Mining, Oil and Gas Dominate Western Australia's Project Outlook

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Researched by Industrial Info Resources Australia (Perth, Australia)--With its wealth of mining, oil and gas resources, Western Australia has the second-largest amount of industrial project activity in the country, slightly behind Queensland. Industrial Info is tracking more than 551 active projects that are being planned, engineered or built in Western Australia, with a total investment value of $186.62 billion.

Western Australia's mineral and petroleum industries remain the state's strongest economic forces; together, they increased 20% in value when compared with the 2012-13 financial year. The mining industry, particularly iron ore, continues to account for the largest share of export earnings in the state. Together, iron ore and gold made up 87% of all mineral sales last year, or $82.6 billion, with iron ore making up 78% of that figure. These statistics highlight the state's controversial reliance on mining for government funding.

However, the rise of the Oil & Gas Industry will alleviate the importance of mineral resources as a generator of wealth, and could provide a secondary source of high income for the state.

The Oil & Gas Industry already has the largest total investment spend for planned projects, at a total of $80.35 billion for more than 43 scheduled projects. Planned and active investments in Western Australia's 376 metals and minerals projects are slightly more, at $87.8 billion. According to the Department of Mines & Petroleum, the petroleum sector, which includes crude oil, liquefied natural gas (LNG), natural gas and liquefied petroleum gas (LPG), is valued at $26.5 billion this year--a rise of 9% compared with last year. The increase can be attributed largely to the growing LNG and natural gas sector.

The dominance of the resources sector in the nation's economy is expected to continue, given the number of expansion and greenfield projects, particularly in iron ore and LNG. Industrial Info is tracking 154 projects, valued at $62.2 billion, that are under construction in Western Australia, with a further 52 engineered projects, valued at $7.07 billion.

Fuelled by strong Asian demand for resource commodities, much of the state's production will be exported. Western Australia exports 54% of its merchandise to China, making it the state's largest trading partner. Japan follows at 18% and South Korea with 8%. Planned or possible projects make up nearly $116.35 billion of Western Australia's potential project expenditures..

Western Australia's most valuable projects are from the growing Oil & Gas Industry. The biggest expenditures (actual and planned) include Chevron Corporation's (NYSE:CVX) (San Ramon, California) $54 billion Gorgon LNG Gas Project, which is estimated for completion in mid-2015, and Chevron's $29 billion Wheatstone LNG Project, which is scheduled for completion toward the end of 2016. Offshore developments are prominent near the state, with ConocoPhillips Australasia Pty Limited's (ASX:COP) (Perth, Australia) planned, grassroot Poseidon Floating LNG (FLNG) Production Vessel deserving of a mention, with an estimated total investment value of $10.6 billion. Also noteworthy is Woodside Petroleum's (Perth) three planned floating LNG (FLNG) production facilities, each valued at an estimated $13 billion. LNG production is forecast to grow, with supply from the Gorgon and Wheatstone projects coming on stream.

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The mining sector also will continue to remain strong. Iron ore is the state's most valuable Mining Industry sector, generating $73.7 billion. Gold is the second-most valuable resource, while alumina and nickel each generated $4.3 billion and $3.5 billion for the state, respectively.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three 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.