Reports related to this article:
Project(s): View 7 related projects in PECWeb
Plant(s): View 7 related plants in PECWeb
Released May 26, 2020 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--At first glance, the COVID-19 pandemic would seem to cast a substantial shadow over Chemical Processing Industry (CPI) maintenance projects in the U.S. and Canada. As of May 22, Industrial Info's project database included more than 90 chemical maintenance-related projects, worth more than $547 million, in the two countries that were facing delays or otherwise have been affected by COVID-19 precautions.
But looks can be deceiving.
For one thing, Industrial Info is tracking more than 2,100 active CPI maintenance-related projects worth $6.86 billion in the U.S. and Canada. By value, those that could be affected by COVID-19 make up only about 8% of the total.
Also, Trey Hamblet, Industrial Info's global head of chemical processing research, said he's been watching the impact of maintenance projects by COVID-19 in recent weeks and discovered that the impacts have been minimal, "in that most turnarounds got pushed but only by an average of 90 days in most cases; very few were pushed out six months or more. This means that the total maintenance spend for the year will likely remain quite close to what it was at the start of the year."
For related information, see May 15, 2020 article - Chemical Processing Industry Faces Short-term Demand Destruction, but Long-term Demand Intact, So Far.
Examples of delays include:
Click on the image at right for a graph showing U.S. and Canadian COVID-19-impacted chemical maintenance projects by sector.
Some companies that had planned more costly turnarounds this year, such as for ethylene plant units, have pushed out those projects for lengthier periods.
In Sulphur, Louisiana, Westlake Chemical Corporation (NYSE:WLK) (Houston, Texas) has delayed the kickoff of a 90-day turnaround at its 1.6 billion-pound-per-year Petro 2 ethylene unit from late September this year to April 2021 as a result of COVID-19-related issues. For more information, see Industrial Info's project report and May 5, 2020, article - Westlake Chemical Cuts Planned Capex as Future Outlook Remains Uncertain.
The plastics/rubbers segment is looking at nearly $128 million worth of maintenance activity that could be impacted by COVID-19. Some of the projects are planned turnarounds for:
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.
But looks can be deceiving.
For one thing, Industrial Info is tracking more than 2,100 active CPI maintenance-related projects worth $6.86 billion in the U.S. and Canada. By value, those that could be affected by COVID-19 make up only about 8% of the total.
Also, Trey Hamblet, Industrial Info's global head of chemical processing research, said he's been watching the impact of maintenance projects by COVID-19 in recent weeks and discovered that the impacts have been minimal, "in that most turnarounds got pushed but only by an average of 90 days in most cases; very few were pushed out six months or more. This means that the total maintenance spend for the year will likely remain quite close to what it was at the start of the year."
For related information, see May 15, 2020 article - Chemical Processing Industry Faces Short-term Demand Destruction, but Long-term Demand Intact, So Far.
Examples of delays include:
- Dixie Chemical Company Incorporated's (Pasadena, Texas) 5-to-6-day maintenance turnarounds at its Pasadena Specialty Chemical Resins Plant; see project report. see project report
- Jones-Hamilton Company's (Walbridge, Ohio) third-quarter 2020 turnaround maintenance turnaround at its Chester Sodium Bi-Sulfate Plant in Richburg, South Carolina; see project report
- Bayer Ag's (Leverkusen, Germany) Soda Springs, Idaho, third-quarter 2020 Phosphates Plant kiln maintenance turnaround, postponed until July; see project report
Some companies that had planned more costly turnarounds this year, such as for ethylene plant units, have pushed out those projects for lengthier periods.
In Sulphur, Louisiana, Westlake Chemical Corporation (NYSE:WLK) (Houston, Texas) has delayed the kickoff of a 90-day turnaround at its 1.6 billion-pound-per-year Petro 2 ethylene unit from late September this year to April 2021 as a result of COVID-19-related issues. For more information, see Industrial Info's project report and May 5, 2020, article - Westlake Chemical Cuts Planned Capex as Future Outlook Remains Uncertain.
The plastics/rubbers segment is looking at nearly $128 million worth of maintenance activity that could be impacted by COVID-19. Some of the projects are planned turnarounds for:
- LyondellBasell's 1.6-billion-pound-per-year Polypropylene C unit in Pasadena, Texas: see project report
- Dow Incorporated's (NYSE:DOW) (Midland, Michigan) 550 million-pound-per-year Poly D low density polyethylene unit in Plaquemine, Louisiana; see project report.
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.
