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

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.

NR2222

 

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

N019 Pumps World Market

N028 Industrial Valves: World Market

N021 World Fabric Filter and Element Market

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, 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, 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. 

 

pic1

 

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.

 

pic2

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

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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