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Global energy project spend up 23pc in Q2

London, July 11, 2013

The investment value of new projects announced during the second quarter of 2013 across the global energy supply chain has risen to $342 billion, reflecting 23 per cent increase over the same period in 2012, a report said.

It also marks a 28 per cent increase compared to the first quarter of the year, while the total number of projects is down just 7 per cent on last quarter, according to the EIC Monitor quarterly report from the Energy Industries Council (EIC).

EIC Monitor tracks nearly 10,000 projects proposed or under development in the global energy industry and provides a barometer, broken down into oil and gas (downstream, midstream, upstream), nuclear and conventional power, and the renewables sectors. Data is analysed by the number and value of new (both active and proposed) projects recorded by the EIC each quarter.

Highlights of Q2 2013 report:

•    Overall this quarter, there were 386 new projects announced across the global energy supply chain with an estimated total value of $342 billion, compared to 417 in Q1 2013 totalling $267.5 billion and 401 new projects in Q2 2012 worth $277.8 billion.

•    The upstream sector has seen an increase of 3 per cent in the total potential investment value of new projects this quarter, rising to $48.8 billion from $47.4 billion last quarter, with a 6 per cent decrease in the number of new project announcements since Q1 2013.

•    In the midstream sector there has been a 60 per cent increase in the total potential investment value of new projects in Q2 2013 to $88.3 billion, rising from $55 billion in Q1 2013 with a 5 per cent decrease in the number of new projects.

•    In the downstream sector, the number of new projects has increased by 76 per cent since Q1 2013, and the total potential investment value has increased an impressive 206 per cent from $34 billion in Q1 2013 to $104.3 billion in Q2 2013.

•    The renewables sector has seen a 44 per cent increase in the total potential investment value of new projects, from $43.1 billion in Q1 2013 to $62.2 billion this quarter, with a 6 per cent decrease in the number of new project announcements since Q1 2013.

•    In the power sector, the number of new projects has decreased by 40 per cent since Q1 2013, and the total potential investment value has decreased 56 per cent from $87.8 billion in Q1 2013 to US$38.5 billion in Q2 2013.

In nearly all cases newly proposed projects must first undergo various planning and consent approvals which may take several years. Also, early stage proposals do not necessarily have financing agreed and in place. Thus there will always be a proportion of projects that do not gain consent and/or finance, the report said.

“Overall, figures this quarter indicate that the energy industry is thriving with a significant 28 per cent rise in proposed project spend compared to the first quarter of 2013, albeit with a small decrease in project numbers,” said Claire Miller, CEO (Interim) of EIC.

“Performance in the midstream and downstream sectors has been particularly impressive as the growing level of natural gas recovery worldwide is fuelling a rise in LNG, petrochemical and associated pipeline projects.”

London-based EIC is a leading not-for-profit trade association providing dedicated services to help members understand, identify and pursue business opportunities worldwide. – TradeArabia News Service




Tags: investment | upstream | renewable |

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