welcome to
Process Industry Monitor Table of Contents
Process
Industry Monitor Q2
Editorial Team
Publisher:
Jesse Yoder, PhD
Editor: Belinda Burum
Contributing analyst: Michael Kirsch
Welcome . . . 11
Issues & Perspectives: The Stock Market Disconnects from the US Economy . . . 12
Petroleum
. . . 17
In the News . . . 18
Burlington Resources Signs Historic Onshore Gas Sales Agreement in China
Conoco and Phillips Agree to Become ConocoPhillips
BP, Largest Gasoline Supplier in California, Switches to Ethanol - BP Signs Ethanol Supply Contracts
ChevronTexaco Unit Closes Sale of its Interest in Natural Gas Liquid Fractionator
BP Draws Up Plans to Compete in German Market
El Paso Corporation to Increase Investment in Core Natural Gas Business
El Paso Corp. Treasurer Dies in Apparent Suicide
Industry Pulse . . . 23
How Oil Price Fluctuations Affect the Flowmeter Market
Factors for Financial Health of Oil and Gas Product and Refining Companies
Petroleum Demand and Refinery Outputs Down
Petroleum Imports Down, Crude Oil Production Up
Future of International Oil Markets
More Fuel Types Leads to Less Flexibility in Moving Supplies
Exxon Mobil Earnings Up from Last Quarter but Down from Last Year
BP's Performance and Growth Down But 'On Track'
New Projects . . . 34
China's West-East Energy Project Now Underway
Gas Pipeline to Help Beijing Keep Up with Demand
$2.7b BP Shanghai Project
China Plans to Build Second LNG Terminal
Conoco to Expand European Oil and Natural Gas Production
Joint Venture for Three Petroleum Projects
Foster Wheeler Awarded Project by Abu Dhabi Gas
Bechtel Wins One of Largest Middle East FEED Contracts
$2.5 b for Angola Refining Project
ExxonMobil Announces Nigerian Deepwater Discovery
LG Acquires Turkey Refinery Construction Project
Three Abandoned North Sea Fields to Open
Nigerian Gas Expansion Allows Shell to Grow LNG Business
Prime Minister of Papua New Guinea Launches Final Refinery Construction
BP Raises Atlantis Reserve Estimates
New Norwegian Sea Oil Find
Shell to Develop New LNG Terminal in West Mexico
Shell Purchases Sunoco Puerto Rico Refinery
Shell and Partners Conduct Successful Appraisal and Production Test on BS-4 Deepwater Discovery in Brazil
Shell to Develop World’s First Commercial Biomass-to-Ethanol Plant
Shell Alberta Facility Construction Awarded to Fluor
Millennium Pipeline Negotiations Near Completion
Tennessee Gas Pipeline Announces South Texas Expansion Project
El Paso Energy to Build, Own, and Operate Field Discovery Platform
Company Korner: Shell . . . 47
Shell - Solid and Thriving After More Than a Century
Shell Delivers Robust Profitability in First Quarter 2002
Implications for Flow
How Oil Price Fluctuations Affect the Flowmeter Market
Chemical (& Pharmaceutical)
In the News . . . 51
Chemical Industry Commits to Mandatory Enhanced Security
Chemical, Biological Threats Top Security Concerns
Dow Receives National Medal of Technology
Merck Plans to Establish Merck-Medco as a Separate, Publicy Traded Company
Johnson & Johnson Plans Buyout of Kyowa Hakko's Interest in Japanese Pharmaceutical Joint Venture
Avery Dennison Completes Acquisition of Jackstädt
Bayer CropScience Subgroup Ready for Launch
Eastman Cancels Proposed Spin-off of Specialty Chemicals and Plastics
ImClone Systems Issues Statement Regarding Actions Taken Against Former President and CEO
Industry Pulse . . . 60
Mixed Messages in Chemical Industry Stats
Biotech Company Challenges Slumping Pharmas
The Economy's Biggest Problem: Tightwad CEOs
UK Chemical Industry #1 Exporter
Dow Reports Improved Earnings for Q1
BASF Sees Signs of Upturn
Merck Sales Up, Profits Down Slightly
Akzo Nobel Upgrading the Company
New Projects . . . 72
Shell and SGF Chimie: An Investment of Over US $100m to Build First World-Scale PTT Plant
Shell Plans New Gas to Liquids Plant that will Maximize Hydrocarbon Value Chain
New Distribution Center: BASF Invests 20 Million Euros
BASF Builds New Plant for Citral
BASF Venture Capital GmbH Invests in Innovative Nanotechnology Company
DuPont Parlin Site Breaks Ground for New Warehouse
Akzo Nobel inaugurates new MCA plant in Taixing, China
Akzo Nobel Opens First Decorative Coatings Factory in Russia
Company Korner: Shell . . . 80
About Shell Chemicals
Shell CRI Business focuses on Heart of Major Petrochemical Manufacturing Processes: Catalysts
New Chemicals Complex in Singapore Set to Serve Growing Markets Globally
Chemical Process and Development Group Keeps Shell Chemical Companies on Leading Edge of Processing Technology
New Glycol Ethers Plant in Pernis Consolidates Shell Chemicals Position as Number One Global Solvents Supplier
Food
Processing . . . 86
In the News . . . 87
Hershey Labor Talks Stall
Dr Pepper's Red Fusion to Do Battle with New Coke, Pepsi Brands
US 7-Eleven Fountains to Feature 7 UP in New Pact
Nestlé and Fonterra Sign Agreement on Dairy Alliance for the Americas
Unilever Plans Sale of Specialty Oils and Fats Business
ConAgra Plans Advertising Campaign to Move from Agrabusiness to Consumer Name
StonePoint Wins Private Label Business for Washington's Largest Independent Grocer
Industry Pulse . . . 92
Beverages Dominate List of Fastest-Growing Food and Beverages Products Around the World
Winning in the Water Fight
Mergers and Acquisition Activity Drops to Lowest Level in Eight Years
Update from USDA: Outlook for Food Prices in 2002
Nestlé Reports Quarterly Growth of 3.3% - Slightly Under Goal
Coca-Cola Announces Worldwide Volume Increase but Net Loss per Share in First Quarter
New Projects . . . 100
Cargill Builds Multi-Million Dollar Soy Protein Isolate Plant Bringing Good Taste to Products
Pilot Plants at U of Nebraska Food Processing Center Available for Product and Technology Tests
Company Korner: Diageo . . . 102
Diageo Pours on Success as World's #1 Distiller
Diageo to Seagram's Mixers to Coca-Cola and Reorganize Former Seagram Businesses
Pulp
& Paper . . . 104
In the News . . . 105
Georgia-Pacific Board Approves Strategic Separation Into Two Independent Companies
MeadWestvaco to Close Westab Facility
ECF Now Holds 75% of Global Bleached Chemical Pulp Market
Cascades to Acquire American Tissue Assets
Paperboard Industries International Inc. Changes Name to Cascades Boxboard Group Inc.
Industry Pulse . . . 109
U.S. Paper Industry Losses Widen in Fourth Quarter
U.S. Virgin Fiber-Based Producers Have the Advantage for the Moment
Rating on Canadian Forest Sector Downgraded
Newsprint Demand Softening Globally
Watching for Signs of a "Triple Dip" in Pulp Prices
Chinese Pulp Imports and the Near-Term Price Outlook
New Projects . . . 119
Stora Enso Investing in Germany and Russa
Stora Enso Starts Prefeasibility Study in China
Premier Packaging Expands Kentucky Facility
Merging Suzano and Bahia Sul Look at Expansion Plans
IP Expands North Carolina Box Plant
Company Korner: Weyerhaeuser . . .121
Weyerhaeuser - Premier Forest Products Company
Willamette Integration Continuing as Planned
Weyerhaeuser to Complete Willamette Acquisition
Weyerhaeuser Consolidates Denver Packaging Operations; Closes Two Engineered Lumber Products Operations
Power
. . . 127
In the News . . . 128
Trade Mission to Thailand and Vietnam for U.S. Equipment Manufacturers and Power Companies
Pacific Gas and Electric Company Responds to State Senate Committee: It Did Not Engage in Enron-Like Trading Activities
Calpine's 880-MW Delta Energy Center On Line in Time for California's Peak Summer Demand
Williams Acknowledges It Exported Power for Higher Prices Outside of California
RWE Completes Acquisition of Innnogy
So Far, So Good for Deregulation - Other States Watch as Texas Begins New Electricity Era
Agilent Technologies Demonstrates Fast, Accurate Measurement of Fuel Cell Gas Composition
A New Approach to Continuous Emissions Monitoring
Industry Pulse . . . 136
DOE Annual Energy Outlook 2002 with Projections to 2020
North America Economic Overview
Canada, U.S. & Mexico Energy Projections
Vigorous Expansion of in Latin America Natural Gas Infrastructure
Hydro Industry Outspends Feds By 400% For Advanced Turbines
China Tantalizing But Difficult for Foreign Energy Providers
France: One of the Largest Nuclear Energy Producers
New Projects . . . 150
AEP Expands Emission Control Efforts at John Amos Plant
AEP Pro Serve To Build 250 MW Combined Cycle Gas-Fired Power Plant for CPV Atlantic
VA TECH HYDRO Awarded Contract at Drakensberg Hydro Power Station
Financing Resumes on the Two Largest Independent Power Projects in the U.S.
Panda and Alliant Joint Venture to Build and Operate Michigan Tallmadge Project
Company Korner: Enron . . . 154
Why Enron Filed for Bankruptcy and Other FAQs
Enron Proposes Separating Power, Pipeline Company from Bankruptcy
Enron Board Reports Progress on Planned Transition
Why Enron is Still #5 on the Fortune 500
D.C. Declares Enron's 15 Minutes of Fame Over
Water
& Wastewater . . . 159
In the News . . . 160
Congressional Budget Office Estimates Water and Wastewater Infrastructure Funding Needs
Senate Version of Water and Wastewater Infrastructure Funding Bill Introduced
Waterworks That Need Work
Cities Struggle with Outdated Sewers
Bill Proposes Commission on Water Management
Researchers Study Aging Water System Pipes
House, Senate Pass Bioterrorism Bill
AWWA Response to Water Utility Security
EPA Takes Action to Protect US Water Infrastructure
AWWA Urges Congress to Pass Farm Bill with Source Water Provisions
JEA and United Water Complete $219m Transaction
Thames Water Fights Fat in Sewers with Microbe Device
Industry Pulse . . . 170
2002: A Year for Shared Approaches to Industry Issues
Water Firms are Top UK Environment Performers
Low Rainfall and Rate Increase Boost Q1 Results for Cal Water
New Projects . . . 172
Ondeo (SUEZ) wins $295m Design, Build, and Operate (DBO) Wastewater Treatment Contract, the Largest of its Kind in North America
Ondeo (SUEZ) wins the World's Largest O&M Water Services Contract in Puerto - $4b over 10 Years
San Francisco Approves a $3.6b Plan to Rebuild Hetch Hetchy Water System
Anglian Water Wins First Water Treatment Operations Contract in Irish Republic
Metro Detroit Faces $52b Drainage Bill
Massive Tunneling
Project Underway in Detroit
Company Korner: American Water Works . . .176
American Water Works - Soon to be the oldest and largest U.S. water company acquired by a foreign company
American Waterworks’ Full Year Earnings Increase
Thames Water, to Gain Leading Position in the US Water Market with Acquisition of American Water Works
American Water Works to Acquire Azurix North America
American Water Works Company Divests New England Subsidiaries