·        Thousands of Projects Worth Hundreds of $ Billions in Booming Oil and Gas Industry

·        Marine Market for Flow Control and Treatment is Growing at Double-Digit Rates

·        Headlines for the April 12, 2013 – Utility E-Alert

·        McIlvaine Hot Topic Hour Registration

Thousands of Projects Worth Hundreds of $ Billions in Booming Oil and Gas Industry

Depending on the definition, the number of opportunities in the oil and gas sector ranges from a few thousand to over one million.  At the top end there are single projects where the investment will exceed $10 billion. This is the conclusion reached in Oil, Gas, Shale and Refining Markets and Projects published by the McIlvaine Company.  (www.mcilvainecompany.com)

Existing gas and oil wells need pumps, valves, compressors, instrumentation and control equipment.  Accuracy is needed due to the custody transfer and value of the products.  Despite the large number of existing wells, the major capital investment is in a relatively small number of large projects.

Figure 1: Comparative Investment Value (Overnight Cost) for major Industrial Plants

Some of the investments in the oil gas industry are even larger than the investment in a new supercritical coal-fired power plant. The gas-to-liquids plant now underway in Louisiana will cost Sasol more than $10 billion. New refineries, LNG and tars sands plants are all multibillion dollar expenditures. Much of this is for liquid and gas flow and treatment equipment. In addition, the tar sands plants have big investments in material handling.

With the shale gas and liquids boom there are many projects to separate liquids from gas. Conversion of coal to chemicals is attracting billions of dollars of investment. China is the leader with both direct and indirect gasification processes.

McIlvaine tracks the projects and provides market forecasts in Oil, Gas, Shale and Refining Markets and Projects.  For more information on Oil, Gas, Shale and Refining Markets and Projects, click on:  http://home.mcilvainecompany.com/index.php/component/content/article?id=72#n049

Marine Market for Flow Control and Treatment is Growing at Double-Digit Rates

Marine vessels are purchasing air and liquid flow control and treatment equipment at an accelerating rate due to new limits on both emissions to the atmosphere and to the water.  This is the conclusion reached in the McIlvaine report Air/Gas/Water/Fluid Treatment and Control: World Markets.  (www.mcilvainecompany.com)

The U.S. EPA set standards for ballast water discharge in March of 2013. The compliance date is 2016. This rule is just one of a number passed by various different governmental bodies around the world. These rules will impact nearly 70,000 ships which use international ports. The average cost of treatment systems to kill invasive organisms will range from as little as $300,000 to more than $3 million.

A number of companies are generating substantial revenues already in this market. Alfa Laval just announced a $50 million SEK order from a Korean ship builder.  Severn Trent has now sold 18 systems. Calgon Carbon has emerged as a major participant in this market. More than 50 companies are selling treatment systems.

This market is now the largest for the self-cleaning or automatic backwash type filters which use disks or screens to achieve particle reduction to 50 microns. Calgon Carbon has signed a long-term agreement with Amiad to supply them with the Arkal type disc filters. These self-cleaning filters are used in irrigation, municipal water treatment and even the purification of chocolate.

Another fast growing segment is the treatment of the stack gases from fuel burning. Wartsila and others are selling scrubber systems which remove both particulate and SO₂.  NO_x control systems are also being purchased for some vessels.

Cruise ships are opting for advanced treatment of sewage.  Several membrane bio reactor (MBR) suppliers such as GE and Hamworthy (Wartsila) have been selling systems for ships since 2002. The market includes new ships but also retrofits. Hamworthy replaced an older sewage treatment system with an MBR on the Star Princess.

Pumps and valves are integral to the ballast water and sewage treatment. They are also needed for the stack gas scrubbing systems, engine lubrication and for cargo transport on tankers. A fast growing segment for pumps and valves is the Floating Production, Storage and Offloading (FPSO) vessels.  Two hundred vessels are already in use for sub-sea oil and gas extraction. The movement of the industry to deeper waters has accelerated the demand for a floating unit rather than one anchored to the seabed.

The market growth for controls and instrumentation for these processes is growing even faster than the hardware.  There is a move toward smart valves. Metso has supplied its latest generation stainless steel valve controllers to the Norwegian Goliat Floating Production Storage and Offloading (FPSO) plant in the Barents Sea. The intelligent controllers are used on all pneumatic actuated control, on/off and ESD valves at the plant and help to monitor and report on valve performance for asset management purposes.

Suppliers are providing advanced control systems for all the flow processes.  For the BP Angola FPSO, Yokogawa supplied an integrated control and safety system (ICSS).  The ICSS provided  control and safety functions for the sub-sea, marine, hull and topside facilities of the FPSO vessel along with a single interface allowing operators to start, control and monitor all facilities from a central control room.

For more information on Air/Gas/Water/Fluid Treatment and Control: World Markets, click on: http://home.mcilvainecompany.com/index.php?option=com_content&view=article&id=71

Here are the Headlines for the April 12, 2013 – Utility E-Alert 

UTILITY E-ALERT

#1120 – April 12, 2013

Table of Contents

COAL – US 

• Indiana URC approves Duke’s Environmental Compliance Plan; includes SCR for Cayuga 1, 2
• WP&L estimates Cost of Construction of Dry FGD/Baghouse at Edgewater 5 as $413.7 Million
• Fate of Mt. Tom undecided at Present
• Calpine, Exelon, National Grid and Public Service Enterprise Group Back MATS Rule

COAL – WORLD

• PGE abandons Plans for 2x900 MW Opole in Poland
• Videocon’s 1200 MW Power Project in West Bengal, India could be revived by Talks between West Bengal and Videocon
• Bidding begins for EPC Contract for 1320 MW Udangudi Power Project in Tamil Nadu, India
• Alsons planning 400 MW Power Plant at Tampakan Copper and Gold Mine in the Philippines
• NTPC could move another Power Project from the Indian State of Odisha
• Hitachi and Terna to build 660 MW Ptolemais V in Greece
• BHEL-NTPC-IGCAR Effort to build 800 MW Advanced Ultra Supercritical Power Plant in India
• DPSC Ltd to invest Rs 25,000 Crore for Power Plants in India
• Era Infra gets Rs 430-cr Contract from NTPC for 2x800 MW Lara Power Plant in Chhattisgarh, India
• Coal India-NTPC dispute: Full Coal Supply to be resumed
• Coal Linkages to 16,000 of MW Power Plants not Possible: India Coal Ministry
• China Machinery Engineering Co. to build 600 MW Hwange Expansion in Zimbabwe

COMBUSTION TECHNOLOGIES/BOILER EFFICIENCY

§  Wood Group installing ECOMAX^® Systems on Combined Cycle Power Plants in US

§  ABB to supply Symphony^®Plus System for One Unit at 590 MW Grazia Deledda Sulcis in Italy

§  Metso Modernizing Automation System at Parichha Power Plant in Uttar Pradesh, India

§  EDF selects Symphony Plus for Le Havre and Cordemais

§  Metso Automation for Huadian Jurong Xiashu Power Plant in China

GAS/OIL - US 

• Pasadena Water and Power planning 71 MW Glenarm Repower

GAS/OIL – WORLD

• China Chengda Engineering Co. to build 225 MW Combined Cycle Plant in Bangladesh
• Groundbreaking for Takoradi 2 in Ghana
• MAN Diesel & Turbo Consortium to build 194 MW Zouk and 78 MW Jiyeh Power Plants in Lebanon
• Alstom to supply Equipment including Boilers, ESPs and FGD for 5x620 MW Yanbu 3 in Saudi Arabia
• GDF Suez confirms plans to Mothball Three Gas-fired Power Plants in France

GASIFICATION

• BHEL and NTPC to form Joint Venture for IGCC Power Plant

BIOMASS 

• Delta hopes to convert Borssele (the Netherlands) from Coal to Wood Chips

NUCLEAR 

• Japan’s Nuclear Regulations could delay Reactor Restarts

BUSINESS

• Obama suggests sale of TVA
• SPX and Shanghai Electric Joint Venture receives More than $80 Million in New Dry Cooling Systems Orders
• EPAs FY 2014 Budget Proposal
• Chinese Pump Revenues to Exceed $8 Billion in 2014
• Coal will Generate 77 Percent of the Flow Control and Treatment Revenues in the $45 Billion Power Market
• Flue Gas Desulfurization Revenues Will Range between $3 Billion and $8 Billion/Yr over the Next Three Years

HOT TOPIC HOUR 

• New Developments in Mercury Measurement and Control unveiled in Hot Topic Hour on April 11, 2013
• “Mercury Measurement and Control – Part 3” is “Hot Topic Hour” on April 18, 2013 at 10 a.m. DST
• Upcoming Hot Topic Hours

For more information on the Utility Environmental Upgrade Tracking System, click on: 

http://home.mcilvainecompany.com/index.php?option=com_content&view=article&id=72

McIlvaine Hot Topic Hour Registration

On Thursday at 10 a.m. Central time, McIlvaine hosts a 90 minute web meeting on important energy and pollution control subjects. Power webinars are free for subscribers to either Power Plant Air Quality Decisions or Utility Environmental Upgrade Tracking System. The cost is $125.00 for non-subscribers. Market Intelligence webinars are free to McIlvaine market report subscribers and are $400.00 for non-subscribers.

To register for the Hot Topic Hour, click on:

http://www.mcilvainecompany.com/brochures/hot_topic_hour_registration.htm.

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Bob McIlvaine
President
847 784 0012 ext 112

rmcilvaine@mcilvainecompany.com

www.mcilvainecompany.com

191 Waukegan Road Suite 208 | Northfield | IL 60093

Ph: 847-784-0012 | Fax; 847-784-0061

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