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Released June 20, 2017 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--President Donald Trump took aim at Germany last month, tweeting that the U.S. trade deficit with Germany was "very bad for the U.S." Trade deficit notwithstanding, however, leading global chemicals producer BASF SE (Ludwigshafen, Germany) is making sizeable investments in the U.S. via its local affiliate, BASF Corporation (Florham Park, New Jersey). Industrial Info is tracking $2.45 billion in project activity by BASF in the U.S.
According to the company's presentation at a May 9-10 industrial conference in Toronto, BASF expects capital expenditures for 2017-2021 to total Euro 19 billion (US$21 billion). Of this, 49% will go to projects in Europe, but the next biggest investment chunk (22%) is earmarked for North America.
Of the BASF projects being tracked by Industrial Info in the U.S., Texas has the greatest share, at 30 projects valued at $1.44 billion. Among them is a planned ethylene unit debottleneck in Port Arthur. The Port Arthur facility is a 60/40 joint venture between BASF and Total Petrochemicals & Refining USA, Incorporated. The project is in the market analysis and front-end engineering design (FEED) phase, and would include installation of a new furnace to increase production capacity by an unspecified amount.
According BASF, the Port Arthur facility is already home to one of the world's largest steam crackers, with a capacity to produce more than 1 million metric tons per year of ethylene. The cracker was revamped in 2013 to process lighter feeds and a tenth furnace was added in 2014. Construction of the debottleneck project could begin in third-quarter 2018, with completion in first-quarter 2019. For more information on the project, see Industrial Info's project report.
Louisiana has the second-largest share of BASF projects, amounting to $526 million. Among them is a planned methylene diphenylene diisocyanate (MDI) capacity expansion at the company's Geismar facility. The company is evaluating options to increase MDI capacity from 300,000 tons per year to 600,000 tons per year. Options include construction of a new MDI-3 unit, or expanding the existing MDI-1 and MDI-2 units in incremental stages. Construction is expected to start in second-quarter 2018, with completion in second-quarter 2020. For more information, see Industrial Info's project report.
The Geismar site includes 24 separate plants, which make products ranging from ethylene oxide and glycols to methylamines.
BASF isn't the only foreign investor in U.S. chemical projects. Speaking last week at the Downstream Engineering, Construction & Maintenance Petrochemical Update conference in New Orleans, Louisiana, American Chemistry Council President and Chief Executive Officer Cal Dooley estimated that more than 62% of the current and planned investments in U.S. petrochemical capital projects comes from overseas sources, such as SABIC (Riyadh, Saudi Arabia), Braskem (NYSE:BAK) (Sao Paulo, Brazil) and Dutch Shell plc (NYSE:RDS.A) (The Hague, Netherlands). Such companies are making investments in the U.S. because of its global cost competitiveness, which is made possible by the advent of hydraulic fracturing and cheap natural gas feedstocks. In turn, most of the products from the new chemical facilities will be exported overseas, he added.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 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/.
According to the company's presentation at a May 9-10 industrial conference in Toronto, BASF expects capital expenditures for 2017-2021 to total Euro 19 billion (US$21 billion). Of this, 49% will go to projects in Europe, but the next biggest investment chunk (22%) is earmarked for North America.
Of the BASF projects being tracked by Industrial Info in the U.S., Texas has the greatest share, at 30 projects valued at $1.44 billion. Among them is a planned ethylene unit debottleneck in Port Arthur. The Port Arthur facility is a 60/40 joint venture between BASF and Total Petrochemicals & Refining USA, Incorporated. The project is in the market analysis and front-end engineering design (FEED) phase, and would include installation of a new furnace to increase production capacity by an unspecified amount.
According BASF, the Port Arthur facility is already home to one of the world's largest steam crackers, with a capacity to produce more than 1 million metric tons per year of ethylene. The cracker was revamped in 2013 to process lighter feeds and a tenth furnace was added in 2014. Construction of the debottleneck project could begin in third-quarter 2018, with completion in first-quarter 2019. For more information on the project, see Industrial Info's project report.
Louisiana has the second-largest share of BASF projects, amounting to $526 million. Among them is a planned methylene diphenylene diisocyanate (MDI) capacity expansion at the company's Geismar facility. The company is evaluating options to increase MDI capacity from 300,000 tons per year to 600,000 tons per year. Options include construction of a new MDI-3 unit, or expanding the existing MDI-1 and MDI-2 units in incremental stages. Construction is expected to start in second-quarter 2018, with completion in second-quarter 2020. For more information, see Industrial Info's project report.
The Geismar site includes 24 separate plants, which make products ranging from ethylene oxide and glycols to methylamines.
BASF isn't the only foreign investor in U.S. chemical projects. Speaking last week at the Downstream Engineering, Construction & Maintenance Petrochemical Update conference in New Orleans, Louisiana, American Chemistry Council President and Chief Executive Officer Cal Dooley estimated that more than 62% of the current and planned investments in U.S. petrochemical capital projects comes from overseas sources, such as SABIC (Riyadh, Saudi Arabia), Braskem (NYSE:BAK) (Sao Paulo, Brazil) and Dutch Shell plc (NYSE:RDS.A) (The Hague, Netherlands). Such companies are making investments in the U.S. because of its global cost competitiveness, which is made possible by the advent of hydraulic fracturing and cheap natural gas feedstocks. In turn, most of the products from the new chemical facilities will be exported overseas, he added.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 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/.
