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Infrastructure Services
HW&Co. Whitepaper
Spring 2017
Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC,and Harris Williams & Co. Ltd, which is a private limited company incorporated under English law with its registered office at5th Floor, 6 St. Andrew Street, London EC4A 3AE, UK, registered with the Registrar of Companies for England and Wales(registration number 7078852). Harris Williams & Co. Ltd is authorized and regulated by the Financial Conduct Authority.Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business.
www.harriswilliams.com
Harris Williams & Co. Infrastructure Services | Spring 2017
Our mission with this paper is to provide an update on end market dynamics to our
2015 whitepaper detailing the U.S. industrial service market for energy, power, and
heavy industrial infrastructure. We define infrastructure services broadly to
encompass services provided for energy, power, and infrastructure assets while we
define industrial services to encompass only those services provided to heavy
process industries.
The North American refinery, chemical, power generation, and process industries
experienced significant investment in 2016 and remain in the early stages of a
prolonged investment cycle. North America has structural cost advantages over
international competitors that have supported continued high utilization across an
aging infrastructure base that will require significant maintenance and capital
investment through 2020 and beyond.
The political environment and stabilization of commodity prices domestically have
further supported a long-term outlook of continued investment across heavy
industrial and process markets.
Infrastructure ServicesIndustrial Services for Energy and Power InfrastructureHarris Williams & Co. WhitepaperSpring 2017
CONTENTS
Abstract
HW&Co. Infrastructure Services Experience
Infrastructure Services Market and Today’s Political Environment
Industrial Services in Today’s Commodity Environment
Positive Domestic Refinery Outlook
Continued Chemical and Petrochemical Strength
Strong Demand for Domestic LNG Export Facilities
Significant Investment in Domestic Power Generation
Appendix A: Industrial Services Overview
Appendix B: Top 50 Infrastructure Projects
ENERGY, POWER & INFRASTRUCTURE CONTACTSUnited States
Andrew Spitzer | Managing Director
aspitzer@harriswilliams.com
+1(804) 915-0174
Brian Lucas | Managing Director
blucas@harriswilliams.com
+1(804) 932-1323
Matt White | Managing Director
mwhite@harriswilliams.com
+1(804) 915-0131
Luke Semple | Director
lsemple@harriswilliams.com
+1(804) 915-0158
Chris Burnham | Director
cburnham@harriswilliams.com
+1(804) 915-0142
Ian Thomas | Vice President
ithomas@harriswilliams.com
+1(804) 932-1384
Neha Shah | Vice President
nshah@harriswilliams.com
+1(804) 887-6036
Europe
Jeffery Perkins | Managing Director
jperkins@harriswilliams.com
+49 69 7593 7166
Harris Williams & Co. Infrastructure Services | Spring 2017
With more than 40 closed transactions across the sector, Harris Williams & Co. has
provided sell-side advisory services to some of the infrastructure services market’s premier
service providers.
Harris Williams & Co. Infrastructure Services Experience
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has been acquired by
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has been acquired by
Harris Williams & Co. Select TransactionsInfrastructure Services
have been acquired by
holdings of
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a portfolio company of
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has acquired
a portfolio company of
is merging with
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
a portfolio company of
Harris Williams & Co. Infrastructure Services | Spring 2017
Page | 1
The infrastructure services market has experienced strong growth in 2016 and early 2017,
and is poised for continued expansion through 2020 and beyond. The recent U.S. election
has significantly improved investor sentiment and market outlook for infrastructure
service providers. President Trump's stated goal of increasing federal and private
spending throughout the sector supports a strong outlook for operators and service
providers of infrastructure assets. In his recent list of the top 50 Emergency and National
Security Projects, the administration estimated the total investment in the top 50 projects1
alone to be $137.5 billion, 50% of which will be funded by private sources. While too early
to know which sectors will be the largest beneficiaries or if actual spending will match
initial claims, it is clear President Trump’s administration is making infrastructure a
priority and looks to have support across the aisle to make these plans a reality. Overall,
Trump and his team have stated they are seeking to invest over $1 trillion in infrastructure
during his time in office.
Public infrastructure service providers saw the immediate effect of the increasingly
positive outlook following the election. All of the indices we track benefited from a
significant trading bump in the wake of the election, as public and institutional investors
sought to position their investments to reap the gains a Trump presidency may have on
domestic infrastructure and the energy market.
Infrastructure Services Market and Today’s Political Environment
Exhibit 1
Public Infrastructure Service Providers Received a Significant Post-Election Bump
LTM EV/EBITDA
Source: FactSet.
4.0x
5.0x
6.0x
7.0x
8.0x
9.0x
10.0x
11.0x
12.0x
13.0x
14.0x
15.0x
Mar-12 Sep-12 Mar-13 Sep-13 Mar-14 Sep-14 Mar-15 Sep-15 Mar-16 Sep-16 Mar-17
25th - 75th Percentile EPC's / GC's Design & Engineering Specialty Contractors
Post-ElectionTradingBump
1) A listing of the top 50 projects can be found in Appendix B.
Harris Williams & Co. Infrastructure Services | Spring 2017
Page | 2
Oil prices began to recover and stabilize in mid-2016 and have been supported into 2017 by
the November 2016 OPEC agreement, in which member countries agreed to reduce
production by 1.2 million barrels a day. The recent surge in oil prices compared to early
2016 has re-opened previously shuttered domestic production. This recent uptick, in
combination with the billions of planned, announced, and committed capital for energy
infrastructure projects in the coming years, keeps North America solidly in the early
innings of a downstream energy infrastructure build out. Much of this infrastructure is
supported by continued high levels of North American natural gas production and
consistently low prices, which have maintained North American global cost
competitiveness.
In conjunction with the recent increase and stabilization in oil prices, natural gas prices
have remained low. This continues to benefit domestic industrial consumers, who are
actively building increased capacity to capitalize on this sustained advantage. We continue
to see strong tailwinds across domestic downstream sectors and are looking at several
trends in the downstream infrastructure market as we continue into 2017, as outlined in
the following pages.
Infrastructure Services in Today’s Commodity Environment
Exhibit 2
Current Commodity Price Environment and Near-Term Indicators for Infrastructure Service Providers
West Texas Intermediate and Henry Hub Gas Prices Key Near-Term Indicators
Source: U.S. Energy Information Administration (“EIA”).
Refinery
Refinery capacity utilization Crack spreads and refiner margins Petroleum product imports / exports Aging facilities
Petrochemical Natural gas prices Global ethylene demand and cost
curve dynamics
Chemical
Ongoing capital buildout Increasing capacity High facility utilization rates and
increased throughput Aging facilities
LNG
Low cost natural gas increasesattractiveness of export opportunity
Increased buildout to keep pace withdemand worldwide
Power
Potential relaxation of the Clean Airstandards under the currentadministration
Aging installed base of infrastructure Renewable buildout is expected to
pick up steam in the next severalyears
$0
$1
$2
$3
$4
$5
$6
$7
$8
$9
$10
$0
$20
$40
$60
$80
$100
$120
Jan
-14
Jul-
14
Jan
-15
Jul-
15
Jan
-16
Jul-
16
Jan
-17
Hen
ery
Hu
b ($
/Mcf)
WT
I ($
/ B
bl)
WTI Henry Hub
Harris Williams & Co. Infrastructure Services | Spring 2017
Page | 3
7.176.66 6.47 6.25
5.82 5.74 5.44 5.09 5.005.48
6.49
8.769.42
8.74
9.88
2.0
4.0
6.0
8.0
10.0
12.0
1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2015 2016E 2020P
Despite the dip in domestic production in 2016 due to commodity price fluctuations,
analysts are forecasting U.S. production to increase by ~2.0 million bpd over the next five
years to 9.9 million bpd (eclipsing 2015 production levels). The recent supply / demand
imbalance has shifted back to neutral and the world demand for crude is anticipated to
increase 1.2 million barrels a day in 2017. In the EIA’s bull case, they predict a doubling of
domestic crude production over the next 20 to 30 years.
In recent years, technological advancements have enabled producers to successfully
develop previously uneconomic hydrocarbon resources. In particular, unconventional oil
and gas plays (those defined as having more varied liquid output that just crude oil) such
as the Eagle Ford Shale and Permian Basin in Texas have greatly benefitted from these
advancements, allowing lower cost production and increased output. Furthermore, in
November 2016 the U.S. Geological Survey confirmed the discovery of the largest U.S.
deposit of oil in the Wolfcamp Shale in Texas, which represents nearly $1 trillion in
potential value and further solidifies domestic abundance of oil and gas resources for the
long-term.
Downstream operators in the U.S. benefit from the proximity to abundant supplies of oil
and gas for feedstocks and fuel. Additionally, integrated operators (those with upstream
and downstream operations) were negatively impacted by commodity fluctuations and
accordingly adjusted spending on downstream operations. The long-term positive outlook
for domestic production and recent stabilization of commodity prices provides a
supportive environment for process industries through 2020 and beyond.
Resurgence of Domestic Crude Production
Exhibit 3
Domestic Crude Production
U.S. Historical and Projected Crude Production(Mbpd)
Source: EIA 2017 Annual Energy Outlook.
Harris Williams & Co. Infrastructure Services | Spring 2017
Page | 4
Continued, steady increases in domestic production result in cost advantages for domestic
downstream operators. Feedstock and fuel costs for the refinery, chemical, and
petrochemical sectors are determined by resource price, abundance, and proximity to the
facility. Domestic production increases provide convenient access to resources for
downstream operators compared to international competitors, which serves as a
significant competitive advantage and will continue to support expanded maintenance and
capital spend on downstream infrastructure domestically.
Lower costs for crude domestically due to proximity (lower transportation costs), input
(cost of the crude oil being refined), and operating expenses (oil and gas driven based on
unit fuel) provide domestic refiners with a significant advantage and associated
infrastructure services providers with long-term tailwinds of continued investment.
Domestic Cost Advantage
ProductYield Product
Netback
TransportCost
Crude Input Cost
Op Ex
D&AGross Margin
EBIT Margin
Transportation costs key differentiator across US regions
Cheaper domestic crude improves US
refinery margins
Cheaper natural gas provides operating expenses cushion
Exhibit 4
Refinery Cost Advantage
Continued Domestic Refinery Cost Advantage
Harris Williams & Co. Infrastructure Services | Spring 2017
Page | 5
Refinery utilization rates have remained near record highs in recent years. This has been
driven by increased demand for refined petroleum products, lower domestic facility
counts with increasing capacity, and domestic producers enjoying significant cost
advantages over international peers. Utilization rates have consistently exceeded 90%
throughout the U.S. and particularly along the U.S. Gulf Coast corridor where utilization is
over 91%. Commodity price fluctuations in 2015 and 2016 drove refiners to defer some
turnarounds to offset losses in upstream operations by capitalizing on attractive crude
input costs. These industry factors and recent deferrals combine to drive more spending to
repair and upgrade facilities throughout the domestic refinery complex with the
expectations for a large 2017 and 2018 turnaround season.
U.S. refiners are experiencing strong sector tailwinds that will continue to drive growth
and investment in the overall refinery market. Significant investment in the sector is
expected as operators expand capacity across a base of aging facilities that consistently
operate at high utilization rates. While the number of total refineries has declined over the
last several decades and is expected to remain stable over the next five years, capacity has
expanded by nearly 10%. Capacity increases support extended capital spending and
increased maintenance on additional units at operating facilities. Operating facilities,
however, are largely decades old and require significant investment to support continuing
operations. Of the 140 refineries in operation, 89% are between 40 and 120 years old,
resulting in an aged and aging installed base that requires significant ongoing
maintenance.
Positive Domestic Refinery Outlook
Source: EIA.
Exhibit 5
Refinery Count and Capacity
U.S. Historical Operating Refineries and Operable Capacity (Capacity in Mbpd)
15.5
16.0
16.5
17.0
17.5
18.0
18.5
120
130
140
150
160
2000 2003 2006 2009 2012 2015
Cap
acity
Op
era
ble
Refi
neri
es
Refinery Count Capacity
Exhibit 6
High Utilization and Long-Term Cost Advantage
U.S. Average Refinery Utilization
85%83%
86% 86%89% 88% 90% 91% 90%
50%
60%
70%
80%
90%
100%
2008 2009 2010 2011 2012 2013 2014 2015 2016
Source: EIA.
Harris Williams & Co. Infrastructure Services | Spring 2017
Page | 6
The domestic refinery market is characterized by highly stable growth - capacity and
production have increased since 2008 despite crack spread (the difference between the
price of crude oil and refined petroleum products) fluctuations. Steadily growing output
drives consistent investment with contractors and service providers to expand and
maintain domestic facilities.
Source: EIA.
$(10)
$(5)
$-
$5
$10
$15
$20
$25
$30
-
5
10
15
20
25
2008 2009 2010 2011 2012 2013 2014 2015 2016
Crack
Spread
Do
mes
tic
Pro
du
ctio
n/
Cap
acit
y (M
bp
d)
Domestic Production Crack SpreadTotal US capacity Linear (Domestic Production)
Exhibit 8Steady Refining Capacity and Production
Historical Production, Crack Spreads, and Domestic Capacity
Steady Capacity and Production Drives Consistent Investment
The continued strength of U.S. refiners relative to international peers and the growing
demand for refined petroleum products has maintained the U.S.’s position as a net
exporter of finished petroleum products. The trend is expected to continue in the future,
supporting future investment requirements in U.S. refineries.
Source: EIA.
Exhibit 7Refinery Inputs and Petroleum Products
U.S. Net Imports of Total Petroleum Products
Refineries Operating at Record Levels to Export Refined Petroleum Products
(Mbpd)
(4.0)
(2.0)
0.0
2.0
4.0
6.0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
U.S. Net Imports of Total Petroleum Products Linear (U.S. Net Imports of Total Petroleum Products)
Increase of over 1.2 million barrels a day in capacity
Harris Williams & Co. Infrastructure Services | Spring 2017
Page | 7
$6.1
$5.0 $5.0 $5.2 $5.3 $5.4 $5.6
$5.9
$-
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
$7.0
$8.0
2014 2015 2016E 2017P 2018P 2019P 2020P 2021P
Canada USA
Strong sector tailwinds are expected to drive significant investment in both maintenance
and capital work across the North American refinery market. Douglas Westwood
conservatively projects maintenance expenditures to approach 2014 levels by 2021P.
Commodity fluctuations in 2015 led to a reduction in maintenance and capital spend at
integrated refineries as operators increased utilization rates and deferred investment to
offset upstream losses. In the coming years, however, maintenance and capital spending is
expected to increase meaningfully as operators increase capacity domestically. Nearly $60
billion in capital expenditures are expected from 2017P to 2021P, which will significantly
expand the market’s addressable maintenance base. Given expected capacity expansions
and elevated utilization rates across the country, we believe these estimates to be
conservative over the coming years.
($ in billions)
Conservative forecast given increasing capacity and utilization dynamics
Exhibit 9
Refinery Maintenance and Capital Spend in the U.S. and Canada
Historical and Projected Maintenance Spend Historical and Projected Capital Spend
Source: Douglas Westwood, Industrial Information Resources (“IIR”).
($ in billions)
$14.4
$11.9 $12.4
$13.0 $13.7 $14.0
$15.0
$-
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
$14.0
$16.0
$18.0
2014 2015 2016E 2017P 2018P 2019P 2020P
Harris Williams & Co. Infrastructure Services | Spring 2017
Page | 8
0.0x
20.0x
40.0x
60.0x
80.0x
'03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17
Brent to U.S. Natural Gas
The abundant supply of natural gas, coupled with low cost feedstock for North American
operators, is expected to drive continued investment and growth in the chemical industry.
Domestic dry natural gas production, a critical feedstock and fuel source for chemical
operators, has expanded over six trillion cubic feet since 2010. Over the same time period
the U.S. liquid natural gas price has fallen over 70%, leading to significant growth in the
domestic chemical industry as operators take advantage of lower feedstock costs.
Continued Chemical and Petrochemical Strength
(trillion cubic feet per year)
Exhibit 10
Domestic Production Supports Strong Sector Tailwinds
U.S. Dry Gas Production U.S. Liquid Natural Gas Price
Source: EIA.
($ per million BTU)
-
5
10
15
20
25
30
35
40
2005 2010 2015 2020P 2025P 2030P 2035P 2040P $-
$5
$10
$15
$20
Jan-09 Jul-10 Jan-12 Jul-13 Jan-15 Jul-16
The U.S. chemical industry - and petrochemical sector, in particular - continue to
experience a favorable cost position compared to international competitors. U.S. ethane-
based ethylene production cost advantages remained favorable in 2015 and 2016 and, in
August of 2016, U.S. ethane based producers had a cost advantage of 6 cents a pound
versus naphtha-based producers in Asia.
In January 2017, the ratio of Brent oil to U.S. natural gas, a proxy for the relative cost
position of U.S. ethane-based ethylene producers versus their naptha-based European and
Asian producers, rose to 17.3x in from the previous January 2016 number of 13.5x. This is
compared to the long-term historical average of ~8.0x. The abundance of domestic natural
gas and the associated cost advantage compared to naptha-based producers creates a
highly defensible feedstock cost advantage. Furthermore, this advantage will generally
expand with increasing oil prices.
Strong Advantages for Domestic Petrochemical Producers vs. International Peers
0%
25%
50%
75%
100%
'07 '08 '09 '10 '11 '12 '13 '14 '15
Adv over Europe Adv over NE Asia Adv over SE Asia
Exhibit 11
U.S. Advantage over International Peers
U.S. Ethane Advantage Brent Oil to U.S. Natural Gas
Source: IHS; EIA.
Historical average of ~8.0x is well below current ratio of 17.3x
Historical Average
Harris Williams & Co. Infrastructure Services | Spring 2017
Page | 9
1,099
1,879
-
400
800
1,200
1,600
2,000
Existing 2015 PlantCapacity
Total Planned Capacity(2018P)
Pre-1950
25%
'51 to '70
37%
'71 to '90
29%
'91 to '00
6%
Post-2000
4%
Percent of PetrochemicalFacilities by Start Year
The petrochemical industry, like the broader chemical industry, is expected to increase
capacity significantly as operators capitalize on strong domestic tailwinds of low
production costs relative to international peers. By 2018P petrochemical capacity in the
U.S. is expected to expand approximately 70% to nearly 1.9 trillion metric tons, when
compared to 2015.
Given the relative age of existing facilities, with over 90% 25 years or older and 60% 45
years or older, industrial services providers are poised for significant opportunities to
capitalize on increased maintenance spend on aging facilities, capital jobs on capacity
additions, and on increasing maintenance spend on the large base of operating assets.
Demand-Driven Growth Across Domestic Chemical and Petrochemical Market
Source: IIR.
~70% capacity increase
Over 90% of U.S. refinery facilities were built on or
before 1991 -Over 25 years ago
Exhibit 13
Petrochemical Demand-Driven Capacity Expansions and Aging Asset Base
U.S Petrochemical Capacity Additions(Billions of metric tons)
U.S. Facility Start Year
Growing global demand is supplied by an aging asset base, which is expected to
meaningfully benefit industrial services companies serving the chemical complex through
2020P and beyond. Domestic chemical capacity additions to meet growing demand are
expected to be nearly 40 billion metric tons from 2016E through 2020P. Across all
categories of non-petrochemical chemical producers, however, facilities will require
increasing levels of maintenance given relative age – nearly 50% of non-petrochemical
chemical producing facilities started operation in 1970 or before.
Exhibit 12
Chemical Demand-Driven Capacity Expansions and Aging Asset Base
U.S Non-Petrochemical Capacity Additions(Billions of metric tons)
U.S. Facility Start Year
Source: IIR.
Nearly 50% of facilities in every category started operation in 1970 or before
29%43%
23% 22%
36%
29%
15%28%
14%14%
30%
28%
3%
14%
23% 6%19%
9% 15%
0%
20%
40%
60%
80%
100%
Agricultural Fibers IndustrialGases
Plastics /Rubbers
Pre-1950 '51 to '70 '71 to '90 '91 to '00 Post-2000
100
150
200
250
300
2014 2015 2016E 2017P 2018P 2019P 2020P
Harris Williams & Co. Infrastructure Services | Spring 2017
Page | 10
Exhibit 14
Near-Term North American Chemical Investment
North American Chemical Capital Investment($ in billions)
Source: IIR.
$26
$18
$13
$26
$23
2014 2015 2016E 2017P 2018P
Projected Chemical Spending
Domestic operators have invested significantly in recent years to satisfy growing
worldwide demand. In order to capitalize on strong cost advantages in North America,
chemical operators are expected to invest meaningfully near-term. In 2017 spending is
expected to match the previous peak in 2014 when capacity was expanded following the
shale boom. Identified capital investment deemed “Most Probable” to occur by IIR over
the next 24 months in North America alone represents nearly $50 billion in projects.
Historical Spend Most Probable Future Spend
Nearly $50 billion in anticipated investment over the next two years
The North American petrochemical industry, like the broader chemical industry, has been
experiencing and will continue to experience a significant buildout as operators capitalize
on growing demand and cost advantages over international peers. Operators are expected
to add ~70% in domestic capacity by 2018 and are expected to ultimately invest nearly $60
billion in capital projects from 2017P to 2020P.
Strong Petrochemical Spending Outlook
Exhibit 15
Near-Term North American Petrochemical Investment
North American Petrochemical Capital Investment($ in billions)
$-
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
$14.0
$16.0
2010 2011 2012 2013 2014 2015 2016E 2017P 2018P 2019P 2020P
Source: IIR, LEK.
25% CAGR
7% CAGR
Harris Williams & Co. Infrastructure Services | Spring 2017
Page | 11
Source: Douglas Westwood.
North American Petrochemical Maintenance Spend($ in billions)
$5.0
$6.0
$7.0
$8.0
$9.0
$10.0
2016E 2017P 2018P 2019P 2020P
Exhibit 16
Near-Term North American Petrochemical Investment
17% Increase
Capital investment to grow capacity and the continued operation of older facilities is
expected to require significant maintenance investment through 2020 and beyond.
Petrochemical maintenance in North America over the coming years is expected to total
over $46 billion through 2020P. Based on all the new capacity set to come online over the
next couple of years, we find this forecast to be a conservative estimate and expect
maintenance spending to increase further in the medium term.
Harris Williams & Co. Infrastructure Services | Spring 2017
Page | 12
Growing global LNG demand is driving significant investment to expand LNG export
capacity. Domestic operators are poised to benefit given resource abundance and sustained
low commodity prices. U.S. natural gas prices have remained substantially below global
market prices due to the abundance of domestic unconventional resources and the ability
to export natural gas through the liquefaction process. However, there is some concern
among industry participants surrounding potential oversupply and lower margins,
particularly in Japan, the world’s largest importer, in the event additional domestic
projects are announced beyond already planned capacity.
Strong Demand for Domestic LNG Export Facilities
Exhibit 18
Strong Domestic Outlook Given Global Price Differentials
Global Price Differentials1
(USD in actual dollars per MMBtu)
(1) As of January 2017.Source: IMF.
The sustained price advantage of the U.S. over major European and Asian markets, as well
as the growing global demand, have positioned the U.S. to fill the capacity gap by
increasing spending to buildout the current number of LNG export facilities and
associated capacity. LNG facilities are forecasted to grow from 23 in 2016 to 41 in 2021, an
increase in capacity of 72 million metric tons per year (MMt/y).
-
50
100
150
200
250
300
350
400
450
2000 2005 2010 2015 2020 2025 2030
MM
t/y
Japan, Korea and Taiwan China & IndiaEurope AmericasNiche (Asia & ME) Uncovered Demand
Exhibit 17
Rising Demand Continues to Support Additional Investment
Global Demand
$7.50
$5.88
$2.82
$5.00
$10.00
$15.00
$20.00
$25.00
Dec-10 Jun-12 Dec-13 Jun-15 Dec-16
Asia Benchmark Europe Benchmark Henry Hub
Long-term sustained global price differentials support extensive North American LNG export opportunities
Source: EIA.
Harris Williams & Co. Infrastructure Services | Spring 2017
Page | 13
North America is poised for significant, continued investment in the engineering,
planning, and construction of multi-billion dollar LNG export facilities given resource
abundance in the region. New facilities are principally located around the Gulf Coast given
resource proximity but the first U.S. LNG export terminal was in Kenai, Alaska and
entered service in 1969. Resource abundance in the lower 48 states is driving significant
investment, especially around the Gulf, and in February 2016 Cheniere was the first
company to export LNG from the lower 48. The investment to construct and maintain
these facilities represents a large opportunity for infrastructure service companies in the
near- and long-term. There are currently seven export facilities under construction and an
additional eight approved by the DOE and FERC.
LNG Export Projects Advancing in North America Due to Attractive Pricing Dynamics
Exhibit 19
North American LNG Export Terminal Projects
As of January 2017
(Capacity in Bcfd)
Source: FERC
U.S. Export Terminals – Approved
Under Construction
Capacity OwnerExpected Date in
Operation
Sabine, LA 1.4 Cheniere/Sabine Pass LNG 2019Hackberry, LA 2.1 Sempra-Cameron LNG 2018
Freeport, TX 2.1Freeport LNG Dev/Freeport LNG
Expansion/FLNG Liquefaction2018
Cove Point, MD 0.8 Dominion- Cove Point LNG 2017Corpus Christi, TX 2.1 Cheniere – Corpus Christi LNG 2018Sabine Pass, LA 1.4 Sabine Pass Liquefaction 2019Elba Island, GA 0.4 Southern LNG Company 2019
Not Under Construction
Capacity OwnerExpected Date in
Operation
Lake Charles, LA 2.2 Southern Union – Lake Charles LNG 2019Lake Charles, LA 1.1 Magnolia LNG TBDHackberry, LA 1.4 Sempra – Cameron LNG 2018Sabine Pass, TX 2.1 ExxonMobil – Golden Pass TBD
U.S. Export Terminals – Formal FERC Application Filed
Awaiting Approval
Capacity OwnerExpected Date in
Operation
Golden Pass, TX 2.1 Qatar Petroleum / Exxon Mobil 2022 – 2024Calcasieu, LA 1.4 Venture Global 2022 – 2023Texas 0.6 Texas LNG 2023Rio Grande, TX 1.4 NextDecade 2022Gulf of Mexico 1.5 Kinder Morgan – Gulf LNG 2022
Canada Export Terminals – Approved
Not Under Construction
Capacity OwnerExpected Date in
Operation
Port Hawkesbury, NS
0.5 Bear Head LNG TBD
Kitimat, BC 3.2 LNG Canada TBDSquamish, BC 0.3 Woodfibre LNG Ltd. 2017Prince Rupert Island, BC
2.7 Pacific Northwest LNG TBD
U.S. Import Terminals - Approved
Under Construction
Capacity OwnerExpected Date in
Operation
Corpus Christi, TX 0.4 Cheniere - Corpus Christi LNG 2018
Not Under Construction
Capacity OwnerExpected Date in
Operation
Salinas, PR 0.6 Aguirre Offshore GasPort, LLC 2018Gulf of Mexico 1.0 Main Pass McMoRan Exp. TBDGulf of Mexico 1.4 TORP Technology-Bienville LNG TBD
Harris Williams & Co. Infrastructure Services | Spring 2017
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-
50
100
150
200
250
-
5
10
15
20
25
30
35
40
45
2010 2011 2012 2013 2014 2015 2016E 2017P 2018P 2019P 2020P 2021P
North American Facility Count North American Capacity
Investment to expand LNG facilities and capacity across North America is expected to
continue through 2021P and beyond given the resource abundance and sustained price
advantages of the region. With nearly 20 new facilities expected from 2016E to 2021P,
infrastructure services providers find themselves poised to benefit from a substantial, long-
term investment cycle that is currently in the early innings.
Significant Facility Buildout and Associated Spend
Significant expansion of LNG facilities in North America will position service providers to
execute on long-term capital and maintenance opportunities. The expansion is driving a
more than doubling of maintenance expenditures from 2017P to 2021P with long-term
prospects for continuing growth and opportunity for infrastructure services providers.
Exhibit 20
North American LNG BuildoutNorth America Import and Export Facility and Capacity Buildout(MMt / y)
Source: Douglas Westwood.
North American LNG Maintenance Spend($ in billions)
Fa
cili
ty C
ou
nt
MM
t / y
$-
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
2010 2011 2012 2013 2014 2015 2016E 2017P 2018P 2019P 2020P 2021P
Source: Douglas Westwood.
Exhibit 21
North American LNG Buildout
22% CAGR
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The domestic power market benefits from a large installed base of aging facilities and an
expanding market driven by natural gas capacity additions. While coal’s share of domestic
power generation has declined due to environmental regulations, the shift to natural gas as
an inexpensive, cleaner fuel source has contributed to a stable power generation base.
Coal’s prospects, however, are beginning to recover given additional regulations being
held up and the renewed support of coal in the new administration. In February 2016 the
Supreme Court halted implementation of the Environmental Protection Agency’s (EPA)
Clean Power Plan and in February 2017 President Trump stopped regulation on coal
mining debris disposal. The abundance of natural gas and increasingly favorable outlook
for coal provide a strong outlook for power generation and associated service providers.
Exhibit 22
Domestic Power Generation
(million kilowatt hours)
-
0.5
1.0
1.5
2.0
2.5
3.0
2005 2008 2011 2014 2017P 2020P
Coal Natural Gas
Exhibit 23
Long-Term Investment in Additional Power Generation Capacity
(gigawatts)
In order to meet energy demands through 2040, the EIA expects more than 300 gigawatts
of power generation capacity additions in the U.S. Natural gas is the predominant fuel
source anticipated given resource abundance and renewable additions are expected to see
the most growth year-over-year given environmental pressure. However, as noted above,
there is potential for this mix to shift given today’s political environment and
infrastructure services providers will ultimately benefit from the additions in all forms.
-
10
20
30
40
50
60
70
2013-2015
2016-2020
2021-2025
2026-2030
2031-2035
2036-2040
Coal Nuclear Renewables/ Other Natural gas
Source: EIA.
Steady Demand for Power Generation
Source: EIA.
Electrical Power Generation Additions by Fuel Type
Electrical Power Generation by Fuel Type
Harris Williams & Co. Infrastructure Services | Spring 2017
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Domestic power demand is steadily increasing with ~10% expected growth in the next
decade, which will require additional capacity buildout in the near- and long-term.
Planned investment is primarily comprised of grassroots / greenfield, transmission and
distribution, expansion, maintenance, modernization, conversion, environmental, and
closure initiatives. Specifically, there is a significant and large pipeline of natural gas-fired
project starts expected to commence from 2017 to 2020 with 223 distinct projects in the
pipeline for North America, which represents more than $83 billion of investment and a
large opportunity for infrastructure services providers for the foreseeable future.
Significant Investment in Domestic Power Generation Throughout North America
Exhibit 24North American Power Industry
Source: IIR.
Natural Gas-Fired Project Starts (2017-2020)
Exhibit 25U.S. Power Industry
Source: IIR.
$60 million
$278million
$167 million
$533 million
Scheduled Maintenance Outages (2017-2018)
Infrastructure services providers are also well-positioned to benefit from regularly
scheduled maintenance at power facilities. Scheduled maintenance outages for power
infrastructure are anticipated to be in excess of $6 billion between 2017 and 2018. The most
significant concentration will occur in the Gulf Coast with nearly $900 million scheduled
between Texas, Oklahoma, Louisiana, and Arkansas.
$1.2 billion
$11.1billion
$4.4billion
$21.4 billion
Major Gas-Fired Project Starts by State (2017-2020)
State Units Mega Watts
Texas 97 20,298
Pennsylvania 56 10,378
Ohio 30 8,089
California 38 5,172
New Jersey 17 3,639
Alberta 14 3,249
Michigan 16 3,045
Virginia 10 2,729
Indiana 10 2,196
Illinois 8 2,187
Natural Gas-Fired Project Starts (2017-2020)
Scheduled Maintenance Outages by Company (2017-2018)
Company Outages TIV ($ in millions)
Entergy Corp 21 $168.6
NRG Energy 14 129.7
Vistra Energy / Luminant 11 82.9
Calpine Copr 17 71.1
American Elect Power 12 35.6
Total 75 $487.9
Gulf Coast Scheduled Maintenance Outages
$114 million
$533 million
$125 million
177 scheduled outages worth $880 million
1,095 scheduled outages worth $6.1 billion
Harris Williams & Co. Infrastructure Services | Spring 2017
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Continued expansion of the power generation market is expected to require increasing
investment through both capital and maintenance activities. Capital projects are projected
to remain relatively consistent around $20 billion per year with some modest increases
each year. As infrastructure continues to age and additional power generation capacity is
brought online, maintenance expenditures are expected to increase and ultimately reach
nearly $100 billion by 2020P. The long-term, stable capital investments and growing
maintenance base provide a strong outlook for infrastructure services providers across the
power sector through 2020P and beyond.
Exhibit 26
U.S. Power Generation Investment
($ in billions)
Source: IIR, LEK.
$16 $17 $18 $18 $19 $20 $19 $20 $20 $20 $21
$57 $60$70
$60 $63$71 $74 $71 $73 $76 $79
$73 $77
$88
$78 $82
$90 $92 $91 $93
$96 $99
$-
$20
$40
$60
$80
$100
2010 2011 2012 2013 2014 2015 2016E 2017P 2018P 2019P 2020PMRO Capital Expenditures Total
Projected and Historical Capital and Maintenance Spend
Harris Williams & Co. Infrastructure Services | Spring 2017
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North America is poised for significant investment in renewable energy through 2020 in
the form of both solar and wind power production. Renewable domestic power generation
is supported by production tax credits for wind energy that extend through 2020 as well as
investment tax credits for solar that extend through 2022. These tailwinds are driving
significant capital investment in the sector and is heavily concentrated on the West coast
and Mid-West of the United States. This trend is expected to continue with more
renewable portfolio standards on the horizon and serve as an additional avenue for
infrastructure services providers to work with power generation operators across North
America.
Continued Investment in Renewable Power Generation
Exhibit 27North American Renewable Power
Source: IIR.
New Capital Work for Renewable Energy Projects Scheduled to Begin 2017 to 2020
$2.6 billion
$10.3billion
$5.6 billion
$25.9 billion
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Appendix A: Industrial Services Overview
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Over the last two decades, process industries have shifted to outsourcing non-core
activities that make up today’s industrial services market. Outsourced industrial services
have served as a means to reduce costs for process industry operators by eliminating
unnecessary equipment previously owned by the facility and associated maintenance
expenditures, increase safety through specialization at service providers, and create
efficiencies within plant operations and helped to mitigate skilled labor shortages in most
U.S. industries.
Industrial Services Overview
Appendix A: Exhibit 1Industrial Services Overview
MECHANICAL SERVICES
Services include maintenance, turnarounds, and construction.
Zachry/JVIC conducts a turnaround
at the Phillips 66 refinery in Borger, TX
EMCOR/RepconStrickland conducts first
FCCU turnaround with cones in place
EMCOR/Ohmstede repairs and tests
a heat exchanger
Key Players:
ELECTRICAL SERVICES
Services include installation, maintenance, and testing of electrical equipment and instruments.
IPS repairs a large electric motor for
a petrochemical facility
Ardent completes new substation tie-in
and coker turnarounds
Quanta installs sample tubing and
instrumentation for turbines in Colorado
Key Players:
INDUSTRIAL CLEANING
Services include hydroblasting, vacuum services, chemical cleaning, tank cleaning, remediation, and disposal & recycling services.
PSC uses an automated hydroblaster
to clean a heat exchanger
HydroChem uses a specialized vacuum
setup for coating removal
Veolia uses a specialized system to
clean fin fans
Key Players:
MULTI-CRAFT AND OTHER
Services include scaffolding, insulation, coatings, painting, refractory work, NDT, inspection and other related crafts.
Brock erects scaffolding for a
cracker turnaround
Brand uses scaffolding for refinery tank
maintenance
AZZ/Aquilex uses automated weld
heads for precision, in-pipe operations
Key Players:
Harris Williams & Co. Infrastructure Services | Spring 2017
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Mechanical services include engineering, constructability, and planning services for
routine maintenance, plant turnarounds, expansions, and new construction. Routine
maintenance services consist of field machining, bolting/torqueing, and duct work, among
others, and are performed by employees of mechanical services companies that reside in or
are embedded in a customer’s facility. These services serve as a stable base of work on a
daily and weekly basis, are typically performed on time and materials agreements, and
often carry a lower margin than turnaround maintenance and expansion work.
Planned turnarounds (in refineries and petrochemical facilities) or outages (in power
plants) consist of scheduled, large-scale maintenance activities wherein an entire process
unit is taken off-line for comprehensive maintenance, revamp, and renewal. While
industry-specific terminology varies, the fall and spring seasons are the traditional
turnaround seasons when lower demand justifies equipment being taken off-line
temporarily as opposed to summer and winter seasons where facilities run 24 hours a day,
seven days a week. These regularly scheduled plant turnarounds are necessary to
minimize unexpected repairs and downtime of critical process equipment that can occur
with equipment failure. While the frequency of turnarounds can vary by facility type,
equipment age, and operator, a typical plant schedules turnarounds every two to five
years. However, it is not unusual for a plant operator to stage turnaround activities by
processing unit or type of equipment, so as to avoid having the entire facility shutdown at
one time, which results in a consistent flow of work for mechanical service providers.
During a turnaround, mechanical service firms flex their employee base at the site, which
can exceed 500 people for a large turnaround. Similar to routine maintenance, these
services are often performed on a time and materials basis, but command higher margins
due to added complexity and the timeliness in which work must be performed to limit
plant downtime.
Mechanical Services
Appendix A: Exhibit 2
Service Categories
Routine Maintenance Project Maintenance Capital Projects
Daily / weekly maintenanceoperations performed byembedded outsourced serviceproviders
Medium and large scalemaintenance operations thatoften require equipment to betemporarily taken offline every 1– 3 years
Upgrades, expansions, newconstruction, and capitalprojects scheduled on an as-needed basis
Outsourced services performed by industrial services providers can be sub-divided into
three categories that vary in scope and frequency.
Services Categories
Description
Time & Materials (“T&M”) T&M / Lump Sum Lump SumTypical
Structure
Low Medium HighMargins &
Perceived Risk
Harris Williams & Co. Infrastructure Services | Spring 2017
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Electrical contractors within the industrial services sector provide engineering and
construction, fabrication, installation, and maintenance services to electrical systems and
equipment. These services typically encompass a wide array of maintenance services and
capital projects to numerous end markets, including electrical systems for refinery capacity
expansions, new petrochemical plants and expansions, LNG export facilities, oilfield
electrification, offshore oil and gas rigs and platforms, power generation facilities,
renewable energy resources, and many other process facilities in related markets. Electrical
systems in these facilities require significant ongoing maintenance to control, lighting, and
power systems and must be performed by specialized contractors to ensure the safe and
efficient operation of facilities.
Electrical Services
Appendix A: Exhibit 3
Mechanical Services
Key Services Description Key Players
Routine Maintenance
Smaller scale, regularly scheduled maintenanceperformed by resident outsourced service providersenergy infrastructure equipment throughout acontinuous process facility.
Turnarounds & Revamps
Planned, periodic shut down (total or partial) of aprocess unit or plant to perform maintenance, overhauland repair operations, and to inspect, test, and replaceprocess materials and equipment.
Facility Design & Construction
Services focus on constructability and maintainability offacilities and operations across process industries andother industrial and commercial applications.
Piping and Plumbing
Provide piping and plumbing system installation andintegration in addition to welding services associatedwith construction and maintenance.
HVAC Full service design, construction, and ongoing
maintenance of heating, ventilation, and air conditioningsystems.
Other Services Include cold cutting, isolation of lines and pipes for hot-
work, hydrotesting services on welding and bolts, andhot tapping and line stop services.
In addition to turnarounds, mechanical service providers specialize in facility construction
and expansion, which occurs when a facility needs to upgrade a unit or expand its
capacity. This work is often contracted in a lump sum structure that can introduce
execution risk for the service provider, but experienced firms often mitigate these risks
through effective planning and estimating, and can reap higher margins as a result. The
mechanical services market is dominated by large, national providers and is in the midst of
an ongoing consolidation trend as privately-held businesses begin to explore transition
opportunities.
Harris Williams & Co. Infrastructure Services | Spring 2017
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The electrical services market is highly-fragmented with several large contractors gaining
scale and market share through the acquisition of smaller regional or “mom and pop”
operations across the country. Large industry participants include Quanta Services,
Ardent Services, EMCOR Group, and MMR Group, and several smaller providers with a
nationwide presence, diverse end market exposure, wide service offerings, and skilled
labor pools.
Unit Substation acts as an electrical control center in an industrial facility.
Substation is connected to electrical control systems.
Cable trays take cable from the substation to process unit.
Conduit duct banks connect to process unit.
Conduit and cable connect to control stations, lighting, electric motors, etc.
1 2 3 4 5
Appendix A: Exhibit 4
Sample Electrical Instrumentation Process FlowTypical Electric Systems Flow in an Industrial Process Facility
Exhibit 5
Electrical Services
Key Services Description Key Players
Electrical and Instrumentation(“E&I”) Systems Installation and Repair
Typically ongoing, daily maintenance services including repair,upgrades, and installation services for electrical infrastructurewithin process facilities, including conduit trays, other associatedcable trays, switchgear repair, calibration services, among others.
Electrical Systems Design
Computer modeling and engineering planning to design theproper locations of electrical systems and components around afacility.
Electrical Systems Inspection and Testing Services
Inspection and testing services that ensure equipment andsystems function properly at anticipated capacities without riskto other systems.
Substation Repair and Construction
Repair and construction services for electrical substations, whichtransform voltage along T&D systems from high to low, or viceversa, to control the transportation of electricity.
Unit Substation acts as an electrical control center in an industrial facility.
Substation is connected to electrical control systems.
Cable trays take cable from the substation to process unit.
Conduit duct banks connect to process unit.
Conduit and cable connect to control stations, lighting, electric motors, etc.
1 2 3 4 5
Unit substation act as as an
electrical control center in an
industrial facility.
Substation connected to
electrical control systems.
Cable trays take cable from
the substation to process
unit.
Conduit duct banks connect
to process unit.
Conduit and cable connect
to control stations, lighting,
electric motors, etc.
Harris Williams & Co. Infrastructure Services | Spring 2017
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The industrial cleaning market’s core services include hydroblasting, industrial
vacuuming, chemical cleaning, and tank cleaning, among other specialty services, which
are necessary to improve or sustain the operating efficiencies and extend the useful lives of
process equipment and facilities through routine daily maintenance and turnaround
programs. Hydroblasting and industrial vacuum services represent the two largest
segments of the cleaning market and have seen substantial technological development
over the last five years, including increased automation and engineered safety systems.
For example, in an effort to create a safer environment and capitalize on increased
efficiency, speed, and quality, many service providers are moving to automate
hydroblasting services, which minimizes risk to employees and helps shorten cleaning
projects.
Industrial cleaning companies typically provide services to a wide range of process
industries, including hydrocarbon processing (petrochemical and refining), the electric
utility industry, and upstream oil and gas industry, among others. The industrial cleaning
market is highly fragmented with a few large, national providers comprising a large
portion of the market, while smaller regional and local companies make up the broadest
segment of the landscape. Industrial cleaning providers typically perform ongoing daily
maintenance within a facility, utility territory, or oil and gas field, as well as large-scale
projects such as turnarounds. Given the larger role these outsourced service providers
have taken, maintenance is no longer simply a necessary expense, but rather a strategic
contributor to the plant’s productivity. This has driven greater use of outsourced
maintenance and cleaning services to handle the more significant environmental, safety,
and reliability requirements of complex plants and infrastructure. Further, cost-cutting at
large process facilities has focused on supply chain management as a tool to consolidate
vendors, which will continue to favor the larger providers that have the requisite ability to
offer bundled services, a nationwide footprint, and leading safety and training programs.
Industrial Cleaning
Appendix A: Exhibit 6Industrial Cleaning
Key Services Description Key Players
Hydroblasting High-pressure, sometimes automated, water washing of
interior and exterior surfaces, process configurations,heat exchangers, and other vessels.
Industrial Vacuuming
Liquid vacuum services consist of the removal andtransportation of various liquids, while air movingvacuum services include a wide range of materials fromfine powder to concrete.
Chemical Cleaning The cleaning of equipment using chemical mixtures to
loosen, dissolve, and remove materials from equipment.
Tank Cleaning Cleaning of storage tanks to allow inspection and
maintenance activities and the removal of hazardousmaterials from inside the structure.
Harris Williams & Co. Infrastructure Services | Spring 2017
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Multi-Craft and Other Trades
Multi-craft services address a wide range of service specialties for energy infrastructure.
These services are involved in the majority of maintenance and capital projects on-site and
are traditionally contracted to both large national players and a vast network of regional
firms with smaller service offerings. Multi-craft services include scaffolding, refractory,
crane / heavy haul, specialty welding, testing & inspection, painting, blasting, insulation,
and fireproofing, among others.
Scaffolding
Industrial facilities use scaffolding systems that provide closer access torepair equipment and perform routine maintenance activities, unplannedrepairs, and major pre-planned turnaround projects.
Larger scaffolding projects involve engineering designs to comply withOSHA standards and require qualified personnel with expertise inscaffolding assembly in harsh and dangerous environments and facilities.
Erecting and dismantling industrial scaffolding typically requiresconsiderably more technical expertise than commercial scaffolding.
Refractory
Refractory contractors provide installation and maintenance services across awide variety of processing industries and traditional materials includecastables, brick, mortar, refractory anchors and plastics, grouting, and other,usually nonmetallic, natural and synthetic materials.
Refractory products are exposed to temperatures of up to 2,000 degreesCelsius and require regular maintenance in today’s high utilizationenvironment across process industries.
Crane / Heavy Haul
Industrial crane / heavy haul services providers serve the refining,petrochemical, power, and oil & gas markets, among many other industrialand commercial markets.
Crane services are typically billed for on-site time on daily or hourly ratesand are used for large capital projects (turnarounds) and on a recurring basiswith ongoing maintenance and repair operations.
Equipment types include gantry lifts, boom truck cranes, rough terraincranes, all terrain cranes, and crawler cranes, among others.
Specialty Welding
Welding services are an integral part of turnaround and maintenanceservices at refineries, petrochemical plants, and power plants.
These services require highly-skilled labor forces to perform quality weldingservices on everything from revamps and upgrades of piping systems toheavy wall pressure vessels, exchangers, and tower services.
Testing & Inspection
Testing services encompass a wide variety of solutions to ensure processindustry code and specification compliance.
Services include visual inspection liquid penetrant, magnetic particle,radiographic, ultrasonic, and acoustic emissions tests.
Advances in testing technologies have allowed for more advancedtechniques such as eddy current inspections for crack detection andconductivity measurements, digital radiography for live inspections ofpiping systems, and automated ultrasonic systems for scanning duringturnarounds and maintenance.
Other Services Specialty painting and blasting. Insulation and fireproofing.
Appendix A: Exhibit 7Other Trades
Representative Other Trades Key Players
Harris Williams & Co. Infrastructure Services | Spring 2017
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Appendix B: Top 50 Infrastructure Projects
Harris Williams & Co. Infrastructure Services | Spring 2017
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Appendix B: Exhibit 1
Top 50 Infrastructure Projects as Named by the Trump Administration
Major Administration Infrastructure Projects
Project Name Market(s) Served DescriptionAnticipated
Spend
1) Second Avenue Subway Transportation NYC subway expansion $14,200
2) Gateway Program Transportation Reconstruction of rail infrastructure 12,000
3) Texas Central Railway Transportation High speed rail between Houston and Dallas 12,000
4) NextGen Air Traffic Control Aerospace Replacing outdated radar systems 10,000
5) DC Union Station Expansion Transportation Modernization of Union Station 8,700
6) 15 Bridges on I-95 Transportation Repair of bridges in Philadelphia 8,000
7) Maryland Purple Line Transportation 16 mile light rail 5,600
8) Chokecherry and Sierra Madre Wind Energy Power Generation 1,000 turbine wind farm in Wyoming 5,000
9) Atlantic Coast Pipeline Midstream Energy Interstate gas pipeline in VA, NC, and WV 5,000
10) Gordie Howe International Bridge Transportation New bridge connecting Detroit and Ontario 4,500
11) Hydroelectric Plants Power Generation Replacing outdated turbines 4,000
12) Locks and Dams 52 and 53 on the Ohio River Maritime Repair of critical barge infrastructure 3,000
13) Project Clean Lake Wastewater Seven new water tunnels in Cleveland 3,000
14) TransWest Express Transmission Transmission & Distribution Regional electric transmission system 3,000
15) MBTA Green Line Transportation Extension of Boston transit 3,000
16) Cotton Belt Line Rail Transportation Commuter train between Dallas and Fort Worth 2,800
17) The Brent Spence Bridge Transportation Reconstruction of infrastructure 2,500
18) Plains and Eastern Electric Transmission Lines Transmission & Distribution Building of a 720 mile transmission line 2,500
19) Champlain Hudson Power Express Transmission & Distribution Renewable power transmission 2,200
20) Red and Purple Line Modernization, Chicago Transportation Reconstruction of metro lines 2,100
21) National Research Lab for Infrastructure Infrastructure Broadly R&D center for infrastructure 2,000
22) Seattle Airport Expansion Aerospace Expansion of Sea-Tac's airport 2,000
23) Upper Mississippi Locks 20-25 Maritime Repair of river locking system 1,800
24) St. Louis Airport Aerospace Expansion of international terminal 1,800
25) Upper Ohio River Improvements Maritime Improvement of key dams 1,700
Harris Williams & Co. Infrastructure Services | Spring 2017
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Project Name Market(s) Served DescriptionAnticipated
Spend
26) I-95, North Carolina Transportation Repair of major interstate $1,500
27) Mississippi Rive Dredging Maritime Dredging to accommodate deep-draft vessels 1,000
28) Chicago Union Station Redevelopment Transportation Repair of Union Station 1,000
29) Colorado I-70 Transportation Widening of I-70 in Colorado 1,000
30) Colorado I-25 Transportation Widening of I-25 in Colorado 1,000
31) Kansas City Airport Aerospace New business terminal 972
32) Monogahela River Maritime Improvement of key dams and locks 900
33) IHNC Lock Replacement Maritime Replacement of key New Orleans lock 893
34) South Carolina Dams Environmental Accelerated repairs of 600 dams 850
35) I-93 Rebuild Transportation Widening of I-93 in New Hampshire 800
36) I-395 / I-95 Reconstruction Transportation Reconstruction of major Florida interstates 800
37) Savannah Harbor Expansion Maritime Deepening of the Savannah port 706
38) The Peace Bridge Transportation Repair of international crossing 700
39) Illinois River Locks Maritime Repair of river locking system 640
40) Augustin Plains Ranch Environmental Underground water storage in New Mexico 600
41) Soo Locks Reconstruction Maritime Replacement of key lake locks 580
42) M-1 Rail, Detroit Transportation Local rail 528
43) Port Newark Container Terminal Transportation Port expansion and improvements 500
44) Howard Street Tunnel Transportation Tunnel height expansion 425
45) Chichamauga Lock Maritime Replacement of key river lock 383
46) Huntington Beach Desalination Environmental Creation of additional water supply 350
47) Cadiz Water Conveyance Environmental Capture and preserve rain water in the Mojave 250
48) Arlington Memorial Bridge Transportation Bridge repair 250
49) Lake Pontchartraun Bridge Transportation Bridge repair 125
50) Energy Storage and Grid ModernizationPower / Transmission &
DistributionUpgrade of national energy infrastructure Unknown
Appendix B: Exhibit 1 (Continued)
Top 50 Infrastructure Projects as Named by the Trump Administration
Major Administration Infrastructure Projects
Harris Williams & Co. Infrastructure Services | Spring 2017
Page | 29
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