Q2 2010 league tables: Pipeline projects to the fore

The transportation of natural gas has become a major theme in the infrastructure investment universe, as highlighted by the contribution made by two major pipeline projects to the supremacy of energy in InfrastructureInvestor Assets’ sector-focused league table for the second quarter.

Energy was the most active infrastructure investment sector in the second quarter of this year with deals amounting to $17.3 billion globally according to our InfrastructureInvestor Assets database. Transportation was marginally behind, with $17.2 billion of deals completed in the period.

Contributing a total of more than $10 billion to the energy total were two major pipeline projects. In Russia, the first phase of the $7.3 billion Nord Stream gas pipeline reached financial close. Nord Stream is a natural gas offshore twin-pipeline which will run from Vyborg in Russia to Greifswald in Germany and carry 55 billion cubic metres of gas a year when it becomes operational (scheduled for late 2011).

Also contributing strongly to energy’s total deal value was the US’ $3 billion Ruby Pipeline, a 670-mile long natural gas pipeline supplying gas from the Rocky Mountains to western US markets. Ruby, which is backed by fund manager Global Infrastructure Partners, achieved financial close in May.

A third major energy project to reach financial close in the second quarter was Saudi Arabia’s $2.2 billion Riyadh PP11 IPP, which will see the construction of a 1.7-gigawatt gas-fired combined-cycle power generation plant. The project is part of the oil-rich nation’s long-term power production capacity expansion plan.

The $17.2 billion of transport investment was unsurprisingly dominated by roads and toll roads, which accounted for $13.4 billion. Chief among these were: the Birmingham highway maintenance PFI in the UK ($3.8 billion); the LBJ Express I-635 highway project in the US ($2.7 billion); and the M10 Moscow-St Petersburg PPP in Russia ($2.3 billion).