Q4 2019 pre-FID upstream project tracker: investment propped up by LNG

In September, Russia’s Arctic LNG-2 became the largest LNG project ever sanctioned (by nameplate capacity). The year’s two major LNG FIDs – the other being Mozambique LNG (Golfinho Area) – contribute more than half of the total resource sanctioned and not far off the same proportion of capex. As a result, gas continues to feature strongly, making up 70% of overall sanctioned reserves. Investment continues to be driven by deepwater developments, with over 40% of committed capital, or US$38 billion. Mozambique gas is the biggest individual deepwater investment, but the Gulf of Mexico, Brazil and Guyana continue to dominate in oil. Project sanctions stand at 34 for 2019 – down on 2018 levels but are on a par with 2017. As we approach the end of the year, a few more projects have the potential to get over the line.