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Released January 04, 2017 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Last year proved to be a busy one, with expansion efforts and planned maintenance, which jumpstarted the onslaught of new capacity expected to come online in 2017. Currently, there are five new ethylene unit projects, as well as a plant restart and a unit expansion, that are expected to complete construction and start up by the end of 2017.
Ingleside Ethylene LLC (a joint venture between Occidental Chemical Corporation and Mexichem) is commissioning its 1.2 billion-pound-per-year unit in Ingleside, Texas. Ingleside Ethylene is a joint venture between Occidental Chemical, part of Occidental Petroleum (NYSE:OXY) (Houston, Texas), and Mexichem (Tlalnepantla, Mexico).
Also, construction of Dow Chemical Corporation's (NYSE:DOW) (Midland, Michigan) 2.6 billion-pound-per-year LHC 9 in Freeport (Oyster Creek), Texas, is nearly complete. Formosa Plastics Corporation USA's (Livingston, New Jersey) 2.65 billion-pound-per-year unit in Point Comfort, Texas, and Exxon Mobil Corporation's (NYSE:XOM) (Irving, Texas) 3 billion-pound-per-year unit are both expected to start commissioning activities mid-year.
Chevron Phillips Chemical LP (The Woodlands, Texas), a joint venture between Chevron Corporation (NYSE:CVX) (San Ramon, California) and Phillips 66 (NYSE:PSX) (Houston, Texas), expects to begin start-up procedures on its new 3.3 billion-pound-per-year cracker in the third quarter.
Additional new capacity will also be added through Indorama Ventures Public Company Limited's (IVL) (Bangkok, Thailand) restart of an idled 850 million-pound-per-year ethylene plant in Sulphur, Louisiana, before the end of the year, as well as Westlake Chemical Corporation's (NYSE:WLK) (Houston, Texas) 100 million-pound-per-year expansion at its Calvert City, Kentucky, plant.
Upon completion of these projects, an estimated 13.7 billion pounds per year of added capacity will enter the market.
For most of 2017, Shell Chemicals (Houston, Texas) will continue site preparation and civil construction for the highly anticipated petrochemical complex under way in Monaca, Pennsylvania. Structural construction of the 3 billion-pound-per-year ethylene unit is expected to kick off in the third quarter. Shell Chemicals is the petrochemicals arm of Royal Dutch Shell plc (NYSE:RDS.A) (The Hague, Netherlands).
Other projects that could be approved and start construction in 2017 include Total Petrochemicals & Refining USA's (Houston, Texas) 2.2 billion-pound-per-year ethane cracker in Port Arthur, Texas; Formosa Plastics' petrochemical complex in Saint James Parish, Louisiana (which includes a 2.6 billion-pound-per-year ethylene unit; and PTT Global's planned 2.2 billion-pound-per-year ethylene unit and derivatives complex in Belmont County, Ohio.
Siluria Technologies (San Francisco, California) and Badlands NGLs LLC (Denver, Colorado) continue to evaluate the viability of their respective projects amid the current energy market environment, and hope 2017 will be the year they can reach final investment decisions. Siluria has plans for a 500 million-pound-per-year plant in La Porte, Texas and a 220 million-pound-per-year plant in Louisiana. Badlands has plans for a 3.3 billion-pound-per-year facility in an undisclosed location.
Only 12 of the 52 operational ethylene units in the U.S. and Canada are scheduled to complete planned maintenance in 2017 for an estimated total of 420 days of down time. For related information, see January 3, 2017, article - Year in Review: A Look at the Ethylene and PDH Activity in 2016.
PDH Project Activity
The propane dehydrogenation (PDH) market will see activity as well. Enterprise Products Partners L.P.'s (NYSE:EPD) (Houston, Texas) 1.65 billion-pound-per-year PDH unit is expected to begin production in 2017, while three companies are working to announce final investment decisions on construction of new plants. Inter Pipeline Limited (Calgary, Alberta) expects to announce approval and construction kick-off during the year for a 1.1 billion-pound-per-year plant near in in Fort Saskatchewan, Alberta. Pembina Pipeline Corporation (NYSE: PBA) (Calgary, Alberta) is also evaluating plans for a PDH and polypropylene plant in Alberta, with hopes to start construction in 2017.
Flint Hills Resources LP (Wichita, Kansas) continues to evaluate the viability of building a second PDH unit at its Houston, Texas, plant that would produce an estimated 1,500 million pounds per year of polymer-grade propylene. Flint Hills is a subsidiary of Koch Industries Incorporated (Wichita).
Both of the existing PDH units in the U.S. are scheduled for planned maintenance during 2017. Flint Hills Resources is on schedule to perform a 60-day turnaround on its 1.45 million-pound-per-year unit starting in May, and Dow Chemical is planning a 35-day turnaround for its 1.65 million-pound-per-year unit starting in September.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 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/.
Ingleside Ethylene LLC (a joint venture between Occidental Chemical Corporation and Mexichem) is commissioning its 1.2 billion-pound-per-year unit in Ingleside, Texas. Ingleside Ethylene is a joint venture between Occidental Chemical, part of Occidental Petroleum (NYSE:OXY) (Houston, Texas), and Mexichem (Tlalnepantla, Mexico).
Also, construction of Dow Chemical Corporation's (NYSE:DOW) (Midland, Michigan) 2.6 billion-pound-per-year LHC 9 in Freeport (Oyster Creek), Texas, is nearly complete. Formosa Plastics Corporation USA's (Livingston, New Jersey) 2.65 billion-pound-per-year unit in Point Comfort, Texas, and Exxon Mobil Corporation's (NYSE:XOM) (Irving, Texas) 3 billion-pound-per-year unit are both expected to start commissioning activities mid-year.
Chevron Phillips Chemical LP (The Woodlands, Texas), a joint venture between Chevron Corporation (NYSE:CVX) (San Ramon, California) and Phillips 66 (NYSE:PSX) (Houston, Texas), expects to begin start-up procedures on its new 3.3 billion-pound-per-year cracker in the third quarter.
Additional new capacity will also be added through Indorama Ventures Public Company Limited's (IVL) (Bangkok, Thailand) restart of an idled 850 million-pound-per-year ethylene plant in Sulphur, Louisiana, before the end of the year, as well as Westlake Chemical Corporation's (NYSE:WLK) (Houston, Texas) 100 million-pound-per-year expansion at its Calvert City, Kentucky, plant.
Upon completion of these projects, an estimated 13.7 billion pounds per year of added capacity will enter the market.
For most of 2017, Shell Chemicals (Houston, Texas) will continue site preparation and civil construction for the highly anticipated petrochemical complex under way in Monaca, Pennsylvania. Structural construction of the 3 billion-pound-per-year ethylene unit is expected to kick off in the third quarter. Shell Chemicals is the petrochemicals arm of Royal Dutch Shell plc (NYSE:RDS.A) (The Hague, Netherlands).
Other projects that could be approved and start construction in 2017 include Total Petrochemicals & Refining USA's (Houston, Texas) 2.2 billion-pound-per-year ethane cracker in Port Arthur, Texas; Formosa Plastics' petrochemical complex in Saint James Parish, Louisiana (which includes a 2.6 billion-pound-per-year ethylene unit; and PTT Global's planned 2.2 billion-pound-per-year ethylene unit and derivatives complex in Belmont County, Ohio.
Siluria Technologies (San Francisco, California) and Badlands NGLs LLC (Denver, Colorado) continue to evaluate the viability of their respective projects amid the current energy market environment, and hope 2017 will be the year they can reach final investment decisions. Siluria has plans for a 500 million-pound-per-year plant in La Porte, Texas and a 220 million-pound-per-year plant in Louisiana. Badlands has plans for a 3.3 billion-pound-per-year facility in an undisclosed location.
Only 12 of the 52 operational ethylene units in the U.S. and Canada are scheduled to complete planned maintenance in 2017 for an estimated total of 420 days of down time. For related information, see January 3, 2017, article - Year in Review: A Look at the Ethylene and PDH Activity in 2016.
PDH Project Activity
The propane dehydrogenation (PDH) market will see activity as well. Enterprise Products Partners L.P.'s (NYSE:EPD) (Houston, Texas) 1.65 billion-pound-per-year PDH unit is expected to begin production in 2017, while three companies are working to announce final investment decisions on construction of new plants. Inter Pipeline Limited (Calgary, Alberta) expects to announce approval and construction kick-off during the year for a 1.1 billion-pound-per-year plant near in in Fort Saskatchewan, Alberta. Pembina Pipeline Corporation (NYSE: PBA) (Calgary, Alberta) is also evaluating plans for a PDH and polypropylene plant in Alberta, with hopes to start construction in 2017.
Flint Hills Resources LP (Wichita, Kansas) continues to evaluate the viability of building a second PDH unit at its Houston, Texas, plant that would produce an estimated 1,500 million pounds per year of polymer-grade propylene. Flint Hills is a subsidiary of Koch Industries Incorporated (Wichita).
Both of the existing PDH units in the U.S. are scheduled for planned maintenance during 2017. Flint Hills Resources is on schedule to perform a 60-day turnaround on its 1.45 million-pound-per-year unit starting in May, and Dow Chemical is planning a 35-day turnaround for its 1.65 million-pound-per-year unit starting in September.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 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/.
