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Researched by Industrial Info Resources (Sugar Land, Texas)--Wildfires continue to plague Alberta, the capital of Canada's Oil & Gas Industry, with economic effects that likely will be massive, but currently are difficult to calculate. But this is hardly the only challenge facing Canada's Oil & Gas Industry; from coast to coast, a slew of projects are being held up and pushed out for various reasons, making it highly unlikely that the nearly $13 billion in Production, Pipelines and Terminals projects set to kick off in the remainder of the year will actually do so.
Of the $13 billion nominally slated to begin construction, according to Industrial Info's database, almost $12 billion are still in the planning stages, where plenty of factors could increase, decrease or eliminate the expected spending. Issues ranging from unmanaged expectations to "not in my backyard" objections are making many of those factors realities.
Alberta already is running a $10 billion deficit for the year, according to forecasts made by the provincial government last month, driven largely by persistently low prices for oil. But, according to The Canadian Press, it is not the only oil-reliant province facing such problems: The government of Newfoundland and Labrador recently released a budget that amounts to a deficit of almost $2 billion, despite a wide swath of new taxes and program cuts. Thousands swarmed around the province's capital building in St. John's last week to protest the budget, which included hikes on everything from salmon licenses to marriage and death certificates.
Newfoundland and Labrador used to reap rewards from its offshore Oil & Gas Industry, but now sees a gaping hole in its economy that once was filled by royalties. According to CBC News, the province expects to see a $551 million benefit from offshore fields in fiscal 2015-2016, far below the $2.8 billion in 2011-12. Industrial Info's database does not show any major project kickoffs in Newfoundland and Labrador in the foreseeable future.
Petroliam Nasional Berhad (Petronas) (Kuala Lumpur, Malaysia) has run into a different set of problems in its planned construction of the Pacific NorthWest Liquefied Natural Gas (LNG) project on Lelu Island near Prince Rupert, British Columbia. First Nations in the area historically have been wary of the project, while the federal environmental review has moved at a stop-and-start pace, forcing the company to seek new engineering, procurement and construction (EPC) contracts, according to Financial Post. Still, Petronas has signed impact-benefit agreements or term sheets with four of five First Nations it must consult, according to Vancouver Sun, and recently received conditional support from the fifth.
Industrial Info is tracking nearly $13.5 billion in projects related to Pacific NorthWest LNG; TransCanada Corporation's (NYSE:TRP) (Calgary, Alberta) $400 million, 466-mile segment of its Prince Rupert Gas Transmission Project, which is designed to transport up to 2 billion cubic feet per day to the facility, was slated to begin construction late this year, but still awaits a final investment decision. To date, TransCanada has signed project agreements for the system with 11 First Nations for the pipeline. For more information, see Industrial Info's project report.
Canada's eastern coast is seeing a little more luck with Pieridae Energy Limited's (Halifax, Nova Scotia) $5 billion Goldboro, Nova Scotia LNG Production Plant, which will accommodate plants and facilities for the storage and export of LNG. The company expects the facility to produce about 10 million metric tonnes of LNG per year and have on-site storage capacity of 690,000 cubic meters of LNG. For more information, see Industrial Info's project report.
The Goldboro LNG project recently cleared two major hurdles: It received approval from Canada's National Energy Board (NEB) to import gas from the U.S. and to export LNG from Canada; and it received approval from the U.S. Department of Energy (DoE) to export gas originated in the U.S. to countries with which the U.S. does and does not have free-trade agreements. A final investment decision is expected later this year.
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. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
Of the $13 billion nominally slated to begin construction, according to Industrial Info's database, almost $12 billion are still in the planning stages, where plenty of factors could increase, decrease or eliminate the expected spending. Issues ranging from unmanaged expectations to "not in my backyard" objections are making many of those factors realities.
Alberta already is running a $10 billion deficit for the year, according to forecasts made by the provincial government last month, driven largely by persistently low prices for oil. But, according to The Canadian Press, it is not the only oil-reliant province facing such problems: The government of Newfoundland and Labrador recently released a budget that amounts to a deficit of almost $2 billion, despite a wide swath of new taxes and program cuts. Thousands swarmed around the province's capital building in St. John's last week to protest the budget, which included hikes on everything from salmon licenses to marriage and death certificates.
Newfoundland and Labrador used to reap rewards from its offshore Oil & Gas Industry, but now sees a gaping hole in its economy that once was filled by royalties. According to CBC News, the province expects to see a $551 million benefit from offshore fields in fiscal 2015-2016, far below the $2.8 billion in 2011-12. Industrial Info's database does not show any major project kickoffs in Newfoundland and Labrador in the foreseeable future.
Petroliam Nasional Berhad (Petronas) (Kuala Lumpur, Malaysia) has run into a different set of problems in its planned construction of the Pacific NorthWest Liquefied Natural Gas (LNG) project on Lelu Island near Prince Rupert, British Columbia. First Nations in the area historically have been wary of the project, while the federal environmental review has moved at a stop-and-start pace, forcing the company to seek new engineering, procurement and construction (EPC) contracts, according to Financial Post. Still, Petronas has signed impact-benefit agreements or term sheets with four of five First Nations it must consult, according to Vancouver Sun, and recently received conditional support from the fifth.
Industrial Info is tracking nearly $13.5 billion in projects related to Pacific NorthWest LNG; TransCanada Corporation's (NYSE:TRP) (Calgary, Alberta) $400 million, 466-mile segment of its Prince Rupert Gas Transmission Project, which is designed to transport up to 2 billion cubic feet per day to the facility, was slated to begin construction late this year, but still awaits a final investment decision. To date, TransCanada has signed project agreements for the system with 11 First Nations for the pipeline. For more information, see Industrial Info's project report.
Canada's eastern coast is seeing a little more luck with Pieridae Energy Limited's (Halifax, Nova Scotia) $5 billion Goldboro, Nova Scotia LNG Production Plant, which will accommodate plants and facilities for the storage and export of LNG. The company expects the facility to produce about 10 million metric tonnes of LNG per year and have on-site storage capacity of 690,000 cubic meters of LNG. For more information, see Industrial Info's project report.
The Goldboro LNG project recently cleared two major hurdles: It received approval from Canada's National Energy Board (NEB) to import gas from the U.S. and to export LNG from Canada; and it received approval from the U.S. Department of Energy (DoE) to export gas originated in the U.S. to countries with which the U.S. does and does not have free-trade agreements. A final investment decision is expected later this year.
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. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
