Hydrocarbon Processing: 2013 Global Construction Outlook

In the U.S., the downstream construction sector is benefitting from the recent boom in shale gas production. The U.S. market share for new projects increased from 8% in 2010 to 20% in 2012, which is on par with the Middle East. The two countries rank second behind the Asia-Pacific region, which accounts for 30% of total new projects in 2012.

U.S. companies aim to construct over 190 MMtpy of LNG export capacity over the next several years; more than a dozen LNG export facilities are awaiting approval from the Department of Energy. This LNG construction boom could propel the U.S. to become a dominant LNG-exporting powerhouse within 10 years.

Cheap ethane feedstocks are fueling additional project activity for natural gas liquids (NGLs), fractionators, ethylene crackers and petrochemical infrastructure construction, primarily along the US Gulf Coast. Over 3.5 MMtpy of new cracker capacity is planned to come online by 2017; the largest new unit is Chevron Phillips Chemical’s 1.5-MMtpy ethylene cracker in Baytown, TX. Other petrochemical product producers such as Dow Chemical, Equistar, Formosa, INEOS, LyondellBasell, Sasol and Shell have expressed plans to build new capacity over the next few years.