Western Canada Continues Rebound with $137 Billion in 2018 Project Kickoffs

Researched by Industrial Info Resources (Sugar Land, Texas)--Texas isn't the only place benefiting from last year's rally in oil prices. Western Canada, particularly Alberta, notched up significant growth in 2017. Alberta's economy led Canada in growth, expanding about 4% during the calendar year, according to Calgary Herald, which pointed to stability in the energy sector and rising oil sands production. Industrial Info is tracking more than $137 billion in active projects in the region set to begin construction in 2018, more than 85% of which are attributed to four industries: Oil & Gas Production, Metals & Minerals, Oil & Gas Pipelines and Power Generation.

Click on the image at right for a graph detailing planned 2018 project kickoffs in the Western Canadian region, by industry.

The Western Canadian region includes the provinces of Alberta, British Columbia, Manitoba and Saskatchewan, and the Northwest, Nunavut and Yukon territories.

Employment, housing starts and auto sales were among the economic factors that improved in Alberta in 2017, according to Calgary Herald. The province also is home to the largest number of active projects set to kick off this year, including two major pipeline projects: Enhance Energy Incorporated's (Calgary, Alberta) CO2 pipeline, running from Fort Saskatchewan to Clive, and Enbridge Incorporated's (NYSE:ENB) (Calgary) Line 3 Pipeline Replacement Project, running from Hardisty, Alberta, to Superior, Wisconsin. Enhance Energy's line is expected to store up to 14.6 million tonnes of CO2 per year at full capacity, while capacity on Line 3 is expected to double to 760,000 barrels per day (BBL/d). For more information on Line 3, see December 1, 2017, article - Enbridge Completes Strategic Plan through 2020, and November 7, 2017, article - Enbridge's $27 Billion in Active Projects Fueled by Pipeline Overhauls, Windfarm Growth.

Two major components of the Enhance Energy and Line 3 projects are expected to begin construction in 2018: Enhance Energy's $155 million segment running from Red Deer to near Edmonton, Alberta, roughly 130 miles, and Line 3's $60 million Metiskow Crude Oil Pump Station near Provost, which will include three electric motor-driven pump packages from Siemens AG (Munich, Germany). For more information, see Industrial Info's project reports on the Enhance Energy segment and the Line 3 pump station.

Alberta also is home to one of the largest power-generation projects set to begin construction next year that is fueled by renewable energy: Enel Green Power North America Incorporated's (Andover, Massachusetts) $230 million Riverview Windfarm near Rocky Mountain Horse. The project is expected to generate about 115 megawatts (MW) from 50 Siemens generators. Last month, the Alberta Electric System Operator awarded Enel, which is a subsidiary of Enel SpA (Rome, Italy), a 20-year Renewable Energy Support Agreement for the project. For more information, see Industrial Info's project report.

The Oil & Gas Production Industry has the most active projects of any one industry that are set to kick off in Western Canada in 2018, in both number and total investment value (TIV). Husky Energy Incorporated (TSX:HSE) (Calgary) is on the cusp of breaking ground on a pair of thermal bitumen projects: the $400 million Spruce Lake North and $400 million Spruce Lake Central production and processing plants in Spruce Lake, Saskatchewan. Each will have a capacity of 10,000 barrels per day (BBL/d) and utilize Steam Assisted Gravity Drainage (SAGD) technology. For more information, see Industrial Info's project reports on Spruce Lake North and Spruce Lake Central.

Less certain are the Metals & Minerals Industry projects, which, although nominally set for kickoff this year, have faced frequent and lengthy construction delays amid generally weak commodity prices over the past few years. One such project, Glencore plc's (Baar, Switzerland) $1.8 billion Sukunka coal mine and preparation plant in Chetwynd, British Columbia, has been struggling to obtain permits from a skeptical provincial government for more than two years. As designed, the mine initially would produce 1.5 million to 2.5 million tons per year of metallurgical coal, eventually to be ramped up to 6 million tons per year. For more information, see Industrial Info's project report.

Of the $137.22 billion in TIV for projects expected to kick off in the Western Canadian region in 2018, about $127.8 billion worth are in the planning stages, where plenty of factors still could increase, decrease or totally eliminate the expected spending. About $8.5 billion are attached to projects currently in the engineering stages, while just less than $1 billion worth are maintenance-related projects.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 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/.