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Released January 18, 2022 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Maintenance projects in the Chemical Processing and Oil & Gas industries normally are routine events, scheduled months (if not years) in advance and performed with clockwork efficiency. But the ongoing COVID-19 pandemic has knocked potholes in these otherwise smooth roads, with labor shortages, equipment delays and shaky commodity prices putting the brakes on typically unexceptional shutdown, turnaround and overhaul projects. Industrial Info is tracking more than 1,100 and 630 maintenance-related projects in the Chemical Processing and Oil & Gas industries, respectively, in the U.S. and Canada that are set to kick off in 2022.
The top three challenges for shutdown, turnaround and overhaul projects in the U.S. and Canadian Chemical Processing Industry are labor constraints, inventory management and shifting commodity prices.
"At the moment, it is often COVID-related labor constraints," said Trey Hamblet, Industrial Info's vice president of research for Chemical Processing, of the challenges facing maintenance projects. "We have witnessed quite a few large and small turnarounds pushed a few days--or even weeks and months--back, due to availability or health concerns."
Inventory management has been particularly challenging for the Chemical Processing Industry. Delivery schedules for routine replacement parts sometimes have proven to be lengthy, or at least longer than expected. Volatile feedstock and energy costs have made it difficult for companies to pick the right time to take their units offline.
Click on the image at right for a graph detailing the top 10 parent companies, by investment value, for maintenance-related projects in the U.S. and Canadian Chemical Processing Industry for 2022.
Two of the largest chemical companies in North America--LyondellBasell Industries NV (NYSE:LYB) (Houston, Texas) and Chevron Phillips Chemical Company LLC (CPChem) (The Woodlands, Texas), which is a joint venture between Chevron Corporation (NYSE:CVX) (San Ramon, California) and Phillips 66 (NYSE:PSX) (Houston)--are beginning work on long-delayed maintenance projects in the Houston Ship Channel, one of the busiest places for the global industry.
LyondellBasell had planned on performing a key turnaround on the QE1 Unit at its complex in La Porte, Texas, in the third quarter of 2020, but pushed it back to the current quarter. The project involves major inspection and repairs to an ethylene unit, its supporting equipment and area utilities. Subscribers to Industrial Info's Global Market Intelligence (GMI) Chemical Processing Project Database can read more in a detailed project report.
Chevron Phillips had planned on performing a key turnaround on the polyalphaolefins (PAO) production unit at its complex in Baytown, Texas, in the first quarter of 2021, but also was forced to push it back to the current quarter. Subscribers can learn more from Industrial Info's project report.
The top three challenges for shutdown, turnaround and overhaul projects in the U.S. and Canadian Oil & Gas Industry are labor constraints, delivery schedules for equipment, and unpredictable commodity prices.
"For the oil sands projects in Canada, we are tracking four high-dollar, large-manpower turnarounds this year, two of which were delayed from last year, mainly due to COVID-related labor issues," said Gordon Gorrie, Industrial Info's vice president of research for Oil & Gas. "We expect similar issues this time, around as we close in on the slated timings. These four turnarounds could be competing for available labor."
Click on the image at right for a graph detailing the top 10 parent companies, by investment value, for maintenance-related projects in the U.S. and Canadian Oil & Gas Industry for 2022.
Canadian Natural Resources Limited (NYSE:CNQ) (Calgary, Alberta) is preparing for at least four major turnarounds at bitumen-production and processing facilities across Alberta: the Kirby South plant near Lac La Biche; the Jackfish II plant near Conklin; the Wolf Lake plant near Bonnyville; and the Primrose North plant near Cold Lake. Subscribers can read detailed project reports on the Kirby South, Jackfish II, Wolf Lake and Primrose North.
Similarly, MEG Energy Corporation (Calgary), another top spender on maintenance projects, is preparing for a turnaround at its Christina Lake complex near Fort McMurray, Alberta. The project involves inspections and repairs to the bitumen production and processing plant. Subscribers can learn more from Industrial Info's project report.
"For midstream gas processing, some plants were due to undergo modernization at the same time as their turnarounds, and are being delayed due to lengthy delivery schedules for new or replacement components," Gorrie said. "We're second-guessing here, but some may go for a quick 'pit stop,' pending delivery of the delayed equipment."
Gorrie also noted that, as with the Chemical Processing Industry, volatile commodity prices have created problems for owners of liquefied natural gas (LNG) facilities. The currently elevated LNG prices have made it imperative--and tricky--for plant owners to pick the right time for maintenance projects.
Hamblet and Chris Paschall, Industrial Info's Vice President of Research for Oil & Gas and Petroleum Refining, will present an outlook for 2022-23 during Industrial Info's U.S. & Canada Industrial Market Outlook virtual webinar, which will be held January 19-20. Sign up for this free event here.
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.
The top three challenges for shutdown, turnaround and overhaul projects in the U.S. and Canadian Chemical Processing Industry are labor constraints, inventory management and shifting commodity prices.
"At the moment, it is often COVID-related labor constraints," said Trey Hamblet, Industrial Info's vice president of research for Chemical Processing, of the challenges facing maintenance projects. "We have witnessed quite a few large and small turnarounds pushed a few days--or even weeks and months--back, due to availability or health concerns."
Inventory management has been particularly challenging for the Chemical Processing Industry. Delivery schedules for routine replacement parts sometimes have proven to be lengthy, or at least longer than expected. Volatile feedstock and energy costs have made it difficult for companies to pick the right time to take their units offline.
Click on the image at right for a graph detailing the top 10 parent companies, by investment value, for maintenance-related projects in the U.S. and Canadian Chemical Processing Industry for 2022.Two of the largest chemical companies in North America--LyondellBasell Industries NV (NYSE:LYB) (Houston, Texas) and Chevron Phillips Chemical Company LLC (CPChem) (The Woodlands, Texas), which is a joint venture between Chevron Corporation (NYSE:CVX) (San Ramon, California) and Phillips 66 (NYSE:PSX) (Houston)--are beginning work on long-delayed maintenance projects in the Houston Ship Channel, one of the busiest places for the global industry.
LyondellBasell had planned on performing a key turnaround on the QE1 Unit at its complex in La Porte, Texas, in the third quarter of 2020, but pushed it back to the current quarter. The project involves major inspection and repairs to an ethylene unit, its supporting equipment and area utilities. Subscribers to Industrial Info's Global Market Intelligence (GMI) Chemical Processing Project Database can read more in a detailed project report.
Chevron Phillips had planned on performing a key turnaround on the polyalphaolefins (PAO) production unit at its complex in Baytown, Texas, in the first quarter of 2021, but also was forced to push it back to the current quarter. Subscribers can learn more from Industrial Info's project report.
The top three challenges for shutdown, turnaround and overhaul projects in the U.S. and Canadian Oil & Gas Industry are labor constraints, delivery schedules for equipment, and unpredictable commodity prices.
"For the oil sands projects in Canada, we are tracking four high-dollar, large-manpower turnarounds this year, two of which were delayed from last year, mainly due to COVID-related labor issues," said Gordon Gorrie, Industrial Info's vice president of research for Oil & Gas. "We expect similar issues this time, around as we close in on the slated timings. These four turnarounds could be competing for available labor."
Click on the image at right for a graph detailing the top 10 parent companies, by investment value, for maintenance-related projects in the U.S. and Canadian Oil & Gas Industry for 2022.Canadian Natural Resources Limited (NYSE:CNQ) (Calgary, Alberta) is preparing for at least four major turnarounds at bitumen-production and processing facilities across Alberta: the Kirby South plant near Lac La Biche; the Jackfish II plant near Conklin; the Wolf Lake plant near Bonnyville; and the Primrose North plant near Cold Lake. Subscribers can read detailed project reports on the Kirby South, Jackfish II, Wolf Lake and Primrose North.
Similarly, MEG Energy Corporation (Calgary), another top spender on maintenance projects, is preparing for a turnaround at its Christina Lake complex near Fort McMurray, Alberta. The project involves inspections and repairs to the bitumen production and processing plant. Subscribers can learn more from Industrial Info's project report.
"For midstream gas processing, some plants were due to undergo modernization at the same time as their turnarounds, and are being delayed due to lengthy delivery schedules for new or replacement components," Gorrie said. "We're second-guessing here, but some may go for a quick 'pit stop,' pending delivery of the delayed equipment."
Gorrie also noted that, as with the Chemical Processing Industry, volatile commodity prices have created problems for owners of liquefied natural gas (LNG) facilities. The currently elevated LNG prices have made it imperative--and tricky--for plant owners to pick the right time for maintenance projects.
Hamblet and Chris Paschall, Industrial Info's Vice President of Research for Oil & Gas and Petroleum Refining, will present an outlook for 2022-23 during Industrial Info's U.S. & Canada Industrial Market Outlook virtual webinar, which will be held January 19-20. Sign up for this free event here.
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.
