US refiners, petchems struggle to find workers for expansions: Fed

04 December 2013 22:35  [Source: ICIS news]

HOUSTON (ICIS)--Refiners and petrochemical companies are having a difficult time finding engineers and construction labourers for current and proposed plant expansions, the Federal Reserve said on Wednesday.

The companies noted that wages were increasing, the Federal Reserve (Fed) said in its Beige Book.

The Beige Book is a summary of economic activity among the 12 Federal Reserve districts. It includes the key Dallas district, which includes all of Texas and the northern part of Louisiana, a region that has a significant portion of the nation's petrochemical plants and refineries.

Companies have announced numerous expansion projects in the US as well as Canada.

Enterprise plans to start production at its first propane dehydrogenation (PDH) facility in the third quarter of 2015. It may build a second PDH plant, which could start up in the first half of 2017.

In addition to Enterprise, Dow Chemical announced plans to build two PDH plants. Formosa, PetroLogistics and Ascend Performance Materials also announced plans for plants. Williams plans to build one in Canada.

Several companies are also expanding ethylene capacity in the US and Canada. The following lists the projects.

NORTH AMERICA ETHYLENE EXPANSIONS BASED ON SHALE GAS

Company

Project

Capacity

Location

Start-up

Sasol

New cracker

1.5m tonnes

Lake Charles, Louisiana

2017

Occidental Chemical/Mexichem

New cracker

544,000 tonnes

Ingleside, Texas

Feb 2017

ExxonMobil Chemical

New cracker

1.5m tonnes

Baytown, Texas

Late 2016

Chevron Phillips Chemical

New cracker

1.5m tonnes

Cedar Bayou, Texas

mid-late 2017

Dow Chemical

New cracker

1.5m tonnes

Freeport, Texas

2017

Shell

New cracker

World-scale

Monaca, Pennsylvania

2019-2020*

Formosa Plastics

New cracker

1.2m tonnes

Point Comfort, Texas

2017

Williams

Expansion

272,158 tonnes

Geismar, Louisiana

Q4 2013**

INEOS

Debottleneck

115,000 tonnes

Chocolate Bayou, Texas

end 2013

Westlake Chemical

Expansion

113,399 tonnes

Lake Charles, Louisiana

2014

Westlake Chemical

Expansion

82,000 tonnes

Calvert City, Kentucky

Q2 2014

LyondellBasell

Expansion

363,000 tonnes

La Porte, Texas

mid-2014

LyondellBasell

Expansion

113,000 tonnes

Channelview, Texas

2015

LyondellBasell

Expansion

363,000 tonnes

Corpus Christi, Texas

Late 2015

BASF Fina Petrochemicals

Expansion

NA

Port Arthur, Texas

2014

Considered expansions

LyondellBasell

New cracker

World-scale

US

NA

Hanwha Chemical

New cracker

World-scale

US

NA

Axiall

New cracker

World-scale

US

NA

Indorama Ventures

New cracker

1.3m tonnes

US

NA

SABIC

New cracker

World-scale

US

NA

Odebrecht

New cracker

World-scale

US

NA

PTT Global Chemical

New cracker

World-scale

US

NA

Aither Chemicals

New cracker

272,000 tonnes

US Northeast

2016

NOVA Chemicals

Expansion

NA

Corunna, Ontario, Canada

NA

* ICIS estimate
** Timing uncertain after explosion on 13 June 2013


By: Al Greenwood
+1 713 525 2645



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