Shale Gas Pipeline Costs Have Tripled in Past Seven Years, Marcellus Pipelines Cost the Most

Shale gas pipelines have skyrocketed in price in recent years, according to a new report by Ziff Energy.

Shale gas pipeline construction costs in 2011 have tripled compared to 2004 prices to almost $200,000 per inch-mile for new projects, according to a report by Ziff Energy Group .

Calgary-based Ziff Energy reviewed new natural gas transportation infrastructure in the seven North American shale gas regions: Marcellus, Eagle Ford, Haynesville, Barnett, Woodford, Fayetteville and Horn River.

The Marcellus region in Pennsylvania was the most expensive, averaging about $300,000 per inch-mile. Gas analyst and the report’s lead author Julia Sagidova said the pipelines generally run 120 miles with a diameter between 24 and 36 inches, bringing the price of a new pipeline to $500 million.*

*Houston Business Journal (Jun 30, 2011) – Report: Shale pipeline costs triple since 2004