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Released September 11, 2020 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Looking to fourth-quarter 2020, the slate of planned U.S. Petroleum Refining project construction starts is paltry when compared with past and future quarters. Industrial Info is tracking five active projects with a combined worth of $127 million that are planned for kickoff during the quarter.
In comparison, fourth-quarter 2019 saw the kickoff of 35 U.S. refining projects worth more than $1.53 billion. And for the first-quarter of 2021, 88 projects worth more than $2.8 billion are planned for kickoff.
Chris Paschall, Industrial Info's Vice President of Research for Petroleum Refining, noted that one reason for the low kickoff numbers for the upcoming quarter is that refinery economics have greatly changed due to weak demand globally, brought about by the COVID-19 pandemic, with less driving and travel leading to less fuel demand. U.S. regular gasoline retail prices averaged $2.18 per gallon in August, largely unchanged from the average in July, but 44 cents per gallon lower than at the same time last year, according to the U.S. Energy Information Administration's (EIA) September Short-Term Energy Outlook (STEO). The EIA said it expects that gasoline prices will decrease through the rest of the year, falling to an average of $2.03 per gallon in December.
U.S. finished gasoline production had plummeted in April to a four-week average of about 6.2 million barrels per day from nearly 10 million barrels a day (BBL/d) in March, according to the EIA. Since then, production has crawled up, and was 9.5 million BBL/d going into September. But that still was about 730,000 BBL/d less than what it had been a year earlier.
U.S. refiners also have cancelled or placed on hold numerous projects due to COVID-19. For more on that, see September 3, 2020 article - U.S. Refiners Freeze, Cancel High-Value Projects as COVID-19 Pummels Demand.
Paschall also noted that some planned refinery turnarounds have been pushed into next year as a result of the economics, but the "spring" turnaround season is always much higher than the "fall" season. Of the 88 projects worth $2.8 billion that are planned for kickoff in first-quarter 2021, about half of them, worth $780 million, are tied to maintenance.
Fourth-quarter U.S. refinery projects include:
Industrial Info also is tracking nearly $4.8 billion worth of planned U.S. refinery project completions next quarter.
By far, the largest of these is the $2.7 billion restart of Limetree Bay Ventures LLC's 200,000-BBL/d Saint Croix Refinery in Christiansted, Virgin Islands. The former Hovensa refinery was shuttered in 2012, and the need for extensive repairs drove more than $1 billion in cost overruns, according to Reuters. For more information, see Industrial Info's project report.
In Old Ocean, Texas, Phillips 66 (NYSE:PSX) (Houston, Texas) plans to finish up construction of Y-Grade Natural Gas Liquids (NGL) Fractionation units #1 and #2 at its Sweeny Refinery, at a cost of $1.3 billion. The additions will increase the refinery's fractionation capacity by 300,000 BBL/d. See Industrial Info's project reports on Unit #2 and Unit #3.
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.
In comparison, fourth-quarter 2019 saw the kickoff of 35 U.S. refining projects worth more than $1.53 billion. And for the first-quarter of 2021, 88 projects worth more than $2.8 billion are planned for kickoff.
Chris Paschall, Industrial Info's Vice President of Research for Petroleum Refining, noted that one reason for the low kickoff numbers for the upcoming quarter is that refinery economics have greatly changed due to weak demand globally, brought about by the COVID-19 pandemic, with less driving and travel leading to less fuel demand. U.S. regular gasoline retail prices averaged $2.18 per gallon in August, largely unchanged from the average in July, but 44 cents per gallon lower than at the same time last year, according to the U.S. Energy Information Administration's (EIA) September Short-Term Energy Outlook (STEO). The EIA said it expects that gasoline prices will decrease through the rest of the year, falling to an average of $2.03 per gallon in December.
U.S. finished gasoline production had plummeted in April to a four-week average of about 6.2 million barrels per day from nearly 10 million barrels a day (BBL/d) in March, according to the EIA. Since then, production has crawled up, and was 9.5 million BBL/d going into September. But that still was about 730,000 BBL/d less than what it had been a year earlier.
U.S. refiners also have cancelled or placed on hold numerous projects due to COVID-19. For more on that, see September 3, 2020 article - U.S. Refiners Freeze, Cancel High-Value Projects as COVID-19 Pummels Demand.
Paschall also noted that some planned refinery turnarounds have been pushed into next year as a result of the economics, but the "spring" turnaround season is always much higher than the "fall" season. Of the 88 projects worth $2.8 billion that are planned for kickoff in first-quarter 2021, about half of them, worth $780 million, are tied to maintenance.
Fourth-quarter U.S. refinery projects include:
- Sinclair Oil Corporation's (Salt Lake City, Utah) sulfur recovery unit replacement at its 30,000-BBL/d Casper Refinery in Wyoming; see project report.
- Sinclair Oil's pipeline tank additions at its 85,000-BBL refinery in Sinclair, Wyoming; see project report.
- Marathon Petroleum Corporation's (NYSE:MPC) (Findlay, Ohio) Gas Oil Hydrotreater 15 Unit Upgrade at its 564,000-BBL/d Garyville Refinery in Louisiana; see project report.
- Brookfield Asset Management Incorporated's (Toronto, Canada) Port Lavaca, Texas, Needle Coke and Calciner Unit Upgrades; see project report.
- Royal Dutch Shell plc's (NYSE:RDS.A) (The Hague, Netherlands) fourth-quarter HTU (Train 1) Diesel Hydrotreater turnaround at its 240,000-BBL/d Convent Refinery in Louisiana; see project report.
Industrial Info also is tracking nearly $4.8 billion worth of planned U.S. refinery project completions next quarter.
By far, the largest of these is the $2.7 billion restart of Limetree Bay Ventures LLC's 200,000-BBL/d Saint Croix Refinery in Christiansted, Virgin Islands. The former Hovensa refinery was shuttered in 2012, and the need for extensive repairs drove more than $1 billion in cost overruns, according to Reuters. For more information, see Industrial Info's project report.
In Old Ocean, Texas, Phillips 66 (NYSE:PSX) (Houston, Texas) plans to finish up construction of Y-Grade Natural Gas Liquids (NGL) Fractionation units #1 and #2 at its Sweeny Refinery, at a cost of $1.3 billion. The additions will increase the refinery's fractionation capacity by 300,000 BBL/d. See Industrial Info's project reports on Unit #2 and Unit #3.
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.
