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Released June 17, 2022 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--As the conflict in Ukraine rages on, every industry across Europe is feeling the effects--and they're not always painful. Many big-ticket projects--especially in the economically impoverished areas of Eastern Europe--have been deferred indefinitely, if not cancelled. But energy producers in Western Europe are benefiting from the sky-high demand to replace Russia's energy supply to the continent. Industrial Info's Global Market Intelligence (GMI) Project Database shows more than 620 projects worldwide, valued at more than US$155 billion, have been affected, for better or worse, by the conflict in Ukraine.
Click on the image at right for a graph detailing global projects, active or otherwise, affected by the Ukrainian conflict, by industry.
More than half of that total--roughly US$88.7 billion--was directed to the construction of entirely new plants. More than US$33 billion worth have been placed on hold, with any eventual construction facing varying degrees of likelihood. Eight of the 10 highest-valued projects to be placed on hold are in Russia, including three grassroot liquefied natural gas (LNG) plants: Rosneft's (Moscow, Russia) LNG plant in De-kastri, which sits on the bank of the Lena River in the Yakutia district; and Globaltec's (Moscow) LNG plant in Yakutsk and Gazprom's (Saint Petersburg, Russia) LNG plant in Vladivostok, both of which are in easternmost Russia, between China and the Sea of Japan.
The plants were designed to produce 6.2 million, 8.9 million and 1.5 million tons per year of LNG. The European Union (EU) traditionally has depended on Russia for 40% of its gas needs, but now aims to end its reliance on Russian fossil fuels by 2027. Russia already has halted gas exports to Bulgaria, Poland and Finland, as well as major companies such as Shell plc (NYSE:SHEL), Orsted A/S (Fredericia, Denmark) and GasTerra (Groningen, Netherlands), after they all rejected a Kremlin demand to switch to payments in rubles, according to Reuters. Subscribers to Industrial Info's GMI database can read detailed reports on the Rosneft, Globaltec and Gazprom projects.
For more information, see March 22, 2022, article - Russia's Nord Stream 2 Pipeline Loses European Investors; May 10, 2022, article - Natural Gas Void will be Hard to Fill; and June 1, 2022, article - Russia Cuts Gas Supplies to Finland.
Other Russian LNG projects, including Gazprom's Baltic LNG Liquefaction Plant in Leningrad and Novatek's Arctic LNG-2 Platform in northern Siberia, remain under construction. Subscribers can read detailed reports on the Baltic LNG and Arctic LNG-2 projects.
Conflict Bolsters Some Big-Ticket Energy Projects
Not all of the news is bad for European industry. Many countries in Western Europe are seeing some of their highest-valued energy projects revived or accelerated, such as Italy's US$835 million LNG receiving and regasification terminal at Porto Empedocle, Sicily, which would have a throughput capacity of 8 billion cubic meters per year. In Germany, Uniper AG (Düsseldorf, Germany) is preparing to begin construction later this summer on the US$156.6 million LNG floating, storage and regasification unit (FSRU) offshore Wilhelmshaven, which the company says could cover 8.5% of Germany's gas demand in the future.
Uniper's project, which would be Germany's first LNG terminal, is to be accompanied by US$52.2 million of jetty and marine offloading facilities. Both of Uniper's projects could be completed as early as first-quarter 2023, although Enel SpA's (Rome, Italy) project in Sicily is unlikely to be completed within the next four years. Subscribers can read detailed reports on the Porto Empedocle, Wilhelmshaven FSRU and Wilhelmshaven jetty projects.
Also in Germany, STEAG GmbH (Essen, Germany) is in the final commissioning phase for its 650-MW, US$617.3 million Unit 6 at its natural gas-fired, combined-cycle plant in Herne, which is northeast of Essen. STEAG also said it might keep some of its coal-fired plants operational longer than expected, in response to Europe's energy crunch. Subscribers can learn more about the Herne unit addition in Industrial Info's project report.
Gasunie (Groningen, Netherlands) similarly accelerated developments at its FSRU complex in Eemshaven, Netherlands, following the surge in demand for alternatives to Russian gas. Its components include:
Cancelled Projects Hit Low-Income Nations
About US$510 million of the US$155 billion-plus total is attributed to projects that have been irreversibly cancelled. Moldova, which often is ranked alongside Ukraine and Croatia as one of the poorest nations in Europe, cancelled plans for an upgrade to a limestone quarry and processing plant in Briceni, which would have carried an estimated investment of US$300 million. The mine is positioned in the northernmost area of Moldova, near the border with Ukraine; supply-chain disruptions stemming from the COVID-19 pandemic also are believed to have affected the project. Subscribers can learn more from Industrial Info's project report.
Croatia, which continues to suffer economic ripple effects from conflicts of decades past, recently saw plans for an additional incinerator unit at its paper mill in Belisce cancelled. DS Smith plc (London, England), a packaging solutions company with operations in nearly 40 countries, says its mill is the leading paper producer in Croatia. Subscribers can learn more from Industrial Info's project report.
Among the North American companies to cancel new-plant projects in Russia is McCain Foods Limited (Florenceville-Bristol, New Brunswick), the world's largest manufacturer of frozen potato products, with operations on six continents. McCain began construction in June 2021 on a potato processing plant in Uzlovaya, Russia, which it cancelled one year later. Calling the conflict "deeply concerning to all of us," a spokesperson for McCain said the company also is "suspending all shipments of our products into the Russian market." Subscribers can learn more from Industrial Info's project report.
Subscribers to Industrial Info's GMI Project Database can click here for a full list of projects affected by the Ukraine conflict, and click here for a list of those projects still active.
Industrial Info Resources (IIR) is the world's leading provider of market intelligence across the upstream, midstream and downstream energy markets and all other major industrial markets. IIR's Global Market Intelligence Platform (GMI) supports our end-users across their core businesses, and helps them connect trends across multiple markets with access to real, qualified and validated project opportunities. Follow IIR on: LinkedIn.
Click on the image at right for a graph detailing global projects, active or otherwise, affected by the Ukrainian conflict, by industry.More than half of that total--roughly US$88.7 billion--was directed to the construction of entirely new plants. More than US$33 billion worth have been placed on hold, with any eventual construction facing varying degrees of likelihood. Eight of the 10 highest-valued projects to be placed on hold are in Russia, including three grassroot liquefied natural gas (LNG) plants: Rosneft's (Moscow, Russia) LNG plant in De-kastri, which sits on the bank of the Lena River in the Yakutia district; and Globaltec's (Moscow) LNG plant in Yakutsk and Gazprom's (Saint Petersburg, Russia) LNG plant in Vladivostok, both of which are in easternmost Russia, between China and the Sea of Japan.
The plants were designed to produce 6.2 million, 8.9 million and 1.5 million tons per year of LNG. The European Union (EU) traditionally has depended on Russia for 40% of its gas needs, but now aims to end its reliance on Russian fossil fuels by 2027. Russia already has halted gas exports to Bulgaria, Poland and Finland, as well as major companies such as Shell plc (NYSE:SHEL), Orsted A/S (Fredericia, Denmark) and GasTerra (Groningen, Netherlands), after they all rejected a Kremlin demand to switch to payments in rubles, according to Reuters. Subscribers to Industrial Info's GMI database can read detailed reports on the Rosneft, Globaltec and Gazprom projects.
For more information, see March 22, 2022, article - Russia's Nord Stream 2 Pipeline Loses European Investors; May 10, 2022, article - Natural Gas Void will be Hard to Fill; and June 1, 2022, article - Russia Cuts Gas Supplies to Finland.
Other Russian LNG projects, including Gazprom's Baltic LNG Liquefaction Plant in Leningrad and Novatek's Arctic LNG-2 Platform in northern Siberia, remain under construction. Subscribers can read detailed reports on the Baltic LNG and Arctic LNG-2 projects.
Conflict Bolsters Some Big-Ticket Energy Projects
Not all of the news is bad for European industry. Many countries in Western Europe are seeing some of their highest-valued energy projects revived or accelerated, such as Italy's US$835 million LNG receiving and regasification terminal at Porto Empedocle, Sicily, which would have a throughput capacity of 8 billion cubic meters per year. In Germany, Uniper AG (Düsseldorf, Germany) is preparing to begin construction later this summer on the US$156.6 million LNG floating, storage and regasification unit (FSRU) offshore Wilhelmshaven, which the company says could cover 8.5% of Germany's gas demand in the future.
Uniper's project, which would be Germany's first LNG terminal, is to be accompanied by US$52.2 million of jetty and marine offloading facilities. Both of Uniper's projects could be completed as early as first-quarter 2023, although Enel SpA's (Rome, Italy) project in Sicily is unlikely to be completed within the next four years. Subscribers can read detailed reports on the Porto Empedocle, Wilhelmshaven FSRU and Wilhelmshaven jetty projects.
Also in Germany, STEAG GmbH (Essen, Germany) is in the final commissioning phase for its 650-MW, US$617.3 million Unit 6 at its natural gas-fired, combined-cycle plant in Herne, which is northeast of Essen. STEAG also said it might keep some of its coal-fired plants operational longer than expected, in response to Europe's energy crunch. Subscribers can learn more about the Herne unit addition in Industrial Info's project report.
Gasunie (Groningen, Netherlands) similarly accelerated developments at its FSRU complex in Eemshaven, Netherlands, following the surge in demand for alternatives to Russian gas. Its components include:
- modifications and upgrades to an existing FSRU; see project report
- upgrades to port facilities; see project report
- a 5-kilometer natural gas pipeline; see project report
Cancelled Projects Hit Low-Income Nations
About US$510 million of the US$155 billion-plus total is attributed to projects that have been irreversibly cancelled. Moldova, which often is ranked alongside Ukraine and Croatia as one of the poorest nations in Europe, cancelled plans for an upgrade to a limestone quarry and processing plant in Briceni, which would have carried an estimated investment of US$300 million. The mine is positioned in the northernmost area of Moldova, near the border with Ukraine; supply-chain disruptions stemming from the COVID-19 pandemic also are believed to have affected the project. Subscribers can learn more from Industrial Info's project report.
Croatia, which continues to suffer economic ripple effects from conflicts of decades past, recently saw plans for an additional incinerator unit at its paper mill in Belisce cancelled. DS Smith plc (London, England), a packaging solutions company with operations in nearly 40 countries, says its mill is the leading paper producer in Croatia. Subscribers can learn more from Industrial Info's project report.
Among the North American companies to cancel new-plant projects in Russia is McCain Foods Limited (Florenceville-Bristol, New Brunswick), the world's largest manufacturer of frozen potato products, with operations on six continents. McCain began construction in June 2021 on a potato processing plant in Uzlovaya, Russia, which it cancelled one year later. Calling the conflict "deeply concerning to all of us," a spokesperson for McCain said the company also is "suspending all shipments of our products into the Russian market." Subscribers can learn more from Industrial Info's project report.
Subscribers to Industrial Info's GMI Project Database can click here for a full list of projects affected by the Ukraine conflict, and click here for a list of those projects still active.
Industrial Info Resources (IIR) is the world's leading provider of market intelligence across the upstream, midstream and downstream energy markets and all other major industrial markets. IIR's Global Market Intelligence Platform (GMI) supports our end-users across their core businesses, and helps them connect trends across multiple markets with access to real, qualified and validated project opportunities. Follow IIR on: LinkedIn.
