Global energy industry prospers, indicates EIC Monitor quarterly report

The number of new projects (527) announced during Q3 (July-Sept) 2012 across the global energy supply chain is up 27% compared to Q2 2012, while the total potential investment value of US$329 billion is up 17% on last quarter, but is down 38% on Q3 2011, according to the latest EIC Monitor report published by the Energy Industries Council (EIC).

It should be noted that in nearly all cases newly proposed projects must first undergo various planning and consent approvals which may take several years. Also, early stage proposals do not necessarily have financing agreed and in place so there will always be a proportion of projects that do not gain consent or finance.

Upstream, midstream and downstream sectors

The upstream sector has seen an increase of 89% in the number of new projects (87) in Q3 2012, with a potential investment value of US$35.9 billion, up nearly 21% from US$29.8 billion in Q2 2012. India and Canada together account for nearly a third of the total potential investment value in this sector. The largest single project is the proposed US$6 billion Rajasthan Block Expansion Project in India.

The midstream sector has seen a 94% increase in the potential investment value of new projects in Q3 2012, rising to US$76.9 billion from US$39.5 billion last quarter, with a 42% increase in the number of new project announcements (94) since Q2 2012. The US and Canada remain hotspots of activity, where the largest projects are the proposed US$15 billion Main Pass Energy Hub LNG Export Terminal in the US and the planned US$10 billion Prince Rupert LNG Export Terminal in Canada.

In the downstream sector, the number of new projects (66) has increased by 20% since Q2 2012 with a 5% decrease in the total potential investment value from US$62.7 billion in Q2 2012 to US$59.8 billion in Q3 2012. Russia and the US represent 44% of the total potential investment value of projects announced this quarter in this sector. The largest project is the proposed US$9 billion Ust-Luga Refinery in Russia.

Global power projects

The renewables sector has seen an increase of 27% in the number of new projects (159) in Q3 2012, with the potential investment value rising 40% to US$79.9 billion in Q3 2012 from US$57.1 billion in Q2 2012. There continues to be a wide spread of many renewable projects around the globe, but the US leads in both the number and total potential investment value of projects this quarter with 23 projects proposed, totalling US$16.6 billion. The largest single project in this sector is a planned US$6.5 billion onshore wind farm in Ireland, which will form part of a proposed ‘energy bridge’ to the UK.

In the power sector, the potential total investment value of new projects has decreased 20% to US$70 billion in Q3 2012 from US$87 billion last quarter, while the number of new projects remains static (110) with a less than 1% decrease on Q2 2012. The US and China lead the pack, where 11 and 6 projects respectively were announced with a combined total potential investment value of US$11.9 billion. However, an interesting project this quarter is the proposed US$3 billion Fraena CCGT Power Plant with CCS in Norway.

Overall, figures this quarter indicate that growth is returning to the global energy project landscape with significant increases in both project numbers and the total potential investment values in the upstream, midstream and renewables sectors. The midstream sector is particularly buoyant with many LNG export and import projects - along with the associated infrastructure - proposed in order to serve the high demand from the Asia-Pacific region.

Written by Neil Golding, Head of Business Information, EIC

Read the article online at: https://www.worldcoal.com/special-reports/19102012/global-energy-industry-prospers-according-to-eic-quarterly-report/