Released April 03, 2020 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--In just three days, the total investment value for global projects experiencing or facing delays due to COVID-19 has more than doubled, according to Industrial Info's project database. Leading companies in the Petroleum Refining, Power Generation and Chemical Processing industries, such as Royal Dutch Shell plc (NYSE:RDS.A) (The Hague, Netherlands), Phillips 66 (NYSE:PSX) (Houston, Texas) and Methanex Corporation (NASDAQ:MEOH) (Vancouver, Canada), are slashing their spending outlooks and delaying major capital projects. Industrial Info is tracking more than $290 billion in global projects that have been delayed due to COVID-19, including more than $100 billion worth in the U.S.
Click here for a global list of affected projects.
Click on the image at right for a graph detailing global projects to be affected by COVID-19, by industry.
Methanex stopped short of entirely halting construction on its highly anticipated, $1.5 billion Geismar 3 Unit at its methanol plant in Geismar, Louisiana, but is planning to defer roughly one-third of its projected spending for as much as 18 months. The 1.8 million-metric-ton-per-year unit began construction in July and had been progressing according to schedule, but the company announced this week that all non-essential construction and equipment procurement would be suspended "until market conditions allow the Geismar 3 project to restart."
Methanex's decision follows its announcement two weeks ago that it would idle production at two plants in Trinidad and Chile that account for about 19% of its global production. For more information, see Industrial Info's project report.
In addition to big-ticket projects like Geismar 3, the Chemical Processing and Power Generation industries are seeing a swath of maintenance-related delays. Universal Industrial Gases Incorporated (Bethlehem, Pennsylvania) is putting off a turnaround at its air-separation plant in Warner Robins, Georgia, from July to November, while Jones-Hamilton Company (Walbridge, Ohio) has pushed back a turnaround at its Chester Sodium Bi-sulfate Plant in Richburg, South Carolina, until later in the summer. The Warner Robins facility produces 350 tons per day of oxygen, nitrogen and argon.
Duke Energy Corporation (NYSE:DUK) (Charlotte, North Carolina) likely will delay an outage at its power station in Noblesville, Indiana, that was slated to begin next month. The natural gas-fired, combined-cycle (NGCC) facility generates 320 megawatts (MW) from a trio of combustion turbines and a pair of steam turbines. For more information, see Industrial Info's project report.
Shell and Phillips 66 are among the leading companies in the Petroleum Refining Industry that are delaying scheduled turnarounds at their largest facilities. Shell is nearing a decision on whether to postpone its $60 million fluid catalytic cracking unit (FCCU) upgrade at its refinery in Deer Park, Texas, which handles 75,000 barrels per day (BBL/d), while Phillips 66 is nearing a similar decision on its $10 million gasoline hydrotreater unit upgrade at its Wood River Refinery in Roxana, Illinois, which handles 55,000 BBL/d.
The delays are part of a broader trend at both companies. Shell recently announced it would cut its spending outlook for the next 12 months from $25 billion to about $20 billion, and suspend its $25 billion share buyback plan. Phillips 66 announced it will slash its planned capital spending for 2020 from about $3.8 billion to $3.1 billion, as well as delay several major pipeline-construction projects. In addition to problems stemming from COVID-19, oil and gas companies are struggling with an ongoing price war between Saudi Arabai and Russia. For more information, see Industrial Info's reports on the Deer Park and Roxana projects.
Tech and Auto Leaders Also Cut Back
Facebook Incorporated (NASDAQ:FB) (Menlo Park, California) and Microsoft Corporation (NASDAQ:MSFT) (Redmond, Washington) are delaying at least two major data-center construction projects: Facebook's $750 million Project Starbelt in Huntsville, Alabama, and Microsoft's $325 million Project Osmium in West Des Moines, Iowa. Facebook's project began construction in September 2018, and Microsoft's project was preparing to kick off construction in June. It is not yet known when either project will restart or when they are expected to be completed. For more information, see Industrial Info's reports on the Huntsville and West Des Moines projects.
Daimler AG (Stuttgart, Germany) announced it is delaying construction on its $570 million electric truck-manufacturing plant in Portland, Oregon, for the foreseeable future, and Toyota Motor Corporation (NYSE:TM) (Toyota, Japan) has shut down a facility where it was preparing for $40 million in additional truck-assembly equipment in Parkersburg, West Virginia. Both projects were set to begin in the third quarter. For more information, see Industrial Info's reports on the Portland and Parkersburg projects.
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.
Click here for a global list of affected projects.
Click on the image at right for a graph detailing global projects to be affected by COVID-19, by industry.Methanex stopped short of entirely halting construction on its highly anticipated, $1.5 billion Geismar 3 Unit at its methanol plant in Geismar, Louisiana, but is planning to defer roughly one-third of its projected spending for as much as 18 months. The 1.8 million-metric-ton-per-year unit began construction in July and had been progressing according to schedule, but the company announced this week that all non-essential construction and equipment procurement would be suspended "until market conditions allow the Geismar 3 project to restart."
Methanex's decision follows its announcement two weeks ago that it would idle production at two plants in Trinidad and Chile that account for about 19% of its global production. For more information, see Industrial Info's project report.
In addition to big-ticket projects like Geismar 3, the Chemical Processing and Power Generation industries are seeing a swath of maintenance-related delays. Universal Industrial Gases Incorporated (Bethlehem, Pennsylvania) is putting off a turnaround at its air-separation plant in Warner Robins, Georgia, from July to November, while Jones-Hamilton Company (Walbridge, Ohio) has pushed back a turnaround at its Chester Sodium Bi-sulfate Plant in Richburg, South Carolina, until later in the summer. The Warner Robins facility produces 350 tons per day of oxygen, nitrogen and argon.
Duke Energy Corporation (NYSE:DUK) (Charlotte, North Carolina) likely will delay an outage at its power station in Noblesville, Indiana, that was slated to begin next month. The natural gas-fired, combined-cycle (NGCC) facility generates 320 megawatts (MW) from a trio of combustion turbines and a pair of steam turbines. For more information, see Industrial Info's project report.
Shell and Phillips 66 are among the leading companies in the Petroleum Refining Industry that are delaying scheduled turnarounds at their largest facilities. Shell is nearing a decision on whether to postpone its $60 million fluid catalytic cracking unit (FCCU) upgrade at its refinery in Deer Park, Texas, which handles 75,000 barrels per day (BBL/d), while Phillips 66 is nearing a similar decision on its $10 million gasoline hydrotreater unit upgrade at its Wood River Refinery in Roxana, Illinois, which handles 55,000 BBL/d.
The delays are part of a broader trend at both companies. Shell recently announced it would cut its spending outlook for the next 12 months from $25 billion to about $20 billion, and suspend its $25 billion share buyback plan. Phillips 66 announced it will slash its planned capital spending for 2020 from about $3.8 billion to $3.1 billion, as well as delay several major pipeline-construction projects. In addition to problems stemming from COVID-19, oil and gas companies are struggling with an ongoing price war between Saudi Arabai and Russia. For more information, see Industrial Info's reports on the Deer Park and Roxana projects.
Tech and Auto Leaders Also Cut Back
Facebook Incorporated (NASDAQ:FB) (Menlo Park, California) and Microsoft Corporation (NASDAQ:MSFT) (Redmond, Washington) are delaying at least two major data-center construction projects: Facebook's $750 million Project Starbelt in Huntsville, Alabama, and Microsoft's $325 million Project Osmium in West Des Moines, Iowa. Facebook's project began construction in September 2018, and Microsoft's project was preparing to kick off construction in June. It is not yet known when either project will restart or when they are expected to be completed. For more information, see Industrial Info's reports on the Huntsville and West Des Moines projects.
Daimler AG (Stuttgart, Germany) announced it is delaying construction on its $570 million electric truck-manufacturing plant in Portland, Oregon, for the foreseeable future, and Toyota Motor Corporation (NYSE:TM) (Toyota, Japan) has shut down a facility where it was preparing for $40 million in additional truck-assembly equipment in Parkersburg, West Virginia. Both projects were set to begin in the third quarter. For more information, see Industrial Info's reports on the Portland and Parkersburg projects.
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.
