Resources investment continues to boom
Australia is sinking record quantities of cash into resources and energy projects, with the latest data showing that a record $268.4 billion has been spent on the sector this year alone, according to the Bureau of Resources and Energy Economics (BREE).
BREE’s Resources and Energy Major Projects – October 2012 report shows that the record sums of cash were split between 87 major projects that have received a final investment decision, including 51 minerals projects, 18 gas and petroleum projects and 18 infrastructure projects.
“‘Mega projects’ which cost more than $5 billion continue to be the principal driver of the record level of investment in the resources and energy sectors” said Professor Quentin Grafton, Executive Director and Chief Economist at BREE.
There are 11 ‘mega projects’ identified in the report that account for $201 billion, or 76 per cent of the total committed investment in resources and energy major projects. Most of these are LNG projects located in the Pilbara region of Western Australia and Gladstone in Queensland.
In the six months to October 2012, 10 projects worth $13.2 billion were committed to after receiving a positive final investment decision. The largest of these was for an additional LNG train at the Australia Pacific LNG plant at Gladstone, Queensland.
“Looking forward, any substantial net increase to the dollar value of committed projects will require either cost increases to larger, existing projects and/or a new final investment decision on a large project within the coming year” said Professor Grafton.
To download for free the Resources and Energy Major Projects—October 2012 report, please visit the webpage athttp://www.bree.gov.au/publications/mimp.html.