Oil & Gas Developers, Refiners See Slower Pace of COVID-19 Project Disruptions

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Researched by Industrial Info Resources (Sugar Land, Texas)--The pace of industrial project delays related to COVID-19 precautions has slowed over the past week, according to Industrial Info's project database, with the smallest seven-day increase in total investment value for projects slowed by the pandemic since early March. Nonetheless, industries that were witnessing rapid growth at the beginning of the year continue to see projects pushed back or scaled down. Industrial Info is tracking more than $970 billion in active projects worldwide that have been delayed or otherwise affected by COVID-19, including about $180 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.

Wind energy is one of the fastest-growing segments of the Power Generation Industry, but both onshore and offshore projects have faced slowdowns from COVID-19 precautions. Algonquin Power & Utilities Corporation's (NYSE:AQN) (Oakville, Ontario) proposed $132 million Broad Mountain Windfarm in Nesquehoning, Pennsylvania, which is designed to generate 80 megawatts (MW) from 21 turbines, has had its kickoff date pushed back from July to April 2021 at the earliest. For more information, see Industrial Info's project report.

Orsted US (Boston, Massachusetts), a global leader in offshore wind development, is looking at a slower permitting process for its estimated $65 million underground and subsea double-circuit transmission line offshore New York, which would connect the new South Fork Windfarm project to a substation. For more information, see Industrial Info's project report.

Orsted signed an agreement early last year with Eversource Energy (NYSE:ES) (Boston, Massachusetts) to form a 50:50 partnership in the U.S. Northeast, with Eversource taking a 50% interest in Orsted's South Fork Windfarm. Construction had been expected to begin on the underground and subsea line in April 2021, but it is not expected to begin until August.

The Oil & Gas Industry has all but given up on trying to guess when crude oil and natural gas prices will recover from their current lows, and its upstream, midstream and downstream segments continue to see project delays. M&K Oil Company LLC (Gillette, Wyoming) is putting off any approvals for its estimated $40 million Train 2 at its cryogenic natural gas refrigeration plant in Newcastle, Wyoming, which is designed to elevate the plant's capacity from 3 million to 53 million standard cubic feet per day. For more information, see Industrial Info's project report.

Ergon Incorporated's (Saint James, Louisiana) estimated $75 million expansion of its crude oil storage terminal in Saint James, Louisiana, which would increase capacity at the 2 million-barrel facility by an unspecified amount, has been placed on hold until further notice. For more information, see Industrial Info's project report.

In the refining arena, Phillips 66 (NYSE:PSX) (Houston, Texas) has pushed back the kickoff of $120 million in fluid catalytic cracking unit (FCCU) upgrades at its refinery in Ponca City, Oklahoma, from September to January 2021. The refining giant plans to improve yields of gasoline, propylene, butylene and isobutene at its 26,000-BBL/d FCCU 4 unit, while reducing the disposition of light-cycle oil. For more information, see Industrial Info's project report.

On a more positive note, the Metals & Minerals Industry continues to see some of its projects resume activity. Arq USA (Lexington, Kentucky) resumed commissioning this week at its estimated $80 million waste coal-to-powder processing plant in Corbin, Kentucky, with its completion date pushed back from May to July. The 100,000-ton-per-year facility will pulverize, crush and clean coal refuse or waste from nearby coal mines owned by Peabody Energy Corporation (NYSE:BTU) (St. Louis, Missouri), and convert the material into purified hydrocarbon fuel, fine powder or pellets to be blended with crude or fuels for use by refineries or other customers. For more information, see Industrial Info's project report.

Peabody is among the coal-mining companies to see its sales and prices plummet amid the COVID-19 pandemic. For more information, see May 13, 2020, article - U.S. Coal Companies Hit by Plummeting Demand, Sinking Prices and COVID-19.

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.