2018 CCF Victorian Infrastructure Outlook Report 1 | Page 29
Recreation infrastructure construction is projected to
ease over the next few years (driven mainly by the private
sector). Meanwhile (non-water) pipelines infrastructure
construction has historically been volatile between $100
million and $350 million. However, neither segment would
see upswing in activity, as there are no significant projects
expected to be on the horizon over the medium term.
Mining and Heavy Industry Construction
Mining and heavy industry in Victoria does not account for
a substantial portion of overall engineering construction
activity like other resource rich states. The majority of
engineering activity within the state is within the oil and
gas subsector, which accounted around 75 per cent of the
total mining and heavy industry work done in 2015/16. In
the previous five-year period, projects that contributed to
oil and gas engineering construction included the BHP’s
Longford Gas Conditioning Plant, the Kipper Gas Field
Project and Turrum Project.
The relative dominance of the oil and gas sector in the
medium term and limited projects in the other segments
that contribute to Mining & Heavy Industry means that
total activity is expect total to be volatile over the next
five years. The coal sub-sector has declined considerably
from the previous five-year period as activity settles at
around $70 million annually. Overall, total Mining and
Heavy Industry is forecast to average around $600 million
in the medium term, below the $950 million averaged in
the five years prior.
Figure 2.7: Victorian Engineering Construction, $Billion, 2014/15 Prices
Mining and Heavy Industry Construction Sectors
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