The Atlantic Provinces Economic Council’s 2013 Major Projects Inventory identifies a record $115 billion worth of major investment projects in various stages of development across Atlantic Canada, up 15 per cent over last year’s Inventory. The 30th edition of APEC’s Inventory, which catalogues 388 major investment projects across Atlantic Canada, was released in Moncton in conjunction with the latest issue of APEC’s Atlantic Report.
The rise in major project investment potential is largely due to the increase in the estimated costs of several projects in Newfoundland and Labrador along with a new LNG export plant proposed for Nova Scotia. An increasing focus in Nova Scotia offshore oil and gas exploration, new mining projects including an underground nickel mine in Labrador and the potential for an east-‐west oil pipeline into New Brunswick are also adding to the region’s pool of investment.
Current-year spending
Investment has strengthened in Atlantic Canada with current-‐year spending on major projects up about 5 per cent to $14.3 billion, which is also a record. Newfoundland and Labrador continues to dominate activity with
$9.4 billion of major projects investment this year, up 10 per cent over last year. Current year spending is also higher this year in Prince Edward Island, up 10 per cent to $287 million, and in Nova Scotia, up 10 per cent to $3 billion. However, in New Brunswick 2013 spending is down 22 per cent to $1.6 billion. Major project investment in Atlantic Canada is expected to remain near record levels in 2014, with a diverse range of activity supporting spending, including oil and gas, mining, electricity, shipbuilding and housing projects.
Atlantic Canada’s growing potential is underscored by the rising project investment in the region from the U.S., Europe and the BRIC countries. (Brazil, Russia, India, China). Investment from BRIC countries totalled $1.7 billion in 2013 led by Vale’s spending at Long Harbour on the island of Newfoundland. “Foreign investment will continue to play an important role in major project investment especially in Newfoundland and Labrador,” said Patrick Brannon, Major Projects Director.
Newfoundland and Labrador key points:
• APEC has identified 113 projects totalling $54 billion, a 12 per cent increase over last year’s Inventory. This growth is due to an increase in the estimated value of key energy and mining projects.
• The value of current-‐year spending in 2013 is up 10 per cent to
$9.4 billion. The rise in current-‐year spending is largely due to an increase in spending on Hebron and Muskrat Falls.
Nova Scotia key points:
• APEC has identified 156 projects totalling $40 billion, up 23 per cent over last year. The increase is largely due to a proposed $5 billion LNG export facility by Pieridae Energy at Goldboro.
• The value of current-‐year spending on projects is up 10 per cent in 2013 to $3 billion. Growth was boosted by increased electricity project spending, Halifax Shipyard upgrades and Shell’s offshore work.
New Brunswick key points:
• APEC has identified 75 projects totalling $18.9 billion, up 6 per cent this year. The increase is due to a proposed oil pipeline, a rise in a potash project’s value and new potential energy projects.
• The value of current-‐year spending in 2013 is down 22 per cent to $1.6 billion. The fall in current-‐year spending is due to lower spending on the Sussex potash project and highway construction.
Prince Edward Island key points:
• APEC has identified 44 projects totalling $1.9 billion, up 8 per cent over last year. The increase is largely due to several new housing projects.
• The value of current-‐year major project spending in 2013 is up 10 per cent to $287 million. The rise in current-‐ year spending is due to a $60 million wind farm project planned by PEI Energy Corp.