Natural Gas, Oil Projects Drive Atlantic Canada's $16 Billion in Projected 2017 Kickoffs

Researched by Industrial Info Resources (Sugar Land, Texas)--Resource extraction is behind much of the capital spending growth projected for Atlantic Canada next year, much of it complemented by infrastructure demand. Industrial Info is tracking $16.33 billion in active projects that are set to begin construction in Atlantic Canada in 2017, more than 95% of which are attached to just four industries: Oil & Gas Production, Metals & Minerals, Industrial Manufacturing and Power Generation.

Click on the image at right for a graph detailing planned 2017 project kickoffs in the Atlantic Canada region, by industry.

The Atlantic Canada region includes New Brunswick, Newfoundland & Labrador, Nova Scotia and Prince Edward Island.

The Oil & Gas Production Industry exceeds all others in Atlantic Canada by a long shot, with $10.98 billion worth of projects set to kick off in 2017. Among the highest-valued is Husky Energy Incorporated's (TSX:HSE) (Calgary, Alberta) $2.35 billion wellhead platform extension project in the White Rose Oil Field, off the coast of Newfoundland and Labrador. The company plans to produce 115 million barrels of oil per year from the structure, with a daily peak of 37,000 barrels, from a total of 88 wells. The platform will include a concrete gravity structure with topsides, drilling facilities, wellheads and accommodations for up to 144 persons. The project had been set to be sanctioned this year, but was pushed back due to oil-price volatility, according to CBC News. For more information, see Industrial Info's project report.

For details on Husky's outlook for the coming year, including other capital spending plans, see December 14, 2016, article - Canada's Husky Energy Announces Planned Capex for 2017.

The Metals & Minerals Industry, which always plays a big role in eastern Canada's industrial plans, is looking at $2.6 billion in projected kickoffs, including Vale S.A.'s (NYSE:VALE) (Rio de Janeiro, Brazil) $750 million Voisey's Bay Nickel Mine & Concentrator in Nain, Newfoundland and Labrador. The project, which awarded its civil contracts earlier this summer, adds a 7,200-ton-per-day underground mine to the 2.4 million-ton-per-year operation, and expand its concentrator by adding a grinding circuit to produce 40,000 tons per year of nickel-in-concentrate for processing at a nearby nickel hydrometallurgical refinery. However, earlier this month, Canadian Natural Resources Minister Siobhan Coady said Vale's plan may be set back a few months "to finish some detailed engineering before they go to procurement," according to CBC News. For more information, see Industrial Info's project report.

The Industrial Manufacturing Industry is set for about $1.43 billion in 2017 construction starts in Atlantic Canada, including Melford International Terminal Incorporated's (Middle Melford, Nova Scotia) $425 million container terminal in Guysborough, Nova Scotia. If constructed, the facility would be the closest deep-water marine-rail container terminal in mainland North America to Europe and the Suez Canal, according to CBC News. It is designed to handle up to 1.5 million 20-foot equivalent containers. For more information, see Industrial Info's project report.

The Power Industry is slated for $615 million in 2017 construction starts, including BluEarth Renewables Incorporated's (Calgary, Alberta) proposed, $115 million East Bay Hills Windfarm in Middle Cape, Nova Scotia. As currently designed, the facility would consist of 31 wind turbine generators, each with a capacity of 1.6 megawatts (MW), for a total output of about 50 MW. For more information on the project, which is still in its planning phase after about three years of delays, see Industrial Info's project report.

More than three-quarters of the total investment value for projects expected to kick off in the Atlantic Canada region in 2017--about $12.4 billion--is tied to projects in the planning phases, where plenty of factors could increase, decrease or totally eliminate the expected spending. About $3.8 billion worth are in the engineering phases, while about $149 million worth are maintenance-related projects.

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/.