The number of new projects (425) announced during Q1 2013 across the global energy supply chain has remained steady, with a marginal 1% increase compared to Q4 2012, but is down nearly 12% on Q1 2012, while the total potential investment value of US$ 266 billion is down just 5.3% on last quarter, 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.
The upstream sector has seen a decrease of 6% in the number of new projects (67) in Q1 2013, with a total potential investment value of US$ 45.8 billion, up 5% from US$ 43.4 billion in Q4 2012. Hotspots of activity are Brazil, Argentina and Canada; there are three shale gas discoveries in Argentina, while the largest single project by value is the proposed US$ 3.9 billion exploration of the Duvernay shale gas play in Canada.
The midstream sector has seen a 9% increase in the number of new projects (76) in Q1 2013, with an 11% increase in the total potential investment value from US$ 47.2 billion in Q4 2012 to US$ 52.5 billion in Q1 2013. The US and Canada remain hotspots of activity, together accounting for more than 50% of the total potential investment value in this sector. The largest project this quarter is the proposed US$ 10 billion Shtokman LNG plant (Phase 2 and 3) near Murmansk, Russia.
In the downstream sector, the number of new projects (38) has increased by 6% since Q4 2012, but the total potential investment value has decreased 20% to US$ 34.1 billion in Q1 2013. Saudi Arabia, India and the US are the hotspots of activity, together accounting for just over 50% of the total potential investment value in this sector. In the US, three natural gas processing plants were announced along with a further three petrochemical plants, with a total potential investment value of US$ 2.5 billion.
Global power projects
The renewables sector has seen a 45% decrease in the total potential investment value of new projects, from US$ 82.9 billion in Q4 2012 to US$ 45.4 billion this quarter, with a 10% decrease in the number of new project (123) announcements. There are significant project numbers in Scotland, England and the US, and a number of high capital projects have been announced in Japan, Germany and Estonia. The largest single project in terms of potential investment is the US$ 5 billion Offshore Fukushima Wind Farm in Japan.
In the power sector, the total potential investment value of new projects has increased 49% to US$ 85.9 billion, while the number of new projects (113) has increased by 20% in Q1 2013. India, Algeria and Turkey are hotspots of activity, where a total of 24 projects have been announced with a combined total potential investment value of US$ 30.3 billion.
Overall, figures this quarter paint a consistent picture with both the total number of new project announcements and potential investment values very similar to last quarter. Broken down by sector, the figures this quarter offer diverse results: the midstream sector and the power sector in particular have performed well, while the upstream and downstream sectors have maintained a steady pace of activity and the renewables sector has seen a considerable reduction in numbers.
Written by Andrea Frost, the EIC.
For more information, please visit the Energy Industries Council (EIC).
Read the article online at: https://www.hydrocarbonengineering.com/special-reports/26042013/global_energy_industry_thriving_eic_015/