There is a wave coming, Texas, the Gulf Coast and the entire Southeast is quickly becoming a hub of industrial construction. Many of these major construction projects include Semiconductor and LNG plants.
With the influx of these types of projects, it means more opportunities for companies that do pipe fabrication. These projects require advanced and large scale piping systems for: air, gasses and liquids. Because of the sheer size, scale and complexity of these projects, the contractors that are tasked with fabrication need to have the capacity and technology to deliver.
Semiconductor Plants in Texas
US and foreign based companies are looking to Texas to fulfill the needs of the future. Chip production (or lack thereof) has been a hot topic in the past two years with shortages causing supply chain disruption in different industries. Instead of relying on overseas production, large companies like Intel, Samsung and Texas Instruments are planning on semiconductor production on US soil, the latter two choosing Texas.
Samsung has plans for 11 semiconductor plants in Austin and Taylor Texas worth $191 billion and Texas Instruments has plans for up to four sites worth $30 billion. Not only would it be a direct injection for the Texas economy, it also sets the stage for Texas to become a leader in semiconductor manufacturing. This localized expansion in chip production is a big goal for the US for the future and Texas is at the epicenter. All this translates to numerous and sizable opportunities for pipe fabricators, for years to come. Data centers, chip manufacturing and other high-tech industrial facilities require advanced piping solutions.
LNG Plants In The Gulf Coast
The Gulf Coast is currently one of the most active regions for LNG in the world. In the US, all but a handful of the 30 LNG plants are on the Gulf Coast. The U.S. exported more than 3.5 billion cubic feet of LNG to three dozen countries in 2021, roughly 20 times the amount exported in 2016. And, the region expects another $50 billion in LNG projects that will carry the region through 2030. It looks like LNG is being favored as a cleaner energy solution. The Energy Department plans to spend $12 billion in carbon capture and storage over the next five years, a move that backs the growing number of LNG companies. According to the office of the Governor of Louisiana, they’ve approved a contract for CF Industries to invest $198.5 million to construct a CO2 compression and dehydration unit at its Ascension Parish plant. An effort to reduce carbon emissions at what it says is the largest ammonia production facility in the world.
The semiconductor and LNG industries adhere to strict standards when it comes to piping solutions and this usually means that contractors need to make sure they can produce at a high rate with a high quality standard. For pipe fabrication, pipe welding speed (productivity) and precision (quality) are critical when it comes to being able to take on projects and completing them on time. And with the ongoing boom in Texas and the Gulf Coast it’s the fabricators with advanced technological capabilities that end up winning and completing projects swiftly. We have customers scattered across the Southeast from Texas to Florida and they chose to add the Spool Welding Robot to their operations all for different reasons, but one overarching reason is: to stay ahead of the curve.