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$406bn INVESTMENT SEEN

Global energy sector new projects up 33pc

London, October 29, 2013

New projects across the global energy supply chain have increased by 33 per cent to reach 521 projects during the third quarter, as compared to the second quarter, said a report.

The total potential investment value of $406 billion was up 13 per cent on last quarter, according to the EIC Monitor quarterly report from the Energy Industries Council (EIC).

EIC Monitor tracks nearly 10,000 projects proposed or under development in the global energy industry and provides a barometer, broken down into oil and gas (downstream, midstream, upstream), nuclear and conventional power, and the renewables sectors.

Data is analysed by the number and value of new (both active and proposed) projects recorded by the EIC each quarter.   

The upstream sector saw an increase of 5 per cent in the total number of new projects this quarter, rising to 67 projects from 64 projects last quarter, with a 49 per cent decrease in the total potential investment value of new project announcements since Q2.

The hotspots of activity were Canada, Brazil and Algeria, together accounting for half of the total potential investment value in this sector. Six projects in Canada were worth $8.7 billion, of which five were Steam Assisted Gravity Drainage (SAGD) projects. The largest project was the proposed $5 billion Thickwood SAGD Oil Sands Expansion project in Alberta (Canada).

In the midstream sector, there was a 54 per cent decrease in the total potential investment value of new projects in Q3, dropping to $44 billion from $94 billion in Q2, with a 11 per cent decrease in the number of new projects.

The US and Canada remained hotspots of activity in the midstream sector, joined by Australia where the new floating LNG development plan for the $15 billion Browse project was proposed by Woodside and its partners.

In the downstream sector, the number of new projects increased by 88 per cent since Q2, and the total potential investment value increased 23 per cent from $105.5 billion in Q2 to $130 billion in Q3.

Canada, Russia and the US accounted for over 50 per cent of the total potential investment value in this sector. The highest value project was the proposed $25 billion Kitimat Oil Refinery project in Alberta.

The renewables sector saw a 28 per cent increase in the total number of new projects this quarter, rising to 148 projects from 116 projects last quarter, with a 4.5 per cent increase in the total potential investment value of new project announcements since Q2.

A total of 85 projects with a combined total potential investment value of $38.7 billion were from UK, Germany and the US for this sector. The European offshore wind sector fared particularly well with the two projects proposed in the UK’s Dogger Bank Round 3 Zone and three offshore wind projects off the coast of Germany, worth a total potential investment value of $12.3 billion and $8 billion respectively.

In the power sector, the number of new projects increased by 60 per cent in the last quarter, and there was a more than three-fold growth in the total potential investment value in Q3 to $133.4 billion.

India, Pakistan and England were hotspots of activity in the power sector, with a total of 18 new projects and a combined total potential investment value of $21.6 billion. The largest project was the proposed $50 billion Thyspunt Nuclear power plant in Eastern Cape, South Africa.

Claire Miller, CEO, said: “Overall, figures this quarter indicate that the energy industry is performing well with a significant 33 per cent rise in the number of new projects compared to the second quarter, along with a smaller increase in investment. The downstream sector has fared particularly well as the shale gas boom continues to fuel a raft of petrochemical projects, and the power sector has benefitted from plans for a major $50 billion nuclear plant in South Africa.” - TradeArabia News Service




Tags: Energy | global | Report | EIC | sector |

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