Energy Projects in New Mexico Highlight $5.9 Billion in Planned Industrial Spending

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Researched by Industrial Info Resources (Sugar Land, Texas)--The potential for industrial construction projects in New Mexico is high. Industrial firms are planning 93 major capital and maintenance projects scheduled to begin construction in 2008 or beyond in New Mexico. These projects represent $5.9 billion in total investment value (TIV).

When compared to other states, New Mexico is a top-tier state for energy and natural resource production, ranking in the top 10 for natural gas, coal-bed methane, crude oil, coal, copper, gold, silver, molybdenum and potash. It is also a top state for renewable energy development, including solar, alternative fuels, wind and biomass. Because of this, more than 90% of the near-term (one-two years) project spending in the state will be in energy related industries including Alternative Fuels, Petroleum Refining, Oil & Gas Production & Transmission, and Power.

With 20 projects representing $4.3 billion, the Power Industry leads all other industries in the state for future projects. A good portion of this is for a 1,500-megawatt coal-fired power plant planned for Shiprock being developed by Sithe Global Power LLC (Houston, Texas). There is also more than a billion dollars worth of large-scale windfarms planned in the state by companies like GreenHunter Energy LLC, LifeLine Renewable Energy Incorporated and Owaissa Wind Ranch LLC.

As one of the top five U.S. states for oil and gas production, there is a significant number of pipeline and gas plant infrastructure work underway. Twenty-five projects with a TIV of $310 million are planned in the state for the Oil & Gas Production Industry. Projects range from $85 million cryogenic natural gas process train additions to $1 million gas plant maintenance.

Transwestern Pipeline Company (Houston), a subsidiary of Energy Transfer Partners LP (NYSE: ETP) , began construction in January on the Phoenix natural gas pipeline expansion project, which includes 25 miles of 36-inch-diameter pipeline in San Juan and McKinley Counties in New Mexico. Mustang Engineering LP (Houston) is providing engineering services, and Gregory & Cook Construction Company (Houston) is the general contractor. The project should be completed this summer.

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