Oil and gas industry experts make sure to keep a close watch on upstream, midstream, and downstream oil and gas projects being built around the world. The ten most significant projects below were selected based on factors such as capital expenditure, its impact on employment in the industry, and the level of contribution it is likely to make to oil and gas production on an international level.
1. Project: Natuna D-Alpha
Location: Indonesia (offshore)
Total Cost: USD 30 billion
This project is situated on a natural-gas block that contains around 220 trillion cubic feet of gas. Although there is plenty of supply, the gas is challenging to extract because of high CO2 content. Managed by Pertamina, a state-owned corporation in Jakarta, the project will potentially include 16 platforms and a 2,000-kilometer pipeline into the Gulf of Thailand.
2. Project: RAPID
Total Cost: USD 27 billion
The Pengerang Refinery and Petrochemical Integrated Development project is located in the southeast of the province of Johor. With a range of assets that includes a refinery that produces 300,000 barrels per day, it is expected that this project will supply some 20 petrochemical units. This is one of the largest downstream projects anticipated in 2019.
3. Project: Phase 1 and 2 of Zheijiang Refinery and Petrochemical Complex
Total Cost: USD 25 billion
The Zheijiang refinery, managed by the Zheijiang Petroleum and Chemical Company, is another significant downstream project expected to be completed in the year 2019. It is anticipated that the refinery will have a capacity of 800,000 barrels per day. The refinery will also produce polypropylene, ethylene vinyl acetate, styrene, and ethylene oxide/glycol, which will meet the increasing demand of downstream chemical products in China.
4. Project: Kitsault Energy Corridor and FLNG Export Terminal
Total Cost: USD 22.5 billion
The Canadian energy industry is booming and has several large-scale projects underway this coming year, such as the liquified natural gas facility in Kitimat. This is a massive undertaking that is set to yield 20 million tons of liquified natural gas a year. The construction of the project will involve four phases and is currently awaiting consent for its planning application.
5. Project: RNEST
Total Cost: USD 21 billion
Petrobas, a semi-public Brazilian oil company, is managing the Abreu e Lima Refinery project in northeastern Brazil. When the construction of the project is completed, the refinery will be able to process 230,000 barrels per day. It will also feature a pipeline that will run the length of 8.5 kilometers and will connect the refinery to the Suape port complex, which will give it access to distributors in the area.
6. Project: 20 New Fields
Location: Mexico (offshore and onshore)
Total Cost: USD 20 billion
Pemex, the oil company owned by the Mexican government, has discovered 20 new oil fields, 17 in shallow waters and three on land. Although many of the fields are still at the prequalification stage, the company is planning to expedite the project to produce its first hydrocarbon and will start signing many work contracts over the course of 2019.
7. Project: Zubair Oil Field Rehabilitation and Enhanced Re-Development Phases
Total Cost: USD 18 billion
The Zubair oil field is one of the largest in the world. Located in southern Iraq, it is expected be substantially developed over the next year. The project is being designed to boost production from 195,000 barrels per day to 700,000 barrels per day in the next seven years.
8. Project: Sakha/Khabarovsk/Vladivostok Gas Pipeline
Total Cost: USD 17.5 billion
The Power of Siberia pipeline is one of the most remarkable midstream projects in recent years. It involves the construction of a gas pipeline almost 4,000 kilometers long, stretching from Yakutia to the Vladivosktok port. The pipeline is expected to provide China with natural gas that it very much needs.
9. Project: Horizon Oil Sands Upgrade – Phase 4 and 5
Total Cost: USD 16 billion
Another major project in Canada, the Horizon Oil Sands upgrade project, is aimed at boosting the production of sweet synthetic crude oil to 500,000 barrels per day. It is still in the planning phase, but word is out that it is scheduled to be developed soon.
10. Project: Chayandinskoye Oil and Gas Condensing Deposit Development
Total Cost: USD 13.6 billion
The Chayandinskoye field, one of Russia's largest, is a major resource for the Power of Siberia gas pipeline. This project involves developing four major blocks and is aimed at exploiting the field's considerable reserves by using power systems based in renewable energy. The project is also set to use innovative methods, such as semi-automated technologies and fully-automated control.
More 2019 Oil and Gas Trends
The industry is also looking forward to further major developments in the ever-growing international liquified natural gas market. In addition, the US shale industry and deepwater projects also appear to be making a comeback.
Liquified natural gas (LNG)—Several massive LNG projects are expected to receive final investment decisions in 2019, including Mozambique LNG, Canada LNG, Fortuna LNG, and Jordan Cove LNG. We can thus expect a growth spurt in the international LNG market and in job opportunities in the engineering and technical markets. Demand for LNG is growing along with the supply, particularly in the Asia-Pacific region, where it is anticipated to increase by another 60% in just over a decade.
US shale—The US shale industry performed remarkably in 2018, with production increasing exponentially. This caused major upheaval in the global oil markets along with further disruption to OPEC's pricing decisions because of its responsiveness to supply and demand. As a result, employment in this industry is expected to double in the near future.
Deepwater—Deepwater projects are also expected to undergo a revival this year. Oil prices have made a decent recovery, and several new leases have been opened in locations around West Africa and the Gulf of Mexico. Keep a close eye on the Bonga Southwest in Nigeria, the Tortue gas field between Mauritania and Senegal, Phase 2 of the Mad Dog Oil Field in the Gulf of Mexico, and the Azeri-Chirag-Deepwater Gunashli field in the Caspian Sea. These are bound to give offshore job markets a much-needed