An Increase in the Number of Distillation Column Projects Signals Continued Strength in Petrochemical Market

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Researched by Industrial Info Resources (Sugar Land, Texas). Distillation columns are commonly found in most every petrochemical plant operating in the Chemical Processing Industry (CPI), and the number of new installations and retrofits for these pieces of equipment appears to be on the rise. In evaluating capital projects located in the United States and Canada planned to kick off in 2006 and 2007, Industrial Info has identified eighteen projects worth an estimated Total Investment Value (TIV) of $305 million, where a distillation column was a key piece of equipment being installed or retrofitted. This is a substantial increase over the past two years when the same piece of equipment was identified in only ten projects with a combined TIV of $104 million.

Click on the image at right to view a chart showing the breakdown of distillation column spending by state

The distillation column is often the most significant and most common separation technique used in the processing of chemical feedstock in petrochemical plants. Producers of ethylene, olefins, and a large number of other chemicals depend on separation through distillation to produce component fractions of desired chemicals used in feed streams in their processes. Distillation generally requires a large amount of energy in the form of both heating and cooling, contributing largely to a plant’s operating costs.

Routine, predictive and preventative maintenance are all of key importance to every plant owner, considering how influential this part of a process can be when calculating your bottom line. Industrial Info has identified 22 major plant maintenance turnarounds planned to take place between this summer and the fall of 2007 that includes the inspection and/or repair of distillation columns in the scope of work to keep these units running efficiently and effectively.

Short-term capital project opportunities for providers of distillation columns and their associated equipment includes plans by Georgia Pacific, which is planning to invest nearly $7 million to replace a column and add another between two sites located in North Carolina and Ohio. Nearly $56 million of the projects identified in this analysis are for projects in the cold end or distillation area of ethylene units located in Texas or Louisiana. The largest project opportunities are long-term and include plans for a grassroot MMA plant in Texas and a major $100 million unit addition in Louisiana.

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Industrial Info Resources (IIR) is a Marketing Information Service company that has been doing business for over 23 years. IIR is respected as the leader in providing comprehensive market intelligence pertaining to the industrial processing, heavy manufacturing, and energy-related industries throughout the world.