U.S. Chemical Industry Capital Spending Outlook
$208B announced since 2010
● 70% in Gulf Coast
● 2/3 has been put in place or under construction
● 1/3 still in planning
Annual chemical capital project expenditure (capex) expands to $36.1B by 2025
Crude Distillation Unit (CDU) + Secondary unit capacity additions
● Total CDU capacity globally = 102 MMbpd
● CDU addition = +5MMbpd by 2026
● Total secondary unit* capacity additions = 10 MMbpd
◦ Conversion = 3.2 MMbpd
◦ Desulfurization = 5.4 MMbpd
◦ Octane = 1.4 MMbpd
*Secondary conversion refers to the final step (after the crude has been distilled) in the petrochemical refining process to a second unit where it is separated by particle size into fractions.
Total active projects 2021 by sector:
● Refining = 41%
● Petrochemicals = 35%
● Gas Processing/LNG = 24%
U.S. Project Outlook
● Total capital investment: $320B
● > 60% of active projects are in PADD 3 (e.g., USGC)
● Active project market share leaders
◦ Texas = 41%
◦ Louisiana = 18%
New project announcements, 2020-2022
● 2020
◦ Refining = 63%
◦ Gas Processing/LNG = 30%
◦ Petrochemical 7%
◦ PADD3 (Gulf Coast) projects announced = 7
● 2021
◦ Refining = 73%
◦ Gas Processing/LNG = 15%
◦ Petrochemical 12%
◦ PADD 3 projects announced = 11
U.S. petrochemicals sector
● Texas dominates in active petrochemical project market share with 63%
◦ Louisiana = 15%
◦ All other = 22%
*Source: ACC, Renewable Fuels, LNG and Petrochemicals: U.S. Role in the Global Capital Construction Market, EIA
