Industrial project spending in Texas will see a significant increase in 2007, primarily due to the Power Industry, which is developing several large-scale coal-fired power generation unit additions in the state, according to research released Wednesday by Industrial Info Resources.
Industrial Info is currently tracking 473 industrial projects in Texas totaling more than $27 billion and planned to start construction in 2007, an increase from the 427 projects totaling $18 billion that were scheduled to begin construction in 2006.
The Power Industry represents more than 50 percent of the state’s planned industrial spending for 2007, reports Industrial Info.
Oak Grove Management Co., TXU Power, Inc., Sandy Creek Energy Associates, and NRG Texas, LLC, are among the companies planning billion-dollar coal-fired projects in Texas, and responsible for bringing planned Power Industry project spending over the $14 billion mark across 73 projects.
The second largest industry for Texas project spending in 2007 is the Petroleum Refining Industry, with 73 projects totaling $3.2 billion planned to start construction.
This is in marked contrast to 2006, when the Refining Industry had planned project spending drop below $1 billion. The increase in 2007 is mostly due to capacity expansion projects, which are nearing completion, notes Industrial Info.
For 2007, the Oil & Gas Transmission Industry will have project spending more than double the 2006 numbers, with $1.2 billion spending planned for pipeline and compressor station work.
The Alternative Fuels Industry in Texas will also see big spending in 2007, with 10 projects totaling $682 million planned.
Industrial Info forecasts that most other industries in Texas will stay the same or will see decrease planned project spending in 2007, including Pulp, Paper & Wood, Pharma-Biotech, Metals & Minerals, Food & Beverage, and Chemical Processing.
After major spending in 2006, the Oil & Gas Terminal Industry will have a drop in project spending in 2007 in Texas, mostly due to LNG terminal projects that moved forward in 2006, according to Industrial Info.