PCCA Journal|2
nd
Quarter 2013
11
generation and has fewer emissions than coal. Natural gas
is forecast to account for 80 percent of all added generating
capacity through 2035.
• The majority of the 12 U.S.-based LNG import terminals
are idle due to abundant domestic supply. Operators of
these terminals are seeking to convert these facilities to
handle export of LNG and refined products.
• There is currently no global market for natural gas, and
U.S. exports of LNG are restricted to re-export of imported
LNG—only at three facilities in Texas and Louisiana. New
export terminal permits have been filed in the Northeast
and Pacific Northwest.
• Global demand for energy outside the U.S. will grow by 33
percent through 2035.
• Worldwide demand for electricity will increase by 70 per-
cent by 2035.
• U.S. coal exports have grown by more than 100 percent in
the previous three years as European and Asian demand
continues to rise. There are currently nine new export
facilities planned in the continental U.S.
The implications of these energy-related trends for the U.S.
engineering and construction industry are significant. Design
firms, pipeline contractors, and multitrade industrial firms are
experiencing tremendous demand for their services. Many
U.S. and Canadian pipeline and industrial firms are growing
as much as 50 percent per year. Already there is a growing
level of concern regarding how to address shortages of skilled
labor in both Western Canada and the U.S. Gulf region.
Opportunities for North American
Design and Construction Firms
Growth opportunities for North American engineering and
construction firms extend well beyond the oil and gas and
downstream refinery markets. Consider the strategic and
business development implications of the following trends
and scenarios:
Trend 1: Unprecedented capital investment in industrial
infrastructure
Five ethane plants totaling $35 billion of construction are
slated for the Texas Gulf Coast. These plants alone will con-
sume an extraordinary amount of open-shop industrial trade
labor, raising the following questions:
• What are the implications to owners with additional proj-
ects in development, in respect to securing available labor
and controlling costs?
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