Approximately $6.8 billion in pipeline construction activities are scheduled to begin in 2008 in the Southwest region of the United States, according to a study by Industrial Info Resources (www.industrialinfo.com). Industrial Info is currently tracking the activities of 51 capital projects in the states of Texas, Louisiana, Oklahoma and Arkansas with an average capital value of approximately $133.5 million each. The pipeline projects include crude oil, refined petroleum products, and natural gas transmission. Natural gas transmission-related projects represent the majority of the planned capital expenditures, with $4.8 billion of the total monetary outlays and 38 of the 51 projects currently being tracked.
In geographic terms, Texas represents 40 percent of the planned projects in dollar value at $2.7 billion spread across 24 projects, according to Industrial Info’s estimates. Louisiana has 11 projects pending representing $1.7 billion, and Oklahoma has 10 proposed projects worth an estimated $1.5 billion. Arkansas has six projects representing $883 million in proposed capital spending.
The high majority of the scheduled construction start-ups for these projects begin in a timeframe beginning in February 2008 and ending in June 2008, according to Industrial Info. The completion dates for the majority of the proposed projects falls in a set range of time beginning in October of 2008 and April of 2009, which correspond with the winter heating service for 2008/2009 and the summer cooling demand in 2009.
To see Industrial Info”s chart showing the breakdown of pipeline projects by state, click here (registration required).
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