The latest EIC Monitor report from the Energy Industries Council (EIC) shows steady growth in both volume of projects and investment across the global energy project landscape in the third quarter of 2013, with overall figures showing a significant rise in project numbers since Q2.
The number of new projects announced during Q3 across the global energy supply chain has thrived, increasing to 521 projects, a significant 33% increase compared to Q2 2013, while the total potential investment value of US$ 406 billion has increased 13% on last quarter, according to the EIC report.
Commenting on these findings, Claire Miller, CEO of EIC Monitor, said: “Overall, figures this quarter indicate that the energy industry is performing well with a significant 33% rise in the number of new projects compared to the second quarter of 2013, 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 US$ 50 billion nuclear plant in South Africa.”
Analysis by sector:
There have been 67 new projects in the upstream sector totalling US$ 26.5 billion in Q3 2013. In comparison, there were 64 new projects in Q2 2013 totalling US$ 52.1 billion, and 86 new projects in Q3 2012, totaling US$ 46.5 billion.
Much of the activity this quarter was focussed in Canada, Brazil and Algeria, accounting for half of the total potential investment value in this sector. In Canada, there were six projects worth a potential investment of US$ 8.7 billion.
Five of the six projects in Canada were Steam Assisted Gravity Drainage (SAGD) projects. The largest project in Q3 is the proposed US$ 5 billion Thickwood SAGD Oil Sands Expansion project, in Alberta.
In the midstream sector, there have been 62 new projects totaling US$ 44 billion in Q3 2013. In contrast, there were 70 new projects totaling US$ 94.4 billion in Q2 2013, and 90 new projects totaling US$ 87.7 billion in Q3 2012.
The US and Canada remain activity hotspots in the midstream sector, joined by Australia where the new floating liquefied natural gas (LNG) development plan for the US$ 15 billion Browse project has been proposed by Woodside.
There have been 128 new projects in the downstream sector totalling US$ 130 billion in Q3 2013. This compares with 68 new projects totalling US$ 105.5 billion in Q2 2013, and 70 new projects totalling US$ 73 billion in Q3 2012.
Canada, Russia and the US led the downstream activity in the third quarter, together accounting for over half of the total potential investment value in this sector.
The highest value project this quarter is the proposed US$ 25 billion Kitimat Oil Refinery project, from which operator Kitimat Clean plans process between 400 000 and 500 000 bbl/d of heavy crude from Alberta’s oil sands for export to markets in Asia Pacific.
In the renewable sector, there have been 148 new projects totalling US$ 69.3 billion in Q3 2013. In comparison there were 116 new projects totalling US$ 66.3 billion in Q2 2013, and 156 new projects totalling US$ 77.5 billion in Q3 2012.
The UK, Germany and the US were the most significant areas of activity in this sector; a total of 85 projects were announced with a combined total potential investment value of US$ 38.7 billion.
The European offshore wind sector fared particularly well in the third quarter, with two projects proposed in the UK’s Dogger Bank Round 3 Zone, worth a total potential investment value of US$ 12.3 billion, and three offshore wind projects proposed off the coast of Germany, worth a total potential investment of US$ 8 billion.
There have been 109 new projects in the power sector totalling US$ 133.4 billion in Q3 2013. This compares with 68 new projects totalling US$ 38.7 billion in Q2 2013, and 109 new projects totalling US$ 69.2 billion in Q3 2012.
India, Pakistan and England led the activity this quarter, where a total of 18 projects were announced with a combined total potential investment value of US$ 21.6 billion. The largest project this quarter is the proposed US$ 50 billion Thyspunt Nuclear power plant in Eastern Cape, South Africa.
Adapted from press release by Katie Woodward
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