Petrochemical Spending Forecast to Remain Strong in 2007

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Researched by Industrial Info Resources (Sugar Land, Texas). The petrochemical segment of the Chemical Processing Industry (CPI) experienced a strong level of spending during 2006 with over $900 million in capital spending in the United States and Canada. That level of spending is expected to repeat itself in the upcoming year with a slight increase pushing it over $1 billion in total capital investments. Ending the year without any hurricane tragedies, crude oil prices beginning their seasonal drop prior to the end of summer, and relatively mild political upsets that traditionally plague a campaign year have all aided the CPI in realizing an increased level of confidence moving into the new year.

Petrochemicals are categorized by most as a niche industry segment although huge in size. Plants in this segment are some of the largest and most complex of any industrial process plant with miles of piping, hundreds of tanks and dozens of large columns and towers, all within just one plant typically. A key petrochemical plant process component is the distillation area, which is made up of large diameter and generally tall columns. In May 2006, Industrial Info had reported eighteen capital projects in which a distillation column was planned to be installed during 2006 or 2007, see related Industry Alert titled: An Increase in the Number of Distillation Column Projects Signals Continued Strength in Petrochemical Market. Based on project research completed since that previous analysis, Industrial Info has now reported 26 such projects based on the same criteria valued at over $440 million.

Click on the image at right to view a chart showing the breakdown of operational petrochemical plants in the U.S. and Canada

A large percentage of the nearly 500 petrochemical plants in operation in the United States and Canada are located in the Southwest market region within Texas and Louisiana. The region is home to over 143 of these plants with access to North America’s most abundant and sophisticated supply of natural gas, oil and energy infrastructure. For those reasons over $680 million of the more than one billion dollars planned for this industry segment next year will take place in the Southwest. One of the most significant projects recently identified is a major catalyst unit addition at the site of Criterion Catalyst in Louisiana, see related Industry Alert for more: Criterion Catalyst Scopes Major Unit Addition for Gulf Coast Catalyst Plant to Support Refining Markets.

For petrochemical plant contact information such as plant management contacts, addresses and phone numbers, contact Industrial Info’s Member Center at 1-800-762-3361.

Industrial Info Resources (IIR) is a Marketing Information Service company that has been doing business for over 23 years. IIR is respected as the leader in providing comprehensive market intelligence pertaining to the industrial processing, heavy manufacturing, and energy-related industries throughout the world.