Over $3 Billion in Proposed Pipeline Projects Scheduled for Construction in Louisiana

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Researched by Industrial Info Resources (Sugar Land, Texas). Approximately $3.4 billion in capital spending is proposed for the pipeline sector in Louisiana representing twenty-eight projects. The proposed projects have construction start up dates ranging from August 2006 to December 2008. The projects Industrial Info is tracking cover the natural gas transmission sector as well as crude oil and refined products pipelines. The majority of the projects are designed to move natural gas from the developing production fields in East Texas into Louisiana to make interconnections with interstate natural gas main trunk lines. The second largest group of projects are being proposed to export natural gas from several LNG terminals that are both in the planning and construction phases.

Louisiana is the most active state for oil and gas pipeline projects in the Southwest Market Region. Click on the image at right to view a chart showing the breakdown of spending by state.

The proposed projects average approximately $123 million in capital spending each and are almost solely natural gas transmission schemes. The top three Parishes by proposed capital spending are Cameron with $1.1 billion followed by Calcasieu and Morehouse with $788 million and $500 million respectively. Approximately $895 million of the $3.4 billion will be spread among Jackson, Plaquemines and Natchitoches Parishes with an average of $298 million to be spent in each Parish. An additional five parishes will see between $10 million and $80 million being spent on pipeline projects.

The highest concentration of construction start ups will take place between April and June of 2008 and will represent over $700 million in planned spending. A total of $340 million in project spending has already been identified in the post 2008 period but this figure will surely increase as that time period approaches. As with other geographical areas of the U.S. this is the highest level of proposed spending in the pipeline sector for Louisiana to date.

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Industrial Info Resources (IIR) is a Marketing Information Service company that has been doing business for over 23 years. IIR is respected as the leader in providing comprehensive market intelligence pertaining to the industrial processing, heavy manufacturing, and energy-related industries throughout the world.