In this blog post, we will learn the differences between brownfield and greenfield projects.
The term brownfield vs Greenfield is often heard during project implementation. This is a very important term in the oil and gas industry. However, the terms greenfield” and brownfield are widely used not only in the oil and gas industry but also in many industries such as IT, construction, manufacturing, construction services, etc. In general, both of these terms refer to any project type.
Table of Contents
Brownfield Project
A brownfield project is a project where some work has already been done. The site has already been partially developed with the necessary infrastructure. The new development will begin by considering the existing old work. In the context of oil and gas, new expansion projects, reconstruction projects, and profitability improvement projects are referred to as brownfield projects.
Greenfield Project
The Greenfield project starts from scratch. The site has not been developed and the infrastructure required for the project is usually not provided. So a new project starts from scratch. In the case of oil and gas, completely new projects in undeveloped areas, such as the construction of new refineries or the construction of chemical or petrochemical plants, are greenfield projects.
Brownfield Vs Greenfield Project
| Brownfield Project | Greenfield Project |
|---|---|
| The space is very limited which creates difficulty in further future development. In this type of project finding the required plot size could be difficult. | In this type of project, space is sufficient. Future extension of the project can be done easily. |
| Easy Accommodation for workers. | Accommodation could be slightly difficult so, must be built beforehand. |
| Easy access to local suppliers. | Limited local suppliers in undeveloped locations. |
| There is a lot of demolition work. | No demolition because it’s a new project. |
| There is no restriction from local authorities or government. | Greenfield Projects can face governmental restrictions if deforestation or similar environmental issue arises. |
| Local intervention can postpone projects. | Very low chances of local interference. |
| Brownfield projects localize communities in a limited congested region. | It is a completely new project and proper planning is done to reduce traffic and congestion with a more pleasant environment. |