Avtodor and Gazprom Neft sign cooperation agreement on use of advanced bituminous materials

Press-release

The State Company Russian Highways (Avtodor) and Gazprom Neft have signed an agreement to work together in the fields of road construction and the production and application of advanced bituminous materials.

The agreement provides for the development and production of bitumen and polymer-modified bitumen binders which meet Avtodor’s requirements and standards, and for their use in the construction and repair of roads managed by the state-owned company.

Gazprom Neft and Avtodor will continue to cooperate to improve the quality of bituminous materials, and to increase the efficiency of the technical processes involved in the production, delivery, and application of bitumen. The companies will also carry out research and development work to upgrade existing industry standards.

“The signing of this agreement is a landmark moment for Avtodor, which is not simply a major consumer of bitumen, but is also working actively on the standardization of materials used in road construction. This process was initiated with the development of the AVTODOR 2.1-2011 Standard for improved road bitumen. These new standards are the result of our joint efforts, thanks to which special-purpose conditioned bitumen that complies with the stringent demands of the road sector will be produced in Russia. The key challenge facing Avtodor is to create a comprehensive high-speed road network in Russia. It is encouraging that we are now able to provide high quality road surfacing without turning to foreign partners”, said Avtodor Chairman of the Board Sergei Kelbakh at the signing ceremony.

“Gazprom Neft’s bitumen business is rapidly developing”, remarked Alexander Dyukov, Chairman of the Management Board of Gazprom Neft. “Last year alone, the company increased its share of the Russian market to 30%. Gazprom Neft is also the largest Russian supplier of polymer-modified bitumen binders, which in many respects are an improvement on conventional bitumens. In the long term, we expect to become a domestic market leader in terms of production technology, adhering to the best Russian and international practices. This year, together with the French company Total, we are launching innovative products for road construction, which have no analogues in the Russian market at the moment.”

Reference

Avtodor was founded in 2009. The company aims to develop a network of high-speed toll roads, to attract privateinvestment, and to develop roadside service infrastructure.

Among the assets managed by Avtodor are the M1 ’Belarus’ (450 km), the M4 ’Don’ (1,716 km), and the M3 ’Ukraine’ (432 km) highways. The company is carrying out a comprehensive reconstruction of these roads.

By the end of 2013, the total length of roads under the management of Avtodor had reached 2,733.6 km. Of this, 1,705.5 km is classified in the top category of roads, 24% more than at the end of 2010 (1,372 km).

Avtodor is the contractor responsible for the construction of the high-speed motorway between Moscow and St. Petersburg and the Central Ring Road (TsKAD) in Moscow Region.

Avtodor uses a public—private partnership (PPP) mechanism for all major projects.

In 2013, an 18 km stretch of highway was commissioned for the M1 ’Belarus’ road, bypassing Odintsovo (Moscow Region). This is the first road project in Russia to be implemented in the form of a concession agreement, in which the state company acts as the concession granter.

Construction projects for two sections of the new M11 Moscow—St. Petersburg highway — kilometres 15–58 and kilometres 543–684 — are already being implemented under concession agreements. A range of projects are being implemented using other PPP mechanisms.

Gazprom Neft is currently the leading seller of bitumen products in Russia, with a 30% share of the domestic market. In 2013, sales increased by 20% compared with 2012, reaching 1.8 million tonnes.

The company’s main bitumen production facilities are located in Moscow; Omsk, Yaroslavl, and Ryazan regions; and in Serbia and Kazakhstan. Road, construction, and roof bitumens, as well as polymer-modified bitumen binders and bitumen emulsions, are produced at Gazprom Neft’s oil refineries.

In 2014, together with the French company Total S.A. — one of the world’s leading manufacturers of innovative bitumen products — the company plans to start production of premium class polymer-modified bitumen binders in Moscow under the brand name G-Way Styrelf.

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