Rise noted in downstream construction costs

By OGJ editors
HOUSTON, Nov. 18
-- Design and construction costs for refining and petrochemical projects increased for the third 6-month period in a row, according to the IHS CERA Downstream Capital Costs Index (DCCI).

The third-quarter 2010 index rose to 180 from 175 in the first quarter of 2010. The DCCI uses 2000 costs as the base year with a value of 100.

The index peaked in the third quarter of 2008 at 187 and fell to 170 in the first quarter of 2009.

IHS CERA attributed recent cost increases to a weakened US dollar and rising commodity prices driven by global economic recovery and increased construction activity.

The firm cited “robust” construction in China, India, and the Middle East. It noted record refining and ethylene capacity additions in 2009 and a large number of projects planned or under construction.

“This trend is expected to continue until 2015,” IHS CERA said in a press release. “Government policies encourage investment in the downstream sector in anticipation of increasing demand for transportation fuels, plastics, and fibers.”

Related Articles

EPP to build Gulf Coast ethane export plant

04/22/2014 Enterprise Products Partners LP (EPP) plans to build a fully refrigerated ethane export plant on the Texas Gulf Coast. EPP has executed long-term c...

OGJ Newsletter

04/21/2014

International News for oil and gas professionals

Regulatory uncertainty hampers LNG export projects

04/16/2014 By now it is likely a familiar story that, since the mid-2000s, intense drilling activity in unconventional formations, like shale, has led to a gl...

A conversation with BHP executive Rod Skaufel

04/16/2014 Today, BHP is a prominent participant in the US unconventional oil and gas business, with operations spanning the Haynesville, Fayetteville, and Ea...

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected