Natural gas demand continues to drive worldwidepipeline construction activity.
Tuesday, January 1 2008
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Unprecedented demand for natural gas is helping fuel pipeline construction worldwide. This is reflected in P&GJ's latest worldwide survey figures that indicate 144,096 miles of oil and gas pipelines are under construction and planned. Of these, North American companies are planning, designing and building 46,072 miles of pipelines.
North American Projects
In looking at where significant efforts are under way to expand U.S. natural gas pipeline capacity, the Rocky Mountain states of Colorado, Utah and Wyoming are high on the list. They account for nearly 22% of the total natural gas reserves in the U.S. Pipeline capacity that exports natural gas from Colorado, Utah and Wyoming was 8.489 Bcf/d in 2005. Efforts to increase pipeline infrastructure there are expected to add roughly 1.5 Bcf/d of capacity by the end of 2008.
Another key area is northeast Texas. In Natural Gas Year-In Review 2006, the Energy Information Administration (EIA) notes new pipeline mileage grew by 44% in 2006. This increase in construction activity was primarily driven by the needs of natural gas producers in Colorado and Wyoming and in the Barnett Shale of northeast Texas. Continuing development of new natural gas supplies has increased the need for pipeline capacity from these areas to Northeast and Midwest regional markets.
The EIA report states that almost half--or 21 of the 45--natural gas pipeline projects completed in the U.S. during the year were located in the Rockies or northeast Texas. Projects completed in the Rocky Mountain area accounted for 25% of all new natural gas pipeline capacity (3.2 Bcf/d) installed during the year while those completed in northeast Texas constituted 25% (3.1 Bcf/d).
Following is a discussion of some of the major projects under construction and planned throughout North America. Information is provided in P&GJ's sister publication, Pipeline News'.
North American Construction
One plan to expand capacity from the Rocky Mountain region is a National Fuel Gas Co. proposal to build the $700 million West-to-East Pipeline that would stretch 324 miles from southeastern Ohio to Coming, NY. This is one of several projects under consideration to link up with the Rockies Express Pipeline--one of the largest gas pipelines to be constructed in North America--being developed by Morgan Energy Partners, Sempra Energy and ConocoPhillips to carry gas to eastern markets.
