The latest EIC Monitor report from the Energy Industries Council (EIC) has found that investment activity across the global energy project landscape is growing. Overall figures show a significant rise in total estimated investment in the second quarter of 2013 (Q2 2013).
The estimated investment value of new projects across the global energy supply chain is equivalent to US$ 342 billion, a 28% increase compared to the first quarter of this year (Q1 2013). This growth also amounts to a 23% increase in comparison to quarter two, 2012, (Q2 2012) figures.
Overall this quarter, there have been 386 new projects announced, compared to 417 in Q1 2013 and 401 in Q2 2012.
Commenting on these findings, Claire Miller, CEO of EIC Monitor, said that the energy industry is thriving. According to her, performance in the midstream and downstream sectors has been particularly impressive as the growing level of natural gas recovery worldwide is fuelling a rise in LNG, petrochemical and associated pipeline projects.
Analysis by sector:
There have been 63 new projects in the upstream sector, totaling US$ 48.8 billion in Q2 2013. In contrast, there were 67 new projects in Q1 2013, totaling US$ 47.4 billion, and 46 new projects in Q2 2012, totaling US$ 32.5 billion.
Canada was particularly significant in regards to new activity, with five projects announced with an estimated investment value of US$ 25 billion; the country accounted for more than 50% of total potential investment value in the upstream sector.
Three of the five Canadian projects are proposed oil sands expansions in Alberta. The largest of these is the US$ 13.8 billion Oil Sands Mine in the Athabasca oil sands region.
There have been 63 new projects in the midstream sector totaling US$ 88.3 billion in Q2 2013. In contrast, there were 76 new projects, totaling US$ 55 billion in Q1 2013, and 65 new projects totaling US$ 32.3 billion in Q2 2012.
The US, Canada and Russia host most activity in this sector. The largest individual project in this quarter is the proposed US$ 35 billion Kitsault Energy Corridor and FLNG Export Terminal in British Columbia, Canada.
There have been 67 new projects in the downstream sector, totaling US$ 104.3 billion in Q2 2013. In comparison, there were 38 new projects in Q! 2013, totaling US$ 34 billion, and 54 new projects totaling US$ 61.5 billion in Q2 2012.
The activity hotspots in this sector were India, Russia and the USA, which together accounted for over 40% of total potential investment. In the USA, there were 24 new projects with a combined value of US$ 7.8 billion
There have been 116 new renewables sector projects in Q2 2013, totaling US$ 62.2 billion. In comparison, there were 123 new projects in Q1 2013, totaling US$ 43.1 billion, and 125 new projects totaling US$ 55.6 billion in Q2 2012.
Canada, Germany and the US were the most significant areas of activity in this sector. The largest individual project is the US$ 10.2 billion Conawapa Hydropower Generating Station in Manitoba, Canada.
There have been 68 new projects in the power sector, totaling US$ 38.5 billion, in Q2 2013. In contrast, there were 113 new projects in Q1 2013, totaling US$ 87.9 billion, and 11 new projects, totaling US$ 95.9 billion, in Q2 2012.
Turkey, Brazil and the US generated the most activity in this sector; a total of 17 projects were announced with a combined total investment value of US$ 14 billion. The largest development this quarter is the US$ 3 billion San Onofre Nuclear decommissioning project in California, US.
Adapted from press release by Emma McAleavey.
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