Market Trends of North America Activated Alumina Industry
Growing Demand from the Oil and Gas Industry
- Activated alumina is utilized in the oil and gas business to get rid of the water from natural gas streams and as a catalyst to recover sulfur from oil refineries. The increasing number of refinery projects and government support is anticipated to be a critical driver for activated alumina demand as an adsorbent in North America.
- According to the United States Energy Information Administration, the United States crude oil production is expected to average 12.4 million barrels per day (b/d) in 2023 and 12.8 million b/d in 2024, surpassing the previous record of 12.3 million b/d set in 2019. In 2022 United States crude oil production averaged 11.9 million barrels per day. Increasing oil production requires fully operational refineries to work at high consistency, thus supporting the demand for the market studied.
- Refiners in the United States are undertaking several capital projects to expand domestic crude processing capacity by the end of 2023. Three of the largest U.S. refiners are currently working on capital projects that could provide an additional 350 thousand barrels per day of crude processing capacity to U.S. refinery portfolios by the end of the next year.
- In March 2023, Exxon Mobil announced the commencement of its Beaumont refinery expansion project. This has added 250 thousand barrels per day of capacity to one of the largest refining and petrochemical complexes along the U.S. Gulf Coast. This is the largest refinery expansion in the United States since 2012 and represents the addition of a medium-sized refinery. With this, the total capacity of the Beaumont refinery has increased to over 630 thousand barrels per day, making it one of the largest refineries in the country.
- In Canada, various gas projects are currently picking up pace in the country, which is expected to support the demand for the market studied. In December 2022, the Canadian government approved expanding TC Energy's NOVA Gas Transmission Ltd (NGTL) pipeline system in Alberta to help improve market access for natural gas in western Canada. The West Path Delivery 2023 (WP2023) project will add approximately 40 kilometers of new natural gas pipeline to the existing 25,000 kilometers of NGTL system that carries gas to markets across Canada and the United States.
- In August 2022, Canadian natural gas company, TC Energy, developed a CAD 4.5 billion (USD 3.3 billion) natural gas pipeline in a strategic partnership with Mexico's state-owned utility, ComisiónFederal de Electricidad (CFE). The Southeast Gateway pipeline is designed to supply natural gas to Mexico's central and southeastern regions. The two companies have made a final investment decision to proceed with constructing the 715 km offshore pipeline project.
- All these factors are anticipated to aid the growth of the Activated Alumina market in the North American region.
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United States to Dominate the Activated Alumina Market
- The United States puts a huge emphasis on its water infrastructure which positively impacts the demand for water treatment chemicals, including activated alumina.
- Approximately 80% of the United States water treatment facilities are owned and managed by public commissions. However, water treatment activities in the rural part of the country are in an initial state of development compared to the urban areas. The growing investment in water treatment facilities in the country is expected to continue bolstering the demand for activated alumina in the studied market.
- One of the renowned water treatment projects in the United States is constructing a 12.5 million-gallon-per-day water treatment plant in Massachusetts. The new facility aims to replace two outdated water treatment plants to improve the efficiency of the process. The project began in the first quarter of 2022 and is expected to be completed by the fourth quarter of 2024.
- The United States has a strong chemical industry owing to the vivid infrastructure established in line with the continuous demand for chemicals. The access to abundant feedstock and energy resources further works in favor of the industry.
- As per the Chemical Industry Outlook by BASF SE for the year 2022, the United States chemical industry output witnessed a growth of 2.3%, which is also indicative of the increase in demand for products consumed in the sector, including activated alumina.
- Several large-scale chemical projects are planned in the country, which are expected to contribute positively to the demand for activated alumina. For instance, in July 2022, Solvay announced plans to build a new facility for producing electronic-grade hydrogen peroxide in Arizona. The construction of the facility's first phase is scheduled to begin in 2023.
- During the forecast period, the demand for Activated Alumina is anticipated to grow substantially in the United States owing to such factors and government support.
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