The Federal Government’s Bureau of Resources and Energy Economics (BREE) has released its October 2012 report and indicates that 11 major resources and related infrastructure projects have been cancelled since April.
The Bureau’s Resources and Energy Major Projects – October 2012 report indicates that despite the 11 major projects being cancelled, investment is still at historic high terms and the total value of committed projects has increased by $8 billion.
“While the number of projects at the Committed Stage of the investment pipeline has declined by 11 since the April 2012 release because of completions, the nominal value of committed projects has increased by around $8 billion. The most notable addition to the Committed Stage is the second train at the APLNG facility at Gladstone that is estimated to cost about $9 billion,” says chief economist Quentin Grafton in the report’s foreword.
“In summary, BREE’s latest project listing indicates the Committed Stage of the investment pipeline, directly comparable to BREE’s previous listing as ‘advanced’ projects, is at a historic high in terms of nominal dollars with a very large proportion of this value in oil and gas developments and what might be described at ‘mega’ projects.
“Looking forward, any substantial net increase to the dollar value of projects at the Committed Stage of the investment program will require either cost increases of larger, existing projects and/or a new final investment decision on a large project within the near future.”
AMMA members are encouraged to read the full report here.