Released April 10, 2020 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--As measures to prevent the spread of COVID-19 become baked into everyday life, the effects on industries that supply our daily needs are becoming clear. Leading companies in the Oil & Gas, Chemical Processing and Power Generation industries are no longer asking if their major projects will be affected, but how they can manage long lists of delayed or rescheduled work. Industrial Info is tracking more than $370 billion in active projects worldwide that have been delayed or otherwise affected by COVID-19, including nearly $110 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.
Enterprise Products Partners LP (NYSE:EPD) (Houston, Texas) is in a better position than most other corporations to stay afloat during the COVID-19 crisis, with $6.4 billion in liquidity and $1.4 billion in cash on hand, according to the company. But Enterprise has had to delay until this summer, at the earliest, one of the highest-valued projects it was hoping to begin constructing soon: the estimated $1.2 billion propane dehydrogenation (PDH) Unit 2 at its complex in Mont Belvieu, Texas. The company plans to process as much as 35,000 barrels per day (BBL/d) of propane provided by LyondellBasell Industries NV (NYSE:LYB) (Houston) into up to 1.65 billion pounds per year of polymer-grade propylene (PGP).
In response to COVID-19, Enterprise has issued a one-week-on, one-week-off shift rotation so it can limit the number of people on site. The project made strides in September, when Enterprise and LyondellBasell executed long-term contracts supporting construction of the unit, based on rising demand for PGP. Enterprise also is delaying two natural gas liquids (NGL) fractionation projects already under construction at the same complex: the $500 million Train 11 and the $500 million Train 12, each of which would process 150,000 BBL/d for NGL from the Permian Basin and Eagle Ford Shale, bringing the facility's full capacity to 1.25 million BBL/d. For more information, see September 27, 2019, article - Enterprise Products Presses Ahead with Second PDH Project, LyondellBasell Shelves Own U.S. PDH Plans, and Industrial Info's reports on PDH Unit 2, NGL Train 11 and NGL Train 12.
Other big-ticket energy projects on the Gulf Coast to face delays include Total S.A.'s (NYSE:TOT) (Paris, France) estimated $1 billion polyethylene unit addition at its Bayport Plant in Pasadena, Texas, which, like many such projects, relies on equipment fabricated overseas. The unit, which began construction in November 2018 and is slated to wrap up in November 2021, is designed to produce 1.38 billion pounds per year of high-density (HDPE) and linear low-density polyethylene (LLDPE). For more information, see Industrial Info's project report.
Renewable projects have been affected as well. Duke Energy Corporation (NYSE:DUK) (Charlotte, North Carolina) is halting activity at its 182-megawatt (MW), $315 million Maryneal Windfarm in Blackwell, Texas, which began construction in February. It is not yet known how the schedule will be affected. EDF Renewables North America (San Diego, California) had planned to begin construction on its 200-MW, $165 million Arrow Canyon Solar Energy Center in Moapa, Nevada, this summer, but recently pushed it back to March 2021 due to COVID-19 concerns. For more information, see Industrial Info's reports on the Blackwell and Moapa projects.
U.S. Steel Belt Dims its Furnaces
The U.S. steel manufacturing sector has seen facilities close their doors at a fast clip--particularly in Ohio, a key state for the sector and one of the first to enact some of the most stringent anti-COVID measures. Cleveland-Cliffs Incorporated (NYSE:CLF) (Cleveland, Ohio) recently slowed construction at its $700 million direct-reduced/hot-briquetted iron plant in Toledo, Ohio, which is designed to produce 1.9 million tons per year of the two materials, while BlueScope Steel Limited (Melbourne, Australia) announced a six-month construction delay for its $700 million flat-rolled steel minimill expansion in Delta, Ohio, which would have added 600,000 to 900,000 metric tons per year of capacity to the 2.1 million-ton-per-year facility.
Completion of the Toledo project had been expected mid-summer, but is now projected for October; the Delta project is now expected to wrap up in August 2022. For more information, see Industrial Info's reports on the Toledo and Delta 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.Enterprise Products Partners LP (NYSE:EPD) (Houston, Texas) is in a better position than most other corporations to stay afloat during the COVID-19 crisis, with $6.4 billion in liquidity and $1.4 billion in cash on hand, according to the company. But Enterprise has had to delay until this summer, at the earliest, one of the highest-valued projects it was hoping to begin constructing soon: the estimated $1.2 billion propane dehydrogenation (PDH) Unit 2 at its complex in Mont Belvieu, Texas. The company plans to process as much as 35,000 barrels per day (BBL/d) of propane provided by LyondellBasell Industries NV (NYSE:LYB) (Houston) into up to 1.65 billion pounds per year of polymer-grade propylene (PGP).
In response to COVID-19, Enterprise has issued a one-week-on, one-week-off shift rotation so it can limit the number of people on site. The project made strides in September, when Enterprise and LyondellBasell executed long-term contracts supporting construction of the unit, based on rising demand for PGP. Enterprise also is delaying two natural gas liquids (NGL) fractionation projects already under construction at the same complex: the $500 million Train 11 and the $500 million Train 12, each of which would process 150,000 BBL/d for NGL from the Permian Basin and Eagle Ford Shale, bringing the facility's full capacity to 1.25 million BBL/d. For more information, see September 27, 2019, article - Enterprise Products Presses Ahead with Second PDH Project, LyondellBasell Shelves Own U.S. PDH Plans, and Industrial Info's reports on PDH Unit 2, NGL Train 11 and NGL Train 12.
Other big-ticket energy projects on the Gulf Coast to face delays include Total S.A.'s (NYSE:TOT) (Paris, France) estimated $1 billion polyethylene unit addition at its Bayport Plant in Pasadena, Texas, which, like many such projects, relies on equipment fabricated overseas. The unit, which began construction in November 2018 and is slated to wrap up in November 2021, is designed to produce 1.38 billion pounds per year of high-density (HDPE) and linear low-density polyethylene (LLDPE). For more information, see Industrial Info's project report.
Renewable projects have been affected as well. Duke Energy Corporation (NYSE:DUK) (Charlotte, North Carolina) is halting activity at its 182-megawatt (MW), $315 million Maryneal Windfarm in Blackwell, Texas, which began construction in February. It is not yet known how the schedule will be affected. EDF Renewables North America (San Diego, California) had planned to begin construction on its 200-MW, $165 million Arrow Canyon Solar Energy Center in Moapa, Nevada, this summer, but recently pushed it back to March 2021 due to COVID-19 concerns. For more information, see Industrial Info's reports on the Blackwell and Moapa projects.
U.S. Steel Belt Dims its Furnaces
The U.S. steel manufacturing sector has seen facilities close their doors at a fast clip--particularly in Ohio, a key state for the sector and one of the first to enact some of the most stringent anti-COVID measures. Cleveland-Cliffs Incorporated (NYSE:CLF) (Cleveland, Ohio) recently slowed construction at its $700 million direct-reduced/hot-briquetted iron plant in Toledo, Ohio, which is designed to produce 1.9 million tons per year of the two materials, while BlueScope Steel Limited (Melbourne, Australia) announced a six-month construction delay for its $700 million flat-rolled steel minimill expansion in Delta, Ohio, which would have added 600,000 to 900,000 metric tons per year of capacity to the 2.1 million-ton-per-year facility.
Completion of the Toledo project had been expected mid-summer, but is now projected for October; the Delta project is now expected to wrap up in August 2022. For more information, see Industrial Info's reports on the Toledo and Delta 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.
