Moving into 2017, the U.S. Chemical Processing Industry continues to enjoy optimism about future investment, according to Industrial Info's 2017 Global Industrial Outlook. Much of this activity stems from the continued low cost of natural gas liquids (NGLs), a primary feedstock for building-block chemicals such as ethylene.
Global demand for ethylene and other chemicals such as ammonia and methanol remains strong, providing export opportunities for U.S. producers, resulting in increased investment in the U.S.
Trey Hamblet, Industrial Info's vice president of research for the Chemical Processing Industry, said, "While traditionally, we've seen most petrochemical spending occurring around the U.S. Gulf Coast, that's set to change in 2017, as the construction of an ethylene plant in the Northeast region close to the Utica and Marcellus shales, kicks off."
Hamblet says that the level of construction proposed to begin in 2017 is at a historic high, but adds that this should be viewed with caution. "Along with record spending, we could also [see] a record amount of delays and cancellations in 2017 as potential producers decide that additional capacity is unneeded in the immediate future."
To learn more about to what to expect in the Chemical Processing Industry, as well as 11 other industries tracked by Industrial Info, check out our 2017 Global Industrial Outlook. Write-ups from our industry experts provide information on both North American and international sectors, as well as top-line economic forecasts for different world regions. Quarterly updated project spending statistics are broken down by industry, market region and budget type (capital or maintenance). Detailed assessments from Industrial Info's industry experts help explain how the data and information reflect broader industrial trends.