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Released February 23, 2016 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--The ongoing slump in commodity prices continues to batter Canada's industrial landscape, with many energy-related projects facing lengthy and uncertain delays. Although there are roughly $45.92 billion in active projects set to begin construction in Canada during the second quarter of this year, according to Industrial Info's project database, many of these likely will continue to hit walls. More than 90% of the total can be attributed to just four industries: Oil & Gas Production, Metals & Minerals, Oil & Gas Pipelines, and Power.
Click on the image at right for a graph detailing planned construction starts for Canadian projects in second-quarter 2016, by industry.
The Oil & Gas Production Industry is far ahead of all others, with 68 projects worth $32.15 billion in total investment value (TIV) set to begin construction from April through June. However, about $25 billion of that total is attributable to a single project that recently faced a significant setback: Royal Dutch Shell plc's (NYSE:RDS.A) (The Hague, Netherlands) LNG Canada Liquefaction Plant near Kitimat, British Columbia. The planned, 2 million-metric-ton-per-year facility was expected to see a final investment decision in April, but persistently low commodity prices forced Shell to postpone the decision, especially after the company saw a 44% plunge in fourth-quarter 2015 earnings. For more information, see Industrial Info's project report.
The Metals & Minerals Industry is in a distant second place with $5.82 billion in projected second-quarter kickoffs, such as Royal Nickel Corporation's (Toronto, Ontario) $1.07 billion construction of the Dumont Mine & Mill near Amos, Quebec. The project, which is the first half of a $2 billion, 33-year-mine-life enterprise, involves building a 45 million-ton-per-year open-pit mine to extract 73 million pounds per year of nickel, 2 million pounds per year of cobalt and 15,000 ounces per year of platinum-group elements. For more information, see Industrial Info's project report.
Canada's Oil & Gas Pipelines Industry has the third-highest TIV at $2.54 billion, which includes Pembina Pipeline Corporation's (NYSE:PBA) (Calgary, Alberta) $800 million Phase III expansion of a pipeline in Alberta. The company expects to build two parallel lines 24 and 16 inches in diameter, each 270 kilometers in length, to transport 420,000 barrels per day (BBL/d) of crude oil and condensate from Fox Creek to Namao, which is near Edmonton. The new segment eventually will be expandable to 680,000 BBL/d; following the additions, capacity for the full system is expected to surpass 1 million BBL/d of crude, condensate, ethane and propane. For more information, see Industrial Info's project report.
The Power Industry is looking at $2.1 billion in Canadian project kickoffs from April through June, with the largest receiving capital approval late last year: EDF EN Canada Incorporated's (Toronto) $500 million construction of the Nicolas-Riou Windfarm in Rimouski, Quebec. The company, which is a subsidiary of Electricitie de France S.A. (Paris, France), plans to install 68 Vestas V-112 wind turbine generator sets, each with a capacity of 3.3 megawatts (MW). For more information, see Industrial Info's project report.
The other six highest-valued projects set to begin construction in Canada in second-quarter 2016 are:
Much of the TIV related to projects in the planning stages can be attributed to Oil & Gas and Metals & Minerals projects that have faced delays (sometimes repeatedly) due to low commodity prices, such as the LNG Canada Liquefaction Plant.
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/.
Click on the image at right for a graph detailing planned construction starts for Canadian projects in second-quarter 2016, by industry.The Oil & Gas Production Industry is far ahead of all others, with 68 projects worth $32.15 billion in total investment value (TIV) set to begin construction from April through June. However, about $25 billion of that total is attributable to a single project that recently faced a significant setback: Royal Dutch Shell plc's (NYSE:RDS.A) (The Hague, Netherlands) LNG Canada Liquefaction Plant near Kitimat, British Columbia. The planned, 2 million-metric-ton-per-year facility was expected to see a final investment decision in April, but persistently low commodity prices forced Shell to postpone the decision, especially after the company saw a 44% plunge in fourth-quarter 2015 earnings. For more information, see Industrial Info's project report.
The Metals & Minerals Industry is in a distant second place with $5.82 billion in projected second-quarter kickoffs, such as Royal Nickel Corporation's (Toronto, Ontario) $1.07 billion construction of the Dumont Mine & Mill near Amos, Quebec. The project, which is the first half of a $2 billion, 33-year-mine-life enterprise, involves building a 45 million-ton-per-year open-pit mine to extract 73 million pounds per year of nickel, 2 million pounds per year of cobalt and 15,000 ounces per year of platinum-group elements. For more information, see Industrial Info's project report.
Canada's Oil & Gas Pipelines Industry has the third-highest TIV at $2.54 billion, which includes Pembina Pipeline Corporation's (NYSE:PBA) (Calgary, Alberta) $800 million Phase III expansion of a pipeline in Alberta. The company expects to build two parallel lines 24 and 16 inches in diameter, each 270 kilometers in length, to transport 420,000 barrels per day (BBL/d) of crude oil and condensate from Fox Creek to Namao, which is near Edmonton. The new segment eventually will be expandable to 680,000 BBL/d; following the additions, capacity for the full system is expected to surpass 1 million BBL/d of crude, condensate, ethane and propane. For more information, see Industrial Info's project report.
The Power Industry is looking at $2.1 billion in Canadian project kickoffs from April through June, with the largest receiving capital approval late last year: EDF EN Canada Incorporated's (Toronto) $500 million construction of the Nicolas-Riou Windfarm in Rimouski, Quebec. The company, which is a subsidiary of Electricitie de France S.A. (Paris, France), plans to install 68 Vestas V-112 wind turbine generator sets, each with a capacity of 3.3 megawatts (MW). For more information, see Industrial Info's project report.
The other six highest-valued projects set to begin construction in Canada in second-quarter 2016 are:
- $4 billion: Liquefied Natural Gas Limited's Bear Head LNG Production and Export Terminal in Port Hawkesbury, Nova Scotia
For more information, see Industrial Info's project report. - $1.39 billion: Value Creation Group's Tristar SAGD Bitumen Production Plant near Fort McMurray, Alberta
For more information, see Industrial Info's project report. - $1 billion: Alderon Iron Ore Corporation's Kami Iron Ore Mine and Mill near Wabush, Newfoundland and Labrador
For more information, see Industrial Info's project report. - $1 billion: Vale S.A.'s Copper Cliff Nickel Mine in Sudbury, Ontario
For more information, see Industrial Info's project report. - $560 million: Statoil ASA's Kai Kos Dehseh Leismer SAGD Bitumen Production Demonstration near Fort McMurray
For more information, see Industrial Info's project report. - $509 million: Noront Resources Limited's Eagle's Nest Nickel-Copper Mine in Webequie, Ontario
For more information, see Industrial Info's project report.
Much of the TIV related to projects in the planning stages can be attributed to Oil & Gas and Metals & Minerals projects that have faced delays (sometimes repeatedly) due to low commodity prices, such as the LNG Canada Liquefaction Plant.
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/.
