Industry Perspectives: Despite reaching $180 B, new project announcements are down year-over-year
Over the past year, the Global Energy Infrastructure database has tracked more than $180 B in new project announcements.
Despite reaching $180 B, new project announcements are down year-over-year
Over the past year, the Global Energy Infrastructure (GEI) database has tracked more than $180 B in new project announcements. Most of these investments (approximately $70 B) are in the Asia-Pacific region. This region continues to invest heavily in all sectors of the hydrocarbon processing industry to satisfy increasing demand for transportation fuels, petrochemical products and natural gas. Asia is followed by the Middle East and Eastern Europe, Russia and the Commonwealth of Independent States (CIS) region.
The following are total capital expenditures from new project announcements over the past year broken out by region:
- Africa: $4 B
- Asia-Pacific: $70 B
- Canada: $18 B
- Western Europe: $3 B
- Eastern Europe, Russia, CIS: $30 B
- Latin America: $1 B
- Middle East: $40 B
- U.S.: $15 B.
New project numbers have declined approximately 16% year-over-year. In 2021, the GEI database registered 205 new project announcements; however, that number decreased to just over 170 this year. The Asia-Pacific region accounted for most new project announcements in 2022, representing 37% market share. Asia was followed by Eastern Europe, Russia and the CIS. Note: This year, approximately half of the new project announcements in the region were in Russia. With increased sanctions against Russia due to its attack on Ukraine, it is very likely that capacity additions (e.g., LNG export terminal buildout, additional chemicals production) will be delayed or possibly canceled. However, only time will tell if these projects move forward, are delayed or abandoned. HP
FIG. 1. New project announcements, 2021 (orange) vs. 2022 (blue).
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