Western Canada Set for Less than $7 Billion in Project Kickoffs in Second-Quarter 2016, Many Uncertain

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Researched by Industrial Info Resources (Sugar Land, Texas)--Low commodity prices continue to take a toll on Western Canada, where the Oil & Gas Industry leads in industrial development, but likely will face ongoing project delays as uncertainty permeates the economic environment. Industrial Info's database indicates $6.91 billion worth of projects are set to begin construction in Western Canada in the second quarter of 2016, the lowest quarterly total in more than a year. Almost 80% of the total is attributed to just three industries: Oil & Gas Pipelines, Oil & Gas Production, and Metals & Minerals.

Click on the image at right for a graph detailing planned second-quarter 2016 project kickoffs in the Western Canadian region by industry.

The Western Canadian region includes the provinces of Alberta, British Columbia, Manitoba and Saskatchewan, and the Northwest, Nunavut and Yukon territories.

The Oil & Gas Pipelines Industry leads the way, with $2.7 billion in active projects in Western Canada set to begin construction in the second quarter. These include Fortis Incorporated's (TSX:FTS) (St. John's, Newfoundland and Labrador) $385 million construction of a natural gas pipeline loop in British Columbia. The 95-mile line is expected to transport 284 million standard cubic feet per day of natural gas from the Horn River Shale to Gallagher Lake. The project is now in the permitting phase, but could face further delays. For more information, see Industrial Info's project report.

The Oil & Gas Production Industry is in a strong second place, with $1.89 billion in projected kickoffs from April through June. One of the leading projects is Pembina Pipeline Corporation's (NYSE:PBA) (Calgary, Alberta) $125 million construction of a gas-processing plant in Fox Creek, Alberta, also in the permitting phase. The shallow-cut facility is expected to have a capacity of 100 million standard cubic feet per day of natural gas and 5,500 barrels per day (BBL/d) of natural gas liquids (NGL) produced from the Duvernay Shale. For more information, see Industrial Info's project report.

The Metals & Minerals Industry, likewise battered by weak commodity prices, is in a distant third place with $912 million in kickoffs set for the second quarter. More than one-third is attributed to Fortune Minerals Limited's (TSX:FT) (London, Ontario) $347 million mine in Mazenod Lake, Northwest Territories. The 6.6 million-ton-per-year mining operation has both open pit and underground features, with a 4,650-ton-per-day gravity/flotation concentrator. It is expected to produce 65,000 tons per year of metal ore, which will be railed to a planned metal-processing plant in Saskatchewan. For more information, see Industrial Info's project report.

Here are the remaining seven highest-value projects set to begin construction in Western Canada in second-quarter 2016:

• $1.39 billion: Value Creation Group's Tristar SAGD Bitumen Production Plant near Fort McMurray, Alberta
  For more information on this project, see Industrial Info's project report, and Canada's $46 Billion in Second-Quarter 2016 Project Kickoffs are Anything but Certain.
• $800 million: Pembina Pipeline Corporation's Pipeline Expansion in Alberta
  For more information on this project, see Industrial Info's project report.
• $270 million: CR Fuels Incorporated's biofuels complex in Strathmore, Alberta
  For more information on this project, see Industrial Info's project report.
• $200 million: TransCanada Corporation's North Montney Pipeline expansion project (Aitken Creek Section) in British Columbia
  For more information on this project, see Industrial Info's project report.
• $200 million: University of Lethbridge's science and academic building in Lethbridge, Alberta
  For more information on this project, see Industrial Info's project report.
• $183 million: Chieftain Metals Corporation's addition to polymetallic mine and processing plant in Tulsequah, British Columbia
  For more information on this project, see Industrial Info's project report.
• $175 million: TransCanada Corporation's North Montney Pipeline expansion project (Kahta Section) in British Columbia
  For more information on this project, see Industrial Info's project report.

Of the $6.91 billion in total investment value for projects expected to kick off in the Western Canadian region in the fourth quarter, nearly three-quarters worth--$4.79 billion--are in the planning stages, where plenty of factors still could increase, decrease or totally eliminate the expected spending. About $1.63 billion is attached to projects currently in the engineering stages, while roughly $481 million worth already are in the early construction stages.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five 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. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.