Project Cancellations Remain Low Despite Market and Feedstock Woes

SUGAR LAND--July 1, 2008--Researched by Industrial Info Resources (Sugar Land, Texas)--As the price of crude oil continues to climb and commodity price increases show up in daily news reports, it is expected that the Chemical Processing Industry (CPI) will respond with cutbacks or project delays and cancellations. Despite these constraints and other issues, Industrial Info has identified only $826 million in CPI projects to be canceled or placed on hold that were originally planned to begin construction in the first six months of 2008. But capital projects haven't been the only victim of market concerns. INEOS NOVA LLC (Channahon, Illinois), a joint venture company between NOVA Chemicals (NYSE:NCX) (Calgary, Alberta) and Ineos, has canceled plans for a major turnaround of a styrene plant originally planned to begin in June. A smaller turnaround is planned for the fourth quarter with the potential for a major turnaround next spring.