Released March 20, 2020 | SUGAR LAND
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Industrial Info's daily COVID-19 Impact Report gives you the latest related supply and production data relevant to the Energy Industry.
Commentary:
The world looks to find a state of equilibrium as it seeks to recover from the one-two punch of COVID-19 and the evolving Saudi-Russia price war. What will this mean for markets?
Economy: What types of policies will be put in place by governments, as well as economic stimuli? California, the world's seventh-largest economy, is impacted, and New York is likely to follow. Nations in Europe -- Italy, Germany and Spain -- are further tightening, as Asia seeks to recover.
Petrochemical
Industrial Info researchers monitoring the chemical industry have spoken with hundreds of plant contacts and project decision makers in the last few days. Most all conversations have confirmed the immediate deferral of capital projects pending approval until May or June at the earliest, while others have also ceased construction for ongoing projects immediately.
While many chemical plants remain operational, most plant owners are concerned about transportation challenges in the coming weeks. Chemicals are widely distributed via tractor trailer and small containers that are dependent on qualified and licensed drivers. Any shortage of labor in the transportation sector could quickly complicate the flow of chemical commodities.
U.S./Canada: Shell Chemical has stopped all construction activities for their grassroot Franklin Project located in Monaca, Pennsylvania. All 6,000 workers have been sent home effective March 19. The construction site will be sanitized before workers return to resume construction activities.
Many chemical plants continue sending non-essential personnel home, some have even begun modify shift rotations to one week on and one week off to maximize social distancing.
Sanitation of assets has become an immediate priority for maintenance and janitorial staff. Some plant owners will begin planned turnarounds early simply to clean and sanitize in preparation for future restart or more stringent COVID-19 policies.
Many of the project managers we have spoken with indicated that most all capital expenditure (capex) projects that were previously pending approval have been pushed back to May or June. Covestro and others have stated that "all" capex projects are suspended for at least three months.
Shell Chemical has implemented a "Pause, Stop, Delay, Defer" on capex starting immediately due to COVID-19.
Goodyear Tire & Rubber Company will temporarily suspend operations in North and South America in response to the market crisis. Its plant in Beaumont, Texas, has already been idled. Its Texas plants in Houston and Pasadena, and Niagara Falls, New York, are all in the process of shuttering operations over the weekend.
East Asia: Chinese chemical enterprises are starting efforts to resume operations for some of the largest chemical plants that were idled in February as a result of COVID-19. A significant constraint is how to avoid employee interaction in close proximity. Some companies have arranged special transportation to the plant site to avoid employees using public transport or mass transit.
As producers begin to resume operations, the industry is evaluating assets that can be modified or altered to produce cleaning agents and sanitation chemicals to meet the immediate need for these commodities globally. Some of these projects will be significant investments.
Petroleum Refining
Marathon Petroleum has delayed a turnaround on the 62,000-barrel-per-day Ultraformer UU4 and 60,000 RHU Residual HF at its 437,000-BBL/d Galveston Bay Refinery located in Texas City, Texas. The work, previously expected to start in late March, has been pushed to late April 2020 over growing concerns for staffing due to the COVID-19 pandemic.
Also, Ergon Refining, effective today, March 20, temporarily halted a 30-day, plant-wide turnaround that began on March 6 at its 25,000-barrel-per-day Vicksburg, Mississippi refinery, due to growing concerns regarding COVID-19 risks. Maintenance is expected to resume on Monday, March 23.
Power
In Pennsylvania, where the governor has ordered a virtual shutdown of non-essential industries, PPL Electric's office employees are working from home, but this has not impacted ongoing operations. Across the U.S., there are a few cases where non-essential outages are being pushed out.
NGL Fractionation
Most U.S. NGL fractionation plants are operating at normal capacities. So far, the Oil & Gas sector has not seen any significant disruptions to normal operations due to COVID-19. Corporate offices are closed or operating with significantly reduced staff. Even as some plants are reducing staff to minimize exposure, they are still functioning normally and running at normal rates.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
Commentary:
The world looks to find a state of equilibrium as it seeks to recover from the one-two punch of COVID-19 and the evolving Saudi-Russia price war. What will this mean for markets?
Economy: What types of policies will be put in place by governments, as well as economic stimuli? California, the world's seventh-largest economy, is impacted, and New York is likely to follow. Nations in Europe -- Italy, Germany and Spain -- are further tightening, as Asia seeks to recover.
Petrochemical
Industrial Info researchers monitoring the chemical industry have spoken with hundreds of plant contacts and project decision makers in the last few days. Most all conversations have confirmed the immediate deferral of capital projects pending approval until May or June at the earliest, while others have also ceased construction for ongoing projects immediately.
While many chemical plants remain operational, most plant owners are concerned about transportation challenges in the coming weeks. Chemicals are widely distributed via tractor trailer and small containers that are dependent on qualified and licensed drivers. Any shortage of labor in the transportation sector could quickly complicate the flow of chemical commodities.
U.S./Canada: Shell Chemical has stopped all construction activities for their grassroot Franklin Project located in Monaca, Pennsylvania. All 6,000 workers have been sent home effective March 19. The construction site will be sanitized before workers return to resume construction activities.
Many chemical plants continue sending non-essential personnel home, some have even begun modify shift rotations to one week on and one week off to maximize social distancing.
Sanitation of assets has become an immediate priority for maintenance and janitorial staff. Some plant owners will begin planned turnarounds early simply to clean and sanitize in preparation for future restart or more stringent COVID-19 policies.
Many of the project managers we have spoken with indicated that most all capital expenditure (capex) projects that were previously pending approval have been pushed back to May or June. Covestro and others have stated that "all" capex projects are suspended for at least three months.
Shell Chemical has implemented a "Pause, Stop, Delay, Defer" on capex starting immediately due to COVID-19.
Goodyear Tire & Rubber Company will temporarily suspend operations in North and South America in response to the market crisis. Its plant in Beaumont, Texas, has already been idled. Its Texas plants in Houston and Pasadena, and Niagara Falls, New York, are all in the process of shuttering operations over the weekend.
East Asia: Chinese chemical enterprises are starting efforts to resume operations for some of the largest chemical plants that were idled in February as a result of COVID-19. A significant constraint is how to avoid employee interaction in close proximity. Some companies have arranged special transportation to the plant site to avoid employees using public transport or mass transit.
As producers begin to resume operations, the industry is evaluating assets that can be modified or altered to produce cleaning agents and sanitation chemicals to meet the immediate need for these commodities globally. Some of these projects will be significant investments.
Petroleum Refining
Marathon Petroleum has delayed a turnaround on the 62,000-barrel-per-day Ultraformer UU4 and 60,000 RHU Residual HF at its 437,000-BBL/d Galveston Bay Refinery located in Texas City, Texas. The work, previously expected to start in late March, has been pushed to late April 2020 over growing concerns for staffing due to the COVID-19 pandemic.
Also, Ergon Refining, effective today, March 20, temporarily halted a 30-day, plant-wide turnaround that began on March 6 at its 25,000-barrel-per-day Vicksburg, Mississippi refinery, due to growing concerns regarding COVID-19 risks. Maintenance is expected to resume on Monday, March 23.
Power
In Pennsylvania, where the governor has ordered a virtual shutdown of non-essential industries, PPL Electric's office employees are working from home, but this has not impacted ongoing operations. Across the U.S., there are a few cases where non-essential outages are being pushed out.
NGL Fractionation
Most U.S. NGL fractionation plants are operating at normal capacities. So far, the Oil & Gas sector has not seen any significant disruptions to normal operations due to COVID-19. Corporate offices are closed or operating with significantly reduced staff. Even as some plants are reducing staff to minimize exposure, they are still functioning normally and running at normal rates.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
