It is expected that worldwide investment in fossil fuel infrastructure would fall by 6% in 2025, especially in upstream oil and gas projects. However, it is expected that coal supply investments would rise by around 4%, mostly due to domestic demand being met by China and India.
However, investments in clean energy are expected to exceed $2.2 trillion, which is twice as much as the total amount spent on coal, natural gas, and oil. Despite challenges from increased geopolitical tensions and economic uncertainty, a new report projects that global energy investment will reach a record $3.3 trillion in 2025, with renewable energy technologies drawing twice as much money as fossil fuels.
Major Fossil Fuel Infrastructure Projects in 2025
According to the data available online, the following Major Fossil Fuel Infrastructure Projects in 2025 are either in progress or scheduled for completion in 2025:
Coal:
India-
New Capacity Additions: A number of brand-new coal power plant units are being built or put into service. Among the examples are:
- Khurja Super TPP Unit 1 (Uttar Pradesh)
- Panki T.P.S Unit 1 (Uttar Pradesh)
- Yadadri T.P.S Unit 2 (Telangana)
- Bhusawal T.P.S Unit 6 (Maharashtra)
Stressed Asset Revival: Projects for a few coal power plants that had previously halted are being brought back to life.
New station Proposed: A 4 GW thermal power station is being planned by Mahanadi Coalfields Limited (MCL).
China: In 2024, China approved around 100 GW of new coal-fired power facilities, the most since 2015.
Natural Gas:
India-
- Pipeline Extension: India is adding more than 10,000 kilometers to its network of natural gas pipelines. Of the 33,475 km of pipeline that were permitted, 9,399 km were still being built as of September 2024.
- CGD Network Expansion: To supply natural gas to homes, businesses, and CNG stations, the City Gas Distribution (CGD) network is growing nationwide.
- LNG Terminal Expansion: IndianOil intends to increase the Ennore LNG Terminal’s capacity.
North America
- Plaquemines LNG Plant (USA): This Louisiana-based facility is almost completed and will significantly increase the US’s capacity to export LNG.
- Corpus Christi Plant Expansion (USA): Cheniere Energy will boost its ability to produce LNG by expanding this plant.
- LNG Canada Export Project (Canada): The goal of this project is to transform the country’s natural gas exports.
- The Northern Lights Pipeline Extension (USA): It is a project that aims to improve the Midwest’s gas delivery.
- The Gulf South Pipeline Expansion (USA): It is a project designed to satisfy the growing demand for energy, especially in the Southeast.
- New Gas Pipeline in North Dakota (USA): Intensity Infrastructure and Rainbow Energy are constructing a new gas pipeline in this region.
Global LNG Expansion: The growing demand for LNG is fueling the construction of additional terminals and shipping lanes.
Oil:
Global: In 2025, it is projected that investment in oil production and exploration would decline by 6%.
India: By 2028, it is expected that India’s refining capacity would have grown to more than 300 MMTPA.
Deepwater & Offshore: It is projected that projects like as those in the Gulf of Mexico would increase production capacity, necessitating the development of deepwater drilling technology and a trained labor force.
Oil Sands Production (Canada): The demand for heavy crude oil throughout the world is driving the expansion of Canada’s oil sands projects.
Key Considerations
Clean Energy Dominance- While infrastructure projects for fossil fuels continue, it is projected that worldwide investments in clean energy will double those in coal, oil, and natural gas combined.
Policy and Regulation: Government policies and regulatory frameworks have a big impact on how quickly and what kind of infrastructure is developed using fossil fuels. For instance, if the Trump administration is reinstated in the US, the oil and gas industry may face less regulatory obstacles.
Concerns about Energy Security: Investments in fossil fuel infrastructure, especially in areas like Europe and Asia, are still heavily influenced by energy security.
An outline of the main fossil fuel infrastructure projects scheduled for 2025 is given by this data. It is important to remember that the energy environment is ever-changing, and project timelines and statuses may also vary over time.
Fossil Fuel Investment Trends
- Oil and Gas: It is projected that upstream oil and gas investment would drop by 6%, the first yearly reduction since 2020. This is a result of declining demand and oil prices.
- Coal: To fulfill domestic demands, China and India are expected to drive a 4% rise in investment in the supply of coal.
- Oil refineries: It’s expected that investment in these facilities would drop to its lowest level in ten years.
Regional Focus
- China: China is a major investment in both fossil fuels and renewable energy.
- India: India is a major coal and renewable energy investor as well.
