Canada to See More than $25 Billion in Projects Begin Construction in Third-Quarter 2015, Fired by Renewables

Researched by Industrial Info Resources (Sugar Land, Texas)--Industrial Info is tracking more than $25 billion in Canadian projects that are set to begin construction in the third quarter of 2015, with more than three-quarters of that amount attributed to three industries: Power, Metals & Minerals, and Oil & Gas Production. Geographically, the Western Canadian region leads the nation with more than $21.9 billion in projects slated to kick off from June through September.

Click on the image at right for a graph detailing planned third-quarter 2015 project kickoffs in Canada by industry.

The Power Industry expects to see $9.42 billion in projects begin construction in Canada between July and September, most of which is attributed to the largest renewable energy project in North America: BC Hydro and Power Authority's (Vancouver, British Columbia) $8.5 billion Site C hydroelectric project in Fort Saint John, British Columbia. Recently approved, it is expected to generate 1,100 megawatts (MW); for more information, see April 8, 2015, article - British Columbia's Site C Hydroelectric Project to Generate 1,100 Megawatts.

But other forms of renewable energy are putting the Power Industry at the head of the pack, particularly wind power. Algonquin Power & Utilities Corporation (Oakville, Ontario) expects to begin construction on a $230 million windfarm on Amherst Island, Ontario. The 76-MW facility is designed to utilize 33 Siemens AG (NYSE:SI) (Munich, Germany) wind turbine generators, each with a capacity of 2.3 MW. Hatch Limited (Niagara Falls, Ontario) is performing engineering services.

Not surprisingly, the Metals & Minerals Industry also holds a top position in third-quarter Canadian project kickoffs, with $6.21 billion worth expected. Among the largest is Fortune Minerals Limited's (TSX:FT) (London, Ontario) $632 million construction of a metallurgical coal mine near Stewart, British Columbia. The 3 million-ton-per-year mine will be built on a 15,918-hectare site, which is estimated to hold 2.8 billion tons of resource in four deposits. The company expects to produce premium, ultra-low volatile PCI for up to 25 years. POSCO Canada Limited (Vancouver, British Columbia), a subsidiary of POSCO (PYSE:PKX) (Pohang, South Korea), is performing specification and reliability services.

The Oil & Gas Production Industry, which has taken a hit in the past year amid crumbling commodity prices, still plays a big role in Canada, with more than $4.2 billion in project set to begin construction from July through September. These include AltaGas Limited's (TSX:ALA) (Calgary, Alberta) $350 million construction of a natural gas liquids (NGL) plant in Fort Saint John, British Columbia. Set in the the Montney Shale, the Townsend plant is expected to process 198 million standard cubic feet per day of natural gas to produce NGL. SAW Engineering Limited (Calgary) is performing engineering, procurement and construction services.

The Oil & Gas Pipelines Industry has the largest investment value of all other industries for Canadian projects set to kick off in the third quarter, at $3.1 billion. One of the largest projects is Pembina Pipeline Corporation's (NYSE:PBA) (Calgary, Alberta) Phase III, $450 million expansion of the Pembina Pipeline, running from Fox Creek to Edmonton, Alberta. The 270-kilometer addition will transport 420,000 barrels per day (BBL/d) of crude oil and condensate, via a single right of way, 24-inch- and 16-inch-diameter pipe. The capacity eventually will be expandable to 680,000 BBL/d. CH2M Hill Companies Limited (Englewood, Colorado) is performing design-engineering services.

Of the $25.16 billion in total investment value for projects expected to kick off in Canada in the third quarter, more than half--$13.55 billion worth-- currently are in the engineering stages. About $11.16 billion is attached to projects in the planning stages, where plenty of factors still could increase, decrease or totally eliminate the expected spending, while $451 million worth already are in the early construction stages.

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.