ROADS ETC. SPECIAL FINANCIAL INCENTIVES PACKAGE FOR TAXES AND DUTIES APPLICABLE FOR ROAD PROJECTS ANNOUNCED HIGH TRANSPARENCY AND FAST DECISIONS

FUNDING OF NHDP

MAJOR CHANGES INDIAN ROAD SECTOR TILL 15 YEARS AGO - ROADS MADE BY STATE AND CONTRACTORS ONLY PROVIDED LABOUR / MACHINERY ETC. DURING 1990s GOVERNMENT INCLUDED MATERIAL PROCUREMENT IN CONTRACTOR’S SCOPE CHANGES FURTHER ACCELERATED BY MASSIVE INVESTMENTS PROPOSED IN ROAD SECTOR – 1998 ONWARDS

COTRACTS AWARD METHODOLOGY MAJOR OVERHAUL CHANGE FROM GOVT. SUPERVISED WORKS TO REWARD ORINETED EPC (ENGG, PLNG & CONSTRN) WITH PMC INCENTIVE FOR EARLY COMPLETION - 1% - 6% : DISINCENTIVE FOR DELAY SEPARATE O&M CONTRACTS FOR MAINTENANCE ANNUITY BASED PROJECTS INCLUDING MAINTENANCE EXPERIMENTED

NORMAL BITUMEN DEMAND ? INDIA’S ANNUAL BITUMEN DEMAND : 2800 TMT PERIODICAL RENEWALS / M&R NORMALLY NOT PER SCHEDULE ADDITIONAL REQMT FOR NEW PROJECTS

Grades/Types of Bitumen PAVING BITUMEN : 80/100, 60/70, 30/40 Used in Road Construction worldwide. Conforms to IS:73 of 1992. Industrial Bitumen Conforms to IS:702 of 1988. Harder grades. Used in water proofing, cable insulation, gunny bags, rubber industries, etc. Not marketed by Oil Companies.

CLASSIFICATION OF BITUMEN EMULSION ANIONIC - BITUMEN PARTICLE HAS NEGATIVE CHARGE CATIONIC - BITUMEN PARTICLE HAS POSITIVE CHARGE CATIONIC EMULSION HAS REPLACED ANIONIC EMULSION WORLDWIDE IN ROAD APPLNS.

BREAKING ELECTROSTATIC ATTRACTION CAUSES BREAKING OF EMULSION BITUMEN +ve CHARGE AGGREGATE -ve CHARGE RESULT : EXCELLENT BONDING / ANTISTRIPPING BETWEEN BITUMEN & AGGREGATE

ECONOMY NO HEATING COSTS REDUCED MANPOWER COST FASTER EXECUTION ECONOMICAL IN APPLICATIONS LIKE TACK COAT

ENVIRONMENT / SAFETY EMULSIONS RESPECT PEOPLE AND ENVIRONMENT NO SMOKE/POLLUTION CONSERVES WOOD/FUEL IDEAL FOR CITY APPLICATIONS WORKER FRIENDLY

MANUFACTURING IMPORTED PLANTS COLAS FORMULATIONS PROPRIETARY PROCESS IMPORTED RAW MATERIALS

QUALITY CONTROL SOPHISTICATED LABORATORY PARAMETERS CHECKED VISCOSITY BINDER CONTENT COATING PROPERTY SHELF LIFE PARTICLE CHARGE COAGULATION RESIDUE ON 600 MICRON IS SIEVE

BIS SPECS 8887-1995 OBSOLETE SPECS “ 8887-1978” REVISED IN 1995 MAJOR CHANGES MADE IN BINDER CONTENT, SHELF LIFE AND QUALITY CONTROL CHECKS. ALL HINCOL GRADES MEET OR EXCEED BIS 8887-1995 SPECS

MOST REV.SPEC -2000

WHERE TO USE EMULSION? FOLLOW THE THUMB RULE. THUMB RULE IS BASED ON INTERNATIONAL PRACTICE AND ALSO AS PER MOST/ IRC SPECS.

APPLICATION OF HINCOL EMULSIONS SESSION 2

‘RS’ - RAPID SETTING APPLICATIONS TACK COAT LIQUID SEAL COAT GROUTING SURFACE DRESSING PATCH WORK

‘MS’ - MEDIUM SETTING APPLICATIONS POTHOLE FILLING (PRE-MIX) PATCH WORK PRIME COAT TACK COAT

‘SS’ - SLOW SETTING APPLICATIONS PRIME COAT SLURRY SEAL PREMIX SEAL COAT FOG SPRAY/FOG SEAL

PRIME COAT OBJECTIVES PLUG CAPILLARY HOLES HARDENS / TOUGHENS BASE COURSE BONDS LOOSE PARTICLES ASSISTS ADHESION WITH NEXT LAYER QUANTITIES RECOMMENDED LOW POROSITY: SS TYPE 6-9 KG / 10SQMT MED. POROSITY : MS TYPE 9-12 KG / 10 SQMT HIGH POROSITY: MS TYPE 12-15 KG / 10SQMT

SURFACE DRESSING A THIN LAYER OF WEARING COURSE MADE OF SUPERIMPOSED LAYERS OF EMULSION AND METAL FUNCTIONS: 1. PROVIDING WEARING SURFACE 2. REHABILITATES WORN SURFACES 3. SHOULDERS ON A HIGHWAY 4. LOW VOLUME / LOAD OR REMOTE AREA ROADS

20 MM PREMIX CARPET WEARING COURSE FOR LOW VOLUME ROADS ECONOMICAL FASTER EXECUTION EMULSIONS OBVIOUS CHOICE PREPARING PRE-MIX ON THE SITE.

SEAL COAT PROVIDES A SEAL TO STOP WATER ENTRY INTO ROAD LIQUID SEAL COAT RS TYPE 12-14 KG / 10 SQMT ONLY EMULSIONS RECOMMENDED PREMIX SEAL COAT SS TYPE 10 - 12 KG / 10 SQMT