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Researched by Industrial Info Resources (Sugar Land, Texas)--Canada dominates the rest of North America in terms of spending for capital Chemical Processing Industry projects with planned construction starts in first-quarter 2020.
The investments in Canada make up about half of the potential $7 billion in planned North American spending, followed by the U.S. and Mexico. Canada owes its top position to two big propylene and polypropylene projects that are planned to kick off construction during the next three months.
Click on the image at right for a graph showing North American first-quarter 2020 chemical project kickoff activity being tracked by Industrial Info.
In February, Pembina Pipeline Corporation (NYSE:PBA) (Calgary, Alberta) made a positive final investment decision (FID) for the construction of a grassroot propane dehydrogenation (PDH) and polypropylene (PP) production facility next to its fractionation complex in Redwater, Alberta. The project will be constructed through Pembina's joint venture with Kuwait's Petrochemicals Industries Company (PIC): Canada Kuwait Petrochemical Corporation. The project benefits from C$300 million (US$228 million) in royalty credits under the Government of Alberta's Petrochemicals Diversification Program.
The Redwater facility will consume 23,000 barrels per day of propane to be processed into 550,000 metric tons per year of polypropylene.
During Pembina's third-quarter 2019 earnings conference call, Chief Executive Officer Michael Dilger said the project has continued to progress as engineering, procurement and construction bids were received and placed under evaluation. "Early works preparation is underway and will continue through the fourth quarter of 2019," he said.
The PDH/polypropylene facility is expected to be in service in mid-2023. For more information, see Industrial Info's project reports on the PDH and polypropylene plants. For related information, see October 18, 2019, article - More than $5.4 Billion in Capital Polypropylene Projects Make Progress in U.S., Canada.
In the U.S., chemical industry projects with a total investment value (TIV) of $2.25 billion are planned to kick off during the first quarter. Among them is Next Wave Energy Partners' (Houston, Texas) ethylene-to-alkylate plant in Pasadena, Texas, near the Houston Ship Channel. Next Wave announced on November 20 that it had made a positive FID to build the plant, which will have a nameplate capacity of 28,000 barrels per day of alkylate, a gasoline component. The facility will consume 1.2 billion pounds per year of ethylene feedstock, which will be delivered to the site via multiple pipelines. For more information, see Industrial Info's project report.
In Decatur, Alabama, the U.S. arm of Daikin Industries Limited (Osaka, Japan) plans to start construction on a polytetrafluoroethylene (PTFE) polymers expansion. The project will add PTFE and high-melt resin polymer production capacity at the existing plant site. Completion is planned for second-quarter 2023. For more information, see Industrial Info's project report.
In Mexico, $1.26 billion worth of projects are planned for kickoff in first-quarter 2020. Plans are underway in Topolobmapo for an 800,000-metric-ton-per-year ammonium nitrate plant. Work on the Proman AG (Dusseldorf, Germany) plant previously had been halted due to environmental opposition, according to news accounts. Completion is planned for mid-2023. For more information, see Industrial Info's 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.
The investments in Canada make up about half of the potential $7 billion in planned North American spending, followed by the U.S. and Mexico. Canada owes its top position to two big propylene and polypropylene projects that are planned to kick off construction during the next three months.
In February, Pembina Pipeline Corporation (NYSE:PBA) (Calgary, Alberta) made a positive final investment decision (FID) for the construction of a grassroot propane dehydrogenation (PDH) and polypropylene (PP) production facility next to its fractionation complex in Redwater, Alberta. The project will be constructed through Pembina's joint venture with Kuwait's Petrochemicals Industries Company (PIC): Canada Kuwait Petrochemical Corporation. The project benefits from C$300 million (US$228 million) in royalty credits under the Government of Alberta's Petrochemicals Diversification Program.
The Redwater facility will consume 23,000 barrels per day of propane to be processed into 550,000 metric tons per year of polypropylene.
During Pembina's third-quarter 2019 earnings conference call, Chief Executive Officer Michael Dilger said the project has continued to progress as engineering, procurement and construction bids were received and placed under evaluation. "Early works preparation is underway and will continue through the fourth quarter of 2019," he said.
The PDH/polypropylene facility is expected to be in service in mid-2023. For more information, see Industrial Info's project reports on the PDH and polypropylene plants. For related information, see October 18, 2019, article - More than $5.4 Billion in Capital Polypropylene Projects Make Progress in U.S., Canada.
In the U.S., chemical industry projects with a total investment value (TIV) of $2.25 billion are planned to kick off during the first quarter. Among them is Next Wave Energy Partners' (Houston, Texas) ethylene-to-alkylate plant in Pasadena, Texas, near the Houston Ship Channel. Next Wave announced on November 20 that it had made a positive FID to build the plant, which will have a nameplate capacity of 28,000 barrels per day of alkylate, a gasoline component. The facility will consume 1.2 billion pounds per year of ethylene feedstock, which will be delivered to the site via multiple pipelines. For more information, see Industrial Info's project report.
In Decatur, Alabama, the U.S. arm of Daikin Industries Limited (Osaka, Japan) plans to start construction on a polytetrafluoroethylene (PTFE) polymers expansion. The project will add PTFE and high-melt resin polymer production capacity at the existing plant site. Completion is planned for second-quarter 2023. For more information, see Industrial Info's project report.
In Mexico, $1.26 billion worth of projects are planned for kickoff in first-quarter 2020. Plans are underway in Topolobmapo for an 800,000-metric-ton-per-year ammonium nitrate plant. Work on the Proman AG (Dusseldorf, Germany) plant previously had been halted due to environmental opposition, according to news accounts. Completion is planned for mid-2023. For more information, see Industrial Info's 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.
