Natural gas pipelines and power plants and solar and wind power projects will drive energy-related construction in 2019. Power projects are expected to increase between 3% and 8% over 2018, exceeding overall expected construction growth of between 2% to 5%, according to a Dec. 12 construction outlook presentation by Ken Simonson, chief economist of the Associated General Contractors of America.
Other forecasts reflect a similar view. The U.S. Energy Information Administration, in its December Short-Term Energy Outlook, forecasts that utility-scale electricity generation from natural gas-fired power plants will continue to increase while other sources of generation will remain relatively flat.
The Gulf Coast Energy Outlook, produced by Louisiana State University, forecasts a flat outlook for petrochemical growth along the Gulf Coast in in 2019 because of a slow-down in Asian demand, increased interest rates and continued trade policy uncertainties. “Outstanding capital investment announcements… may be pushed out in time owing to a number of changes in the global economy and recent political uncertainties,” according to the outlook. The outlook expects a huge upswing in 2020, however.
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