SUGAR LAND, TX--(Marketwired - Aug 14, 2015) - Researched by Industrial Info Resources (Sugar Land, Texas) -- Texas and Louisiana are hosting the 10 highest-value projects that are set to kick off in the U.S. Southwest region in 2016, with Oil & Gas activity along the Gulf Coast accounting for almost all of the nearly $40 billion in total investment value, according to Industrial Info's Project Database. The growing global demand for liquefied natural gas (LNG) is driving more than half of that total.
All but one of the projects are in the planning phases, in which plenty of factors could increase, decrease, delay or cancel spending. Last year's dramatic plunge in commodity prices thrust many top-dollar projects in the Oil & Gas and Petroleum Refining industries into this limbo.
10. Summit Power Group's Texas Clean Energy Project in Penwell, Texas: $2.5 Billion
At the bottom of the list is a project that is among the least guaranteed: Summit Power Group Incorporated's (Seattle, Washington) 400-megawatt (MW), integrated gasification combined-cycle (IGCC) plant, also called the Texas Clean Energy Project, which is still facing hurdles in funding. For more information, see April 8, 2015, article -- Uncertain Future for Summit Power's Texas Clean Energy IGCC Project.
The IGCC plant would include a 232-MW Siemens SGT6-PAC 5000F combustion turbine generator, with a Siemens triple-pressure heat-recovery steam generator and a 168-MW Siemens SST-900RH dual-casing reheat steam turbine generator. The plant would capture 90% of carbon dioxide (CO2) for enhanced oil recovery.
Even if proper funds are obtained, construction likely would not begin until the final weeks of 2016.
9. Energy Transfer's LNG Liquefaction Plant in Lake Charles, Louisiana: $3 Billion
Lake Charles LNG Company LLC, a subsidiary of Energy Transfer Equity LP (ETE) (Dallas, Texas), plans to add to its LNG import terminal in Lake Charles by constructing an LNG liquefaction facility. The initial train would produce 5.5 million tons per year of LNG, with a total inlet capacity of 2.6 billion cubic feet per year of natural gas. The train will incorporate four Rolls Royce Trent 60 turbines, each with a capacity of 40 MW.
Late this spring, the U.S. Federal Energy Regulatory Commission's (FERC) environmental staff offered the Lake Charles LNG Liquefaction Plant an early environmental approval, indicating the project could be completed without significant negative environmental effects. A final decision from FERC is expected in November.
Construction is set to begin in the second quarter.
8. Energy Transfer's Train Addition to LNG Liquefaction Plant in Lake Charles, Louisiana: $3 Billion
A second train at the Lake Charles plant is being planned, also with a production capacity of 5.5 million tons per year, bringing total site production to 11 million tons per year, with a total inlet capacity of 2.6 billion cubic feet of natural gas per year. The second train also will incorporate four Rolls Royce Trent 60 turbines, each with a capacity of 40 MW. As with the above project, FERC permitting approvals are expected in November.
Construction is set to begin in fourth-quarter 2016.
To see details on the remaining projects in the U.S. Southwest region's top 10 by spending, view the entire article by subscribing to Industrial Info's Premium Industry News, or browse other breaking industrial news stories at www.industrialinfo.com.
Other companies featured: Siemens AG, Cheniere Energy, Bechtel Group Incorporated, Chicago Bridge & Iron Company (CBI), Sempra Energy (SRE), Jilin Connell Group, Fluor Corporation (FLR), Sasol Limited (SSL)
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