Qatar Fuel (Woqod) yesterday announced a QR65mn investment plan to upgrade its bitumen storage, manufacturing and distribution facility in Mesaieed Industrial City.

Woqod also signed a memorandum of understanding (MoU) with the Public Works Authority (Ashghal) to form a framework for the supply of bitumen for the latter’s projects in the coming years. The MoU was signed by Ashghal president Nasser bin Ali al-Mawlawi and Woqod general manager Ibrahim Jaham al-Kuwari.

“It is clear that there will be a huge increase in the demand for bitumen, and with the signing of this memorandum of understanding with Ashghal for increased supplies, Woqod will upgrade its bitumen facilities to provide timely and cost-efficient supplies to Ashghal road contractors,” said al-Kuwari.

Under the deal, Woqod will provide a structured framework for the regular supply of bitumen from 2014 to 2019 for projects under the authority’s mandate over the next five years, according to an Ashghal statement.

By signing the MoU, Ashghal is aiming to increase the bitumen quantities imported into Qatar, thereby reducing potential shortage risks. The authority will also continue its efforts to ensure sufficient supply of the required quantities of bitumen for its projects not only through the MoU with Woqod, but also through a tender process to select additional suppliers, the statement added.

Woqod is the largest importer and distributor of bitumen in Qatar, using three dedicated bitumen ships operated by its subsidiary Woqod Marine Services, the company said.

Working closely with Ashghal and with technical support from Texas A&M University at Qatar, Woqod also manufactures polymer-based bitumen using additives to improve road elasticity for high-use roads and heavy-truck roads.

“Woqod will be the supplier of choice for bitumen in Qatar and we will commence the upgrade of our facilities immediately, besides adding another bitumen ship to our fleet,” al-Kuwari said.