Atlantic Canada's $5.3 Billion in Second-Quarter 2016 Kickoffs Driven Largely by LNG Terminal

---

Researched by Industrial Info Resources (Sugar Land, Texas)--A single project accounts for 75% of Atlantic Canada's $5.31 billion in projected construction starts for the second quarter of 2016, according to Industrial Info's project database. But that one project, a highly anticipated liquefied natural gas (LNG) export terminal, and several others have anything-but-certain start dates, given the weak condition of commodity prices. About 98% of the total is attributed to just three industries: Oil & Gas Production, Metals & Minerals and Power.

Click on the image at right for a graph detailing planned second-quarter 2016 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 is far ahead of all others, thanks to only one project: Liquefied Natural Gas Limited's (Perth, Western Australia) $4 billion Bear Head LNG Production and Export Terminal in Port Hawkesbury, Nova Scotia . The facility is expected to have a total site production capacity of 8 million metric tonnes per year of liquefied natural gas (LNG) for export, with a feedstock of 800 million standard cubic feet per day of natural gas sourced from the Marcellus Shale. The kickoff date is dubious; although the terminal received approval from the U.S. Department of Energy to export U.S. natural gas to both free trade and non-free trade agreement countries, the consistently low commodity prices make the schedule highly provisional. For more information, see Industrial Info's project report.

The Metals & Minerals Industry has $1.13 billion in projects set to kick off in the second quarter in Atlantic Canada, with one of the largest being Atlantic Gold Corporation's (TSX:SVU) (Vancouver, British Columbia) $104.8 million Touquoy gold mine in Middle Musquodoboit, Nova Scotia. The 7.5 million-ton-per-year open pit mine is designed to extract 406,500 ounces of gold over four and a half years. The project is now in its capital approval phase. For more information, see Industrial Info's project report.

The Power Industry is in a distant third place with $63 million in projected construction starts from April through June, almost all of which are related to maintenance outages. The largest is Energie NB Power's (Fredericton, New Brunswick) $20 million Unit 1 outage at its station in Point Lepreau, New Brunswick. The outage is expected to last 42 days. For more information, see Industrial Info's project report.

The seven remaining highest-value projects set to begin construction in Atlantic Canada in second-quarter 2016 are:

• $1 billion: Alderon Iron Ore Corporation's Kami iron ore mine and mill in Wabush, Newfoundland and Labrador
  For more information, see Industrial Info's project report.
• $32 million: Peat Resources Limited's fuel pellet plant in Stephenville, Newfoundland and Labrador
  For more information, see Industrial Info's project report.
• $15 million: Rambler Metals & Mining PLC's copper and gold mine expansion in Baie Verte, Newfoundland and Labrador
  For more information, see Industrial Info's project report.
• $12 million: Sustainable Blue's salmon farm production facility in West Hants, Nova Scotia
  For more information, see Industrial Info's project report.
• $11 million: Nalcor Energy's power station maintenance outage in Holyrood, Newfoundland and Labrador
  For more information, see Industrial Info's project report.
• $10 million: North Atlantic Refining Limited's hydrocracker unit upgrade in Come By Chance, Newfoundland and Labrador
  For more information, see Industrial Info's project report.
• $10 million: North Lake Fisheries' seafood-processing plant upgrade in Montague, Prince Edward Island
  For more information, see Industrial Info's project report.

Nearly all of the total investment value for projects expected to kick off in the Atlantic Canada region in the second quarter--about $5.07 billion--is tied to projects in the planning phases, where plenty of factors could increase, decrease or totally eliminate the expected spending. About $146 million worth are in the engineering phases, while about $87 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/.