More Than $20 Billion in New Construction in North American LNG Sector Scheduled to Begin in 2008

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Researched by Industrial Info Resources (Sugar Land, Texas)--For 2008, approximately $20.8 billion is still scheduled to be invested in North America to expand the liquefied natural gas (LNG) infrastructure. There are 39 active projects with an average capital value of $533 million each still on the books. This is down from the all-time high of 60 active proposals during 2005. The reduction in the number of projects was due to nine LNG receiving and re-gasification terminals carrying an estimated capital value of $5.6 billion going into construction before 2008 and the balance of the projects being placed either on indefinite hold or being canceled. Of the LNG terminals under construction, seven are in the U.S. and one each in Canada and Mexico.

Click on the image to see an analysis of 2008 North American LNG terminal projects.

Several new LNG terminals on the Gulf Coast have proceeded to the construction phase. The Pacific and Atlantic coast lines are still open to competition and could be compared to an LNG proposal graveyard. On the West Coast, there are still eight active projects carrying an estimated capital value of approximately $5 billion and two additional projects on the coast of British Columbia worth an additional $805 million.

On the Atlantic Coast, there are still four LNG projects in the New England region worth about $2.2 billion; in the Northeast, there are three projects representing about $1.5 billion; in Quebec there are two projects worth about $1.5 billion; and there are two in the Mid-Atlantic region worth $850 million.

The Southwest region on the Gulf Coast is still by far the most active region for the LNG sector. There are still 11 active projects in the Gulf states of Texas and Louisiana worth an estimated $5.8 billion. These two states are also home to the two most active counties in the U.S. with Jefferson County, Texas, with three new LNG terminals worth $1.8 billion and Cameron County, Louisiana, with two new LNG terminals and one proposed expansion worth an estimated $1.4 billion.

Of course, not all of these planned terminals will be constructed. The majority of the planned terminals will be canceled, placed on hold or have their construction dates pushed back. It is a reasonable expectation that between six and 10 of these terminals that are scheduled to begin construction in 2008 will in fact begin construction during that time period.

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