Shell, LyondellBasell Among Chemical, LNG Companies on Gulf Coast to See COVID-19 Delays

Researched by Industrial Info Resources (Sugar Land, Texas)--Chemical and liquefied natural gas (LNG) producers along the U.S. Gulf Coast have seen their accelerated growth of the past few years come to a screeching halt amid the COVID-19 pandemic. Projects ranging from ambitious, big-ticket grassroot plans to routine maintenance turnarounds are facing delays--or, should the pandemic stick around long enough, outright cancellations. Industrial Info is tracking about $260 billion in active projects worldwide that have been affected by COVID-19, more than $43 billion of which is attributed to projects in Texas and Louisiana.

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.

Two of the highest-valued projects to face setbacks already were in precarious positions, as their owners had not yet reached a final investment decision: Magnolia LNG LLC's (Houston, Texas) Magnolia Liquefaction Production and Export Terminal and Energy Transfer LP's (NYSE:ET) (Dallas, Texas) LNG Liquefaction Plant, both of which had been proposed for construction in Lake Charles, Louisiana. As designed, Magnolia LNG would liquefy 4.4 million tons per year of LNG, and Lake Charles LNG would liquefy 5 million tons per year. Two additional trains have been proposed for Lake Charles LNG.

The final investment decisions for both projects have been indefinitely delayed, and the Lake Charles LNG project took a serious hit when Royal Dutch Shell plc (NYSE:RDS.A) (The Hague, Netherlands) dropped its 50% stake in the project, citing overall market conditions. For more information, see Industrial Info's reports on the Magnolia LNG and Lake Charles LNG projects.

Among the region's chemical producers, OCI Beaumont LLC (Nederland, Texas) is re-evaluating its proposed methanol-to-gasoline (MTG) unit addition at its methanol and ammonia plant in Nederland, Texas. The company has not yet made a final investment decision on the project, which would add a 22,000-barrel-per-day, motor-grade MTG unit. For more information, see Industrial Info's project report.

Smaller-scale projects also are facing setbacks. CF Industries Holdings Incorporated (NYSE:CF) (Deerfield, Illinois) may push back high-pressure drum replacements on Unit 1 at its nitrogen complex in Donaldsonville, Louisiana, and Arkema Group (Colombes, France) has delayed planning for capital upgrades at its Clear Lake Acrylics Plant in Pasadena, Texas. Both projects were set to kick off this summer. For more information, see Industrial Info's reports on the Donaldsonville and Pasadena projects.

LyondellBasell Industries NV (NYSE:LYB) (Houston, Texas) has placed two maintenance projects in the area on hold: turnarounds at the linear low-density polyethylene (LLDPE) polymers and ethylene units at its complex in La Porte, Texas, both of which had been scheduled to begin in September. LyondellBasell is evaluating if either turnaround will need to be rescheduled. Similarly, Chemtrade Logistics Incorporated (Toronto, Ontario) has moved a five-week turnaround on its 800-ton-per-day sulfuric acid plant in Beaumont, Texas, from March to October. For more information, see Industrial Info's reports on the LLDPE, ethylene and sulfuric acid projects.

Alternative fuel producers also are rescheduling and reconsidering projects, including two located hundreds of miles from the Gulf Coast. CNX Coal Resources LP (NYSE:CNXC) (Canonsburg, Pennsylvania) and OMNIS Bailey LLC (Santa Barbara, California) have placed their $50 million Bailey Clean Carbon Fuel Plant in Graysville, Pennsylvania, in a temporary holding pattern due to COVID concerns, and the City of Petaluma, California, is re-evaluating the schedule for its $15 million Biomass-to-Biofuel Renewable Natural Gas (RNG) Plant.

Both projects were under construction and set to be completed later this year; the new completion date for the Bailey project is unknown at this time. For more information, see Industrial Info's reports on the Bailey and Petaluma 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. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.