Downstream maintenance spend to rise despite reduction in operator budgets
Published by Rosalie Starling,
Editor - Hydrocarbon Engineering
Hydrocarbon Engineering,
Douglas-Westwood is forecasting global downstream asset maintenance expenditure to total US$322 billion between 2015 and 2019, an increase of 12% when compared to the previous five year period. In 2014 spend totalled US$63billion for the world’s global downstream population of approximately 13 000 facilities. Over the next five years it expects a 4.8% compound annual growth rate (CAGR) with spend reaching almost US$71 billion in 2019.
“A minor drop in expenditure is expected in 2015, due to industry wide price deflation of equipment and services and budget tightening from integrated operators across their upstream and downstream operations,” stated Kathryn Symes, author of the World Downstream Asset Maintenance Market Forecast Report.
“However, the reduction in expenditure is expected to be short lived as the ageing existing asset population as well as a number of new installations drive the overall growth.
“North America will remain the largest market, accounting for 35% of global expenditure between 2015 and 2019. The region’s large, ageing downstream population requires a high level of maintenance, particularly as the level of regulation is relatively high, further driving the amount of maintenance services required to ensure downstream plants meet standards.
“The majority of forecast expenditure will be attributable to asset services, accounting for 72%, with the remaining 28% consisting of asset integrity services. Of this, integrity services and electrical and instrumentation (E&I) services dominate across all regional markets.”
The new edition of Douglas-Westwood’s World Downstream Asset Maintenance Market Forecast analyses the demand for asset services and asset integrity across refineries, petrochemical, gas processing and LNG plants.
Adapted from press release by Rosalie Starling
Read the article online at: https://www.hydrocarbonengineering.com/refining/26052015/downstream-maintenance-spend-to-rise-despite-reduction-in-operator-budgets-844/
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