Texas, Louisiana Gear Up for More Than $116 Billion in 2014 Industrial Project Starts

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Researched by Industrial Info Resources (Sugar Land, Texas)--More than $116 billion in industrial capital and maintenance projects are on the books to kick off in Texas and Louisiana in 2014, according to Industrial Info Resources' North American Project Database.

Texas accounts for about $70.9 billion of these planned projects, while Louisiana has about $45.7 billion in projects that are currently planned to break ground this year. Although many of these projects will be pushed out to future dates or canceled altogether, the two states are starting the year with a very high value of planned industrial construction starts.

As in 2013, the highest-value industries in regard to planned projects for the two states are Oil & Gas Production and Chemical Processing, which account for $47.35 billion and $31.64 billion in planned project value, respectively.

Click on image at right for a breakdown of planned 2014 project start activity in Texas and Louisiana.

Not surprisingly, much of the value of the Oil & Gas Production projects comes from planned liquefied natural gas (LNG) production and export facilities, which require approval from the Federal Energy Regulatory Commission (FERC) to construct and operate the facilities, and the Department of Energy to export the LNG to countries without a free trade agreement with the United States.

LNG export facilities that could begin construction this year include Gulf Coast LNG Export LLC's $12 billion facility in the Port of Brownsville in Texas, and Sempra Energy (NYSE:SRE) subsidiary Cameron LNG LLC's $10 billion plant on the Louisiana Gulf Coast.

Also within the Oil & Gas Production Industry, Sasol North America Incorporated's (NYSE:SSL) gas-to-liquids (GTL) project in Westlake, Louisiana, could potentially move forward this year. The facility would process natural gas from the Haynesville shale into approximately 48,000 barrels per day (BBL/d) of clean diesel, jet fuel and other liquid fuels. However, the cancellation in early December of a similar project planned by Royal Dutch Shell (NYSE:RDS.A) in Louisiana casts some doubt on the viability of the project. Shell cited economic reasons for canceling its planned GTL facility.

Inexpensive natural gas is also driving activity in the Chemical Processing Industry in the two states, notably in projects involving the production of ethylene and methanol. Dow Chemical Company (NYSE:DOW) kicked off civil construction for additions of ethylene and propane dehydrogenation units at its Oyster Creek Chemical facility in Freeport, Texas in 2013. In 2014, heavy hitters such as Chevron Phillips Chemical Company and ExxonMobil Chemical Company have plans to add ethylene units at their facilities in Baytown, Texas. Both projects have estimated total investment values of approximately $2.5 billion, in addition to the construction of supporting equipment and facilities. Sasol is also planning an ethylene unit addition at its site in Westlake, which will probably move forward even if the company's above-mentioned GTL project is stalled.

While blockbuster projects such of these take prominence in discussions of industrial project activity, hundreds of smaller projects are planned throughout the region, including more than 250 planned Chemical Industry maintenance turnarounds, contributing more than $1 billion in planned industrial spending for the year.

Industrial Info will be discussing these projects and other spending trends at our upcoming 2014 Market Outlook & Networking Event, which will be held January 29 at the Hilton Americas in Houston. Industrial Info's team of industry experts will be discussing spending activity and market trends in the U.S. and Canada, with special emphasis on the Southwest and U.S. Gulf Coast regions. Attending the event is free and will be followed by a networking session with drinks and hors d'oeuvres that will give you a chance to ask questions of our presenters and mingle with your peers.

In addition to the Chemicals and Oil & Gas industries, other highlighted industries will include Petroleum Refining, Power Generation, and Metals & Minerals, as well as a top-line spending forecast for North America. Space is limited, so make sure to RSVP today!

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