Industrial Outlook Update
SOURCES: Reuters Energy, Houston Chronicle, Economic Alliance Houston Port Region, TCC/ACIT, LCA LCIA, AFPM, API, GBRIA, International Energy Agency (IEA) Refinitiv, and IIR
Southwest Project Forecast
Over the next 6 months, a whopping 352 projects worth $59.95 B (USD) are scheduled to kickoff across the Southwest Region. This includes New Mexico, Texas, Oklahoma, Arkansas, and Louisiana.
Projects in the Golden Triangle
NGPL Phase 3 Comp Station Mods
Location: Lufkin, TX
Value: $8M
Bid Date: 1st QTR 2024
Woodville Blackfin Grassroot NG Comp Station
Location: Woodville, TX
Value: $65M
Scope: Buildings, Compressors, Station Piping, Etc
Bid Date: 2nd QTR 2024
Sempra Ville Platte/Port Arthur Grassroot Pipeline
Location: Vidor, TX
Value: $50M
Bid Date: 4th QTR 2024
Downstream Projects Updates and Announcements
Formosa Plastics
Formosa Plastics' $9.4B Sunshine Project in St. James Parish is approved by the Louisiana First Circuit Court of Appeals. The project includes 10 plastic-making facilities over 2,400 acres, targeting economic growth. Key units are ethylene glycol, ethylene, and propylene. EPA permit pending due to environmental and clean air concerns.
Celanese Clear Lake
Celanese Clear Lake in Texas, with Mitsui & Co., Ltd., is launching a carbon capture and utilization (CCU) project. Expected to capture 180,000 metric tons of CO2 annually and produce 130,000 metric tons of low-carbon methanol, it fosters circularity by repurposing emissions to reduce fossil fuel dependency
Shintech
Shintech is investing $18MM to expand its PVC production facility in Plaquemine, Louisiana, at White Castle Brine. The expansion, slated for completion by April 2024, includes various upgrades and equipment purchases. As the world's largest PVC producer, Shintech supplies 35% of the USA's domestic demand.
Albemarle
Albemarle Corp. aims to expand its Baton Rouge operations, intending to apply for Louisiana's Quality Jobs and Industrial Tax Exemption program. The $53M investment will enhance production capabilities, with completion targeted for December 2025. Albemarle is a leading producer of additives and intermediates vital for industries such as pharmaceuticals, water treatment, paper, photography and agriculture.
Weyerhaeuser
Weyerhaeuser will invest $96.2M to modernize its Dodson Lumber Mill in Louisiana, enhancing the state's role in residential construction. The project includes installing three Continuous Dry Kilns (CDK) to introduce a low-carbon drying process, reducing emissions, waste and maintenance costs while increasing drying capacity.
Exxon Baytown
ExxonMobil's $2B expansion in Baytown includes units for Vistamaxx polymers and linear alpha olefins, targeting high production volumes. The complex, spread over 3,400 acres along the Houston Ship Channel, hosts various facilities, making it the largest integrated petrochemical complex in the U.S. and among the world's most advanced.
Geismer Honeywell
Governor Jeff Landry allocated a $100M bond for Chevron's Geismar Renewable Diesel Plant expansion. The Geismar Facility, the first stand-alone renewable diesel production site in the U.S. in 2010, will see its capacity rise from 90 to 340 million gallons per year upon project completion.
CF Industries
CF Industries plans a $75M investment in its Donaldsonville complex along the Mississippi River, aiming to boost production of merchant-grade nitric acid and Diesel Exhaust Fluid (DEF). Modifications to the Nitric Acid No. 3 plant and enhancements to the DEF Unit are part of the expansion. The project is set to the end in 2025.
Koch Methanol
Koch Methanol St. James is expanding with a $150M investment on 1,300 acres in St. James Parish. The project aims to increase methanol production by 25%, from 4,950 to 6,200 metric tons per day. The facility will have distribution options via truck, rail, barge and ocean vessel, including a dedicated terminal.
Ethox Chemicals
Ethox Chemicals, part of Syntha Group, is building a new chemical plant in Pasadena, Texas, on 17 acres acquired from Kao. The company produces surfactants for various industries, with around 300 products. This will be Ethox's second facility, complementing its existing site in Greenville, SC.
Kao Corp.
Kao Corp is constructing a tertiary amine production facility in Pasadena, Texas, covering 110 acres. The first unit will produce about 20,000 metric tons per year of tertiary amine, used in industrial cleaners and household products. This marks Kao's largest investment in the Americas and globally, with operations set to start in January 2025.
Midstream Projects and Recent News
Enterprise Products Partners
Expects export license for Sea Port Oil Terminal by Q1 2024. SPOT project includes a deepwater port marine terminal in the GoM near Freeport, Texas. Capacity to load large crude carriers and other vessels at rates of up to 85,000 barrels per hour.
Port NOLA
Receives $226 million INFRA Grant for Louisiana International Terminal. Also awarded $73.77 million MEGA Grant. Construction to start in 2025, with first ship wharf opening in 2028.
Moda Midstream
Sells 50% interest in Vopak Moda Houston terminal joint venture to Exolum.
Kinder Morgan
Acquires $1.8B of NextEra Energy Partners' South Texas assets, including high-pressure natural gas pipelines
Renewables, Hydrogen & ESG Projects and News
Hydropower Facilities
DOE selects 46 hydro projects across 19 states for up to $71.5M.
Deleks’ Big Spring
Delek US Holdings negotiates a cost-sharing agreement with DOE for a carbon capture pilot project in Big Spring refinery, targeting 145,000 metric tons of CO2 capture annually.
TotalEnergies Texas
TotalEnergies converts plastic waste into circular polymers at its La Porte, Texas, plant, sourced from New Hope Energy's recycling facility in Tyler, Texas.
U.S. allocates up to $890M for carbon capture projects at gas and coal plants in Texas, California, and North Dakota. Projects aim to demonstrate technology viability and prevent about 7.75 million metric tons of CO2 emissions annually. Among funded projects are CCS systems at Baytown Energy Center in Texas and Sutter Energy Center in Yuba City, California.
LNG Project Status
Biden administration
Biden administration halts approvals for LNG exports to non-free trade agreement countries, impacting pending and future permits. Commonwealth LNG expresses concern over lack of feedback and the lengthy DOE review process, now extended to over 11 months. Despite the pause, construction begins on projects like Venture Global's Plaquemines, Sempra's Port Arthur and NextDecade's Rio Grande, with completion dates ranging from third quarter 2024 to 2027.
ExxonMobil
ExxonMobil targets annual project spending of $22-27 billion through 2027, with an 18% increase in lithium and low carbon business investment. Spending for Low Carbon Solutions will rise to $20 billion by 2027, requiring government support. The start-up of Exxon's LNG Golden Pass plant is delayed to 2025. Annual project expenditures may reach $32 billion by 2027, including spending on Pioneer's assets.
