Industrial Gases Market Hosts More than $26 Billion in Active Projects, with Gulf Coast, Western Canada as Hot Spots

Researched by Industrial Info Resources (Sugar Land, Texas)--With demand growing for chemicals such as ethylene and methanol, particularly along the U.S. Gulf Coast and China, companies are setting up industrial gases facilities to supply key components for major chemical products. Industrial Info is tracking more than $26 billion worth of industrial gases projects globally, including $3.73 billion in the U.S. and Canada.

Click on the image at right for a graph detailing active industrial gases projects worldwide, by global region.

Plants dedicated to the manufacturing of industrial gases often are built as part of, or near, larger facilities that manufacture methanol, ethylene and ammonia, for which industrial gases are a major component. These facilities--which are described by the U.S. Department of Labor as "establishments primarily engaged in manufacturing industrial gases (including organic) for sale in compressed, liquid and solid forms"--can be built in around 12 to 18 months. New capacity for industrial gases is now emerging as many methanol, ethylene and ammonia projects are reaching the tail end of their construction phase.

Not surprisingly, more than half of the industrial gases projects in North America that are being tracked by Industrial Info can be found in the U.S. Southwest and Western Canada regions, where methanol, ethylene and ammonia projects have a strong presence.

Click on the image at right for a graph detailing active industrial gases projects in the U.S. and Canada, by region.

The highest-value industrial gases project in North America is Air Products & Chemicals Incorporated's (NYSE:APD) (Allentown, Pennsylvania) $300 million construction of a hydrogen unit in Edmonton, Alberta. The company plans to add a third unit at the facility that will produce 150 million square cubic feet per day of hydrogen via steam methane-reforming technology. The product will be fed through the Heartland Hydrogen Pipeline Network to support a refinery 30 miles away. For more information, see Industrial Info's project report.

In the U.S., the largest industrial gases project is Castleton Commodities International LLC's (Stamford, Connecticut) $200 million addition of an air separation unit in Braithwaite, Louisiana. The project, still in its tentative stages, involves finding a company to build, own and operate an air-separation unit to support the planned addition of a methanol division. Castleton hopes for the project to receive authorization of expenditures in the first quarter of 2016. For more information, see Industrial Info's project report.

Industrial Info is tracking a slew of other high-value industrial gases projects in North America, including:

• $200 million: Praxair Incorporated's hydrogen plant in Freeport, Texas
  For more information, see Industrial Info's project report.
• $200 million: Northwest Innovation Works LLC's methanol plant in Kalama, Washington
  For more information, see Industrial Info's project report.
• $200 million: Canadian Natural Resources Limited's hydrogen unit addition at Horizon Oil Sands upgrader in Fort McMurray, Alberta
  For more information, see Industrial Info's project report.
• $180 million: Kitimat Clean Limited's hydrogen unit addition at refinery in Kitimat, British Columbia
  For more information, see Industrial Info's project report.
• $170 million: Air Liquide S.A.'s air separation plant in Saint James, Louisiana
  For more information, see Industrial Info's project report.

Almost half of the total investment value (TIV) for global industrial gases projects--about $12.1 billion--is related to 264 projects that are now in the planning stages, where plenty of factors could increase, decrease or eliminate the expected spending. The sector also has 123 projects worth more than $5.74 billion in the engineering stages, while 487 projects worth about $8.22 billion already are in the construction stages.

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/.