American Gas - October 2011 - (Page 5)

industrynews PeoPle Trends evenTs $8.2 Billion Yearly natural Gas Infrastructure Investment needed The UniTed STaTeS and Canada will require a midstream natural gas infrastructure investment averaging $8.2 billion per year from 2011 to 2035 to accommodate new natural gas supplies, especially from shale production, and the growing demand for natural gas in the power-generation sector, an INGAA Foundation study said. The report, North American Natural Gas Midstream Infrastructure Through 2035: A Secure Energy Future, was conducted for the INGAA Foundation by ICF International. It updates a 2009 report. The $205.2 billion investment that the report said will be required over the next 25 years includes mainlines, laterals, processing, storage, compression and gathering lines. INGAA Foundation President Don Santa, who is also president and CEO of the Interstate Natural Gas Association of America (INGAA), noted that interstate pipeline expenditures met or exceeded $8 billion per year in three of the years between 2006 and 2010, according to Federal Energy Regulatory Commission data. “This is a strong indication that the industry can and will be able to meet the nation’s gas infrastructure of about 1 percent a year and U.S. gross domestic product growth at 2.8 percent per year. Electric load is assumed to increase at an average 1.3 percent a year, while oil prices average about $80 per barrel. Natural gas consumption in the United States and Canada is projected to increase by an average 1.6 percent per year through 2035, with total natural gas use across all sectors projected to rise to about 109 Bcf/d in 2035. Incremental demand growth between 2010 and 2035 is estimated at 35 Bcf/d, of which 26 Bcf/d, or 75 percent, occurs in the power sector. The report says U.S. and Canadian natural gas supplies are expected to grow by 38 Bcf/d, from about 75 Bcf/d in 2010 to about 113 Bcf/d in 2035, which will be enough to meet expanded demand projections in 2033. Unconventional natural gas supplies—shale, coal-bed methane and tight gas plays—account for all the incremental supply as production from conventional areas declines. The report said unconventional supplies will account for approximately two-thirds of the total gas supply mix in 2035. www.ingaa.org/Foundation/ Studies/14904/14889.aspx october 2011 AmericAn GAs REPORT needs,” Santa said. The report said about 43 billion cubic feet per day (Bcf/d) of new transmission capability will be required through 2035, including approximately: 1,400 miles per year of new gas transmission mainline. 600 miles per year of new laterals to and from power plants, processing facilities and storage fields. 16,500 miles per year of new gathering lines. 1.3 Bcf/d per year of new processing capability. The reference case in the report projects real natural gas prices that rise from $4 per million British thermal units (MMBtu) in 2010 to between $6 and $7 per MMBtu by 2035. It also assumes U.S. population growth at an average rate 5 http://www.ingaa.org/Foundation/Studies/14904/14889.aspx

Table of Contents for the Digital Edition of American Gas - October 2011

American Gas - October 2011
Contents
President's Message
In the News
Safety First
To Be the Best
Set to Sell?
2011 Buyers Guide
Marketplace
Places to Be
Noteworthies
Jobline
Advertisers' Index
Facts on Gas

American Gas - October 2011