2015 global downstream spending projected to jump to all-time high

HOUSTON -- The hydrocarbon processing industry’s (HPI’s) capital, maintenance and operating budgets are expected to exceed $324 B in 2015, representing an all-time high. Global announced project spending continues to surge. 

The publisher and editors of Hydrocarbon Processing released this information at the magazine’s 41st-annual HPI Forecast and Breakfast, held Friday at the River Oaks Country Club in Houston.

During the course of the breakfast, the editors provided in-depth forecast and trends information for the refining, petrochemicals and gas processing/LNG sectors of the downstream industry. The outlooks for all three sectors are optimistic.

The strong demand for transportation fuels, particularly in developing nations, is driving growth and investment in the refining sector. In 2015, new and existing refineries will be designed to handle unconventional feedstocks, such as NGLs, bitumen, heavy oil, and shale, and more than 53% of the new capacity will be constructed in developing nations.

The global petrochemical sector will continue to see strong growth through 2015. Many significant expansions will be in developing countries in Asia-Pacific, Latin America and the Middle East. But some of the strongest growth is seen in the US, where cheap natural gas feedstocks are fueling over $100 billion (B) in announced new capacity investments through 2020.

Finally, natural gas is becoming the fastest-growing fossil fuel. Growth on both the supply and demand sides has resulted in the announcement of billions of dollars of capital investments across the world. 

These investments include the construction of LNG export and receiving terminals, cryogenic and gas processing plants, fractionators, pipelines and storage facilities, as well as large capital infusions in the exploration and production sector. 

Hydrocarbon Processing has produced an HPI market report for more than 40 years. HPI leaders, executives and decision-makers throughout the world have come to rely upon this analysis and data for valuable strategy information.

“The hydrocarbon processing industry is undergoing an incredible expansion wave and new business opportunities; all are supported by new crude oil and natural gas resources,”said Stephany Romanow, editor of Hydrocarbon Processing. “In particular, the petrochemical industry is experiencing a renaissance period as shale gas and continued economic growth result in significant new project announcements globally.”

More detailed information, including specific investment figures and project breakdowns, can be found in the 2015 Market Data Book, which is now available for purchase.