I...anticipated throughput capacity will be about 1.2 million metric tons per year, or 40,000 barrels per day. The propane will be shipped to Asian markets. For more information, see

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Industrial Info Tracks $7 Billion in First-Quarter North American Natural Gas Pipeline

Kickoffs

North America could see construction begin on nearly $7 billion worth of natural gas pipeline and pipeline compression projects in first-quarter 2019, according to Industrial Info's project database.

Planned Q1 North American Natural Gas Pipeline Kickoffs Based on project information in Industrial Info's North American Project Platform

-

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Market Region © 2019 ALL RIGHTS RESERVED. Industrial Info Resources. Inc

Burgeoning natural gas production in the U.S. has sparked an increase in pipeline projects as companies seek to add takeaway capacity from shale gas production sites. U.S. Natural gas production is predicted to rise from about 80 billion cubic feet per day (Bcf/d) in 2018 to 105 Bcf/d in 2024. For more information, see December 31, 2018, article - Growing U.S. Gas and NGL Production Spur Infrastructure Buildout.

One example of a recently completed natural gas pipeline project is Williams' (NYSE WMB) (Tulsa, Oklahoma} Gulf Connector Project, which further connects its T ransco pipeline with global liquefied natural gas (LNG) markets. The project expands the Transco pipeline's delivery capacity by 475 million cubic feet per day (MMcf/d}, providing service to Cheniere Energy lncorporated's (NYSE LNG) (Houston, Texas} liquefaction terminal in Corpus Christi, Texas, and Freeport LNG Development, L.P.'s (Houston} liquefaction project. For more information, see Industrial Info's January 7, 2019, market brief- Williams Places Gulf Connector Project Into Service.

For first-quarter 2019, Kinder Morgan Incorporated (NYSE:KMI} (Houston, Texas) plans to begin construction on parts of the $1.7 billion Gulf Coast Express natural gas pipeline, which is designed to transport up to 1.98 Bcf/d from the Permian Basin to the Agua Dulce, Texas, area. Kinder Morgan will build, operate and own a 50% interest in the project, and subsidiaries/affiliates of DCP Midstream (NYSE:DCP) (Denver, Colorado} and Targa Resources Corporation (NYSE:TRGP} (Houston} will each hold a 25% equity interest in the project. Completion is expected in early 2020. For more information, see Industrial Info's project reports on Spread 1, Spread 2, spreads 3 and 4 and the pipeline lateral near Midland.

In Ohio, construction is planned to start this quarter on TransCanada Corporation's (NYSETRP} (Calgary, Canada} Buckeye Xpress $270 million natural gas pipeline replacement project. TransCanada subsidiary Columbia Gas Transmission plans to replace 60.8 miles of 20-inch and 24-inch diameter transmission pipeline with 66.2 miles of 36-inch pipeline in order to increase its capacity by 275 MMcf/d. For more information see Industrial Info's project report.

In Pennsylvania, Equitrans Midstream Corporation (NYSE:ETRN} (Pittsburgh, Pennsylvania) plans to install 28 miles of 30-inch diameter transmission pipeline as part of the Hammerhead Pipeline Project. The pipeline is designed as a 1.2-Bcf/d gathering header pipeline that will traverse about 64 miles from southwestern Pennsylvania to Mobley, West Virginia, where both the Mountain Valley Pipeline and Ohio Valley Connector pipeline. The pipeline has a total investment value of $400 million and is planned to be in service in second half of 2019. For more information, see Industrial Info's project report.

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Fluor Nears Finish Line on Sasol Complex, Set to Kick Off LyondellBasell, Other

Projects

Fluor Corporation (NYSE:FLR) (Irving, Texas) is in the final months of one of its biggest responsibilities: Sasol Limited's (NYSE:SSL) (Johannesburg, South Africa)

Lake Charles facility on the Louisiana Gulf Coast The engineering, procurement and construction (EPC) provider also is at the forefront of major chemical and

refining projects in the same region. Industrial Info is tracking nearly $217 billion in active projects involving Fluor, including more than $7 billion worth that are set to

kick off in the first quarter of 2019.

Fluor's Active Projects by Industry, January 2019 Based on project information in Industrial Info's North American Project Platform

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Sasol's massive Lake Charles Chemical Complex in Westlake, Louisiana, centers on the construction of a 1.5 million-metric-ton-per-year ethylene unit that is

expected to finish construction sometime this quarter. The unit had been set to kick off commercial operations in December, but had its start date pushed back;

nonetheless, some elements, including supporting utilities, are currently operational. For more information, see Industrial Info's project report

The new unit will use ethane as its primary feedstock to feed downstream units at the complex, also expected to wrap up construction in the coming months:

• a 420,000-ton-per-year low-density polyethylene (LOPE) unit; see project report

• a 450,000-ton-per-year linear low-density polyethylene (LLDPE) unit; see project report

• a 300,000-ton-per-year ethylene oxide (EO) and ethylene glycol (EG) unit; see project report

Elsewhere on the U.S. Gulf Coast, Fluor is at work on LyondellBasell's (NYSELYB) (Houston) PO/TBA Project in Channelview, Texas. The owner says the project

will make the complex the largest propylene oxide (PO) and tertiary butyl alcohol (TBA) production site in the world, producing 1 billion pounds and 2.2 billion pounds

per year, respectively. Fluor and LyondellBasell are preparing to begin construction following site preparation, now underway. It will be joined with an oxyfuels

additives unit to produce methyl tertiary-butyl ether (MTBE) and ethyl tertiary-butyl ether (ETBE)

Fluor also is performing mechanical construction on MEGlobal Americas lncorporated's (Dubai, United Arab Emirates) BookraMEG plant in Freeport, Texas, which

would produce about 1.5 billion pounds per year of monoethylene glycol (MEG), a key ingredient in polyester resins, films and fibers. For more information, see

Industrial Info's project reports on the POfTBA, oxyfuels and BookraMEG projects.

The Gulf Coast's Petroleum Refining Industry also is a top destination for Fluor's engineers. Marathon Petroleum Corporation (NSYEMPC) (Findlay, Ohio) is striving

to integrate its former Texas City refinery into the adjacent Galveston Bay refinery in Texas, to improve Galveston Bay's efficiency and reliability The multi-phase

effort, named the South Texas Asset Repositioning (STAR) Project, is expected to begin construction this quarter, including:

• a crude unit expansion to increase the complex's capacity from 437,000 to 477,000 barrels per day (BBUd), to improve gas-oil and distillates yields; see project

report

• a residual hydrocracker unit expansion to increase the complex's capacity from 64,000 to 84,000 BBUd, reducing sulfur content and increasing the residual oil-

processing capabilities; see project report

• offsite utilities additions to support the above projects; see project report

• a 65,000-BBUd diesel hydrotreater unit addition to produce ultra-low sulfur diesel; see project report

The Metals & Minerals Industry follows the Oil & Gas and Chemical Processing industries in terms of total investment value {TIV) for projects involving Fluor. In the

U.S., the largest such project is Freeport-McMoRan lncorporated's (NYSEFCX) (Phoenix, Arizona) expansion of the Lone Star Copper Mine in Safford, Arizona,

which kicked off last April and is expected to wrap up in early 2020. The mine was on track to be depleted by 2021, but the project will extend its life by 20 years,

supporting 200 million pounds per year of copper production For more information, see Industrial Info's project report and October 25, 2018, article - Freeport

McMoRan Sees Promise in Arizona Copper Mine.



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North American Project Spending Index Up Nearly 25% in December

Industrial Info's North American Industrial Project Spending Index, which measures the value of active projects in the pipeline for the year, registered a 24.9%

increase in December. The index totaled $289.5 billion, up more than $57.8 billion from the total in December 2017.

The Project Spending Index is a monthly indicator that compares planned industrial project spending for the current year to the previous year in order to get a

measure of growth or contraction in the industrial market. The index provides spending details by industry and market region, including monthly updates that

measure the rate of activity from this year to last year during the same month. The December spending index registered gains in all but one (Chemical Processing) of

the 12 industries tracked by Industrial Info.

The spending index for the Terminals Industry jumped by 121.9% to $5.7 billion. However, the number of terminal projects only increased 3.8% to 459. One of the

terminal projects nearing completion is AltaGas Limited's $500 million Ridley Island Propane Export terminal near Prince Rupert, British Columbia. The terminal's

anticipated throughput capacity will be about 1 .2 million metric tons per year, or 40,000 barrels per day. The propane will be shipped to Asian markets. For more

information, see Industrial Info's project report

• All currency is in USO billions

Spending Indexes by Industry 2017 2018 TIV Change % of Growth

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S1.68 AS0.09 5.65%

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$17.75 A$1.73 10.78%

$289.49 .., $57.84 24.97%

According to the Manufacturing ISM Report On Business, economic activity expanded in December, and the overall economy grew for the 116th consecutive month.

The December Purchasing Managers' Index (PMI) registered 54.1 %, a decrease of 5.2 percentage points from the November reading of 59.3%.

The results reflect continued expanding business strength, but at much lower levels, according to the report. Of the 18 industries covered in the report, 11 reported

growth in December. Those reporting growth included textile mills, machinery, transportation equipment, primary metals, and others.

Six industries, including petroleum and coal products, paper products, and others, reported contraction in December.

In its 2018 fourth-quarter outlook survey, the National Association of Manufacturers (NAM) (Washington, D.C.) found that an average of 92.4% of manufacturers had

a positive outlook for their businesses--the highest annual average in 20 years of the survey For related information, see January 4, 2019, article - Industrial

Manufacturing Leads U.S. Southeast in First-Quarter Project Starts.

Industrial Info's North American Construction Starts Index, which measures the amount of project activity that has been funded and started construction this year

across 12 industries in the U.S., Canada and Mexico, for December amounted to 13,547 projects worth more than $279 billion, up from 11,784 projects valued at

more than $240 billion in December 2017.

The value of Metals & Minerals projects starting construction in the U.S. more than doubled in 2018, outpacing declines in activity of 11 % in Canada and 17% in

Mexico. Spurred on by a strong economy and sustained by the Trump tariffs, a number of steel manufacturers began to implement projects in 2018. See Industrial

Info's January 9, 2019, market brief - North America Metals & Minerals Project Construction Starts Total $22 Billion in 2018.

N orth America 2017 2018 Percent Change

Industry Project Count TIV ($Millions) Project Count TIV ($Millions) Project Count TIV ($Millions)

01 Power 1380 $51,819.08 1549 $53,202.70 12.2% 2.7%

02 Terminals 456 $3,308.66 456 $4,165.80 0.0% 25.9%

03 Pipelines (Oil & Gas) 374 $20,725.36 425 $26,296.31 13.6% 26.9%

04 Production (Oil & Gas) 507 $20,314.92 848 $24,556.98 67.3% 20.9%

05 Alternative Fuel 102 $1,501.75 168 $1,684.76 64.7% 12.2%

06 Petroleum Refining (HPI) 319 $3,942.50 314 $6,266.79 ·1.6% 59.0%

07 Chemical Processing (CPI) 1212 $19,453.70 1289 $16,904.90 6.4% -13.1%

08 Metals & Minerals 1011 $14,082.93 1116 $21,657.69 10.4% 53.8%

09 Pulp, Paper & Wood 817 $6,149.47 915 $8,597.52 12.0% 39.8%

10 Food & Beverage 1702 $16,316.21 1816 $16,022.61 6.7% ·1.8%

12 Industrial Manufacturing 2672 $67,411.44 3272 $82,686.74 22.5% 22.7%

13 Pharmaceutical & Biotech 1232 $15,421.18 1379 $17,324.04 11.9% 12.3%

Total 11784 $240,447.17 13547 $279,366.83 15.0% 16.2%

The North American Spending Gap Index, which measures the amount of fallout from projects that have been cancelled, placed on hold or moved to another year,

totaled $417.6 billion in December, compared with $381.8 billion in December 2017.

Spending Gap Index of North America - December 2018

Total (YTD) Project Fallout is ($417,690.65) Million -9.38% Compared to December 2017

Click tor more details

Fallout in Billions ($USO) {2016 - 2018)

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Industrial Spending Gap Index· Measuring Active Project Spending Activity for 2018



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Join Industrial Info for Our Market Outlook and Networking Event in Houston

Industrial Info is pleased to be hosting our popular Market Outlook and Networking Event on January 23 at the George R Brown Convention Center in Houston,

Texas. Come us join us for this complimentary event as we discuss the latest trends that will impact project spending in North America, including the Gulf Coast

region, over the next 12 to 24 months. Industrial Info is tracking almost 6,000 projects valued at more than $545 billion in the Texas and Louisiana Gulf Coast region,

with almost 29% of the projects expected to kick off in 2019 alone.

Among the highest-value projects are the planned liquefied natural gas (LNG) production and export terminals springing up in Texas and Louisiana. Among those

that could potentially begin construction next year is Tellurian lncorporated's (NASDAQTELL) (Houston, Texas) Driftwood LNG terminal in Lake Charles, Louisiana.

The plant could include up to four liquefaction trains, each producing 5.2 million metric tons per year. For more information, see Industrial Info's project report.

Some of the other topics to be discussed at the outlook include:

• The economy and the effects and impacts of trade disputes

• Labor constraints on plant spending in the Gulf Coast region

• The oil and gas spending outlook in the context of prevailing crude prices, global gas demand and competing global production

• The refined product demand outlook and the impact on both capital and turnaround activity

Following the presentation, join us for our networking event with your industry peers Complimentary drinks and hors d'oeuvres will be served. IIR's industry experts

also will be available after the presentations to answer any questions you may have. This will be a good opportunity to learn about what's new with Industrial Info's

Global Market Intelligence (GMI) Platform tools and get live demonstrations of our new tools and databases.

Registration begins at 3 30 p.m., and the presentations will begin at 4 p m Space is limited, so make sure to RSVP today!



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Conference Wednesday, 23rd January

2019 Industrial Market Spending Outlook - Houston, TX Time: 3:30 PM (CDT), 4:30 PM (EDT), 9:30 PM (GMT)

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•@§,ji,fii Thursday, 31 st January

2019 Global Metals & Minerals Project Spending Outlook Time: 7:00 AM (GST), 9:00 AM (CDT), 1:00 AM (EDT)

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•jlffl,jj,&il Wednesday, 13th February

2019 Middle East Project Spending Outlook Time: 7:00 AM (GST), 9:00 AM (CDT), 1:00 AM (EDT)

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Documents

I...anticipated throughput capacity will be about 1.2 million metric tons per year, or 40,000 barrels per day. The propane will be shipped to Asian markets. For more information, see