CHALLENGES IN MARKETING

BITUMEN & NAPHTHA

MARKETING OF PETROLEUM OIL LUBRICANTS

Group No. : 8
Abhishek Brahmbhatt (20181015)
Yash Gandhi (20181019)
Shubham Likhite (20181024)
Jaydeep Mulchandani (20181032)
Fractional Distillation of Crude Oil
 Naphtha Bitumen
Boiling Point 40 – 80 Deg. C >300 Deg. C
Melting Point - 54-173 Deg. C
Uses Solvent in Chemical Asphalt concrete, Road
Industries, Feedstock Construction
 Uses of Naphtha
• Naphtha mainly contains C5 to C9 carbon which is used as feedstock for Nitrogen
based fertilizer (Urea).

• Naphtha is classified in two types:

1) Light Naphtha
2) Heavy Naphtha

• Light Naphtha is also used in blending with MS to increase the octane number of
MS.

• Heavy Naphtha is used in Naphtha cracking plant in which Ethylene and Propylene
are separated and are used as feedstocks in Polyethylene industry and other
Petrochemical industry.
Production of Naphtha in India

Asia Pacific demand of Naphtha

 Marketing Scenario in Naphtha
1) Fertilizers industry is now switching their operation to use Natural Gas instead of
Naphtha.

2) Government Subsidies are given to those who uses NG as feedstock in

production of Urea.

3) Excess of Naphtha were used in Petrochemical and Petroleum industry.

4) India exports Naphtha majorly to Japan, Taiwan and South Korea.

 TYPES OF BITUMEN

• Penetration grade
• Industrial grade
• Cutback
• Bitumen Emulsion
• Modified Bitumen
• Viscosity grade Bitumen
 USE OF BITUMEN

• Construction of road, runways and platforms

• In waterproofing
• In canal lining to prevent erosion
• Damp proof courses for masonry
• Mastic flooring for factories and godowns
• In tank foundation
• As a joint filler material for mason
• Register CAGR more than 4% during 2019-2024.
• Increasing environmental concerns likely to
hinder market’s growth.
• Robust growth in construction activities in Asia
Pacific region – An opportunity for market in
future.
• Key players in the bitumen market include BP
PLC, China Petrochemical Corporation, Exxon
Mobil Corporation, Nynas AB, Shell International
BV, Marathon Oil Company, Indian Oil
Corporation Ltd, and Marathon Oil Company,
among others.
 INDIAN SCENARIO
• In 2018, India in its budget allotted INR 21,453 Crore to highway ministry of
work.
• It includes expenditure on development of National Highways, including
projects relating to expressways, two-laning of highways, under the National
Highways Development Project, six-laning of crowded stretches of the
Golden Quadrilateral, development of Vijayawada—Ranchi road, and for
providing last mile connectivity.
• Such sectors have potential to fetch larger investments in near future, the
governments of developing economies (such as China and India, among
others) are taking initiatives by floating tenders reflecting opportunities in
building infrastructure, essential for the growth of a specific sector.
 Iran Export Share

Indian Import Share from Iran Export

Source: Ministry of Commerce and Industry

 Marketing Scenario and Challenges of Bitumen

• Concrete roads are highly durable and more environmentally friendly as compared
to asphalt roads. However asphalt paving costs far less than concrete paving.
Also, asphalt road provides a little better safety of the vehicle against snow and
skidding.

• Cost of Concrete roads are 40% higher than Bitumen road but the life of concrete
roads is 30 years compared to just 4-5years of Bitumen road.

Why?
• Govt. wants to reduce dependency of Bitumen, as 80% of Bitumen is imported from
Iran earlier but now as of sanctions by the USA imports from Singapore and Malaysia
rose sharply.
Thank You