- Email: [email protected]
JGC WINS NICKEL CONTRACT IN PHILIPPINES
Pump Industry Analyst
Pump Company
MARKET PROSPECTS
Index ABS Pumps 13 Alfa Laval 13,15 Alldos 13 Ampco-Pittsburgh 15 Baker Hughes 15 Bell & Gossett 13 Cardo Pump 10 Circulating Pumps 12 Crane 13,15 Crown 5 DESMI 16 DESMI K&R Pompen 16 DMW 15 Dover 15 Ebara 15 Flowserve 13,15 Flowtronex PSI 1 Gardner Denver 5,11,15 Gorman-Rupp 15 Goulds Pumps 5 Graco 15 Grundfos 10,11,16 GUD Holdings 15 Hale Products 12 Halliburton 13,15 Hidrostal 13 Hitachi Home & Life 13 Howden Africa 8,13 Howden Pumps 8 Hydraulic Institute 11 Idex 12,15 Ingersoll-Rand 13,15 ITT Industries 10,12,15 Johnson Pump 9,15 Johnston 6,10 Kirloskar Brothers 10 KSB 7,13,15,16 Layne Christensen 15 Maag Pump Systems Textron 11 Met-Pro 7,15 Nikkiso 15 Orbit Pumps 8 Paco 6 Pentair 12,15 Precision Castparts 6,15 Putzmeister 10 Rietschle 1 Robbins & Myers 15,16 Roper Industries 15 Roper Pump 8 Schlumberger 15 Selwood 13 Spirax-Sarco 15 SPX 11,15 Sulzer 9,10,12,15 Sulzer Pumps 9,10 Sykes Pumps Australia 12 Tecumseh 13,15 Tencarva 11 Textron 15 Thomas Industries 1 Torishima 15 Tsurumi 15 Tyco 10 United Technologies 10,11,13,15 USFilter 16 Waukesha Cherry-Burrell 10 Weir 15 Wilden 11 Wisconsin Energy 15 WorldWater 10 Yamada America 11
2
October 2002
POWER GENERATION FW TO BUILD 600 MW POWER PLANT IN PENNSYLVANIA Foster Wheeler Ltd’s subsidiary Foster Wheeler Power Group Inc has been awarded a US$200 million engineering, procurement and construction contract by LMB Funding Ltd Partnership for a nominal 600 MW capacity combined-cycle natural-gas-fired power plant. The project will include two gas-turbine generators and one steam-turbine generator designed for high efficiency operation with very low levels of emissions from the combustion process. The power island turbine generator and steam generator equipment have been pre-purchased by the plant owner and delivery of components has already begun. Construction is underway at the Lower Mount Bethel project located in Bangor, Pennsylvania. Operation of the plant is scheduled to begin at the end of 2003.
OIL & GAS BP TO SPEND US$15 BILLION IN THE GULF OF MEXICO BP expects to spend at least US$15 billion during the next 10 years on exploration, development and production activities in the Gulf of Mexico. BP’s CEO, Lord Browne of Madingley, said the company’s spending on its deepwater Gulf operations should reach at least US$15 billion during the next decade as it develops its vast holdings in the region.
The bulk of that will be spent drilling wells and developing fields that have already been discovered. BP is one of the largest operators in the deepwater Gulf, with more than 335 000 barrels of oil equivalent per day of production from its deepwater holdings, and reserves estimated at 3.5 billion barrels. BP has an equity stake in nine of the 10 largest fields discovered to date in the Gulf. Lord Browne said the development of seven key new projects over the next several years would occupy a significant part of the business agenda.
DTI APPROVES BRAEMAR FIELD DEVELOPMENT PLAN The UK Department of Trade and Industry (DTI) has approved Marathon Oil UK Ltd’s development plan for the Braemar Field and the Brae–Miller Link Line in the UK North Sea. Braemar is a gas and condensate reservoir located in UK Continental Shelf Block 16/3c in the Central North Sea in a water depth of around 125 m. Gas and condensate will be produced from a single subsea wellhead. It will then be transported 12 km in an insulated pipe-in-pipe flowline to the Marathon-operated East Brae platform where the gas and liquids will be processed. Liquids will be delivered from East Brae to the Forties pipeline system for transportation ashore. First production is expected in the fourth quarter of 2003 at an initial gross rate of the order of 46 million cubic feet of gas per day and 4000 barrels of condensate. Braemar gas has been contracted to the Miller Group and will be delivered to the Miller platform under a gas swap agreement between the
Braemar and Brae owners. A new 9 km, 16 inch Brae–Miller Link Line will be laid from the Brae B platform to the BPoperated Miller platform for this purpose. Marathon will manage the design, construction, installation and tie-in of the Link Line, which will be operated by BP and which is scheduled for completion in the third quarter of 2003.
MINING SANDVIK GAINS MATERIALS HANDLING ORDERS Sandvik Materials Handling has secured several large orders for advanced systems for materials handling, with a total order value of about SKr400 million. The orders are for customized plants with very high capacity for the handling of coal and iron ore in the Asian markets, including ports in Australia and India, mines in China, and a power plant in Taiwan. An order has also been received for a biofuel-fired power plant in Germany during the same period.
JGC WINS NICKEL CONTRACT IN PHILIPPINES JGC Corp and JGC Philippines Inc have won a ¥16 billion lump-sum, turnkey contract to build an intermediary nickel products plant in the Philippines. JGC will carry out detailed design and the procurement of materials and equipment at its headquarters in Yokohama. JGC Philippines will handle part of the detailed design, the construction, and provide commissioning assistance. The plant will process lowgrade nickel oxide ore stockpiled at the Rio Tuba mine to
produce intermediary nickel products, nickel/cobalt mixed sulphide (nickel: 10 000 tons per year; cobalt: 750 tons per year). The HPAL (high pressure acid leaching) method developed by Sumitomo Metal Mining will be applied to the manufacturing process. The project was planned by Sumitomo Metal Mining Co Ltd, a leading producer of electrolytic nickel, to procure intermediary nickel products from its own overseas mining operations. The client is Coral Bay Nickel Corp of the Philippines, a joint venture between Sumitomo Metal Mining Co (investing 54%), Mitsui & Co Ltd (18%), Nissho Iwai Corp (18%), and Rio Tuba Nickel Mining Corp of the Philippines (10%). The site is located at the Rio Tuba mine in the Province of Palawan, the Philippines. Completion of construction is scheduled for the summer of 2004.
PETROCHEMICALS SAMSUNG SECURES POLYETHYLENE CONTRACT Samsung Engineering of South Korea has signed a US$70 million engineering, procurement and construction agreement to build a proposed 250 000 tonne per year high-density polyethylene plant for Thailand’s National Petrochemical Co (NPC). The contract is for the largest petrochemical project to be given the green light in Thailand since the Asian economic crisis began four years ago. EPC work on the project, to be located at Map Ta Phut, Rayong province, is due to start in August after NPC’s board of directors gave their approval for the facility in June. The
Pump Industry Analyst
plant is expected to come onstream by August 2004. Feedstock for the plant will come from NPC’s 435 000 tonne per year cracker at Map Ta Phut.
CHIYODA WINS METHANOL CONTRACT IN SAUDI ARABIA International Methanol Co Ltd (IMC) has selected Chiyoda Corp and its Saudi Arabian affiliate Chiyoda Petrostar Ltd (CPL) as the contractors for the engineering, procurement, construction and commissioning of a world-scale methanol plant and associated utilities facility project. IMC is a joint venture between Saudi International Petrochemical Co and Japan– Arabia Methanol Co Ltd. The 2900 metric tons per day methanol plant will be located in the Jubail Industrial City of the Kingdom of Saudi Arabia. The project will be completed in 30 months.
CHINA GIVES GREEN LIGHT TO BASF CHEMICALS PLANT BASF has received approval from the Chinese State Council to build a new integrated production facility for polytetrahydrofuran (PolyTHF) and tetrahydrofuran (THF) in the Shanghai Chemical Industry Park at Caojing, Shanghai, China. This is the first wholly owned investment project by BASF in China. With an annual capacity of 60 000 metric tons of PolyTHF and 80 000 metric tons of THF, the project will be the largest PolyTHF production facility in the world. The new plants, scheduled to come on-stream in 2004, will form a supply network for
BASF in the Asia Pacific region. It is expected that the plants will supply the rapidly expanding spandex fibres market in China following the country’s accession to the World Trade Organization. PolyTHF is an important component in the manufacture of elastic fibres, which are widely used for textile applications including sportswear, inner and outer wear.
WATER & WASTEWATER MIDDLE EAST & NORTH AFRICA OFFER KEY OPPORTUNITIES The US$1 billion Middle East and North Africa water and wastewater treatment market is offering increasing opportunities for western companies, according to Cecilia Cabodi, a senior development analyst with Frost and Sullivan. The Middle East and North Africa region has one of the highest average population growth rates in the world and this factor, combined with scarce natural water supplies and a high urbanization rate, has led to very low per capita water availability. Countries such as Algeria, Egypt, Morocco, Tunisia and the Middle East region are approaching dangerous water shortages and contamination; as a result many European and US companies are considering moving into this growth area, away from the mature western European and US markets, according to Cabodi. Collaborations with local companies are also becoming increasingly common. Western European countries such as France, Spain, Italy, the UK and Germany seem to dominate the players already operating in or exploring the area.
Foreign banks, as well as the World Bank, the EIB and the EBRD, help finance countries such as Morocco, Algeria and Tunisia, while Libya’s government ensures that funds are available, reports Cabodi. Among the key opportunities in the region, Frost & Sullivan finds: • plants to provide potable water to small communities; • plants for the treatment of urban wastewater; • plants for the treatment of industrial wastewater; and • systems for the removal of contamination relating to hydrocarbons, particularly in the oil-producing countries. Downsides to working in this region include political and economic volatility. Also, different countries present very disparate levels of market diversification and fragmentation, so new entrants should be aware of political, economical and social factors affecting how these services are financed and regulated, says Cabodi.
WORLD BANK FUNDS PERUVIAN WATER UPGRADE The World Bank has approved a US$50 million loan to finance the construction and improvement of water supply and sanitation facilities in rural regions of Peru. The loan will help finance PRONASAR, a Peruvian government initiative to provide access to water and sanitation over the long term for approximately 1.3 million poor people in rural areas. As a result of this financing, new drinking water supply and sanitation facilities for about 125 000 people in 450 communities will be constructed. Existing piped water supply for about 750 000 people in 2500 communities will be repaired and expanded. The new supplies
3
MARKET PROSPECTS
October 2002
Pump Company
MARKET PROSPECTS
Index ABS Pumps 13 Alfa Laval 13,15 Alldos 13 Ampco-Pittsburgh 15 Baker Hughes 15 Bell & Gossett 13 Cardo Pump 10 Circulating Pumps 12 Crane 13,15 Crown 5 DESMI 16 DESMI K&R Pompen 16 DMW 15 Dover 15 Ebara 15 Flowserve 13,15 Flowtronex PSI 1 Gardner Denver 5,11,15 Gorman-Rupp 15 Goulds Pumps 5 Graco 15 Grundfos 10,11,16 GUD Holdings 15 Hale Products 12 Halliburton 13,15 Hidrostal 13 Hitachi Home & Life 13 Howden Africa 8,13 Howden Pumps 8 Hydraulic Institute 11 Idex 12,15 Ingersoll-Rand 13,15 ITT Industries 10,12,15 Johnson Pump 9,15 Johnston 6,10 Kirloskar Brothers 10 KSB 7,13,15,16 Layne Christensen 15 Maag Pump Systems Textron 11 Met-Pro 7,15 Nikkiso 15 Orbit Pumps 8 Paco 6 Pentair 12,15 Precision Castparts 6,15 Putzmeister 10 Rietschle 1 Robbins & Myers 15,16 Roper Industries 15 Roper Pump 8 Schlumberger 15 Selwood 13 Spirax-Sarco 15 SPX 11,15 Sulzer 9,10,12,15 Sulzer Pumps 9,10 Sykes Pumps Australia 12 Tecumseh 13,15 Tencarva 11 Textron 15 Thomas Industries 1 Torishima 15 Tsurumi 15 Tyco 10 United Technologies 10,11,13,15 USFilter 16 Waukesha Cherry-Burrell 10 Weir 15 Wilden 11 Wisconsin Energy 15 WorldWater 10 Yamada America 11
2
October 2002
POWER GENERATION FW TO BUILD 600 MW POWER PLANT IN PENNSYLVANIA Foster Wheeler Ltd’s subsidiary Foster Wheeler Power Group Inc has been awarded a US$200 million engineering, procurement and construction contract by LMB Funding Ltd Partnership for a nominal 600 MW capacity combined-cycle natural-gas-fired power plant. The project will include two gas-turbine generators and one steam-turbine generator designed for high efficiency operation with very low levels of emissions from the combustion process. The power island turbine generator and steam generator equipment have been pre-purchased by the plant owner and delivery of components has already begun. Construction is underway at the Lower Mount Bethel project located in Bangor, Pennsylvania. Operation of the plant is scheduled to begin at the end of 2003.
OIL & GAS BP TO SPEND US$15 BILLION IN THE GULF OF MEXICO BP expects to spend at least US$15 billion during the next 10 years on exploration, development and production activities in the Gulf of Mexico. BP’s CEO, Lord Browne of Madingley, said the company’s spending on its deepwater Gulf operations should reach at least US$15 billion during the next decade as it develops its vast holdings in the region.
The bulk of that will be spent drilling wells and developing fields that have already been discovered. BP is one of the largest operators in the deepwater Gulf, with more than 335 000 barrels of oil equivalent per day of production from its deepwater holdings, and reserves estimated at 3.5 billion barrels. BP has an equity stake in nine of the 10 largest fields discovered to date in the Gulf. Lord Browne said the development of seven key new projects over the next several years would occupy a significant part of the business agenda.
DTI APPROVES BRAEMAR FIELD DEVELOPMENT PLAN The UK Department of Trade and Industry (DTI) has approved Marathon Oil UK Ltd’s development plan for the Braemar Field and the Brae–Miller Link Line in the UK North Sea. Braemar is a gas and condensate reservoir located in UK Continental Shelf Block 16/3c in the Central North Sea in a water depth of around 125 m. Gas and condensate will be produced from a single subsea wellhead. It will then be transported 12 km in an insulated pipe-in-pipe flowline to the Marathon-operated East Brae platform where the gas and liquids will be processed. Liquids will be delivered from East Brae to the Forties pipeline system for transportation ashore. First production is expected in the fourth quarter of 2003 at an initial gross rate of the order of 46 million cubic feet of gas per day and 4000 barrels of condensate. Braemar gas has been contracted to the Miller Group and will be delivered to the Miller platform under a gas swap agreement between the
Braemar and Brae owners. A new 9 km, 16 inch Brae–Miller Link Line will be laid from the Brae B platform to the BPoperated Miller platform for this purpose. Marathon will manage the design, construction, installation and tie-in of the Link Line, which will be operated by BP and which is scheduled for completion in the third quarter of 2003.
MINING SANDVIK GAINS MATERIALS HANDLING ORDERS Sandvik Materials Handling has secured several large orders for advanced systems for materials handling, with a total order value of about SKr400 million. The orders are for customized plants with very high capacity for the handling of coal and iron ore in the Asian markets, including ports in Australia and India, mines in China, and a power plant in Taiwan. An order has also been received for a biofuel-fired power plant in Germany during the same period.
JGC WINS NICKEL CONTRACT IN PHILIPPINES JGC Corp and JGC Philippines Inc have won a ¥16 billion lump-sum, turnkey contract to build an intermediary nickel products plant in the Philippines. JGC will carry out detailed design and the procurement of materials and equipment at its headquarters in Yokohama. JGC Philippines will handle part of the detailed design, the construction, and provide commissioning assistance. The plant will process lowgrade nickel oxide ore stockpiled at the Rio Tuba mine to
produce intermediary nickel products, nickel/cobalt mixed sulphide (nickel: 10 000 tons per year; cobalt: 750 tons per year). The HPAL (high pressure acid leaching) method developed by Sumitomo Metal Mining will be applied to the manufacturing process. The project was planned by Sumitomo Metal Mining Co Ltd, a leading producer of electrolytic nickel, to procure intermediary nickel products from its own overseas mining operations. The client is Coral Bay Nickel Corp of the Philippines, a joint venture between Sumitomo Metal Mining Co (investing 54%), Mitsui & Co Ltd (18%), Nissho Iwai Corp (18%), and Rio Tuba Nickel Mining Corp of the Philippines (10%). The site is located at the Rio Tuba mine in the Province of Palawan, the Philippines. Completion of construction is scheduled for the summer of 2004.
PETROCHEMICALS SAMSUNG SECURES POLYETHYLENE CONTRACT Samsung Engineering of South Korea has signed a US$70 million engineering, procurement and construction agreement to build a proposed 250 000 tonne per year high-density polyethylene plant for Thailand’s National Petrochemical Co (NPC). The contract is for the largest petrochemical project to be given the green light in Thailand since the Asian economic crisis began four years ago. EPC work on the project, to be located at Map Ta Phut, Rayong province, is due to start in August after NPC’s board of directors gave their approval for the facility in June. The
Pump Industry Analyst
plant is expected to come onstream by August 2004. Feedstock for the plant will come from NPC’s 435 000 tonne per year cracker at Map Ta Phut.
CHIYODA WINS METHANOL CONTRACT IN SAUDI ARABIA International Methanol Co Ltd (IMC) has selected Chiyoda Corp and its Saudi Arabian affiliate Chiyoda Petrostar Ltd (CPL) as the contractors for the engineering, procurement, construction and commissioning of a world-scale methanol plant and associated utilities facility project. IMC is a joint venture between Saudi International Petrochemical Co and Japan– Arabia Methanol Co Ltd. The 2900 metric tons per day methanol plant will be located in the Jubail Industrial City of the Kingdom of Saudi Arabia. The project will be completed in 30 months.
CHINA GIVES GREEN LIGHT TO BASF CHEMICALS PLANT BASF has received approval from the Chinese State Council to build a new integrated production facility for polytetrahydrofuran (PolyTHF) and tetrahydrofuran (THF) in the Shanghai Chemical Industry Park at Caojing, Shanghai, China. This is the first wholly owned investment project by BASF in China. With an annual capacity of 60 000 metric tons of PolyTHF and 80 000 metric tons of THF, the project will be the largest PolyTHF production facility in the world. The new plants, scheduled to come on-stream in 2004, will form a supply network for
BASF in the Asia Pacific region. It is expected that the plants will supply the rapidly expanding spandex fibres market in China following the country’s accession to the World Trade Organization. PolyTHF is an important component in the manufacture of elastic fibres, which are widely used for textile applications including sportswear, inner and outer wear.
WATER & WASTEWATER MIDDLE EAST & NORTH AFRICA OFFER KEY OPPORTUNITIES The US$1 billion Middle East and North Africa water and wastewater treatment market is offering increasing opportunities for western companies, according to Cecilia Cabodi, a senior development analyst with Frost and Sullivan. The Middle East and North Africa region has one of the highest average population growth rates in the world and this factor, combined with scarce natural water supplies and a high urbanization rate, has led to very low per capita water availability. Countries such as Algeria, Egypt, Morocco, Tunisia and the Middle East region are approaching dangerous water shortages and contamination; as a result many European and US companies are considering moving into this growth area, away from the mature western European and US markets, according to Cabodi. Collaborations with local companies are also becoming increasingly common. Western European countries such as France, Spain, Italy, the UK and Germany seem to dominate the players already operating in or exploring the area.
Foreign banks, as well as the World Bank, the EIB and the EBRD, help finance countries such as Morocco, Algeria and Tunisia, while Libya’s government ensures that funds are available, reports Cabodi. Among the key opportunities in the region, Frost & Sullivan finds: • plants to provide potable water to small communities; • plants for the treatment of urban wastewater; • plants for the treatment of industrial wastewater; and • systems for the removal of contamination relating to hydrocarbons, particularly in the oil-producing countries. Downsides to working in this region include political and economic volatility. Also, different countries present very disparate levels of market diversification and fragmentation, so new entrants should be aware of political, economical and social factors affecting how these services are financed and regulated, says Cabodi.
WORLD BANK FUNDS PERUVIAN WATER UPGRADE The World Bank has approved a US$50 million loan to finance the construction and improvement of water supply and sanitation facilities in rural regions of Peru. The loan will help finance PRONASAR, a Peruvian government initiative to provide access to water and sanitation over the long term for approximately 1.3 million poor people in rural areas. As a result of this financing, new drinking water supply and sanitation facilities for about 125 000 people in 450 communities will be constructed. Existing piped water supply for about 750 000 people in 2500 communities will be repaired and expanded. The new supplies
3
MARKET PROSPECTS
October 2002