Bitumen Market & Outlook in India

Subroto Das Head : Bitumen & Fuels Hindustan Petroleum Corporation Limited India

Oil & Gas Industry Landscape

Oil Sector in India: Salient aspects in 2016

• India is the fourth largest consumer of Oil in the world behind US, China and Japan.

• India with 190 MMT of crude oil import is the third largest importer.

• India produces 1% of world oil and consumes 4.3% of world demand.

• The consumption of Oil in India grew by 3.0% compared to world growth of 0.8%.

Upstream

Midstream

80%

20%

Other Major Players in Oil Market of India

Downstream

16 Public Sector Refineries

IOCL - 66 MMTPA

BPCL - 24 MMTPA

HPCL - 15 MMTPA

MRPL - 15 MMTPA

Total - 120 MMTPA

2 JVC refineries

HMEL - 9 MMTPA

BORL - 6 MMTPA

Total - 15 MMTPA

3 Private Sector Refineries

RIL - 60 MMTPA

ESSAR OIL - 20 MMTPA

Total - 80 MMTPA

Total India = 215 MMTPA

Fig as of Mar’15

Refineries in India

India Consumption : Last 10 Years

2014-15 : Consumption of Petroleum Products

Primary Energy : India Projections

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Roads Infrastructure Sector

Bitumen Outlook in India

• Road length in India grew from 3.99 Lakhs KMs in 1951 to 52.5 lakhs in 31st March 2015.

• Road density of India is 1.59 kms/sq.km of area & higher than Japan( 0.90) ,USA( 0.67) China ( 0.44) …..

• Surfaced road length in India is 60% of total road length , which is lower as compared to UK,France, Korea & China….

• National Highway which carry most of freight & passenger traffic accounts for 2% of total length

• 5 states out of 29 states accounts for 44% of road network

Road Sector in India: Salient Aspects in 2015

Initiatives by National Highway Authority of India

Special Accelerated Road Development Program for North Eastern States

Development of roads in Left Wing Extremis affected areas Development of NHs with the multilateral assistance.

NH Network all along the border proposed to facilitate: Connectivity to ports/DMIC nodes Strategic consideration International Connectivity

Involve about 7,000 km new National Highway Anticipated cost Rs 80,000 crores ( US $ 12.20 billion)

New Initiatives Under Special Projects

Anticipated Cost : 85,000 crores ( US $ 13 billion)

Backwards Areas : 2500 kms

Religious Places : 2400 kms

Tourist Places : 1200 kms

Adoption of Hybrid Annuity Model ( HAM) for road projects.

EPC (Engineering, Procurement and Construction)

BOT ( Build Operate Transfer)

100% FDI under automatic routes in road and highway sector, subject to

applicable laws and regulation.

Road Category Wise-Length in Kms ( Lacs)

0.94 1.69

3.11

4.46

10.67

31.6 52.46

Nationalhighway

State highwayProjects Road Urban Roads Others PWDroads

Rural Rodas Total Roads

Source: Basic Road Statistics, NHAI AR 2014-15

Bitumen Producing Refineries in India

Public Sector Refineries

IOCL – 4 Locations

BPCL – 2 Locations

HPCL – 2 Locations

MRPL – 1 Location

CPCL – 1 Location

1 JVC refinery

HMEL – Expected in 17-18

1 Private Sector Refineries

ESSAR OIL – 1 Location

Fig as of Mar’15

Pirpau

Mundra

Imported Bitumen Entry Points in India

Bulk Bitumen : Karwar :- 24000 MT Mundra :- 6000 MT Haldia :- 12000 MT Kakinada :- 3000 MT Pirpau :- 30000 MT

Packed Drum : Mundra JNPT ( Mumbai) Chennai Haldia

Bitumen Import Locations in India

JNPT

(Mumbai )

Karwar

Haldia

Kakinada

Chennai

• More than 90% of the imported bitumen sourced from Iran, U.A.E

and Malaysia • Mundra, Gujarat, Karwar,Karnataka and JNPT, Maharashtra receive

more than 60% of imported bitumen. • Most of the bitumen is exported to Bangladesh, Thailand and

Malaysia. • The imports of bitumen is more in non-monsoon season and

exports of bitumen is more on monsoon season.

Imported Bitumen Salient Features

1245

2625

779

184

234

832 HPC

IOC

BPC

MRPL

ESSAR

IMPORT

All India Bitumen Sales ( 2015-2016)

Sales Trend - Last 8 Years

Year Production Consumption Import Export

2015-2016 5157 5815 832 101

2014-2015 4690 5073 517 94

2013-2014 4773 5007 237 95

2012-2013 4670 4676 85 87

2011-2012 4599 4638 78 5

2010-2011 4446 4536 98 56

2009-2010 4873 4934 69 31

2008-2009 4620 4747 105 45

(Figures in ‘000 MT)

Future Projection of Bitumen Consumption

6114

6305

6544 6687

6878

7165

2016-17 2017-18 2018-19 2019-20 2020-21 2021-22

(Figures in ‘000 MT)

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Parameters/Grades VG 10 VG 30 VG 40

Penetration @ 25o C, 0.1 mm, Min 80 45 35

Absolute Viscosity @ 60o C, poise 800 – 1200 2400- 3600 3200 - 4800

Kinematic Viscosity @ 135oC, cst, min 250 350 400

Flash Point, o C, COC, min 220 220 220

Solubility in tricholoro-ethylene, percentage, min

99.0 99.0 99.0

Softening point, o C, min 40 47 50

Tests on residue from rolling TFOT a) Viscosity ratio @ 60 o C, max

4 4 4

Tests on residue from rolling TFOT a) Ductility @ 25 o C, min

75 40 25

Current Specification-IS 73/2013

Hindustan Petroleum Corporation Limited, India

Incorporation of Standard – Vacuum Refining Company (StanVac)

Incorporation of Caltex Oil Refining

StanVac operations taken over by ESSO

Takeover and merger of ESSO and Lube India into HPCL

Origin in Private Sector : Blend of Private & Public Sector Expertise

1952

1955

1962

1974

Merger of Caltex with HPCL

Merger of Kosan Gas with HPCL

1978

1979

Our History

“To be a World Class Energy Company known for caring and

delighting customers with high quality products and innovative

services across domestic & international markets with

aggressive growth and delivering superior financial

performance.”

•The Company will be a model of Excellence in meeting Social

commitment, Environment, Health & Safety and in employee

welfare & relations”

Vision

No. of employees* = 10,538 Office Number

Corporate Headquarters, Mumbai 1

Marketing Headquarters, Mumbai 1

Coordination Office, Delhi 1

Data Centre, Hyderabad 1

ERP Centre, Mumbai 1

R&D Centre, Bangalore 1

Retail Zonal Offices 7

Retail Regional Offices 56

LPG Zonal Offices 6

LPG Regional Offices 32

Direct Sales Regional Offices 18

*as of March’16

HPCL Offices

Business Portfolio

Marketing Strategic Business Units

LPG

Direct Sales

Retail

Aviation

HPCL Supply Infrastructure

Terminals / TOPs Depots LPG Plants

35 69 45

ASFs

35

Lube Blending

Plants

7

Description As of 30.06.2015

POL pipeline network 2,514 Kms

Pipeline capacity 23.57 MMTPA

POL Tankage 3.1 MMT

LPG Storage capacity 96 TMT

LPG bottling capacity 3.85 MMTPA

LPG Distributors 4,031

Lube blending Plant capacity 250 TMTPA

QC Labs 45 Nos.

As of 30.06.2015

13,281

Retail Outlets

Petroleum & Oil Pipelines

* Excluding MHB JVC P/L

Note:

Following 2 operational P/ls are not shown in map

1. Bathinda – Ramanmandi P/L

(30 Kms; 1.13 MMTPA)

2. Bahadurgarh - Tikrikalan P/L

(14 Kms – 2 spurs; 0.75 MMTPA)

Further Details Please Contact

• Disclaimer

Hindustan Petroleum Corporation Ltd.

Petroleum House, 17, Jamshedji Tata Road,

Post Box No.11041,

Mumbai,

India – 400 020

www.hindustanpetroleum.com

The information contained in this material have been obtained from sources believed to be reliable, but no representation or warranty express or implied, is made that such information is accurate or complete and it should not be relied upon as such. The information contained in this material may not be perfect and some part of the information may be left out. All estimates and opinions included in this material constitute our judgment as of the date of this material and may be subject to change without notice. This material is for the use of intended recipient and should not be reproduced in whole or in part without the prior written consent of Hindustan Petroleum Corporation Limited.

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