Engineering and Construction Firms Selected for Over $1.8 Billion in CPI Projects Planned for 2005

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). Industrialinfo.com has identified engineering or construction contractors for 61 capital and maintenance projects planned in the North American Chemical Processing Industry (CPI) for 2005, totaling over $1.8 billion in Total Investment Value (TIV). These projects make up nearly 12% of the 525 CPI projects currently planned to begin construction next year and almost 19% of the more than $9 billion TIV. The CPI is finishing 2004 with more strength and momentum than it has seen in nearly a decade and the substantial number of design, engineering, and construction service contract selections reflect just how confident a large number of chemical plant owners are about what 2005 has to offer.

Although, the last couple of years have ended with increased optimism regarding recovery of the CPI, 2005 appears to genuinely hold promise for a substantial recovery and increase in both capital and maintenance spending. Of the 61 projects where a selection or award has been made for contract services, the most significant selections were those awarded for combined E&C services representing projects totaling $1.4 billion and 17 projects. Those projects that awarded engineering service selections only, ranked first, when comparing project counts, with 26 projects equaling just over $400 million in total spending.

ABB Lummus Global Incorporated (Houston, Texas), Halliburton KBR (Houston, Texas), Hatch & Associates Incorporated (Montreal, Quebec), JGC Corporation (Yokohama, Japan), Monsanto Enviro-Chem Systems Incorporated (Saint Louis, Missouri), and SNC-Lavalin Incorporated (Montreal, Quebec) have all been chosen to perform services for 2005 projects, with a TIV exceeding $100 million each. The eight projects represented by these firms equal over 67% of the total spending identified, representing a TIV of $1.2 billion. The remaining 53 projects in this analysis have an average TIV of $11.3 million.

Click the image at right to view a geographical analysis of where these 61 projects are planned.

It's not surprising that the Southwest region will host 18 of these 61 projects next year with its rich population of petrochemical plants. Although, services have also been selected for some very large projects planned on the West Coast, with total spending exceeding $400 million. Other regions where a large number of E&C selections have been made include the Great Lakes and Mid Atlantic regions, where combined totals equal 20 projects and a TIV of $247 million.

At the time this analysis was compiled, there are over 252 CPI capital and maintenance projects with a TIV of more than $2 billion planned for 2005 that remain in the very early planning stages, where the selection or award of engineering, architectural, construction, and related services is pending. Forty-two projects are in an advanced phase of planning or development and awaiting capital approval.

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