Here’s a taster from our most recent Capital Projects and Contracts e-newsletter.
The Arab Petroleum Investments Corporation (APICORP) has published its annual MENA Energy Investment Outlook. The report forecasts that the Middle East and North Africa (MENA) region will see a number of critical oil, gas and power projects pushed through over the next five years, despite the uncertain geopolitical backdrop.
Around USD345 bn has been committed to projects under execution while an additional USD574 bn worth of development is planned. According to the development bank, the overall economic outlook remains similar to the forecasts estimated this time last year, with GDP growth of around 3.2 percent forecast for both 2018 and 2019.
Capital Projects: updates
In North America, Flatiron, together with partners Aecon, Dragados Canada, and EBC, signed a USD1.2 bn contract to deliver civil works for BC Hydro’s Site C hydroelectric power station in Canada. In the downstream oil and gas sector, ExxonMobil has started detailed engineering work on a potential US Gulf coast project to expand polypropylene manufacturing capacity by up to 450,000 tonnes a year.
Meanwhile, in Southeast Asia, Shell, Petronas and Mubadala Petroleum unveiled plans to develop the Pegaga offshore gas field in Central Luconia province, Malaysia, with an investment estimated at approximately USD1 bn.
In the mining arena, Rio Tinto has entered into a binding agreement with Whitehaven Coal for the sale of its entire 75 percent interest in the Winchester South coal project in Queensland, Australia, for AUD200 mn (USD154.7 mn). Rio Tinto will also sell its interests in the Hail Creek coal mine and the Valeria coal development project, also in Queensland, to Glencore for AUD1.7 bn (USD1.32 bn).