Study: U.S. Gulf Coast Capital Energy Investments to Continue Shift to LNG

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Researched by Industrial Info Resources (Sugar Land, Texas)--A new report by the Louisiana State University Center for Energy Studies estimates as much as $190 billion could be spent on energy-related capital development in the U.S. Gulf Coast region for 2021 through 2029, with a continued shift in investments away from chemical industry activities and toward liquefied natural gas (LNG) export facilities. Also, employment in the petroleum refining and chemical manufacturing sectors in Louisiana and Texas is expected to continue to rebound in 2022 after hitting a trough in 2020.

The Gulf Coast Energy Outlook 2022, released November 17, refers to Texas, Louisiana, Mississippi and Alabama. Industrial Info is tracking 147 oil & gas production, terminals, pipelines, refining and chemical processing projects under construction in the four states, worth $43 billion. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for a list of detailed project reports.

"While the recent pandemic slowed regional industrial development, it has certainly not halted that development," according to the report . "In fact, regional capital investment continues to show resiliency despite the global economic slowdown. The Gulf Coast remains an important location for energy manufacturing given its proximity to low-cost and abundant hydrocarbon feedstocks and the ability to leverage a wide range of supporting energy infrastructure."

However, an increasingly large part of this industrial development is dedicated to supporting energy exports, particularly LNG, the report continued. "This past year, LNG investments began to dominate the data and are anticipated to continue to dominate investment trends in future years."

The report indicates LNG-related investments for the region will surge to $120 billion for 2021 through 2029, while non-LNG investments (mostly chemical-related) will amount to $70 billion.

In comparison, from 2011 to the present, the Gulf Coast supported more than $141.5 billion in "energy manufacturing" capital investments, with nearly all of that amount in Texas and Louisiana, and $59.8 billion earmarked for the LNG sector, the report continued.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 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.