August 2015 - RO, UF, MF Insights 54

OEMs, EPCs and Consultants Will Account For Flow Control and Treatment Purchases of $68 Billion In 2015

End users will defer to OEMs, EPCs and consultants to make the purchasing decision for 17 percent of the flow control and treatment purchases. The total purchases determined by these companies will exceed $68 billion in 2015. This is the latest forecast in N064 Air/Gas/Water/Fluid Treatment and Control: World Market. The 20,000 companies responsible for these purchases are identified in the McIlvaine OEM networking directory.

The average annual purchase per company will be in excess of $3 million. The largest category will be valves where the non-users will purchase or direct purchase of valves totaling $20 billion. OEMs and EPCs are direct purchasers of the products. Consultants and engineering firms are specifiers but leave the actual purchase to the end user or OEM. The largest EPCs and consultants such as Fluor and Bechtel will each account for hundreds of millions of dollars’ worth of flow control and treatment equipment.

Large OEMS such as Mitsubishi, Babcock &Wilcox, Veolia and others providing complete power, wastewater, or industrial systems are purchasers rather than manufacturers. Large coal-fired power plant suppliers purchase entire sub systems as well as proprietary products. In cases where they supply proprietary products, they are typically purchasing castings and fabrications.

Product	Revenue
Pumps	15
Valves	20
Cartridge	2
Sedimentation/ Centrifugation	3
Cross-Flow Membranes	4
Macrofiltration	2
Biological/Oxidation/Destruction	3
Water/Wastewater Chemicals	2
Filtration/Purification	2
Fabric Filter	2
Scrubber	1
Precipitator	2
FGD	1
DeNO_x	2
Thermal/Catalytic	2
Fans and Compressors	5
Total	68

The critical decisions on smaller products such as valves and pumps are usually made on a local level. Some of the consulting and engineering companies have hundreds of offices worldwide. For larger system decisions the local offices will often defer to a specialist who is assisting the local offices globally.

McIlvaine has identified each OEM and consultant with a financial entity number. This is critical in identifying the subsidiaries of conglomerates and for Chinese companies where there are a variety of English names for the same entity.

U.S. economic growth accelerated in the second quarter as a pick-up in consumer spending offset the drag from soft business spending on equipment, suggesting a steady momentum that could bring the Federal Reserve closer to hiking interest rates this year.

Gross domestic product expanded at a 2.3% annual rate, the Commerce Department said recently. First-quarter GDP, previously reported to have shrunk at a 0.2% pace, was revised up to show it rising….. (The remaining text is not included in this sample.)

Canada’s economy sank further into contraction in May, shrinking for a fifth straight month as the oil shock takes its toll on the energy producing nation.

The five-month decline marks the longest slump since the 2008-2009 recession, and virtually guarantees output shrank for a second straight quarter. The reading vindicates Bank of Canada Governor Stephen Poloz’s July 15 decision….. (The remaining text is not included in this sample.)

The latest growth numbers show that China's economy is trundling along, expanding at a pace that is slightly faster than analysts expected.

Gross domestic product expanded by 7% in the second quarter, compared to the same period last year, according to data released by China's National Bureau of Statistics. ….. (The remaining text is not included in this sample.)

Maintaining a bullish stance on the Indian economy, Japanese brokerage Nomura projected an 8% GDP growth for the current fiscal year while retaining its Sensex target at 33,500 by December. ….. (The remaining text is not included in this sample.)

Indonesia's gross domestic product (GDP) grew 4.67% in the second quarter of 2015, lower than 2014's second quarter figure of 5.03% and 4.72% growth in the first quarter of 2015, the country's statistics bureau said.

The Q2 GDP growth is its slowest since 2009 and Indonesia's economy grew 4.7% during the first half of 2015. ….. (The remaining text is not included in this sample.)

Standard Chartered Bank expects Malaysia’s economy to grow 4.2% year-on-year (y-o-y) for the second quarter of 2015 (2Q15), lower than the gross domestic product (GDP) growth of 5.6% in 1Q15, due to the impact of the goods and services tax that was implemented in April.

In a note, the bank said consumer and business sentiment had probably weakened in 2Q15 compared with the preceding quarter, but manufacturing and mining production were likely stronger in 2Q15 due to positive net external demand. ….. (The remaining text is not included in this sample.)

Singapore's final second-quarter gross domestic product likely contracted 4.6% from the previous quarter on an annualized basis, in line with the government's earlier estimate, a Reuter’s poll showed.

The median forecast in a Reuter’s survey of 11 economists also showed that GDP probably expanded 1.5% in the April-June quarter from a year earlier, less than the 1.7% in the advance estimate. ….. (The remaining text is not included in this sample.)

Taiwan in the second quarter didn’t come close to reaching the government’s GDP growth forecast issued only in May, underscoring pressure from the easing expansion in mainland China’s economy and inventory build-up in the electronics industry.

Taiwan’s GDP rose by 0.64% in the three months to June, less than a projected increase of 3.05% issued in May, the Cabinet’s statistics office said. A 9.8% drop in exports in the second quarter dragged down GDP and manufacturing, the government said. ….. (The remaining text is not included in this sample.)

The Czech National Bank (ČNB) improved its GDP growth estimate for this year to 3.8% from the previous 2.6% and downgraded its estimate for next year to 2.8% from May's 3.2%, according to a presentation ahead of the bank's press conference.

The ČNB expects lower inflation — 1.6% in Q3 next year and 1.8% in the last quarter of 2016, while its previous forecast put the values at 2% and 2.1%, respectively. ….. (The remaining text is not included in this sample.)

Sanctions linked to the Ukraine crisis could end up costing Russia 9% of its gross domestic product, the International Monetary Fund said recently. Russia's economy is showing signs of stabilization after slumping under pressure from Western financial sanctions and Russian counter-measures.

Low international prices for its oil exports have added to pressure on the ruble and government finances. ….. (The remaining text is not included in this sample.)

The British economy grew by 0.7% over the past three months, according to figures released by the National Institute of Economic and Social Research (NIESR).

Figures from the London-based economic think-tank showed that growth in Britain's GDP in the three months ending in July was 0.7%, the same as in the three months ending in June. ….. (The remaining text is not included in this sample.)

Oil and Gas Project Tracking is available at a discount to RO, UF, MF World Markets subscribers.

Treatment chemicals are an important addition to most oil and gas processes. Access to details on worldwide oil and gas projects is provided at a substantial discount to RO, UF, MF World Markets subscribers.

Saguenay-Lac-Saint-Jean Regional Corridor to be First Network Supplied with Small Renewable LNG Plants

FERC Application Filed for Gulf LNG Liquefaction Project near Pascagoula, MS

Honeywell Selected For Automation, Security Systems for Freeport LNG Terminal Expansion

Air Products' LNG Technology and Equipment Chosen for Freeport LNG Terminal Facility

NextDecade Raises Additional $85 Mln in Pre-FID Funding for Rio Grande LNG Project FERC

Yokogawa & Gas Services Provide SIL2-Certified Wireless Gas Detection System for LNG Facility

Preferred Sands’ Arizona Sand Outperformed Premium White Sand in New Mexico Horizontal Wells

Trans Adriatic Pipeline (TAP) AG Selects Technip for Project Management Services

Whiting Petroleum Updates Production, Capex Guidance and Operations, Announces Non-Core Property Sales

Preferred Sands’ Arizona Sand Outperformed Premium White Sand in New Mexico Horizontal Wells

Trans Adriatic Pipeline (TAP) AG Selects Technip for Project Management Services

Whiting Petroleum Updates Production, Capex Guidance and Operations, Announces Non-Core Property Sales

Hexion’s Oilfield Technology Group Releases New Proppant That Reduces Produced Water

Kinder Morgan Approves Tennessee Gas Pipeline’s Northeast Energy Direct Project

Freudenberg Acquires BlueSky Process Solutions and Expands Its Upstream Segment

Magellan Midstream and LBC Tank Terminals Form JV to Build Terminal and Pipeline Infrastructure

Marabou Superior Pipeline Announces Completion of Wisconsin Natural Gas Pipeline

Petrofac Awarded $900 Mln Yibal Khuff Project Contract from Petroleum Development Oman (PDO)

OneSubsea Awarded $60 Mln Subsea Trees Supply Contract for Shah Deniz Two Development

Blue Racer Midstream Provides Update on Operations in the Utica and Marcellus Shale

FMC Technologies Awarded $297 Mln Subsea Production Systems Contract for Shah Deniz Stage 2

Plains All American Announces Open Season for Proposed Cushing to Longview Crude Oil Pipeline

Technip Awarded Subsea De-commissioning and Installation Contract in Gulf of Mexico

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 RO, UF, MF World Markets Updates.

BioAmber Announces Opening of World's Largest Succinic Acid Plant in Sarnia, Ontario

Permit: Title V Permit Review for the Silver Bay Taconite Ore Mining Facility, MN

Permit: Idaho DEQ Seeks Comment on Proposed Air Quality Permit for Clearwater Paper Pulp Digester Project at Lewiston Mill

International Paper Proposing $100 Million Upgrade at Springfield, OR Linerboard Mill

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.

Project Title	First Entry Date	Location	Startup Date
Ukkunagaram supercritical power plant-NTPC/Rashtriya Ispat Nigam	8/1/2015	India	Unknown
South Kalimantan CFB power plant-Tanjung	8/1/2015	Indonesia	2018
Zabrze CHP plant-Fortum	4/1/2015	Poland	2018
Karamdad Qureshi (Muzaffagarh district) power plant	1/1/2014	Pakistan	2019
Toledo City CFB expansion-Aboitz Power (Therma Visayas)	6/1/2013	Philippines	2018
Thar II power plant-Engro Powergen/Sindh Engro Coal Mining/Shanghai Electric	5/1/2013	Pakistan	2019
Darlipali supercritical power plant-NTPC	3/1/2013	India	2018
Port Qasim--Burj Group	2/1/2013	Pakistan	2019
Mauban expansion-Electricity Gen. Public Co. of Thailand/Meralco	1/1/2013	Philippines	2019
Nava Bharat Ventures power plant	6/1/2011	Zambia	2016
Geometric Power/GE nuclear power plant	11/1/2010	Nigeria	2019
Yangjiang 5,6-CGNPC	9/1/2009	China	2019
Opole expansion-Polska Grupa Energetyczna	2/1/2009	Poland	2019
Calvert Cliffs nuclear power plant addition-UniStar Nuclear Energy	11/1/2007	MD	Cancelled
Yangjiang 1,2 nuclear power plant-China Guangdong Nuclear Power Co.	6/1/2007	China	2015
Alvin W. Vogtle 3,4 nuclear power plant-Georgia Power, Oglethorpe Power	6/1/2007	GA	2020
Bongaigaon power project-NTPC	6/1/2007	India	2017?
Kalpakkam (Madras) nuclear power plant-Bhartiya Nabhikiya Vidyut Nigam	6/1/2007	India	2015
Ningde 1,2 nuclear power plant-Datang Inter. Power/Guangdong Nuclear Power	5/1/2007	China	2016
PER Lusulu Power plant	6/1/2006	Zimbabwe	2019
Thar coal fields Engro power plants/Sindh Engro/Pakistan Electric Power	9/1/2002	Pakistan	2012
Thilaya Power Plant-Reliance Power	5/1/2015	India	Unknown
Ngayokekaung Township power plant	5/1/2015	Myanmar	Unknown
Barangay Lamao (Limay) -SMC Global Power	1/1/2014	Philippines	2020
Lamu power plant-Centum Investment, Gulf Energy	10/1/2013	Kenya	2017
Kyauk Phyu Township power plant-Ministry of Electricity	5/1/2012	Myanmar	Unknown
Goindwal supercritical expansion-GVK Group	8/1/2010	India	2014
Hanhikivi 1 (Pyhajoki) --Fennovoima nuclear power project	5/1/2010	Finland	2024
Tilaiya ultra mega power project-Central Electricity Authority	5/1/2008	India	Cancelled
Bellary 3 (Yaramaras) supercritical expansion-Karnataka Power Corp.	9/1/2007	India	2015
Dabaa nuclear power plant	6/1/2007	Egypt	Unknown
Newport (Fermi 3) nuclear power plant-DTE Energy	6/1/2007	MI	Unknown
Watts Bar 2 nuclear power plant-TVA	6/1/2007	TN	2015
Mong Duong 2-AES	10/1/2005	Vietnam	2017
Mong Duong 1 CFB power plant-Electricity of Vietnam	10/1/2005	Vietnam	2015