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Researched by Industrial Info Resources (Sugar Land, Texas)--Many industries across the U.S. have been disrupted by the COVID-19 pandemic, and Chemical Processing is no different. Industrial Info is tracking $83 billion worth of capital-spending project kickoffs in the U.S. planned for 2022 that have been put on hold, delayed or otherwise affected by COVID-19, led by the Chemical Processing Industry with about $23 billion.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Chemical Processing Project Database can click here for a list of related petrochemical projects.
The American Chemistry Council (ACC) (Washington D.C.) recently reported U.S. chemical production in December was at its highest level since late 2018, before the pandemic disrupted demand. Omicron is showing signs of slowing in certain parts of the country, but has not peaked nationally. The next few weeks will be difficult, the U.S. surgeon general said over the weekend.
"The chemical industry is very dependent on the strength of consumer demand and industrial construction, said Trey Hamblet, Industrial Info's vice president of research for Chemical Processing. "Multiple variants of COVID-19 have created a great deal of uncertainty about when traditional growth markets will return to healthy levels."
U.S. vehicle production continues to be impacted by the chip shortage crisis and labor issues. According to the ACC, light vehicle sales--an important market for chemicals--are expected to remain below pre-pandemic levels in 2022. The housing market is another large consumer, and constraints on building materials, land use and labor will curb short-term growth for housing starts, the trade association said.
"While demand for many commodities, like plastics, has increased over the past year, the housing market and other key markets have begun to show signs of weakness, potentially delaying decisions for some chemical expansion projects," Hamblet said.
The Chemical Processing Industry leads the U.S. in the total investment value (TIV) of planned 2022 capital-spending project kickoffs impacted by the pandemic, with Texas ($11.1 billion) and Louisiana ($8 billion) as two hotspots for high-dollar projects.
Chevron Phillips Chemical Company LLC (CP Chem) (The Woodlands, Texas) and Qatar Petroleum (Doha, Qatar) are planning the $8 billion US Gulf Coast II petrochemical complex along the Gulf Coast. But the two companies delayed a final investment decision (FID) to later this year, due to COVID-19 precautions, on the estimated 4.4 billion-pound-per-year, $5.5 billion ethylene cracker; the $2 billion addition of two high-density polyethylene (HDPE) units that would produce 1 million tons per year from the ethylene cracker's feedstock; and a $500 million outside battery limits (OSBL) project to support the two units.
"We'd like to see a little clearer path to a fully resolved economic recovery from COVID, [and] get the delta variant and other variants behind us," Phillips 66 CEO Greg Garland said regarding the project, on the company' second-quarter 2021 earnings conference call in August. He added, "But we are leaning in and ready to move with FID on that project next year." Chevron Phillips is a joint venture between Chevron Corporation (NYSE:CVX) (San Ramon, California) and Phillips 66 (NYSE:PSX) (Houston).
Subscribers can see the detailed reports on the ethylene, HDPE and OSBL projects.
Syngas Energy Holdings LLC (Channelview, Texas) is in negotiations for an engineering, procurement and construction (EPC) contractor on its $400 million Phase I methanol plant in Saint James, Louisiana, after COVID-19 delayed the construction kickoff to later this year. The plant would feature a capacity of 500 metric tons per year. Subscribers can click here for the detailed project report.
Outside Texas and Louisiana, Greenfield Nitrogen LLC's $200 million Garner Green Ammonia Plant in Iowa has experienced delays, but site preparation on the 83,000-ton-per-year facility is expected to kick off in October. In Indiana, Matheson Tri-Gas (Bernards Township, New Jersey) delayed the project schedule for a unit addition at its Mount Vernon Air Separation Plant, which entails constructing a new two-train unit, plus equipment and utilities, to produce an additional 300 tons per day of oxygen, nitrogen and argon. Kickoff is expected in July. Subscribers to Industrial Info's database can click here for the detailed reports on the Garner and Mount Vernon 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.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Chemical Processing Project Database can click here for a list of related petrochemical projects.
The American Chemistry Council (ACC) (Washington D.C.) recently reported U.S. chemical production in December was at its highest level since late 2018, before the pandemic disrupted demand. Omicron is showing signs of slowing in certain parts of the country, but has not peaked nationally. The next few weeks will be difficult, the U.S. surgeon general said over the weekend.
"The chemical industry is very dependent on the strength of consumer demand and industrial construction, said Trey Hamblet, Industrial Info's vice president of research for Chemical Processing. "Multiple variants of COVID-19 have created a great deal of uncertainty about when traditional growth markets will return to healthy levels."
U.S. vehicle production continues to be impacted by the chip shortage crisis and labor issues. According to the ACC, light vehicle sales--an important market for chemicals--are expected to remain below pre-pandemic levels in 2022. The housing market is another large consumer, and constraints on building materials, land use and labor will curb short-term growth for housing starts, the trade association said.
"While demand for many commodities, like plastics, has increased over the past year, the housing market and other key markets have begun to show signs of weakness, potentially delaying decisions for some chemical expansion projects," Hamblet said.
The Chemical Processing Industry leads the U.S. in the total investment value (TIV) of planned 2022 capital-spending project kickoffs impacted by the pandemic, with Texas ($11.1 billion) and Louisiana ($8 billion) as two hotspots for high-dollar projects.
Chevron Phillips Chemical Company LLC (CP Chem) (The Woodlands, Texas) and Qatar Petroleum (Doha, Qatar) are planning the $8 billion US Gulf Coast II petrochemical complex along the Gulf Coast. But the two companies delayed a final investment decision (FID) to later this year, due to COVID-19 precautions, on the estimated 4.4 billion-pound-per-year, $5.5 billion ethylene cracker; the $2 billion addition of two high-density polyethylene (HDPE) units that would produce 1 million tons per year from the ethylene cracker's feedstock; and a $500 million outside battery limits (OSBL) project to support the two units.
"We'd like to see a little clearer path to a fully resolved economic recovery from COVID, [and] get the delta variant and other variants behind us," Phillips 66 CEO Greg Garland said regarding the project, on the company' second-quarter 2021 earnings conference call in August. He added, "But we are leaning in and ready to move with FID on that project next year." Chevron Phillips is a joint venture between Chevron Corporation (NYSE:CVX) (San Ramon, California) and Phillips 66 (NYSE:PSX) (Houston).
Subscribers can see the detailed reports on the ethylene, HDPE and OSBL projects.
Syngas Energy Holdings LLC (Channelview, Texas) is in negotiations for an engineering, procurement and construction (EPC) contractor on its $400 million Phase I methanol plant in Saint James, Louisiana, after COVID-19 delayed the construction kickoff to later this year. The plant would feature a capacity of 500 metric tons per year. Subscribers can click here for the detailed project report.
Outside Texas and Louisiana, Greenfield Nitrogen LLC's $200 million Garner Green Ammonia Plant in Iowa has experienced delays, but site preparation on the 83,000-ton-per-year facility is expected to kick off in October. In Indiana, Matheson Tri-Gas (Bernards Township, New Jersey) delayed the project schedule for a unit addition at its Mount Vernon Air Separation Plant, which entails constructing a new two-train unit, plus equipment and utilities, to produce an additional 300 tons per day of oxygen, nitrogen and argon. Kickoff is expected in July. Subscribers to Industrial Info's database can click here for the detailed reports on the Garner and Mount Vernon 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.
