Severe Service Valve Sales to the Chemical Industry will be just under $4
Billion in 2017
Severe service valves are required for 56 percent of all the valve applications
in the chemical industry. The definition of severe service includes valves
which are subject to abrasion, corrosion, unusual pressures, or must be designed
to meet stringent safety, sanitation, or contamination requirements.
Severe service valves are required for 75 percent of the process applications.
Since the process segment accounts for 63 percent of all the valves sold to the
chemical industry, the process severe service valves account for 42 percent of
all the valves sold to the industry.
Water used for cooling requires virtually no use of severe service valves.
Only 30 percent of the water intake valves are in the severe service category.
About half the wastewater valves are designed for severe service. These
are valves handling the slurry.
In 2017, the sales of severe service valves for processes will be just under $3
billion with the balance of $1 billion in the other three categories.
The percentages are based on revenues rather than amount of flow or the number
of valve units. While severe service valves will account for 56 percent of
the revenue, they will account for less than 30 percent of the flow and 20
percent of the unit sales.
Details on these forecasts are included in N028
Industrial Valves: World Market
Decision Guides on severe service valve options are already available for
coal-fired power, gas turbine combined cycle power plants, nuclear plants and
molecular sieve switching in gas treatment.
For more information contact Bob McIlvaine 847-784-0012 ext. 112
rmcilvaine@mcilvainecompany.com.
Petrochemicals is a Growth Market for Flow Control and Treatment
2017 will be a good year for those flow control and treatment companies selling
into the petrochemical industry in East Asia. Production for this region will
exceed 45 percent of the world total. There has been growth in the NAFTA region
due to the availability of low cost natural gas, but it does not match the
growth in China.
The investment in flow control and treatment in East Asia will be more than 60
percent of the total because of the feedstock source. A large portion of the
Chinese petrochemicals will be derived from coal-based feedstocks rather than
natural gas. The gasified coal must be filtered to eliminate ash. The acid gases
also need to be removed before they even reach the conventional
gas-to-petrochemicals process. Coal also contains unacceptable levels of mercury
which require carbon beds or ionic impregnated bead beds for removal.
Dehydration requires molecular sieves. Generally, three molecular sieve units
are needed to allow for regeneration. The molecular sieve switching valve is
expensive due to the temperature and corrosion exposure as well as the zeolite
particles.
The large quantities of H2S generated in the coal gasification
process require conversion to sulfur or sulfuric acid. Scrubbers, pumps and
valves are all needed for this process.
The forecasts for flow control and treatment in the petrochemical industry is
addressed in
N049 Oil, Gas, Shale and Refining Markets and
Projects.
Individual product forecasts for the petrochemical sector are found in:
N008 Scrubber/Adsorber/Biofilter World Markets
N028 Industrial Valves: World Market
N021 World Fabric Filter and Element Market
2017 Water and Wastewater Treatment Chemicals Purchases
Will Exceed $27 Billion
Next year the purchases of water and wastewater treatment chemicals will exceed
$27 billon. This represents the final price to the end user. Much of the
revenue sticks with the companies who mix commodity chemicals to provide custom
treatment. Ecolab and GE Betz are examples of the companies with the
expertise to recommend the right chemical blend and then to furnish it.
Much of the value is generated by the process knowledge of the supplier.
Water and Wastewater Treatment Chemicals Purchases ($ Millions)
Industry 2017
Total |
27,585
|
Chemical |
921
|
Electronics |
438
|
Food |
889
|
Metals |
927
|
Mining |
538
|
Oil & Gas |
1,055
|
Other Industries |
1,466
|
Pharmaceutical |
389
|
Power |
5,324
|
Pulp & Paper |
1,665
|
Refining |
3,093
|
Wastewater |
4,970 |
Water |
5,910
|
Municipal wastewater treatment represents the largest single industry segment.
The problems with lead contaminated water in Flint, Michigan underscore the
importance of treatment chemicals for this application.
The power industry is the second largest purchaser. Coal-fired power
plants in China will spend over $1 billion for treatment chemicals in 2017.
There are many supercritical and ultra-supercritical boilers in operation in the
country. High quality treatment chemicals are needed to keep them
operating.
Wastewater is a steady growth industry as developing countries are installing
secondary treatment systems and need to purify the discharged wastewater as well
as to dewater sludge.
The oil and gas industry must treat water from various sources including the
produced water which is extracted along with oil. The lack of new drilling
sites is encouraging water treatment since there are fewer options for
reintroduction of the water which is already being produced.
For more information on Water and Wastewater Treatment Chemicals World Market,
click on:
http://home.mcilvainecompany.com/index.php/markets/27-water/449-n026-water-and-wastewater-treatment-chemicals
Daily Project Posting in McIlvaine Oil, Gas, Refining Supplier Program
OIL/GAS/SHALE/REFINING
E-Alert
March 2016 – No. 2
This alert is being issued twice per month for suppliers in flow control and
treatment who are coordinating market research with targeted pursuit of the
larger and longer term orders.
PROJECTS
The following projects each will result in millions of dollars of orders for
flow control and treatment products. Each project has been rated. The
opportunity size is rated from 1-10 with 1 being small and 10 being very large.
The timing for flow and treatment orders has been provided by year, e.g. T 16 =
timing of order is 2016.
Petrofac Chooses Veolia for Water Treatment for Its Rabab Harweel Project in
Oman (T16)
Revision Date:
3/16/2016
Tags:
211111 - Crude Petroleum and Natural Gas Extraction
原油和天然气开采,
Veolia Water Technologies Gulf, Petrofac, Petroleum Development Oman, Injection
System, Pipelines, Water Treatment System, Facilities, Water Treatment,
Engineering, Gas Processing, Oman
Linde Deploys New CO2 Scrubbing Technology for Early Flowback Gas
Revision Date:
3/16/2016
Tags:
211111 - Crude Petroleum and Natural Gas Extraction
原油和天然气开采,
Linde North America, Mobile Gas Cleanup Unit, Production, Flowback, Enhanced
Recovery, Cleanup, Scrubbing, Environmental Efficiency, Fracking, North America
Emerson Technology and Expertise to Support Maersk Oil’s $4.5 Bln Culzean
Project (08, T17)
Revision Date:
3/16/2016
Tags:
211111 - Crude Petroleum and Natural Gas Extraction
原油和天然气开采,
Maersk Oil, Emerson Process Management, Automation Controls, Platforms,
Wellheads, Facilities, Onshore, Offshore, Technology, Services, Commissioning,
Installation, Testing, Engineering, Design, Automation, Gas Processing, UK
Amec Foster Wheeler Awarded £125m Contract for BP Chilldown Project (06,T16)
Revision Date:
3/15/2016
Tags:
211111 - Crude Petroleum and Natural Gas Extraction
原油和天然气开采,
Amec Foster Wheeler, BP, Valves, Pipe Spool, Pipeline, Onshore, Development,
Refrigeration, Installation, Project Management, Operational Efficiency,
Construction, Engineering, Procurement, UK
Chevron Achieves First LNG Production at Gorgon
Revision Date:
3/15/2016
Tags:
211111 - Crude Petroleum and Natural Gas Extraction
原油和天然气开采,
Chevron Australia, Production, Liquefaction, Supply, Shipping, Australia
Amec Foster Wheeler Awarded Multiple Algerian Refinery Contracts (T16)
Revision Date:
3/15/2016
Tags:
324110 - Petroleum Refineries
石油精炼,
Amec Foster Wheeler, Sonatrach, Atmospheric Distillation Unit, Gas Separation
Unit, Hydro-cracking Unit, Desulfurization Unit, Utilities, Desulfurization,
Support, Production, Effluents Treatment, Blending, Refining, Distillation,
Design, Engineering, Hydrocracking, Gas Separation, Algeria
WGL Announces $89 Mln Investment in Stonewall Gathering System (06)
Revision Date:
3/14/2016
Tags:
211111 - Crude Petroleum and Natural Gas Extraction
原油和天然气开采,
WGL Midstream, Pipeline, Gas Gathering, Investment, Pipeline, Demand, USA
Micoperi and Quantum Power Agree on EPC for Tema LNG Import, Storage,
Regasification and Delivery Facility
Revision Date:
3/14/2016
Tags:
211111 - Crude Petroleum and Natural Gas Extraction
原油和天然气开采,
Ghana National Petroleum Corp, Quantum Power, Micoperi, Storage Tank, Terminal,
Regasification, Power Generation, Storage, Engineering, Construction,
Procurement, Ghana
Partners Reach Terms for Tema LNG Project Construction (07, T16)
Revision Date:
3/14/2016
Tags:
211111 - Crude Petroleum and Natural Gas Extraction
原油和天然气开采,
Ghana National Petroleum Corp, Quantum Power, FSRU (Floating Storage
Regasification Unit), Onshore, Offshore, Pipeline, Storage, Regasification,
Construction, Operations, Ghana
Fluor Consortium Delivers Natural Gas Development Project in Brazil.
Revision Date:
3/14/2016
Tags:
211111 - Crude Petroleum and Natural Gas Extraction
原油和天然气开采,
Fluor Energy & Chemicals, Parnaíba Gás Natural (PGN), Construcap Engenharia e
Comércio, Pipeline, Gas Gathering System, Consortium, Construction, Startup,
Pipeline, Engineering, Gas Gathering, Tie-in, Procurement, Brazil
Air Products to Provide PRISM® Membrane Separators for Shenhua Ningxia
Coal-to-Liquids Project (T16).
Revision Date:
3/14/2016
Tags:
221112 - Fossil Fuel
化石燃料,
Air Products, Ningdong Energy and Chemical Industry Base, Membrane Systems, Coal
to Liquids, Hydrogen Purification and Recycling, China
Twenty-four North American Ammonia Plants Announced since 2012
Revision Date:
3/14/2016
Tags:
325110 - Petrochemical Manufacturing
石化产品生产,
Dyno Nobel, OCI Chemical, CF Industries Holding, JR Simplot, LSB Industries,
Yara BASF, Capacity, Construction, North America
Subsea Boosting Systems Market to Account for $3.07 Bln by 2023: Transparency
Market Research.
Revision Date:
3/14/2016
Tags:
211111 - Crude Petroleum and Natural Gas Extraction
原油和天然气开采,
Transparency Market Research, Boosting System, Wells, Tieback Connectors,
Technology, Market, Subsea Boosting, Manufacture, Reports, Exploration,
Installation, Tie-Back, Water Injection, Gas Compression, Production, Worldwide
Bechtel Announces First LNG Commissioning Cargo from Sabine Pass Train 1
Revision Date:
3/14/2016
Tags:
211111 - Crude Petroleum and Natural Gas Extraction
原油和天然气开采,
Cheniere Energy, Bechtel, Trains, Market, Construction, Export, Commissioning,
Liquefaction, Production, USA
Heerema Wins EPC Contract for Oseberg Vestflanken 2 Platform (T16)
Revision Date:
3/11/2016
Tags:
211111 - Crude Petroleum and Natural Gas Extraction
原油和天然气开采,
Heerema, Statoil, Wellhead Platforms, Offshore, Fabrication, Transport,
Engineering, Procurement, Installation, Construction, Norway
Samsung Heavy Awards Cape Contract for Shell's Prelude FLNG Facility (T16)
Revision Date:
3/11/2016
Tags:
211111 - Crude Petroleum and Natural Gas Extraction
原油和天然气开采,
Samsung Heavy Industries, Shell, FLNG, Topsides, Insulation, Piping, Contract,
Fabrication, Construction, Liquefaction, Installation, South Korea
Equatorial Guinea Awards EPC Contract for New Petrochemicals Complex (T16)
Revision Date:
3/11/2016
Tags:
325110 - Petrochemical Manufacturing
石化产品生产,
East China Engineering Science and Technology Co (ECEC), WorleyParsons, Riaba
Fertilizers, Jetty, Consortium, Offshore, Infrastructure, Utilities,
Development, Production, Construction, Engineering, Procurement, Equitorial New
Guinea
Punj Lloyd Wins $304 Mln Pipeline Contracts in Oman (07, T16)
Revision Date:
3/11/2016
Tags:
211111 - Crude Petroleum and Natural Gas Extraction
原油和天然气开采,
Oman Oil Co, Oman Gas Co, ORPIC, Punj Lloyd, Pipeline, Block Valves, Pigging
Systems, Orders, Pipeline, Construction, Oman
SOCAR Signs Agreement on Heydar Aliyev Oil Refinery Reconstruction (T17)
Revision Date:
3/11/2016
Tags:
324110 - Petroleum Refineries
石油精炼,
KT-Kinetics Technology, Maire Tecnimont, SOCAR, Units, Catalytic Cracking Unit,
Sulfur Removal Unit Sulfur Removal Unit, Modernize, Production Capacity,
Catalytic Cracking, Sulfur Removal, Construction, Modernize, Reconstruction,
Reconstruction, Refining, Azerbaijan
McDermott and L&T Enter Agreement for India Deepwater Market
Revision Date:
3/11/2016
Tags:
211111 - Crude Petroleum and Natural Gas Extraction
原油和天然气开采,
McDermott, Larsen & Toubro, Project, Offshore, Construction, Fabrication,
Installation, Procurement, Engineering, India
These projects are covered in more detail and are integrated in a database which
is part of Oil, Gas, Shale and Refining Markets and Projects. This semi-monthly
report is available as part of this service or as a stand-alone subscription.
The Oil/Gas/Shale/Refining E Alert is issued twice per month to
registered subscribers. It is not to be resent to others. Each subscriber must
be registered. The first subscription is $950/yr. and additional subscribers are
$90/yr. The newsletter is free for those who subscribe to
N049 Oil,
Gas, Shale and Refining Markets and Projects.
There is a 30 percent discount for those building an Opportunity Creation
package with one or more of the market reports and one or more of the E Alerts.
Here are some Headlines from the Utility E-Alert – May 6, 2016
UTILITY E-ALERT
#1271 – May 6, 2016
Table of Contents
COAL – US
COAL – WORLD
The
41F
Utility E-Alert
is issued weekly and covers the coal-fired projects, regulations and other
information important to the suppliers. It is $950/yr. but is included in the
$3020
42EI
Utility Tracking System
which has data on every plant and project plus networking directories and
many other features.
New Route to Reach Prospects in Flow Control and Treatment Applications
The sales process for air, water, liquid and gas flow control and treatment
equipment can be likened to a trip using GPS with a series of zoom steps. It is
all possible because of digital technology. There was a time when the
national road atlas was the major tool for a trip across country. To find local
information you had to stop and ask questions.
This older system can be likened to the most common market approach to flow
control and treatment: a
general market report and a continuous flow of sales leads. The general market
report is used by senior management to set the course but is not detailed enough
to help set targets for individual sales people. The deficiencies in this
approach are:
A general report may not provide the best forecasts. A top-down general forecast
is suspect. McIlvaine reports contain many thousands of individual forecasts
which aggregate to a general forecast. How do you reliably determine the
aggregate without determining the components? The suppliers of these general
reports claim to interview the experts and analyze all the financial
information. Any expert who does not have access to all the individual forecasts
is hampered in making a general forecast.
General reports typically rely on data provided by governments and associations.
These sources are good for determining the past but not the future. The most
useful data is very detailed. Use of government data which assess the mining
activity in each country is of questionable value compared to the use of
specific coal, iron ore, bauxite, potash, copper, gold and other mineral
production data. McIlvaine uses individual mineral forecasts. An approach which
tries to assess the mining opportunities generally in a region without a
specific breakout for each ore is flawed because mining activity varies widely
depending on the ore. Chile is a leading copper producer, whereas Canada is a
leading potash producer.
A report which is not continually updated is obsolete. The sudden drop in oil
prices resulted in an immediate need to evaluate and change many flow control
and treatment forecasts. The magnitude of the drop and the remaining political
uncertainties require continuous adjustment of forecasts. It is desirable for
management to set a flexible course for the year but also to make periodic
adjustments in advertising, promotion and manufacturing based on
revised forecasts.
The specific relevant market segments may not follow the general trends.
Flow control and treatment markets are frequently impacted by environmental or
other regulations. So the general industry trends do not reflect the markets.
The huge flue gas desulfurization (FGD) expenditures for pumps, valves,
scrubbers, monitors and belt filters are a function of regulations which impact
not only new plants but existing ones as well.
SALES LEADS: A large amount of money is spent on sales leads. They are
often too late if you are selling based on the best product rather than the
lowest cost. Since they are also provided simultaneously to competitors, the
unique value is diminished. Much of this expense can be avoided with the new
McIlvaine program:
Detailed Forecasting of Markets, Prospects and
Projects
This program can be likened to the road trip with several zoom steps on the GPS.
The first step is to identify the markets which should be prioritized. McIlvaine
provides a number of standard reports on air, water, contamination and energy
markets:
MARKETS
The second step is to zoom in on the most relevant markets. Customized
segmentation provides forecasts which can be used at the individual salesman
level.
The next zoom step is to identify the large users and decision makers. The large
oil and gas, power, cement, food and mining companies buy the majority of the
flow control and treatment products. These companies should be a continuous
focus for the supplier.
The final zoom step is to focus on the projects being developed by the large
users, OEMs, and A/Es. The systems to provide this data are shown at: Databases
-------
You can register for our free McIlvaine Newsletters at:
http://www.mcilvainecompany.com/brochures/Free_Newsletter_Registration_Form.htm.
Bob McIlvaine
President
847-784-0012 ext 112
rmcilvaine@mcilvainecompany.com
www.mcilvainecompany.com