Study calls for $202 billion spend on natural gas infrastructure

A study by the Interstate Natural Gas Association of America (INGAA) says that the US and Canada will have to spend $8.2 billion a year between now and 2035 to take advantage of new natural gas supplies. The Washington-based trade group that represents gas pipeline companies, said that the $205 billion will be needed for pipelines, processing, storage and compression.

The study assumes US economic growth of 2.8 per cent per year, crude oil prices averaging about $80/bbl in real terms, US population growth averaging about 1 per cent per year, and electric load growth averaging 1.3 per cent per year. The reference case also projects real gas prices will rise from $4 to $6-7/MMBtu by 2035, high enough to encourage significant gas supply development, but not so high that it limits market growth significantly.

Total US and Canadian shale gas production is expected to grow from 13 bcfd in 2010 to 52 bcfd by 2035.