The Gulf Coast of the United States is a major center of the country's petroleum industry. From Texas to Florida, the region is home to a vast network of refineries and chemical plants that contribute significantly to the nation's energy needs (including Texas, Florida, Alabama, Louisiana, and Arkansas). Over the past decade, the number of refinery construction projects in this region has increased, reflecting the region's continuing strategic importance to the energy sector.
The Gulf of Mexico: An Energy Epicenter
The Gulf of Mexico area, both onshore and offshore, is undeniably one of the most important regions in the United States for energy resources. Federal offshore oil production in the Gulf of Mexico accounts for 15% of total crude oil production in the United States.
Federal offshore natural gas production in the Gulf accounts for 5% of total dry gas production in the U.S. And it's not just offshore resources that make the Gulf region so important. Over 47% of the total US petroleum refining capacity is located along the Gulf Coast, forming the backbone of the country's refining capabilities. Further, the Gulf Coast is home to 51% of the country's natural gas processing plant capacity.
Refinery Construction Projects: Industry Highlights
ExxonMobil's $2 Billion Expansion
ExxonMobil's ambitious $2 billion expansion project in Baytown, Texas, is one of the standout developments in the Gulf Coast's refinery construction scene. This expansion is an important part of ExxonMobil's long-term growth strategy, which aims to deliver higher-value products from its Gulf Coast refining and chemical facilities in the United States.
Source: Article from BIC Magazine on 9/20/2023.
Baker Hughes and Venture Global's Supply Agreement
Baker Hughes and Venture Global recently announced a supply agreement, a significant step toward expanding LNG production on the Gulf Coast. Venture Global LNG is working to increase its LNG export capacity from 70 million tonnes per annum (MTPA) to more than 100 MTPA as part of its long-term expansion plan. The supply agreement exemplifies the collaborative efforts propelling the region's LNG sector forward.
Source: Article from BIC Magazine on 9/5/2023.
SunGas Renewables Considers Methanol Facility
The Gulf Coast's appeal isn't limited to traditional refineries. SunGas Renewables is considering Rapides Parish, Louisiana, as the site for a proposed $1.8 billion methanol facility. If realized, this facility in Pineville could manufacture nearly 400,000 metric tons of green methanol annually, reflecting the region's diversification of the petrochemical sector and commitment to sustainable and innovative energy solutions.
Source: Article from BIC Magazine on 7/23/2023.
Finding the Right Refinery Construction Contractor
Working with an experienced contractor will be critical to the success of any Gulf Coast refinery construction project. Because safety and quality are non-negotiable and must be considered when selecting a contractor, look for contractors with high safety standards and a strong culture of continuous improvement.
In addition to safety and quality, there are several other important factors to consider:
- Familiarity with the Area and Type of Work: A contractor familiar with the Gulf Coast region and the type of work being performed will be aware of local regulations, environmental considerations, and potential challenges specific to the area.
- Expertise in the Industry: Contractors with a proven track record in the refinery construction industry should be prioritized. Examine their experience with similar projects and their dedication to strong, time-tested work processes.
- Transparency and Reporting: Effective communication is key. Look for contractors who provide clear reporting throughout the project's lifecycle. Ideally, This should include regular, weekly reporting to keep all stakeholders on the same page.
- Project Management and Controls: Look for a contractor with integrated project management and project control capabilities. This will ensure your project is completed on time and within budget.
- In-House Capabilities: Choose a contractor who can handle all aspects of the project, from engineering and procurement to fabrication, construction and commissioning. This can help to streamline the project and reduce coordination issues.
- Commitment to Quality: Delivering a high-quality final product is required. Establish that the contractor has effective quality control procedures in place.
Evaluate a contractor's safety culture, familiarity with the region, industry expertise, transparency, project management capabilities, in-house resources, and commitment to quality. These elements will be critical to the success of your capital project.
H+M Industrial EPC: Refinery Construction Projects
Gulf Coast refinery construction projects are driving growth and innovation within the U.S. energy sector. Recent developments, such as ExxonMobil's expansion, the Baker Hughes-Venture Global supply agreement, and SunGas Renewables' methanol facility proposal, are just a few of the projects reshaping the energy landscape in this region.
H+M Industrial EPC specializes in capital project services to clients along the Gulf Coast, including Houston, South Texas, and Corpus Christi, TX, USA. We prioritize understanding each client's unique needs and work closely during the planning stages to determine the most suitable contract type for achieving project success.
In addition to our planning services, we offer robust scope definition procedures and constructability analysis to optimize the success of project execution and field delivery. For clients seeking end-to-end solutions, our comprehensive services, including detail engineering and design, procurement, fabrication, and construction, allow us to take your capital project from conception to completion, providing tailored solutions to meet your unique needs.
