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Project(s): View 9 related projects in PECWeb
Plant(s): View 5 related plants in PECWeb
Released June 11, 2020 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--The U.S. is facing an uncertain moment in the COVID-19 pandemic: Businesses are reopening and Americans are returning to work, but 26 states still saw an increase in reported cases earlier this month, according the U.S. Centers for Disease Control and Prevention. Industrial Info is tracking more than 10,000 global projects, worth $1.11 trillion, that have been delayed or otherwise affected by the coronavirus, including more than $185 billion from U.S.-based projects.
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.
Low commodity prices and collapsing demand have pushed projected U.S. crude oil production for 2020 down to about 11.7 million barrels per day (BBL/d), according to the U.S. Energy Information Administration (EIA), and production is expected to drop another 800,000 BBL/d in 2021. Even if the COVID-19 pandemic slows significantly in the months to come, economists and market forecasters expect prices to stay relatively low due to geopolitical and other factors. One of the largest offshore projects to be affected is LLOG Exploration Company LLC's (Covington, Louisiana) Shenandoah development in the Gulf of Mexico.
LLOG proposes to drill four initial production wells via subsea infrastructure to reach 100 million to 400 million barrels-equivalent of recoverable resources, with another four to be drilled after the first oil is achieved. The company had planned to make its final investment decision in April, but held off as the lockdowns went into place; it now says the final decision will not be made for another six to 12 months. Aspects of the project include:
In the petrochemicals sector, one project on the Texas Gulf Coast already had been facing a series of problems before COVID-19 hit: Corpus Christi Polymers, a joint venture between Indorama Corporation (Jakarta, Indonesia), Alpek S.A.B. de C.V. (Mexico City) and Far Eastern Group (Taipei, Taiwan), was preparing to begin construction on its 2.6 billion-pound-per-year, estimated $550 million purified terephthalic acid (PTA) unit addition in Corpus Christi this spring, but had to delay it in March due to higher-than-expected labor costs in the area.
Indorama and its partners acquired the project in 2017, when original owner M&G Chemicals filed for bankruptcy and halted construction. The companies are reassessing the project scope and do not expect to finish construction until the end of 2022, at the earliest. For more information, see Industrial Info's project report.
Another widely anticipated chemical project, US Methanol LLC's (Aliso Viejo, California) $200 million Liberty One Methanol Plant in Institute, West Virginia, was under construction when activity was halted due to COVID-19 and other concerns. The company plans to update and refurbish a long-idled, 175,000-metric-ton-per-year facility with new reformers, a synthesis unit, a distillation unit and eight storage tanks, but it still is evaluating when it would be best to restart construction. For more information, see Industrial Info's project report.
One of the largest projects to be cancelled outright is Toray Industries Incorporated's (Tokyo, Japan) $400 million second phase of its carbon fiber-manufacturing plant in Moore, South Carolina, which would have expanded production at the 1,800- to 2,000-metric-ton-per-day polyacrylonitrile (PAN) facility. Toray, the world's largest producer of carbon fiber, completed construction on the $600 million first phase in mid-2018, but recently suspended operations, citing COVID-19 and market conditions. For more information, see Industrial Info's project reports for on the completed Phase I and the cancelled Phase II.
In the past week, South Carolina joined Mississippi and other Southern states in hitting record daily highs for confirmed COVID-19 cases, according to data from Johns Hopkins University and state health departments.
Core5 Industrial Partners (Atlanta, Georgia) was planning to finish construction on its $105 million distribution center in Horn Lake, Mississippi, this summer, but no longer expects that to happen until September. Construction began in the summer of 2017. For more information, see Industrial Info's project report.
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/.
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.Low commodity prices and collapsing demand have pushed projected U.S. crude oil production for 2020 down to about 11.7 million barrels per day (BBL/d), according to the U.S. Energy Information Administration (EIA), and production is expected to drop another 800,000 BBL/d in 2021. Even if the COVID-19 pandemic slows significantly in the months to come, economists and market forecasters expect prices to stay relatively low due to geopolitical and other factors. One of the largest offshore projects to be affected is LLOG Exploration Company LLC's (Covington, Louisiana) Shenandoah development in the Gulf of Mexico.
LLOG proposes to drill four initial production wells via subsea infrastructure to reach 100 million to 400 million barrels-equivalent of recoverable resources, with another four to be drilled after the first oil is achieved. The company had planned to make its final investment decision in April, but held off as the lockdowns went into place; it now says the final decision will not be made for another six to 12 months. Aspects of the project include:
- semisubmersible production platform; see project report
- subsea infrastructure installation; see project report
- production drilling; see project report
- subsea pipeline installation; see project report
In the petrochemicals sector, one project on the Texas Gulf Coast already had been facing a series of problems before COVID-19 hit: Corpus Christi Polymers, a joint venture between Indorama Corporation (Jakarta, Indonesia), Alpek S.A.B. de C.V. (Mexico City) and Far Eastern Group (Taipei, Taiwan), was preparing to begin construction on its 2.6 billion-pound-per-year, estimated $550 million purified terephthalic acid (PTA) unit addition in Corpus Christi this spring, but had to delay it in March due to higher-than-expected labor costs in the area.
Indorama and its partners acquired the project in 2017, when original owner M&G Chemicals filed for bankruptcy and halted construction. The companies are reassessing the project scope and do not expect to finish construction until the end of 2022, at the earliest. For more information, see Industrial Info's project report.
Another widely anticipated chemical project, US Methanol LLC's (Aliso Viejo, California) $200 million Liberty One Methanol Plant in Institute, West Virginia, was under construction when activity was halted due to COVID-19 and other concerns. The company plans to update and refurbish a long-idled, 175,000-metric-ton-per-year facility with new reformers, a synthesis unit, a distillation unit and eight storage tanks, but it still is evaluating when it would be best to restart construction. For more information, see Industrial Info's project report.
One of the largest projects to be cancelled outright is Toray Industries Incorporated's (Tokyo, Japan) $400 million second phase of its carbon fiber-manufacturing plant in Moore, South Carolina, which would have expanded production at the 1,800- to 2,000-metric-ton-per-day polyacrylonitrile (PAN) facility. Toray, the world's largest producer of carbon fiber, completed construction on the $600 million first phase in mid-2018, but recently suspended operations, citing COVID-19 and market conditions. For more information, see Industrial Info's project reports for on the completed Phase I and the cancelled Phase II.
In the past week, South Carolina joined Mississippi and other Southern states in hitting record daily highs for confirmed COVID-19 cases, according to data from Johns Hopkins University and state health departments.
Core5 Industrial Partners (Atlanta, Georgia) was planning to finish construction on its $105 million distribution center in Horn Lake, Mississippi, this summer, but no longer expects that to happen until September. Construction began in the summer of 2017. For more information, see Industrial Info's project report.
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/.
