The US will drive growth in the gas processing industry in North America between 2018 and 2022, contributing around 86% of North America’s planned gas processing capacity, according to GlobalData, a leading data and analytics company.
The company’s report: 'Gas Processing Industry Outlook in North America to 2022 – Capacity and Capital Expenditure Forecasts with Details of All Operating and Planned Processing Plants' reveals 117 planned and announced gas processing plants are expected to start operations in North America with a total processing capacity of 20,250.6 million cubic feet per day (mmcfd) by 2022.
The US is expected to add around 17,428.5 mmcfd of gas processing capacity during the forecast period from 90 planned and announced gas processing plants. The country is expected to have capital expenditure (capex) of US$26.6bn over the next four years.
Soorya Tejomoortula, Oil & Gas Analyst at GlobalData, comments: “In the US, booming natural gas production, primarily from the shale plays, is in turn driving the new-build gas processing capacity additions. The booming natural gas production will help the country to meet its ever growing domestic consumption and export gas as LNG.”
GlobalData identifies Canada as the second highest in North America in terms of gas processing capacity additions. The country is expected to add roughly 2,422.4 mmcfd by 2022. Canada has planned investment of approximately US$4bn to be spent on 32 planned and announced terminals during the forecast period.
Mexico will add around 400 mmcfd by 2022, from Lerdo de Tejada, a planned gas processing plant in Mexico. A new-build capex of US$1.0bn is expected to be spent on this upcoming plant during 2018–2022.
The report also states that in terms of gas processing capacity, among the upcoming gas processing plants, Bighorn in the US will lead with 999.3 mmcfd in 2022. Caymus III and Diamond, both in the US will follow with 599.6 mmcfd each, by 2022.
In terms of new build capex spending during the forecast period, the Caymus III in the US will lead with US$1.54bn, closely followed by Bighorn, also in the US, with US$1.50bn.