Energy projects down, but capital investment strong
Posted: 21 May 2009
Advanced minerals and energy projects to the value of $80 billion support expectations of growing demand for minerals and energy commodities in the medium term, according to ABARE’s Executive Director, Phillip Glyde.
"The relatively high value of advanced minerals and energy projects was achieved despite a number of projects being placed on hold," Mr Glyde said.
The listing of 321 major projects is detailed in the report Minerals and energy: major development projects – April 2009 listing, released today by ABARE, and includes 247 projects which are still undergoing feasibility studies.
The increase in the value of advanced projects was supported by the commitment of two multibillion dollar projects; the Rapid Growth 5 iron ore project and an upgrade of some of the oil and gas fields associated with the North West Shelf project, and also partly by a decrease in the value of the Australian dollar.
While the recent global economic downturn is not evident in the value of advanced projects, it is reflected in that only 11 new projects have been added to ABARE’s list in the six months to April 2009. This compares with 31 projects being added in the six months to October 2008 and 58 projects being added in the six months prior to April 2008.
Energy projects account for around 54 per cent, or $43.4 billion, of the estimated capital cost of all listed major projects. Iron ore projects account for a further 25 per cent or $20.4 billion.
Western Australia accounts for more than 70 per cent of the capital expenditure on advanced projects, including eight oil and gas projects (valued at $26.8 billion) and 10 iron ore projects ($20.4 billion).
"Western Australia continues to account for the largest share of capital expenditure, reflecting the capital intensive nature of iron ore, and oil and gas projects," said Mr Glyde.
Queensland accounts for a further 15 per cent ($12 billion) of capital expenditure on advanced projects, with more than half of this in coal mining and related infrastructure projects.
Since the October 2008 list was published, 18 projects have been completed with a combined capital cost of $5.2 billion.
Posted by Richard Price, Editor, EnergyME.com
Information supplied by companies or PR agencies who are responsible for content.
Send press releases to richard@energyme.com |
