April 2016 - Water - Wastewater Treatment Chemicals Insights 64

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.

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.

Tags: 324110 - Petroleum Refineries 石油精炼, ExxonMobil, PBF Energy, PDVSA, Catalytic Cracking Unit, Electrostatic Precipitator, Refining, Restart, Acquisition, Catalytic Cracking, Outage, Repairs, USA

Tags: 211111 - Crude Petroleum and Natural Gas Extraction 原油和天然气开采, Cheniere Energy, Tellurian Investments, BG Group, Parallax Energy, Project, Development, Liquefaction, Export, Planning, USA

Tags: 325110 - Petrochemical Manufacturing 石化产品生产, Fluor Corporation, BASF, Plasticizer, Engineering, Procurement, Construction, Design, Revamp, USA

Shell Chemical Breaks Ground on $717 Mln Louisiana Plant Expansion (06, T16)

Tags: 325110 - Petrochemical Manufacturing 石化产品生产, Turner Industries, Shell Chemical LP, Project, Expansion, Manufacture, Construction, USA

Tags: 325110 - Petrochemical Manufacturing 石化产品生产, SABIC, SAFCO, Shutdown, Production, Maintenance, Saudi Arabia

CUI Global Announces First Delivery of its GasPT® Technology to Europe's Snam Rete Gas

Tags: 211111 - Crude Petroleum and Natural Gas Extraction 原油和天然气开采, CUI Global, Snam Rete Gas, Orbital Gas Systems, Gas Analyzer, Technology, Purchase, Testing, Certification, Delivery, Gas Transmission, Italy

Tags: 211111 - Crude Petroleum and Natural Gas Extraction 原油和天然气开采, Jacobs Engineering, Unocal East China Sea, Ltd, Technology, Services, Onshore, Gas Production, Sulfur Recovery, Engineering, Gas Treatment, Project Management, China

Tags: 211111 - Crude Petroleum and Natural Gas Extraction 原油和天然气开采, International Energy Agency, Cenovus Energy, Suncor Energy, Total, Royal Dutch Shell, Upgrader, Report, Cost, Market, Environmental Standards, Slowdown, Environmental Impact, Forecast, Growth, Canada

Tags: 324110 - Petroleum Refineries 石油精炼, KBR, Dong Ying Haike Ruilin Chemical Co, Technology, Environmental Standards, Safety, Environmental Efficiency, Production, Refining, Licensing, China

Tags: 324110 - Petroleum Refineries 石油精炼, 325110 - Petrochemical Manufacturing 石化产品生产, SATORP, Total, Saudi Aramco, Joint Venture, Expansion, Refining, Saudi Arabia

Tags: 211111 - Crude Petroleum and Natural Gas Extraction 原油和天然气开采, ClearSign Combustion Corporation, Advanced Combustion & Process Controls, Wellhead Enclosed Flares, Wellheads, Technology, Flaring, Installation, Engineering, Design, Regulating, NOx Emissions Reduction, USA

Alfa Laval Wins SEK 60 Mln Energy-efficiency Order for Russian Refinery (06, T16)

Tags: 324110 - Petroleum Refineries 石油精炼, Alfa Laval, Heat Exchanger, Order, Refining, Energy Efficiency, Delivery, Russia

Fluor Awarded Construction Management Contract by Sunoco Logistics for Mariner East 2 Project

Tags: 211111 - Crude Petroleum and Natural Gas Extraction 原油和天然气开采, Sunoco Logistics Partners, Fluor Corporation, Terminal, Market, Collaboration, Construction, Storage, Operational Efficiency, Gas Processing, USA

Statoil Awarding Contracts for Oseberg Vestflanken 2, Johan Sverdrup and Gina Krog #1 (08, T16)

Tags: 211111 - Crude Petroleum and Natural Gas Extraction 原油和天然气开采, Statoil, Wellhead Platforms, Contracts, Marine, Offshore, Approval, Pipelaying, Construction, Installation, Procurement, Development, Operations, Norway

Statoil Awarding Contracts for Oseberg Vestflanken 2, Johan Sverdrup and Gina Krog #2 (08, T16)

Tags: 211111 - Crude Petroleum and Natural Gas Extraction 原油和天然气开采, Statoil, Pipeline, Platforms, Offshore, Pipeline, Production, Norway

Statoil Awarding Contracts for Oseberg Vestflanken 2, Johan Sverdrup and Gina Krog #3 (08, T16)

Tags: 211111 - Crude Petroleum and Natural Gas Extraction 原油和天然气开采, Statoil, FSO, Pipelines, Storage, Pipeline, Norway

Phillips 66 Partners Acquires 25 Percent Interest in Sweeny Fractionator One and Clemens Caverns

Tags: 211111 - Crude Petroleum and Natural Gas Extraction 原油和天然气开采, Phillips 66 Partners, Phillips 66 Sweeney Frac LLC, Fractionator, Facilities, Refining, Acquisition, Fractionation, Storage, USA

Emerson to Help Cameron LNG Deliver Complex, Multi-Billion Dollar LNG Project on Schedule (06, T16)

Tags: 211111 - Crude Petroleum and Natural Gas Extraction 原油和天然气开采, Emerson Process Management, Cameron LNG, Trains, Software, Safety System, Safety, Technology, Maintenance, Liquefaction, Automation, Operational Efficiency, USA

Tags: 324110 - Petroleum Refineries 石油精炼, CHS Inc, Coker, Decoking Control System, Automation, Refining, Construction, Coking, Upgrade

Tags: 325110 - Petrochemical Manufacturing 石化产品生产, BASF, National Petrochemical Co, Catalyst, Equipment, Materials, Technology, Projects, Investment, Construction, Engineering, Licensing, Iran

Howard Midstream Energy Partners and Grupo Clisa, Nueva Era Pipeline Details (T16)

Tags: 211111 - Crude Petroleum and Natural Gas Extraction 原油和天然气开采, Grupo Clisa, Howard Midstream Energy Partners, Comisión Federal de Electricidad (CFE), Pipeline, Power, Connection, Combined Cycle, Pipeline, Construction, USA, Mexico

Howard Energy Partners Proposes $500 Mln Pipeline System from Corpus Christi, TX to Monterrey, México (07,T16)

Tags: 211111 - Crude Petroleum and Natural Gas Extraction 原油和天然气开采, Dos Aquilas LLC, Howard Midstream Energy Partners, Terminals, Pipelines, Capacity, Open Season, Pipeline, Construction, Approval, Expansion, USA, Mexico

Increasing Investments in Gas Exploration and Offshore Oil to Boost Global FPSO Market According to Report

Tags: 211111 - Crude Petroleum and Natural Gas Extraction 原油和天然气开采, Hyundai Heavy Industries Co., Teekay Group, Samsung Heavy Industries, Yinson Holdings, Bumi Armada Berhad, Bluewater Energy Services, BW Offshore, MODEC, SBM Offshore, Aker Solutions, Tanker Vessels, Analysis, Financing, Construction, Conversion, Investment, Growth, Exploration, Forecast, Americas, Europe, Asia, Africa, Oceania

Transparency Market Research Report Says Oil Spill Management Market to Reach $114.4 Bln by 2020

Tags: , Cameron International, Hyundai Heavy Industries Co., GE Oil & Gas, SkimOil Inc, Fender & Spill Response Services, Control Flow Inc, National Oilwell Varco, Northern Tanker Co Oy, Pipeline, Equipment, Blowout Preventer, Market, Regulation, Offshore, Onshore, Technology, Pipeline, Drilling, Leak Detection, Management, Spill Response, North America, Europe, Asia, Rest of the World

Forsys Subsea Awarded Subsea FEED Contract for Trestakk Field Development with Statoil

Tags: 211111 - Crude Petroleum and Natural Gas Extraction 原油和天然气开采, Forsys Subsea, Statoil, Risers, Subsea Production Systems, Tiebacks, Systems, Wellhead Equipment, Flowlines, Riser Hang-off, Study, Engineering, Design, Norway.

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.

Utility E-Alert Tracks Billions of Dollars of New Coal-fired Power Plants on a Weekly Basis

§ China's Harbin and Saudi ACWA near Loan for Dubai Clean Coal Power Plant

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.

International Strategy is Critical for Survival in the Flow Control and Treatment Industries

Whether you sell pumps, valves, filters, fans, compressors, treatment chemicals, scrubbers or centrifuges, you cannot focus on just the U.S., China, or EU market. Here are some examples of major opportunities elsewhere:

Industry	Country
Aquaculture	Indonesia
Bauxite	Kazakhstan
Cement	Turkey
Coal-fired power	Vietnam
Coal mining	Columbia
Copper	Chile
Desalination	Israel
Flat Panels	South Korea
Gas Extraction	Nigeria
Iron Ore	Ukraine
LNG	Australia
Pharmaceuticals	India
Petrochemicals	Saudi Arabia
Phosphate	Morocco
Pulp/Paper	Brazil
Potash	Canada
Refineries	Algeria
Semiconductors	Taiwan
Steel	UAE

The U.S. has placed a moratorium on new coal-fired power plants but China will build far more than the EU or that the U.S. will retire. Vietnam, Indonesia and Myanmar are building power plants with a combined capacity of 150,000 MW.

China is the largest fish farming country, but Indonesia is also large. The industry is moving to sophisticated recirculating systems with a big investment in flow control and treatment equipment.

Australia, a leader in iron ore and coal mining, has become a recent player in LNG with successful conversion of coal bed methane.

Individual projects can measurably impact the market in a given year. There are nine large Canadian potash projects underway with a combined capital investment of over $30 billion. The largest project will require a $4 billion investment. Algeria’s state-owned Sonatrach has let a series of contracts to Amec Foster Wheeler to provide front-end engineering and design (FEED) for three grassroots refineries that will add a total of 15 million tons/year in refining capacity in the country. These few projects represent a significant percentage of the yearly flow control and treatment revenues for the worldwide industry.

Coal-fired projects in Indonesia could result in an investment of over $100 billion. Vietnam is vacillating on plans which would require a coal-fired power plant investment of over $200 billion. Delay or cancellation of large projects can materially affect the revenues of the flow control and treatment suppliers.

Flow control and treatment companies need to pursue the world market. There are 196 countries with more than 50 major industries who purchase flow control and treatment equipment. Many of these countries are quite small. McIlvaine forecasts divide the world into 80 purchasing entities which include 72 separate countries and 8 country groups. The pump forecast example below shows pump sales in Pakistan will be $216 million in 2021, but sales will only be $22 million in a group of countries labeled “Other Western Europe.”

Industrial Pump 2021 Revenues
Country or Entity	Revenues $ Billions
New Zealand	69.51
Nigeria	411.34
Norway	283.79
Other Africa	775.41
Other CIS	198.22
Other East Asia	89.62
Other Eastern Europe	108.45
Other Middle East	825.15
Other South & Central America	462.79
Other West Asia	14.15
Other Western Europe	21.90
Pakistan	216.54
Peru	165.93
Philippines	260.63
Poland	377.89

The countries aggregated in the Other Western Europe category are Andorra, Faroe Islands, Gibraltar, Greenland, Guernsey, Iceland, Isle of Man, Jersey, Lichtenstein, Luxembourg, Malta, Monaco, San Marino and Vatican.

The average for the 80 entities in a $60 billion annual market is 0.75 percent. While, as individual countries, many in the “other” category are insignificant, as a group they are relevant. This is particularly true for the Other Africa group which accounts for 0.75 percent of the total market and the Other Middle East group which in the aggregate is bigger than the average.

Flow Control and Treatment Companies will benefit from a Digital Crystal Ball

The digital age has created the ability to make fortune telling a reality. The real life version of a crystal ball is the wealth of information available to predict markets, projects and identify decision makers. This information can be used to change the way flow control and treatment products are marketed.

Long range purchasing plans can be determined by an organized analysis of information which can be obtained directly from available documents or through individuals who have specific insights.

Minutes of municipality meetings documenting engineering study authorization

Consultant reports advising course of action for companies under public scrutiny

Permit applications for construction or upgrading

Submittals to the World Bank and other lending institutions

Five Year Plans for China and other countries

Recent and pending regulations which will impact the market

LinkedIn, blogs and various online groups with willing volunteers of information

Google and other search engines

The local salesman can make a call on a municipal wastewater treatment plant but would be unlikely to provide the same value gained from the directors meeting minutes which outline the failure of the competitor’s equipment and his proposal to fix it.

The power plant modification permit request which details the cost and performance of various options provides the needed insights on product and timing for a potential supplier.

One way suppliers take advantage of the availability of information is to purchase sales leads. Typically the company spends lots of money on these leads and not on market research. In one sense, the leads are the market research. In fact, published studies purport to link the number of sales leads to the size of future markets.

1. The large expenditure for sales leads draws funds away from critical market research.

2. Sales leads are not qualified. High margins and order conversion result from picking and choosing projects.

3. Since the sales lead is also being viewed by the competitors, there will be pricing pressure and lower success rates.

4. The timing of sales leads is often right if you are selling a commodity, but if you are selling based on your product differentiation, you are too late.

5. Many companies have distributors and representatives who are being paid to uncover leads. Sales lead expense is justified based on evaluating distributor performance rather than on boosting sales.

If you are selling a commodity, product and price is the basis of success then the sales lead route is probably still the best option. But, if you sell a product based on lowest cost of ownership and not initial price, then you should consider a whole new route using the digital crystal ball.

1. Forecasts can be provided for the precise product at the State and province level.

2. Project alerts provide the time to convince the customer to consider total cost of ownership and to issue bid specifications accordingly.

3. The large end users, OEMs, and AEs are identified. Since they purchase more than 50 percent of the flow control and treatment equipment, the focus on them is critical.

4. The opportunity to connect with the end user through white papers and webinars improves the margin and success potential.

5. The ability to demonstrate lowest cost of ownership is the secret to success in the global market.