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Leaner Downstream MMO Sector Sees Renewed Activity
Friday, August 26, 2016 10:27:43 AM America/New_York
Douglas-Westwood has today 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 $336 billion (bn), an increase of 7% when compared to the previous five-year period. In 2016,
expenditure will total $59bn 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
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.
World Downstream Maintenance Market Forecast 2017-2021 combines a ‘bottom-up’ (facility-by-facility) view of the sector with extensive industry interviews to give a granular and realistic appraisal of current and expected activity. The report analyses the demand for maintenance across eight key equipment and service lines within downstream asset services and downstream asset integrity services, and across four facility types: refineries, petrochemical plants, gas processing and LNG.
Key report findings:
- Lower margins are improving asset owner appetite.
- In 2016 expenditure to total $59bn for a global downstream asset population of around 14,000 facilities.
- Ageing existing asset population and a number of new installations - both greenfield developments and
- brownfield expansion projects - driving spend.
- 2017-2021 spend forecast to total $336 billion, an increase of 7% on previous five years.
- Asset Services accounts for majority of spend, 72%.
- North America and Asia dominate regional spend