Released March 27, 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 and others.
Petroleum Refining
WRB has reduced output rates by 30% and will be evaluating that rate as a drop in driving affects operations at its 355,000-barrel-per-day (BBL/d) Wood River refinery in Roxana, Illinois.
Phillips 66 has reduced output rates by about a third at its 195,000-BBL/d Ponca City, Oklahoma, refinery.
While many U.S. refineries are lowering their output due to lack of demand, the opposite is occurring at some refineries in China. Dongying Lianhe Petrochemical Company Limited has been ramping up its run rate (currently at 65% capacity) at its 84,000-BBL/d Dongying, China, refinery since March 23. The refinery had curtailed production by 50% starting January 24 due to the outbreak.
Several of Thailand's refineries are operating at normal rates despite a drop in aviation fuel demand due to travel restrictions. These include Star Petroleum's 175,000-BBL/d Map Ta Phut refinery, Esso's (Thailand) 170,000-BBL/d Sriracha refinery, IRPC's 215,000-BBL/d Rayong refinery, Bangchak Corporation's 120,000-BBL/d Bangkok refinery, PTT Global Chemical's 150,000-BBL/d Rayong Refinery and Thai Oil's 273,000-BBL/d refinery.
Singapore Refining Company (SRC) shut down its 290,000-BBL/d Jurong Island Refinery on Thursday in Singapore due to low demand. The refinery is tentatively expected to restart by April15.
Power
Maintenance schedules for the U.S. nuclear power sector could be affected by COVID-19. Roughly 97% of the nuclear fleet has scheduled outages during 2020. Industrial Info has identified only one delay so far.
Extensions of renewable tax credits were not approved as part of the final CARES Act, which was approved earlier this week by the U.S. Senate and today by the U.S. House of Representatives.
COVID-19 is expected to create a crisis for U.S. solar project activity due to equipment delays, labor shortages and project cancellations.
Petrochemical
Some equipment suppliers are seeing an increase in orders this month for parts like seals, gaskets, bearings, rupture disks and maintenance materials in response to the idling of plants caused by the pandemic.
Nutrien has postponed its nitric acid turnarounds in Geismar, Louisiana, which were originally scheduled for the second quarter this year. The turnarounds have been pushed back to this time in 2021. Operating crews have been reduced by half for the short- to mid-term amid low demand for fertilizer.
Dow Chemical's operations in Beaumont, Texas are proceeding normally. Workers are screened at the gate for any signs of illness. Many non-essential personnel are working from home.
In Brazil, Braskem has reduced production rates by 50% at its 1,351 million-pound-per-year Ethylene 1 and 734 million-pound-per-year Ethylene 2 Unit at its Camacari Plant.
Arauco do Brasil is producing at lower rates, with only essential workers on the site, and has postponed all capital investments for 30 days, especially at its formaldehyde plant in Araucaria, Brazil.
In Mexico, Pemex Petroquimica's Cangrejera and Morelos ethylene units are running at full capacity. Workers are operating in staggered shifts to maintain production.
Interpaints has halted production at its plant in Lima, Peru, until the first week of April. Peru is enforcing a curfew in response to the pandemic, making staffing and operations a significant challenge. In Argentina, Atanor has halted production at its plant in Rio Tercero, Cordoba, due to the crisis.
In Iran, Razi Petrochemical Company has postponed a 25-day turnaround at its fertilizer complex in Bandar Imam.
Nitrogen Chemicals of Zambia and Tata Chemicals Magadi Limited in Kenya continue with their annual turnarounds with limited workforces.
Oil & Gas Production
Woodfibre LNG's planned liquefied natural gas (LNG) production site in Squamish, British Columbia, has been delayed. Construction was to start this summer, but a contracted fabrication company in China was been shut down due to the outbreak.
Oil & Gas Terminals
In Canada, Wapahki Energy has delayed its plans for a $40 million pilot plant in Lac La Biche, Alberta, which was designed to produce bricks made from a blend of bitumen and plastic. The blending makes it easier to transport the bitumen.
Metals & Minerals
U.S. Steel said it would reduce 2020 capital expenditures by 14% from $895 million to $750 million in response to the pandemic. The endless casting line and cogeneration projects at Mon Valley Works will be delayed.
In South Africa, South32 will reduce capital expenditures by $150 million over the next 15 months and temporarily shutter "non-essential" operations.
Pulp & Paper
West Fraser plans to reduce capital spending for 2020 by $75 million by delaying and deferring planned projects. Also, the company will curtail operations at its wood mills and defer the maintenance shutdown of a mill in Quesnel, British Columbia.
Canfor Pulp Products is curtailing production at its Northwood pulp mill in British Columbia.
Nanaimo's Harmac Pacific pulp mill in British Columbia has increased production, and has seen orders doubled for five types of pulp, which is shipped to a U.S. manufacturing facility that produces surgical equipment like gowns, masks, drapes, caps and other products. Harmac is running its full workforce of more than 300 at a time when many businesses are closing.
Rayonier Advanced Materials has announced downtime or production curtailments at seven Canadian mills. The company said it would stop newsprint production (a non-essential product) at its Kapuskasing mill in Ontario. Rayonier will reduce or cease operations at all its six softwood sawmills in Ontario and Quebec. All other facilities are expected to continue operating at normal levels.
In the Oceania market region, New Zealand's forest industry has ceased all operations for four weeks beginning March 25. Mills in Australia are continuing to operate under normal conditions.
Industrial Manufacturing
President Donald Trump has ordered General Motors (GM) to make ventilators under the Defense Production Act, but GM has already said it will begin producing 10,000 ventilators per month at a component plant in Kokomo, Indiana. The company has recalled 1,000 workers to get production started.
GM also is converting its Warren, Michigan, transmission plant to produce masks. It will be able to produce 50,000 masks per week within two weeks.
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
WRB has reduced output rates by 30% and will be evaluating that rate as a drop in driving affects operations at its 355,000-barrel-per-day (BBL/d) Wood River refinery in Roxana, Illinois.
Phillips 66 has reduced output rates by about a third at its 195,000-BBL/d Ponca City, Oklahoma, refinery.
While many U.S. refineries are lowering their output due to lack of demand, the opposite is occurring at some refineries in China. Dongying Lianhe Petrochemical Company Limited has been ramping up its run rate (currently at 65% capacity) at its 84,000-BBL/d Dongying, China, refinery since March 23. The refinery had curtailed production by 50% starting January 24 due to the outbreak.
Several of Thailand's refineries are operating at normal rates despite a drop in aviation fuel demand due to travel restrictions. These include Star Petroleum's 175,000-BBL/d Map Ta Phut refinery, Esso's (Thailand) 170,000-BBL/d Sriracha refinery, IRPC's 215,000-BBL/d Rayong refinery, Bangchak Corporation's 120,000-BBL/d Bangkok refinery, PTT Global Chemical's 150,000-BBL/d Rayong Refinery and Thai Oil's 273,000-BBL/d refinery.
Singapore Refining Company (SRC) shut down its 290,000-BBL/d Jurong Island Refinery on Thursday in Singapore due to low demand. The refinery is tentatively expected to restart by April15.
Power
Maintenance schedules for the U.S. nuclear power sector could be affected by COVID-19. Roughly 97% of the nuclear fleet has scheduled outages during 2020. Industrial Info has identified only one delay so far.
Extensions of renewable tax credits were not approved as part of the final CARES Act, which was approved earlier this week by the U.S. Senate and today by the U.S. House of Representatives.
COVID-19 is expected to create a crisis for U.S. solar project activity due to equipment delays, labor shortages and project cancellations.
Petrochemical
Some equipment suppliers are seeing an increase in orders this month for parts like seals, gaskets, bearings, rupture disks and maintenance materials in response to the idling of plants caused by the pandemic.
Nutrien has postponed its nitric acid turnarounds in Geismar, Louisiana, which were originally scheduled for the second quarter this year. The turnarounds have been pushed back to this time in 2021. Operating crews have been reduced by half for the short- to mid-term amid low demand for fertilizer.
Dow Chemical's operations in Beaumont, Texas are proceeding normally. Workers are screened at the gate for any signs of illness. Many non-essential personnel are working from home.
In Brazil, Braskem has reduced production rates by 50% at its 1,351 million-pound-per-year Ethylene 1 and 734 million-pound-per-year Ethylene 2 Unit at its Camacari Plant.
Arauco do Brasil is producing at lower rates, with only essential workers on the site, and has postponed all capital investments for 30 days, especially at its formaldehyde plant in Araucaria, Brazil.
In Mexico, Pemex Petroquimica's Cangrejera and Morelos ethylene units are running at full capacity. Workers are operating in staggered shifts to maintain production.
Interpaints has halted production at its plant in Lima, Peru, until the first week of April. Peru is enforcing a curfew in response to the pandemic, making staffing and operations a significant challenge. In Argentina, Atanor has halted production at its plant in Rio Tercero, Cordoba, due to the crisis.
In Iran, Razi Petrochemical Company has postponed a 25-day turnaround at its fertilizer complex in Bandar Imam.
Nitrogen Chemicals of Zambia and Tata Chemicals Magadi Limited in Kenya continue with their annual turnarounds with limited workforces.
Oil & Gas Production
Woodfibre LNG's planned liquefied natural gas (LNG) production site in Squamish, British Columbia, has been delayed. Construction was to start this summer, but a contracted fabrication company in China was been shut down due to the outbreak.
Oil & Gas Terminals
In Canada, Wapahki Energy has delayed its plans for a $40 million pilot plant in Lac La Biche, Alberta, which was designed to produce bricks made from a blend of bitumen and plastic. The blending makes it easier to transport the bitumen.
Metals & Minerals
U.S. Steel said it would reduce 2020 capital expenditures by 14% from $895 million to $750 million in response to the pandemic. The endless casting line and cogeneration projects at Mon Valley Works will be delayed.
In South Africa, South32 will reduce capital expenditures by $150 million over the next 15 months and temporarily shutter "non-essential" operations.
Pulp & Paper
West Fraser plans to reduce capital spending for 2020 by $75 million by delaying and deferring planned projects. Also, the company will curtail operations at its wood mills and defer the maintenance shutdown of a mill in Quesnel, British Columbia.
Canfor Pulp Products is curtailing production at its Northwood pulp mill in British Columbia.
Nanaimo's Harmac Pacific pulp mill in British Columbia has increased production, and has seen orders doubled for five types of pulp, which is shipped to a U.S. manufacturing facility that produces surgical equipment like gowns, masks, drapes, caps and other products. Harmac is running its full workforce of more than 300 at a time when many businesses are closing.
Rayonier Advanced Materials has announced downtime or production curtailments at seven Canadian mills. The company said it would stop newsprint production (a non-essential product) at its Kapuskasing mill in Ontario. Rayonier will reduce or cease operations at all its six softwood sawmills in Ontario and Quebec. All other facilities are expected to continue operating at normal levels.
In the Oceania market region, New Zealand's forest industry has ceased all operations for four weeks beginning March 25. Mills in Australia are continuing to operate under normal conditions.
Industrial Manufacturing
President Donald Trump has ordered General Motors (GM) to make ventilators under the Defense Production Act, but GM has already said it will begin producing 10,000 ventilators per month at a component plant in Kokomo, Indiana. The company has recalled 1,000 workers to get production started.
GM also is converting its Warren, Michigan, transmission plant to produce masks. It will be able to produce 50,000 masks per week within two weeks.
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.
