Douglas-Westwood has launched its new World Downstream Maintenance Market Forecast which paints a positive outlook for the downstream asset maintenance market through to 2021. The industry is emerging from a period of aggressive cost pressure and is now seeing renewed activity. Lower margins are improving asset owner appetite; using downtime to perform downstream maintenance activity that may have been deferred previously.
Report author, Matt Adams, commented, “Between 2017 and 2021, global downstream asset maintenance spend is expected to total US$336 billion, an increase of 7% when compared to the previous five year period. In 2016, expenditure will total US$59 billion for the world’s global downstream asset population of approximately 14 000 facilities. Driving this spend is an ageing existing asset population and a number of new installations – both greenfield developments and brownfield expansion projects.
“By sector, asset services account for the majority of expenditure, 72%, with asset integrity making up the remaining 28%. North America and Asia dominate global expenditure, with 34% and 28% of spend over the forecast period respectively.
“DW forecasts steady growth in all service lines as ongoing expenditure is essential for the continuation of feedstock and production capacities. This is attributable to an increasing number of facilities that are reaching the end of their original design lives, increasing the extent of maintenance services required.”
Adapted from press release by Francesca Brindle
Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/26082016/douglas-westwood-report-downstream-mmo-sector-renewed-3975/