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Clean water shortages help grow world pump market
HI launches website to improve US energy-efficiency
Increasing worldwide demand for clean water will expand the world market for pumps from under US$30 billion in 2006 to US$49 billion per year by 2016, says McIlvaine Co’s Pumps: World Markets report. While world gross domestic product will grow only 4% per year during the next 10 years, the pump market is expected to grow at 5% per year. This is despite growth of only 1-2% per year in some regions and sectors such as European basic industry (steel, chemicals, pulp and paper).
The US Hydraulic Institute (HI) has launched a new website, www.PumpSystemsMatter.org, which is devoted to the US educational initiative, Pump Systems Matter (PSM), which aims to lower energy needs in North America while improving business profitability by providing pump users with strategic, broad-based energy management and ways to improve performance.
sectors of the North American economy are energy intensive. Case studies have shown that better system design and more effective pump application can usually save 20% or more in energy costs and represent a large, frequently overlooked savings opportunity. With the continuing rise of energy costs across the country, Pump Systems Matter offers pump users an opportunity to save energy, the HI says.
According to the Institute, the website provides users with the educational resources they will need to start improving their pumping systems. Users can also download Pump System Improvement Modeling™ (PSIM), a free educational software tool to help evaluate the overall design of complex pumping systems, and download case studies, white papers and energysavings tip sheets.
Membership of Pump Systems Matter is open to utilities, market transformation organisations, government agencies, pump users, contractors, consultants, engineering companies, and trade and professional associations as well as North American pump manufacturers.
According to the US Department of Energy (DOE), pumping systems account for nearly 25% of industrial electrical energy demand and up to 50% of the energy usage in certain industrial plant operations. Industrial, municipal, and many other
A new report by Russian communications firm RPI, The Future of Russian Petroleum Offshore Industry, estimates that Russia’s annual offshore oil and gas production will increase from 20-27 million tons (mt) of oil and 25-40 billion m3 of gas in 2010, to 4052 mt of oil and 90-140 m3 of gas in 2015. This increase will, the report says, result from growing interest in oil and gas projects on the country’s vast continental shelf, where there are currently over 40 oil and gas projects in various stages, including the world’s largest current project, Sakhalin-2, as well as some of the world’s most technically challenging ones in the icy conditions of the Arctic and Far Eastern seas.
Clean water shortages will mean that remediation of contaminated ground water, desalination of seawater, and other treatment processes will increasingly be used. Asia has less available water per capita than other continents and will also have a more rapidly increasing demand for delivery and treatment of that water. Therefore, almost half the investment in pumps for waterrelated applications will come from Asia, McIlvaine says. Moreover, the urbanisation of Asia will involve the relocation of more than one billion people from the farms to the cities. This will create a huge need for infra-
structure, including delivery of drinking water and removal and treatment of wastewater. Rapid growth of the pump market in Asia will also be aided by large investments in pulp and paper, chemical, steel, and other basic industries. Water is not the only medium pushing market growth, the report suggests. The scarcity of oil and gas is leading to immense investments in substitute fuels, including coal liquefaction as well as tar sands and oil shale, and this will boost pump sales by hundreds of millions of dollars per year, the report said. The use of liquefied natural gas to replace conventional gas will also result in significant pump investments at the liquefaction sites, on the tankers delivering the liquefied gas, and at the regasification terminals. Finally, the boom in the construction of coal-fired power plants will lead to increased demand for a variety of pumps including those used in high pressure services in the steam cycle, water and wastewater, and for the big scrubbers required to capture the SO2, McIlvaine predicts.
Franklin Electric launches new sales policy Franklin Electric has announced that its new general sales policy, effective January 1, 2007, will be to sell all of its products, including 2HP and smaller submersible electric motors and associated products, only on a direct basis to wholesale water systems distributors. Exceptions will be made only where the company determines,
on a case-by-case basis, that sales to a particular pump OEM (original pump-equipment manufacturer) would add significant customer value to the distribution of Franklin products. Franklin adds that it will make available to wholesale distributors the required assembly and test
equipment coupled with the training they may require to assemble Franklin motors to Franklin pump-ends or other OEM pump-ends. The water systems wholesale distributors should be able to supply their contractor customers with the motor and pump combination of their choice, the company says.
Flowserve opens manufacturing facility in China Flowserve Corp has opened a new pump, valve and seal manufacturing facility in Suzhou, China, in order to support the companyís existing China operations in Beijing, Shanghai, Dalian and Shenzhen by providing pumps, valves, seals and services to the oil and gas, power, chemical processing and water sectors
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as well as other industries. The 15,000 m2 facility will begin full manufacturing operations in the first quarter of 2007. Flowserve plans to manufacture several of its pump, valve and seal products for the domestic and export markets in the new facility, and have engineering,
assembly and test capabilities onsite. ‘’China and the Asia-Pacific region continue to be key drivers of our global growth as a company,’’ said Flowserve CEO Lewis Kling. ‘’With its excellent location, efficient infrastructure and forward-looking leadership, Suzhou is an ideal base to build our production capacity.”
Russian oil and gas production steps up
The Russian government is expected to adopt in 2006 or early 2007 a strategy for the development the continental shelf, and around 30 licensing blocks are expected to be awarded in 2006-2007 for blocks in the Barents, Okhotsk, Laptev, Eastern-Siberian and Chukotka seas, the report claims.
WORLD PUMPS September 2006