Released March 24, 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.
Petroleum Refining
Refineries across the globe continue to scale back operations in response to falling demand caused by the COVID-19 outbreak.
In Texas, ExxonMobil continues to plan a maintenance turnaround starting April 3 on units at its 240,000-barrel-per-day (BBL/d) Beaumont refinery. Unconfirmed reports have indicated that ExxonMobil has reduced plant operating rates by 20% in response to lower demand.
PBF reduced production rates by an estimated 20% starting Monday at its 175,000-BBL/d Delaware City, Delaware, refinery as a result of reduced demand.
PetroChina Jinzhou Petrochemical Company Limited continues with derate operations (reduced 22% from design capacity) at its 150,000-BBL/d Jinzhou, China, refinery due to market conditions. The duration of the rate cut, which began February 10, has been extended to April 10.
Power
While it is still too early to reveal the full impact of COVID-19, grid operators across the U.S. are seeing load declines in electricity demand. To mention a few, New England ISO, PJM Interconnection, California ISO and MISO are seeing decreased demand for electricity. On the other side of the coin, Southwest Power Pool, ERCOT and New York ISO have indicated it is too soon to understand the impact so far. It is anticipated that lower demand could benefit the renewable energy sector.
Petrochemical
Industrial Info's researchers continue to identify a growing number of plants that are limiting or minimizing staffing of plant operations to comply with regional restrictions related to "stay-at-home" mandates issued by numerous governments globally. A few chemical producers like Goodyear Chemical have ceased operations entirely, sending workers home at more than 50 plant sites across North and South America.
FMC has confirmed its plants remain in operation, with maintenance and ongoing projects continuing as scheduled, based on availability of people and materials. No new capital projects will be started until further evaluation can be completed.
Several chemical companies have begun having certain essential employees staying onsite for 24-hour shifts, while some non-essential teams are working remotely. INEOS in Joffre, Alberta, and Flopam in Plaquemine, Louisiana, are just a couple of examples. Some plants have also moved to having workers rotate shifts, working several days on and several days off.
Large maintenance turnarounds are being pushed out as much as a year or more based on the current market crisis. Dow Chemical has postponed the turnaround of its ethylene plant in Fort Saskatchewan until third-quarter 2021 in response to both labor concerns surrounding COVID-19 and volatility in the market.
Alternative Fuels
Ethanol producers have begun to cut production rates by as much as 50% this week in response to petroleum refiners reducing gasoline production. Industrial Info has identified approximately $600 million in capital project spending that has been delayed as a result of demand destruction and COVID-19 in the Alternative Fuels industry. All previously planned capital projects will be reassessed once demand begins to return, and even many maintenance projects will be trimmed to a minimal scope.
Oil & Gas Production
The dash to slash planned capex continues for the industry in response to the drop in oil prices. On Tuesday, Chevron said it would reduce its capital and exploratory budget by $4 billion, or 20%, to $16 billion for the year. This includes $2 billion in upstream unconventionals, primarily in the Permian Basin.
Metals & Minerals
With the majority of North American automakers idling manufacturing capacity, steel makers are responding by slowing production at some mills, and idling operations at other locations. ArcelorMittal will idle the No. 4 Blast Furnace at Indiana Harbor West, where it idled the No. 7 Blast Furnace last year. It is also idling the No. 4 Blast Furnace at the Dofasco mill in Hamilton, Ontario. Last week, Arcelor idled blast furnaces in Europe in response. Gerdau has announced a series of idlings as well.
The global mining industry continues to slow production and place some operations on care and maintenance in response to slowing demand in the wake of COVID-19 responses. South Africa has ordered a lockdown of all mines by midnight Thursday, becoming the latest in a slew of countries to order scale-backs or lockdowns of mining operations, including Argentina, Canada, Chile and Peru. Australia is one important mining jurisdiction that has not seen a large-scale impact to mining operations as of yet.
Industrial Manufacturing
Ford has converted its 3D printing plant in Michigan to manufacture face shields to help combat the COVID-19 virus. The company will manufacture 75,000 shields this week and 100,000 per week beginning the week of March 30.
Fiat has closed its automotive plants due to COVID-19 concerns. Plants in Kokomo and Sterling Heights both have had confirmed cases on-site.
Both GM and Ford are working closely with 3M and ventilator manufacturers such as GE to design and build ventilators and respirators utilizing automotive parts such as seat fans.
Food & Beverage
In addition to the recent spike in demand for staple food items due to the outbreak, there has been a sharp increase in sales of comfort and snack foods, as consumers shelter in place. Snack food manufacturers are ramping up production by adding shifts and running around the clock where possible.
Pharmaceutical & Biotech
Hilden, Germany-based Qiagen is working around the clock at its global manufacturing facilities to dramatically ramp up global production capacity of RNA extraction kits that are used as part of workflows around the world to detect nucleic acid from SARS-CoV-2, the novel coronavirus that causes COVID-19.
In Germantown, Maryland, where test kits are now being assembled 24/7, an approximate 188,000-square-foot expansion is in the works and awaiting permit approval to increase research and development and production capacity.
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.
Petroleum Refining
Refineries across the globe continue to scale back operations in response to falling demand caused by the COVID-19 outbreak.
In Texas, ExxonMobil continues to plan a maintenance turnaround starting April 3 on units at its 240,000-barrel-per-day (BBL/d) Beaumont refinery. Unconfirmed reports have indicated that ExxonMobil has reduced plant operating rates by 20% in response to lower demand.
PBF reduced production rates by an estimated 20% starting Monday at its 175,000-BBL/d Delaware City, Delaware, refinery as a result of reduced demand.
PetroChina Jinzhou Petrochemical Company Limited continues with derate operations (reduced 22% from design capacity) at its 150,000-BBL/d Jinzhou, China, refinery due to market conditions. The duration of the rate cut, which began February 10, has been extended to April 10.
Power
While it is still too early to reveal the full impact of COVID-19, grid operators across the U.S. are seeing load declines in electricity demand. To mention a few, New England ISO, PJM Interconnection, California ISO and MISO are seeing decreased demand for electricity. On the other side of the coin, Southwest Power Pool, ERCOT and New York ISO have indicated it is too soon to understand the impact so far. It is anticipated that lower demand could benefit the renewable energy sector.
Petrochemical
Industrial Info's researchers continue to identify a growing number of plants that are limiting or minimizing staffing of plant operations to comply with regional restrictions related to "stay-at-home" mandates issued by numerous governments globally. A few chemical producers like Goodyear Chemical have ceased operations entirely, sending workers home at more than 50 plant sites across North and South America.
FMC has confirmed its plants remain in operation, with maintenance and ongoing projects continuing as scheduled, based on availability of people and materials. No new capital projects will be started until further evaluation can be completed.
Several chemical companies have begun having certain essential employees staying onsite for 24-hour shifts, while some non-essential teams are working remotely. INEOS in Joffre, Alberta, and Flopam in Plaquemine, Louisiana, are just a couple of examples. Some plants have also moved to having workers rotate shifts, working several days on and several days off.
Large maintenance turnarounds are being pushed out as much as a year or more based on the current market crisis. Dow Chemical has postponed the turnaround of its ethylene plant in Fort Saskatchewan until third-quarter 2021 in response to both labor concerns surrounding COVID-19 and volatility in the market.
Alternative Fuels
Ethanol producers have begun to cut production rates by as much as 50% this week in response to petroleum refiners reducing gasoline production. Industrial Info has identified approximately $600 million in capital project spending that has been delayed as a result of demand destruction and COVID-19 in the Alternative Fuels industry. All previously planned capital projects will be reassessed once demand begins to return, and even many maintenance projects will be trimmed to a minimal scope.
Oil & Gas Production
The dash to slash planned capex continues for the industry in response to the drop in oil prices. On Tuesday, Chevron said it would reduce its capital and exploratory budget by $4 billion, or 20%, to $16 billion for the year. This includes $2 billion in upstream unconventionals, primarily in the Permian Basin.
Metals & Minerals
With the majority of North American automakers idling manufacturing capacity, steel makers are responding by slowing production at some mills, and idling operations at other locations. ArcelorMittal will idle the No. 4 Blast Furnace at Indiana Harbor West, where it idled the No. 7 Blast Furnace last year. It is also idling the No. 4 Blast Furnace at the Dofasco mill in Hamilton, Ontario. Last week, Arcelor idled blast furnaces in Europe in response. Gerdau has announced a series of idlings as well.
The global mining industry continues to slow production and place some operations on care and maintenance in response to slowing demand in the wake of COVID-19 responses. South Africa has ordered a lockdown of all mines by midnight Thursday, becoming the latest in a slew of countries to order scale-backs or lockdowns of mining operations, including Argentina, Canada, Chile and Peru. Australia is one important mining jurisdiction that has not seen a large-scale impact to mining operations as of yet.
Industrial Manufacturing
Ford has converted its 3D printing plant in Michigan to manufacture face shields to help combat the COVID-19 virus. The company will manufacture 75,000 shields this week and 100,000 per week beginning the week of March 30.
Fiat has closed its automotive plants due to COVID-19 concerns. Plants in Kokomo and Sterling Heights both have had confirmed cases on-site.
Both GM and Ford are working closely with 3M and ventilator manufacturers such as GE to design and build ventilators and respirators utilizing automotive parts such as seat fans.
Food & Beverage
In addition to the recent spike in demand for staple food items due to the outbreak, there has been a sharp increase in sales of comfort and snack foods, as consumers shelter in place. Snack food manufacturers are ramping up production by adding shifts and running around the clock where possible.
Pharmaceutical & Biotech
Hilden, Germany-based Qiagen is working around the clock at its global manufacturing facilities to dramatically ramp up global production capacity of RNA extraction kits that are used as part of workflows around the world to detect nucleic acid from SARS-CoV-2, the novel coronavirus that causes COVID-19.
In Germantown, Maryland, where test kits are now being assembled 24/7, an approximate 188,000-square-foot expansion is in the works and awaiting permit approval to increase research and development and production capacity.
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.
