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)
Segment Number
Operating gas and oil wells 1,000,000
Well completions in 2012 105,000
Rigs in operation 3,500
LNG trains in operation 100
Current LNG projects 20
Current operating large gas-to-liquids plants 10
Large gas-to-liquids projects 10
Smaller gas-to-liquids projects 100
Liquid separation from natural gas projects 200
Coal to chemical new projects 50
Refineries in operation 700
New refineries in planning and construction 40
Refinery upgrades and environmental projects 1,000
Tar sands expansion and new projects 15
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. NOx 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 10:00 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.
2013
DATE SUBJECT
April 25 Control Technologies for Fine Particulate Matter Power
May 2 Flyash Pond and Wastewater Treatment Issues Power
May 9 Clean Coal Technologies Power
May 16 Power Plant Automation and Control Power
May 23 Cooling Towers Power
May 30 Air Pollution Control Markets (geographic trends, regulatory
developments, competition, technology developments) Market Intelligence
June 6 Report from Power-Gen Europe (update on regulations, speaker and
exhibitor highlights) Power
June 13 Monitoring and Optimizing Fuel Feed, Metering and Combustion in Boilers
Power
June 20 Dry Sorbent Injection and Material Handling for APC Power
June 27 Power Generation Forecast for Nuclear, Fossil and Renewables Market
Intelligence
July 11 New Developments in Power Plant Air Pollution Control Power
July 18 Measurement and Control of HCl Power
July 25 GHG Compliance Strategies, Reduction Technologies and Measurement Power
August 1 Update on Coal Ash and CCP Issues and Standards Power
August 8 Improving Power Plant Efficiency and Power Generation Power
August 15 Control and Treatment Technology for FGD Wastewater Power
August 22 Status of Carbon Capture and Storage Programs and Technology Power
August 29 Pumps for Power Plant Cooling Water and Water Treatment Applications
Power
Sept. 5 Fabric Selection for Particulate Control
Power
Sept. 19 Air Pollution Control for Gas Turbines Power
Sept. 26 Multi-Pollutant Control Technology
Power
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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