NR1984

NEWS RELEASE                                                                                                    AUGUST 2014

Coal and Gas Valve Markets to Exceed $20 Billion By 2019

Two of the largest industries purchasing valves are coal-fired power generation and oil & gas production. Due to the Chinese decision to manufacture large quantities of gas from coal, the combined market is going to exceed $20 billion by 2019. This is the latest forecast in McIlvaine Industrial Valves: World Market.

Oil and gas valve revenues are forecast to grow by nearly $3 billion over the next five years to $12.7 billion in 2019.

Oil and Gas Valve Revenues ($ Millions)  

  

Continent

  
  

2014

  
  

2019

  

Total

 9,907  

 12,734  

 Africa

 1,564  

 2,200

 America

 2,951  

 3,573  

 Asia

 3,608  

 4,780  

 Europe

 1,784  

 2,181

Power plant valve revenues are projected to rise by $2.1 billion in the next five years to $9.6 billion in 2019.

Power Plant Valve Revenues ($ Millions)

  

Continent

  
  

2014

  
  

2019

  

 Total

 7,507  

 9,630  

 Africa

 206  

 286  

 America

 1,430  

 1,420  

 Asia

 4,494  

 6,440  

 Europe

 1,377  

 1,484  

This forecast will continue to be modified as factors change. The biggest question is whether China can actually build the huge infrastructure to convert coal-to-gas in the west and north parts of the country and then transport it thousands of miles to the eastern cities.

The latest forecasts from the analysts reflect large imports of Russian gas to China as well as substantial import of LNG.

Gas Use In China in   2025   (bcm)

Source

Industry   Forecast

McIlvaine   Forecast

Conventional extraction

100

100

Shale gas extraction

60

50

Pipeline imports

70

50

LNG Imports

80

40

Coal-to-gas including CBM and UCG

80

200

Total

     390

440

McIlvaine has adjusted these forecasts to estimate the 2025 gas use based on the announced 40 coal-to-gas projects. These projects will supply 200 bcm/yr of gas if they all proceed. The present U.S. shale gas production is 300 bcm. So the Chinese initiative will be equal to two-thirds of the present U.S. shale gas production. This will make a major impact on the world energy supply.

Millions of valves will be needed for the 40 Chinese coal-to-gas plants. A small number of these valves have already been ordered, but the purchase activity will be increasing over the next several years. By 2019, purchases for these plants should be reaching a peak.

For more information on Industrial Valves: World Market, click on: http://home.mcilvainecompany.com/index.php/markets/2-uncategorised/115-n028