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Researched by Industrial Info Resources (Sugar Land, Texas)--Texas and Louisiana are hosting the 10 highest-value projects that are scheduled to kick off in the U.S. Southwest region in 2016, with Oil & Gas activity along the Gulf Coast accounting for almost all of the nearly $40 billion in total investment value, according to Industrial Info's Project Database. The growing global demand for liquefied natural gas (LNG) is driving more than half of that total.
All but one of the projects are in the planning phases, in which plenty of factors could increase, decrease, delay or cancel spending. Last year's dramatic plunge in commodity prices thrust many top-dollar projects in the Oil & Gas and Petroleum Refining industries into this limbo, so any related kickoff dates should be taken with a grain of salt.
The region also includes Arkansas and Oklahoma.
10. Summit Power Group's Texas Clean Energy Project in Penwell, Texas: $2.5 Billion
At the bottom of the list is a project that is among the least guaranteed: Summit Power Group Incorporated's (Seattle, Washington) 400-megawatt (MW), integrated gasification combined-cycle (IGCC) plant, also called the Texas Clean Energy Project, which is still facing hurdles in funding. For more information, see April 8, 2015, article - Uncertain Future for Summit Power's Texas Clean Energy IGCC Project.
The IGCC plant would include a 232-MW Siemens (NYSE:SI) SGT6-PAC 5000F combustion turbine generator, with a Siemens triple-pressure heat-recovery steam generator and a 168-MW Siemens SST-900RH dual-casing reheat steam turbine generator. The plant would capture 90% of carbon dioxide (CO2) for enhanced oil recovery.
Even if proper funds are obtained, construction likely would not begin until the final weeks of 2016.
7-9. (tie) Energy Transfer's LNG Liquefaction Plant in Lake Charles, Louisiana: $3 Billion
Lake Charles LNG Company LLC, a subsidiary of Energy Transfer Equity LP (NYSE:ETE) (Dallas, Texas), plans to add to its LNG import terminal in Lake Charles by constructing an LNG liquefaction facility. The initial train would produce 5.5 million tons per year of LNG, with a total inlet capacity of 2.6 billion cubic feet per year of natural gas. The train will incorporate four Rolls Royce Trent 60 turbines, each with a capacity of 40 MW.
Late this spring, the U.S. Federal Energy Regulatory Commission's (FERC) environmental staff offered the Lake Charles LNG Liquefaction Plant an early environmental approval, indicating the project could be completed without significant negative environmental effects. A final decision from FERC is expected in November.
Construction is set to begin in second-quarter 2016.
Energy Transfer's Train Addition to LNG Liquefaction Plant in Lake Charles, Louisiana: $3 Billion
A second train at the Lake Charles plant is being planned, also with a production capacity of 5.5 million tons per year, bringing total site production to 11 million tons per year, with a total inlet capacity of 2.6 billion cubic feet of natural gas per year. The second train also will incorporate four Rolls Royce Trent 60 turbines, each with a capacity of 40 MW. As with the above project, FERC permitting approvals are expected in November.
Construction is set to begin in fourth-quarter 2016.
Cheniere Energy's Addition to LNG Liquefaction Plant in Corpus Christi, Texas: $3 Billion
The third train at the Corpus Christi LNG Liquefaction Plant is the only project on this list to have graduated from the permitting phases, following approvals from FERC and the U.S. Department of Energy (DoE) earlier this summer. Cheniere Energy (Houston) and Bechtel Group Incorporated (San Francisco, California), which is performing EPC services, plan to build a 4.5 million-ton-per-year LNG production train with a natural gas inlet capacity of 1 billion cubic feet per day, which will bring the total LNG production at the plant to 13.5 million tons per year.
The first two trains are under construction and are set to be completed in third-quarter 2018 and first-quarter 2019. The third train, now in the engineering phase, is estimated to be begin construction in the second quarter, and to be completed in first-quarter 2020. For more information, see June 26, 2015, article - Corpus Christi Economy Booming, Despite Soft Oil Prices.
6. Qatar Petroleum's Golden Pass LNG Production Plant in Sabine Pass, Texas: $3.3 Billion
Golden Pass LNG Products LLC, a subsidiary of Qatar Petroleum (Doha, Qatar), had planned to begin construction on its three-phase LNG production plant this year, but pushed it back to third-quarter 2016 as it continues with studies for permitting and front-end engineering and design (FEED). The $3.3 billion first phase of the project involves constructing buildings and marine export facilities to convert about 245 million standard cubic feet per day of natural gas sourced from shale formations into 5.2 million tons per year of LNG for export. Chicago Bridge & Iron Company (NYSE:CBI) (The Hague, Netherlands) is performing design-engineering services.
FERC plans to issue the Environmental Impact Statement for Golden Pass on March 4, 2015. Golden Pass expects to receive FERC and DoE permits in second-quarter 2016.
Construction is expected to begin in third-quarter 2016.
5. Sempra Energy's Cameron LNG Liquefaction Plant in Hackberry, Louisiana: $4 Billion
Sempra Energy (NYSE:SRE) (San Diego, California) plans to add fourth and fifth LNG liquefaction trains, each with a capacity of 4.5 million metric tonnes per year, to its Cameron LNG plant on the Louisiana Gulf Coast. With the three trains under construction, the project would bring the facility's total production capacity to 22.5 million metric tonnes per year of LNG. Sempra applied to the DoE for an export permit in February; if approved, the Cameron LNG plant would become the highest-volume LNG exporter in the U.S.
The three trains that began construction in October 2014 are expected to be completed in fourth-quarter 2017; the fourth and fifth trains, if approved, are estimated to begin construction in second-quarter 2016, and to be completed in first-quarter 2019. For more information, see February 27, 2015, article - Cameron LNG Applies to Expand Louisiana LNG Facility.
4 & 3. (tie) Jilin Connell's Shoal Point Methanol Plant in Texas City, Texas: $4.5 Billion
Fund Connell USA Energy and Chemical Investment Corporation, a subsidiary Jilin Connell Group (Jilin, China), had planned to begin construction on its $4.5 billion Shoal Point Methanol Plant in fourth-quarter 2015, but has since delayed it for re-evaluation. As designed, the plant would be capable of converting 560 million cubic feet of natural gas into 7.2 million tons per year of methanol, which would be exported to China via a newly constructed deepwater port.
Although demand for methanol in China is strong, Jilin Connell hit pause after oil prices--which methanol prices tend to track--plunged. In China, methanol is blended into gasoline and other products.
Jilin Connell also is considering Donaldsonville, Louisiana, for the project.
Freeport LNG Production Plant in Quintana, Texas: $4.5 Billion
Freeport LNG Development recently pre-filed for FERC permit approval for Train 4 at its Quintana Island Facility in Texas. The LNG production plant, which already has three trains under construction, has a total investment value of $4.5 billion. It is designed for a natural gas inlet capacity of 650 million standard cubic feet per day, and an LNG production capacity of 5 million tons per year. It will source its natural-gas feedstock from the Eagle Ford Shale.
Freeport LNG estimated the fourth train will allow for the export of an additional 5 million tons of LNG per year, bringing the facility's total export capacity to 20 million tons per year. Chicago Bridge & Iron, Zachry Holdings Incorporated (San Antonio, Texas) and Chiyoda International Corporation (Tokyo, Japan) are performing EPC services for the project, now set to begin construction in third-quarter 2016.
2. Lake Charles Methanol LLC's Petroleum Coke-to-Methanol Plant in Lake Charles, Louisiana: $5 Billion
Now in the permitting stages, Lake Charles Methanol LLC's planned grassroot plant will not begin construction until September at the earliest. The newly constructed plant would include a gasification system to process petroleum coke into 1 million metric tonnes per year of methanol, 400,000 tons per year of sulfuric acid, as well as hydrogen, argon and carbon dioxide. The company expects to receive final approval by the end of 2015. Fluor Corporation (NYSE:FLR) (Irving, Texas) is performing EPC services.
Late last year, Leucadia Energy, a subsidiary of Leucadia National Corporation (NYSE:LUK) (New York, New York), withdrew from the project's development. The current estimate for construction kickoff is third-quarter 2016.
1. Sasol's Gas-to-Liquids Plant in Westlake, Louisiana: $7 Billion
Like many of the top-dollar Gulf Coast projects related to the Oil & Gas Industry, the first train of Sasol Limited's (NYSE:SSL) (Johannesburg, South Africa) Gas-to-Liquids Plant in Westlake, Louisiana, has faced significant delays due to last year's plunge in commodity prices. Unprecedented in scope, the entire project was expected to produce more than 96,000 BBL/d of ultra-clean-burning diesel, naphtha and other chemical products; the $7 billion first train of the project would process Natural Gas from Haynesville Shale Gas Play to produce 48,000 BBL/d. But even if the unit were to begin construction in 2016, it almost certainly would be in the fourth quarter.
The entire project has an estimated total investment value of more than $14 billion. Early in the year, Sasol delayed its final investment decision on the project, but insists it has not abandoned it. For more information, see January 29, 2015, article - Sasol Delays Final Investment Decision for Louisiana Gas-to-Liquids Plant.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and ten 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.
All but one of the projects are in the planning phases, in which plenty of factors could increase, decrease, delay or cancel spending. Last year's dramatic plunge in commodity prices thrust many top-dollar projects in the Oil & Gas and Petroleum Refining industries into this limbo, so any related kickoff dates should be taken with a grain of salt.
The region also includes Arkansas and Oklahoma.
10. Summit Power Group's Texas Clean Energy Project in Penwell, Texas: $2.5 Billion
At the bottom of the list is a project that is among the least guaranteed: Summit Power Group Incorporated's (Seattle, Washington) 400-megawatt (MW), integrated gasification combined-cycle (IGCC) plant, also called the Texas Clean Energy Project, which is still facing hurdles in funding. For more information, see April 8, 2015, article - Uncertain Future for Summit Power's Texas Clean Energy IGCC Project.
The IGCC plant would include a 232-MW Siemens (NYSE:SI) SGT6-PAC 5000F combustion turbine generator, with a Siemens triple-pressure heat-recovery steam generator and a 168-MW Siemens SST-900RH dual-casing reheat steam turbine generator. The plant would capture 90% of carbon dioxide (CO2) for enhanced oil recovery.
Even if proper funds are obtained, construction likely would not begin until the final weeks of 2016.
7-9. (tie) Energy Transfer's LNG Liquefaction Plant in Lake Charles, Louisiana: $3 Billion
Lake Charles LNG Company LLC, a subsidiary of Energy Transfer Equity LP (NYSE:ETE) (Dallas, Texas), plans to add to its LNG import terminal in Lake Charles by constructing an LNG liquefaction facility. The initial train would produce 5.5 million tons per year of LNG, with a total inlet capacity of 2.6 billion cubic feet per year of natural gas. The train will incorporate four Rolls Royce Trent 60 turbines, each with a capacity of 40 MW.
Late this spring, the U.S. Federal Energy Regulatory Commission's (FERC) environmental staff offered the Lake Charles LNG Liquefaction Plant an early environmental approval, indicating the project could be completed without significant negative environmental effects. A final decision from FERC is expected in November.
Construction is set to begin in second-quarter 2016.
Energy Transfer's Train Addition to LNG Liquefaction Plant in Lake Charles, Louisiana: $3 Billion
A second train at the Lake Charles plant is being planned, also with a production capacity of 5.5 million tons per year, bringing total site production to 11 million tons per year, with a total inlet capacity of 2.6 billion cubic feet of natural gas per year. The second train also will incorporate four Rolls Royce Trent 60 turbines, each with a capacity of 40 MW. As with the above project, FERC permitting approvals are expected in November.
Construction is set to begin in fourth-quarter 2016.
Cheniere Energy's Addition to LNG Liquefaction Plant in Corpus Christi, Texas: $3 Billion
The third train at the Corpus Christi LNG Liquefaction Plant is the only project on this list to have graduated from the permitting phases, following approvals from FERC and the U.S. Department of Energy (DoE) earlier this summer. Cheniere Energy (Houston) and Bechtel Group Incorporated (San Francisco, California), which is performing EPC services, plan to build a 4.5 million-ton-per-year LNG production train with a natural gas inlet capacity of 1 billion cubic feet per day, which will bring the total LNG production at the plant to 13.5 million tons per year.
The first two trains are under construction and are set to be completed in third-quarter 2018 and first-quarter 2019. The third train, now in the engineering phase, is estimated to be begin construction in the second quarter, and to be completed in first-quarter 2020. For more information, see June 26, 2015, article - Corpus Christi Economy Booming, Despite Soft Oil Prices.
6. Qatar Petroleum's Golden Pass LNG Production Plant in Sabine Pass, Texas: $3.3 Billion
Golden Pass LNG Products LLC, a subsidiary of Qatar Petroleum (Doha, Qatar), had planned to begin construction on its three-phase LNG production plant this year, but pushed it back to third-quarter 2016 as it continues with studies for permitting and front-end engineering and design (FEED). The $3.3 billion first phase of the project involves constructing buildings and marine export facilities to convert about 245 million standard cubic feet per day of natural gas sourced from shale formations into 5.2 million tons per year of LNG for export. Chicago Bridge & Iron Company (NYSE:CBI) (The Hague, Netherlands) is performing design-engineering services.
FERC plans to issue the Environmental Impact Statement for Golden Pass on March 4, 2015. Golden Pass expects to receive FERC and DoE permits in second-quarter 2016.
Construction is expected to begin in third-quarter 2016.
5. Sempra Energy's Cameron LNG Liquefaction Plant in Hackberry, Louisiana: $4 Billion
Sempra Energy (NYSE:SRE) (San Diego, California) plans to add fourth and fifth LNG liquefaction trains, each with a capacity of 4.5 million metric tonnes per year, to its Cameron LNG plant on the Louisiana Gulf Coast. With the three trains under construction, the project would bring the facility's total production capacity to 22.5 million metric tonnes per year of LNG. Sempra applied to the DoE for an export permit in February; if approved, the Cameron LNG plant would become the highest-volume LNG exporter in the U.S.
The three trains that began construction in October 2014 are expected to be completed in fourth-quarter 2017; the fourth and fifth trains, if approved, are estimated to begin construction in second-quarter 2016, and to be completed in first-quarter 2019. For more information, see February 27, 2015, article - Cameron LNG Applies to Expand Louisiana LNG Facility.
4 & 3. (tie) Jilin Connell's Shoal Point Methanol Plant in Texas City, Texas: $4.5 Billion
Fund Connell USA Energy and Chemical Investment Corporation, a subsidiary Jilin Connell Group (Jilin, China), had planned to begin construction on its $4.5 billion Shoal Point Methanol Plant in fourth-quarter 2015, but has since delayed it for re-evaluation. As designed, the plant would be capable of converting 560 million cubic feet of natural gas into 7.2 million tons per year of methanol, which would be exported to China via a newly constructed deepwater port.
Although demand for methanol in China is strong, Jilin Connell hit pause after oil prices--which methanol prices tend to track--plunged. In China, methanol is blended into gasoline and other products.
Jilin Connell also is considering Donaldsonville, Louisiana, for the project.
Freeport LNG Production Plant in Quintana, Texas: $4.5 Billion
Freeport LNG Development recently pre-filed for FERC permit approval for Train 4 at its Quintana Island Facility in Texas. The LNG production plant, which already has three trains under construction, has a total investment value of $4.5 billion. It is designed for a natural gas inlet capacity of 650 million standard cubic feet per day, and an LNG production capacity of 5 million tons per year. It will source its natural-gas feedstock from the Eagle Ford Shale.
Freeport LNG estimated the fourth train will allow for the export of an additional 5 million tons of LNG per year, bringing the facility's total export capacity to 20 million tons per year. Chicago Bridge & Iron, Zachry Holdings Incorporated (San Antonio, Texas) and Chiyoda International Corporation (Tokyo, Japan) are performing EPC services for the project, now set to begin construction in third-quarter 2016.
2. Lake Charles Methanol LLC's Petroleum Coke-to-Methanol Plant in Lake Charles, Louisiana: $5 Billion
Now in the permitting stages, Lake Charles Methanol LLC's planned grassroot plant will not begin construction until September at the earliest. The newly constructed plant would include a gasification system to process petroleum coke into 1 million metric tonnes per year of methanol, 400,000 tons per year of sulfuric acid, as well as hydrogen, argon and carbon dioxide. The company expects to receive final approval by the end of 2015. Fluor Corporation (NYSE:FLR) (Irving, Texas) is performing EPC services.
Late last year, Leucadia Energy, a subsidiary of Leucadia National Corporation (NYSE:LUK) (New York, New York), withdrew from the project's development. The current estimate for construction kickoff is third-quarter 2016.
1. Sasol's Gas-to-Liquids Plant in Westlake, Louisiana: $7 Billion
Like many of the top-dollar Gulf Coast projects related to the Oil & Gas Industry, the first train of Sasol Limited's (NYSE:SSL) (Johannesburg, South Africa) Gas-to-Liquids Plant in Westlake, Louisiana, has faced significant delays due to last year's plunge in commodity prices. Unprecedented in scope, the entire project was expected to produce more than 96,000 BBL/d of ultra-clean-burning diesel, naphtha and other chemical products; the $7 billion first train of the project would process Natural Gas from Haynesville Shale Gas Play to produce 48,000 BBL/d. But even if the unit were to begin construction in 2016, it almost certainly would be in the fourth quarter.
The entire project has an estimated total investment value of more than $14 billion. Early in the year, Sasol delayed its final investment decision on the project, but insists it has not abandoned it. For more information, see January 29, 2015, article - Sasol Delays Final Investment Decision for Louisiana Gas-to-Liquids Plant.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and ten 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.
