U.S. to See $71 Billion in Projects Begin Construction in Third-Quarter 2015, Led by Natural Gas

Researched by Industrial Info Resources (Sugar Land, Texas)--Industrial Info is tracking nearly $71 billion in U.S. projects that are set to begin construction in the third quarter of 2015, with more than half attributed to three industries: Power, Industrial Manufacturing, and Oil & Gas Production. Geographically, the Southwest region leads the nation with more than $23.5 billion in projects slated to kick off from June through September.

Click on the image at right for a graph detailing planned third-quarter 2015 project kickoffs in the U.S. by industry.

Natural gas-fired projects are fueling more than three-quarters of the $19.58 billion in U.S. Power Industry projects that are scheduled to begin construction in the third quarter. One of the largest is Competitive Power Ventures Incorporated's (Silver Spring, Maryland) $900 million construction of Valley Energy Center in Middletown, New York. The 650-megawatt (MW), combined-cycle power plant will feature two 209-MW SGT6-5000F-class natural gas fired combustion turbine generator sets from Siemens AG (NYSE:SI) (Munich, Germany), with duct-fired heat-recovery steam generators, as well as a 214-MW steam turbine generator from Siemens. Skanska USA (New York, New York) is performing engineering, procurement and construction services.

Transportation projects are driving much of the investment in the Industrial Manufacturing Industry, which is set to see more than $9 billion in projects kick off in the third quarter. The largest is Honolulu Rail Transit's $1.04 billion addition to its light-rail system in Honolulu, Hawaii. The four-mile addition, which runs through the city center and is expected to include eight stations, is part of a larger, 20-mile system. Completion for the first 10 miles originally was set for second-quarter 2017; however, rail officials announced last year that the opening date would likely be delayed until second-quarter 2018.

Oil & Gas Production Industry also expects to see more than $9 billion in kickoffs from July through September, with at least one major offshore project: Deep Gulf Energy Companies' (Houston, Texas) $600 million subsea tie-back from blocks 727 and 771 in the Kodiak Field's Mississippi Canyon in the Gulf of Mexico. Deep Gulf Energy awarded the project, which is to be 60 miles from Mobile, Alabama, at depths of 5,000 feet, to Technip Incorporated (Paris, France). The tie-back will go to the 60,000-barrel-per-day Devils Tower Truss Spar in Mississippi's Block 773. It is expected to be completed toward the end of the year.

The Alternative Fuels Industry has the largest investment value of all other industries for projects set to kick off in the third quarter, at $6.69 billion. One of the largest projects is S.G. Preston Company's (Philadelphia, Pennsylvania) $400 million construction of a waste-to-diesel plant in South Point, Ohio. The facility is designed to process more than 3,000 tons per day of municipal solid waste into 120 million gallons per year of renewable diesel, and will involve the construction of a production building, pre-treatment system and a reactor.

Of the $70.93 billion in total investment value for projects expected to kick off in the U.S. in the third quarter, more than half--$37.47 billion worth--are in the planning stages, where plenty of factors still could increase, decrease or totally eliminate the expected spending. About $30.54 billion is attached to projects currently in the engineering stages, while $2.52 billion worth already are in the early construction stages.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.