Pump Insights No

Pump Insights
No. 31 August 2014

WELCOME

This bi-weekly Pump Insight provides excerpts from the McIlvaine Pumps World Market. It also provides excerpts from related publications. The market report provides the latest forecasts, market shares and insights relative to technology and opportunities.

Countries in the Middle East will spend nearly $2.2 billion for pumps next year. This is the latest forecast in Pumps World Market, published by the McIlvaine Company. (www.mcilvainecompany.com)

Industry	2015
Total	2,200
Chemical	75
Electronics	1
Flood Control	16
Food	64
Metals	19
Mining	4
Oil and Gas	573
Other Industries	345
Pharmaceutical	21
Power	108
Pulp & Paper	11
Refinery	350
Stone	68
Wastewater	242
Water	303

Separate forecasts by industry and pump type for each of the next five years are provided for each of the eight countries and one aggregation of small countries.

The largest market is oil and gas and accounts for 26 percent of the total. An equal amount will be spent by municipalities for water and wastewater. Desalination is a very big market in the region. Israel leads the way with a huge desalination program. In a decade where total fresh water supply has been sharply reduced, Israel has built enough desalination capacity to easily supply its own demands.

There is a trend toward increased use of reverse osmosis (RO) rather than thermal desalination. The pump expenditure is much higher in plants using the RO approach due to the high osmotic pressures which must be overcome.

The latest data shows the U.S. economy contracted significantly more than previously estimated in the first quarter of this year.

The Bureau of Economic Analysis released its third and final estimate of real gross domestic product for the first three months of 2014. The release showed output in the U.S. declining at an annual rate of 2.9%. This is relative to fourth quarter 2013, when real GDP grew 2.6%.

The final number is also down from BEA’s negative 1% second estimate released last month and even more sharply from its first estimate that showed GDP growing 0.1%. While this makes Q1 the economy’s worst since Q1 2009, the heart of the recession, economists were anticipating the further downward revision.

“The bad weather in much of the U.S. in early 2014 was a significant drag on the economy, disrupting production, construction, and shipments, and deterring home and auto sales,” wrote PNC Senior Economist Gus Faucher in a note out prior to the release. “But data show growth rebounding in the second quarter, with improvements in home and auto sales and residential construction.”

The major stock indices slipped into the red as the opening bell approached but quickly returned to positive territory. This seems to indicate that investors were also writing off the contraction as temporary.

In an interview following the release Stephen Auth, Chief Investment Officer at Federated Investors, called the revision “pretty incredible” but says that underlying trends have shown improvement that has simply been “masked” by the weather. He expects second quarter GDP growth to come in north of 4% and continual market gains.

The revision, BEA explained in a release, was largely due to a smaller than previously estimated increase in personal consumption and larger than previously estimated decline in exports. The 2.9% decrease in real GDP reflected the negative contribution from exports as well as declines in private inventory investment, both residential and nonresidential, fixed investment and lower local government spending. The rate was also negatively impacted by an increase in imports but partially offset by an increase in federal government spending (the first in a year and a half) and in personal consumption. (The remaining text is not included in this sample.)

1) HSBC raised its 2014 GDP forecast from 7.4% to 7.5%, surprised by the strong recovery especially in June. Monthly fixed asset investment and industrial production grew by 17.9% and 9.2% respectively, compared with 16.9% and 8.8% in May.

The strong recovery was largely driven by government policies. State-owned bank lending picked up strongly; fiscal spending grew by almost 25% in both May and June, up from an average of 8% from January through April. HSBC believes China’s GDP growth could exceed its 7.5% forecast if more easing comes over the next few months. “Policies, particularly fiscal policy, will likely be more supportive in 2H as it is traditionally the spending season,” wrote HSBC economists Qu Hongbin and Julia Wang.

China’s property sector continues to be the main downside risk, says HSBC, but “our baseline case remains that policymakers can offset the negative impact given that they have a broad range of policy tools at their disposal.”

In June, property prices in 55 out of 70 cities surveyed fell, up from 35 cities in May and just 8 in April. Local governments have been taking steps to prop up real estate markets, using measures such as abolishing local resident purchase requirements. (The remaining text is not included in this sample.)

German gross domestic product stalled in the second quarter as geopolitical concerns weighed on industrial output and construction weakened after a weather-induced boom in the first three months of the year, the Bundesbank said.

The warning, contained in the central bank's monthly bulletin, is an indication that the euro zone will struggle to improve on the first quarter's meager growth rate.

Germany accounts for about 30% of the bloc's GDP. During the first quarter, euro zone GDP expanded just 0.8% at an annualized rate, or 0.2% on a quarterly basis, despite annualized growth of 3.3% in Germany. Excluding Europe's largest economy, the euro zone economy will have contracted slightly in the first quarter.

"Considering that the service sector is likely continued to expand, the real, adjusted gross domestic product (in Germany) was likely unchanged from the first quarter," the Bundesbank said. "Geopolitical tensions are reflected not only in weaker future indicator surveys, but also in ebbing demand for interim goods." (The remaining text is not included in this sample.)

A complete analysis of GDP and monthly updates for individual countries are included as part of

Oil and Gas Project Tracking is available at a discount to Pumps World Markets subscribers.

Treatment chemicals are an important addition to most oil and gas processes. Access to details on the worldwide oil and gas projects is provided at a substantial discount to Pumps World Markets subscriber.

Persian Gulf Petrochem Company Offers to Build NGL Plants (Article Dated: 7/25/2014)

SABIC and Korea’s SK Global Sign $595 Mln JV Agreement (Article Dated: 7/25/2014)

Jacobs Wins Engineering Package from Borealis on Belgium Chemical Sites (Article Dated: 7/25/2014)

SABIC Plans Crude-to-chemicals Facility in Saudi Arabia (Article Dated: 7/24/2014)

Bechtel Completes Installation of Modules for LNG Train at Curtis Island GLNG Facility (Article Dated: 7/21/2014)

Kinder Morgan Lodges Gas Transport App for Magnolia LNG (Article Dated: 7/18/2014)

China Huaneng's Changji SNG Plant One of Many More Approvals in 2013 (Project Dated: 7/18/2014)

Excelerate, Petrobangla Plan Bangladesh's First Import Terminal (Article Dated: 7/18/2014)

Gasunie and Vopak to Expand Gate LNG Terminal with Fuel Distribution Facilities (Article Dated: 7/17/2014)

Alaska Governor Parnell Says Design Work to Start on New LNG Project (Article Dated: 7/17/2014)

Australia Pacific LNG Reaches Milestones of CSG-LNG Project (Article Dated: 7/17/2014)

FERC Approves Cameron LNG Liquefaction-Export Project (Article Dated: 7/17/2014)

CB&I Awarded FEED Contract for Goldboro LNG Project Development by Pieridae Energy (Article Dated: 7/16/2014)

LNG America and Liquiline Announce Cooperation Agreement (Article Dated: 7/16/2014)

Kentz Awarded $125 Mln Contract at Qatargas LNG Plant (Article Dated: 7/16/2014)

Woodfibre LNG Changes Its Strategy and CB&I Receives the Contract for Goldboro LNG (Article Dated: 7/16/2014)

Sinopec Set to Build World's Largest Coal to Gas Conversion Plant (Project Dated: 7/16/2014)

Cheniere and Gas Natural Fenosa Sign 20-Year LNG Sale and Purchase Agreement (Article Dated: 7/15/2014)

Iberdrola Agrees to 20 Year €4.1Bln LNG Export Deal with Cheniere (Article Dated: 7/15/2014)

Cheniere and Iberdrola Sign SPA for LNG Sales from Corpus Christi (Article Dated: 7/15/2014)

Technip Awarded New LNG Plant Contract in China Using an Air Products Liquefaction Process (Article Dated: 7/15/2014)

Technip Confirms the EPC Contract of Yamal LNG Project (Article Dated: 7/15/2014)

Kitsault Energy Proposes Dedicated Energy Corridor and Export Terminal near Kitsault, BC (Article Dated: 7/15/2014)

Foster Wheeler JV Awarded FEED and Project Execution Services Contract for Kitimat LNG Project (Article Dated: 7/15/2014)

An Innovative Solution for Fixed Offshore LNG Regasification Terminals (Article Dated: 7/15/2014)

From LNG Imports to Exports: Process Safety and Regulatory Challenges (Article Dated: 7/15/2014)

Chinese Officials to Monitor Datang's SNG Project Following a Troubled Phase I Startup (Project Dated: 7/15/2014)

Louisiana LNG Energy Secures Funding, Selects Chart Energy & Chemicals for Plant Design, Supply (Article Dated: 7/14/2014)

Kingho Group sees successful Phase I Production in World's Largest Single Train SNG Plant (Project Dated: 7/14/2014)

Favorable FERC Environmental Assessment for Dominion’s Cove Point LNG Export Project (Article Dated: 7/14/2014)

Keystone Foes Rally to Block Maryland Natural Gas Project (Article Dated: 7/14/2014)

North Dakota LNG, LLC Announces First-to-Market LNG Production Facility for the Bakken (Article Dated: 7/14/2014)

Dresser-Rand's First Small-scale LNG Unit Successfully Produces LNG (Article Dated: 7/11/2014)

ExxonMobil Starts Production Ahead of Schedule at $19 Bln PNG LNG Project (Article Dated: 7/11/2014)

Air Products Selected for Second Malaysia PETRONAS FLNG Project (Article Dated: 7/11/2014)

High Costs May Cause Australia to Miss $180 Bln LNG Expansion Wave (Article Dated: 7/11/2014)

Yamal Arctic Gas Project Backs Political Strategy as Russia Turns East (Article Dated: 7/10/2014)

GE Selected by Lihuayi Group to Partner in Phase II Expansion (Project Dated: 7/10/2014)

Global Market for Fuel Diversity Supported by Black & Veatch Patented LNG Technology (Article Dated: 7/9/2014)

Honeywell Sees Market for Modular Refineries in Nigeria (Article Dated: 7/8/2014)

Bashneft Selects GE's MBR with MACarrier Technology for Russian Refinery’s Industrial Wastewater (Article Dated: 7/8/2014)

Graham Awarded Four Orders Worth Approx $10 Mln for Refining, Ethylene Upgrade (Article Dated: 7/8/2014)

North American Refiners Beating European Profits by $6 per Barrel (Article Dated: 7/8/2014)

General Electric Deploys 75mw Gas Turbines to Port Harcourt Refinery (Article Dated: 7/7/2014)

U.S. Export Decision Deals Blow to Some Gulf Coast Refiners, Processers (Article Dated: 7/7/2014)

Russian Refinery Modernization to Continue Despite Tax Uncertainty (Article Dated: 7/7/2014)

Independent Marketers of Nigeria Plan to Invest $3 Bln in Refineries (Article Dated: 7/7/2014)

Japan May Cut Oil Refining Capacity by up to 10 Percent (Article Dated: 7/7/2014)

Origin Appoints MWH to Provide Design Services for Australia Pacific LNG Water Treatment Facility (Article Dated: 7/7/2014)

Liquefied Natural Gas Limited (LNGLF) Increasing Global Energy Demand and Innovative LNG (Article Dated: 7/7/2014)

EIA Says Capacity Up, Ownership Shifting at U.S. Refineries (Article Dated: 7/3/2014)

U.S. Court Won't Hear Dispute over California Fuel Standard (Article Dated: 7/3/2014)

Takeover Builds Hopes to Save Milford Haven Oil Refinery (Article Dated: 7/3/2014)

Czech Refinery Renews Slovak Deal for Russian Oil Supply (Article Dated: 7/3/2014)

Micro Refineries' a Solution to Oil-train Woes, Energy Firm Quantum Energy Says (Article Dated: 7/3/2014)

Quantum Enters LOI to Acquire Land for Montana Diesel Refinery (Article Dated: 7/3/2014)

Uganda Selects Two Final Bidders for Its Oil Refinery Project (Article Dated: 7/3/2014)

Russia's Rosneft Signs Further Oil Products Supply Deal with BP (Article Dated: 7/3/2014)

U.S. Senators Request Meeting with BP after Lake Michigan Oil Spill (Article Dated: 7/2/2014)

LyondellBasell Receives Offer for Mothballed French Refinery (Article Dated: 7/2/2014)

Honeywell to Train Next Generation of Refinery Technicians in Vietnam (Article Dated: 7/2/2014)

Global Refining Industry Outlook Predicts Growth in 2014, 2015 (Article Dated: 7/2/2014)

Foster Wheeler Awarded Pemex EPC Contracts for Coker Slide Valves (Article Dated: 7/2/2014)

URS Awarded Five-Year Contract Extension by WRB Refining at Wood River Refinery (Article Dated: 7/2/2014)

Pacific Future Energy Announces $10 Bln Bitumen Refinery Project for B.C. North Coast (Article Dated: 7/2/2014)

Key Units at Argentina's Campana Refinery Stopped for Maintenance (Article Dated: 7/1/2014)

The Oil and Gas Industry Will Pay $19 Billion for Valve Solutions In 2015 (News Release Dated: 7/1/2014)

Unconventional Oil and Gas Will Cause Valve Sales to Be $3 Billion Higher In 2015 (News Release Dated: 7/1/2014)

Total Says Saudi JV Jubail Refinery to Reach Full Output by Mid 2014 (Article Dated: 7/1/2014)

Coast Guard Says BP Whiting Refinery Spilled 9-18 Barrels of Oil (Article Dated: 7/1/2014)

Global Power Equipment Group Awarded Over $30 Mln of Orders (Article Dated: 7/1/2014)

Laffan Refinery 2 Foundation Stone Laying Ceremony Held April 1 (Article Dated: 7/1/2014)

These sales leads are part of Oil, Gas, Shale and Refining Markets and Projects, and are issued bi-weekly. As a subscriber to Pumps World Market you receive a 30 percent discount for this service.

For more information on Oil, Gas, Shale and Refining Markets and Projects, click on:

This monthly update is devoted to wastewater infrastructure news around the world, outside of the United States and Canada, and is meant to complement McIlvaine's Pumps World Markets subscribers.

This includes only projects where there was an update during the month. There are thousands of projects in the database.

New power generation projects are tracked in two publications. Fossil and Nuclear Power Generation includes both market forecasts and project data. World Power Generation Projects has just the project data.

This includes only projects where there was an update during the month. There are thousands of projects in the database.

Project Title	First Entry Date	Location	Startup date
Bin Qasim power plant	7/1/2014	Pakistan	2018
Jaworzno power plant-Tauron	7/1/2013	Poland	2019
Thar II power plant-Karachi Electric Supply/Sindh Engro Coal Mining	5/1/2013	Pakistan	2019
Mariveles expansion-GN Power	3/1/2013	Philippines	2018
CHP5 Ulaanbaatar CFB power plant	7/1/2012	Mongolia	2018
Nam Dinh 1 CFB power plant--Vinacomin	1/1/2010	Vietnam	2020
Yamunanagar (Panipat) supercritical addition-Haryana Power Generation	11/1/2009	India	Unknown
Barakah 1-4 nuclear power plant	6/1/2009	United Arab Emirates	2020
Masinloc 2-AES Philippines	9/1/2007	Philippines	2018
Chhattisgarh (Lara) 1,2 ultra mega power project-NTPC	1/1/2005	India	2016
Holcomb (Garden City)(Sand Sage)supercritical power plant-Sunflower Electric	11/1/2001	KS	Unknown
Pagbilao 3 CFB expansion-Aboitiz Power and TeaM Energy Philippines	11/1/2000	Philippines	2017