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Released June 12, 2015 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--The Western Canadian region leads the nation with more than $20 billion in projects slated to kick off from July through September, with a surprisingly strong showing for renewable energy projects in an area that traditionally has been dominated by the mining and oil-drilling industries. In fact, most of the spending comes from two closely watched projects: a hydroelectric project in British Columbia and an iron ore mine in Nunavut. Almost 95% of the total can be attributed to just four industries: Power, Metals & Minerals, Oil & Gas Production, and Oil & Gas Pipelines.
Click on the image at right for a graph detailing planned second-quarter 2015 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 Power Industry's $8.75 billion in Western Canadian kickoffs set for the third quarter can be almost entirely attributed to the largest renewable-energy project in North America: BC Hydro and Power Authority's (Vancouver, British Columbia) recently approved, $8.5 billion Site C hydroelectric project in Fort Saint John, British Columbia. For more information on the project, which is expected to generate 1,100 megawatts (MW), see April 8, 2015, article - British Columbia's Site C Hydroelectric Project to Generate 1,100 Megawatts.
Another renewable project set to kick off in the third quarter is the Meadow Lake Tribal Council's $150 million biomass power plant in Meadow Lake, Saskatchewan. The 36-MW facility will feature a stoker boiler that will utilize wood chips, pulp, paper, bark and sawdust from the nearby NorSask Forest Products MillSteam Facility to drive a single steam-turbine generator. Phoenix Power Group Incorporated (Deer Park, New York) is expected to perform engineering, procurement and construction (EPC) services for the project, which is set to be completed in the fourth quarter of 2017.
The Metals & Minerals Industry is expected to see $4.94 billion in projects begin construction in Western Canada from July through September, the majority of which is attributed to Baffinland Iron Mines Corporation's (Oakville, Ontario) $3.25 billion expansion of its controversial Mary River Iron Ore Mine near Pond Inlet, Nunavut. The project is part of a long-term plan to ramp up the 3.5 million-ton-per-year operation to 20 million tons per year, including the construction of a 149-kilometer railway. Baffinland is 50% owned by ArcelorMittal S.A. (NYSE:MT) (Luxembourg, Luxembourg) and 50% owned by Iron Ore Holdings (Perth, Western Australia), with ArcelorMittal serving as project operator.
The Oil & Gas Production Industry, which may be in the early stages of recovering from last year's collapse in commodity prices, is looking at $2.79 billion in Western Canadian construction starts in the third quarter. Among them is Keyera Corporation's (TSX:KEY) (Calgary, Alberta) $220 million expansion of its natural gas liquids (NGL) fractionator in Fort Saskatchewan, Alberta. The company expects to add 35,000 barrels per day (BBL/d) of capacity, bringing the total to 60,000 BBL/d. Flint Energy Services Limited (Calgary) is performing general construction services on the project, which is set to be completed in third-quarter 2016.
The Oil & Gas Pipelines Industry is only slightly behind Production, with $2.72 billion in scheduled kickoffs. One of the largest is Enbridge Incorporated's (NYSE:ENB) (Calgary) $400 million construction of a 303-mile pipeline that will run from Enbridge's Stonefell station near Fort Saskatchewan to the Norealis Terminal near Fort McKay. The 16-inch- to 20-inch-diameter pipe will transport up to 270,000 BBL/d of diluents, although it later will be expandable to 400,000 BBL/d. Stantec Incorporated (NYSE:STN) (Edmonton, Alberta) is performing design-engineering services for the project, which is set to be completed in third-quarter 2017.
Of the $20.36 billion in total investment value for projects expected to kick off in the Western Canadian region in the third quarter, $13 billion worth are in the engineering stages. About $7.18 billion is attached to projects currently in the planning stages, where plenty of factors still could increase, decrease or totally eliminate the expected spending, while roughly $183 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.
Click on the image at right for a graph detailing planned second-quarter 2015 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 Power Industry's $8.75 billion in Western Canadian kickoffs set for the third quarter can be almost entirely attributed to the largest renewable-energy project in North America: BC Hydro and Power Authority's (Vancouver, British Columbia) recently approved, $8.5 billion Site C hydroelectric project in Fort Saint John, British Columbia. For more information on the project, which is expected to generate 1,100 megawatts (MW), see April 8, 2015, article - British Columbia's Site C Hydroelectric Project to Generate 1,100 Megawatts.
Another renewable project set to kick off in the third quarter is the Meadow Lake Tribal Council's $150 million biomass power plant in Meadow Lake, Saskatchewan. The 36-MW facility will feature a stoker boiler that will utilize wood chips, pulp, paper, bark and sawdust from the nearby NorSask Forest Products MillSteam Facility to drive a single steam-turbine generator. Phoenix Power Group Incorporated (Deer Park, New York) is expected to perform engineering, procurement and construction (EPC) services for the project, which is set to be completed in the fourth quarter of 2017.
The Metals & Minerals Industry is expected to see $4.94 billion in projects begin construction in Western Canada from July through September, the majority of which is attributed to Baffinland Iron Mines Corporation's (Oakville, Ontario) $3.25 billion expansion of its controversial Mary River Iron Ore Mine near Pond Inlet, Nunavut. The project is part of a long-term plan to ramp up the 3.5 million-ton-per-year operation to 20 million tons per year, including the construction of a 149-kilometer railway. Baffinland is 50% owned by ArcelorMittal S.A. (NYSE:MT) (Luxembourg, Luxembourg) and 50% owned by Iron Ore Holdings (Perth, Western Australia), with ArcelorMittal serving as project operator.
The Oil & Gas Production Industry, which may be in the early stages of recovering from last year's collapse in commodity prices, is looking at $2.79 billion in Western Canadian construction starts in the third quarter. Among them is Keyera Corporation's (TSX:KEY) (Calgary, Alberta) $220 million expansion of its natural gas liquids (NGL) fractionator in Fort Saskatchewan, Alberta. The company expects to add 35,000 barrels per day (BBL/d) of capacity, bringing the total to 60,000 BBL/d. Flint Energy Services Limited (Calgary) is performing general construction services on the project, which is set to be completed in third-quarter 2016.
The Oil & Gas Pipelines Industry is only slightly behind Production, with $2.72 billion in scheduled kickoffs. One of the largest is Enbridge Incorporated's (NYSE:ENB) (Calgary) $400 million construction of a 303-mile pipeline that will run from Enbridge's Stonefell station near Fort Saskatchewan to the Norealis Terminal near Fort McKay. The 16-inch- to 20-inch-diameter pipe will transport up to 270,000 BBL/d of diluents, although it later will be expandable to 400,000 BBL/d. Stantec Incorporated (NYSE:STN) (Edmonton, Alberta) is performing design-engineering services for the project, which is set to be completed in third-quarter 2017.
Of the $20.36 billion in total investment value for projects expected to kick off in the Western Canadian region in the third quarter, $13 billion worth are in the engineering stages. About $7.18 billion is attached to projects currently in the planning stages, where plenty of factors still could increase, decrease or totally eliminate the expected spending, while roughly $183 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.
