INGAA: US/Canada Needs to Spend $44B/Year on Pipelines Thru 2035

A newly published study by the Interstate Natural Gas Association of America (INGAA) Foundation is raising eyebrows. The study, titled “North America Midstream Infrastructure through 2035” (full copy below), says the United States and Canada together will need to invest a total of $791 billion, or an average of $44 billion per year, from 2018 to 2035, to build new natural gas and oil pipelines (and associated infrastructure). That is some serious cash! The study makes certain assumptions, like this one: “Because production costs are relatively low in the Marcellus and Utica compared with production costs elsewhere, the study anticipates both production and infrastructure needs related to natural gas will be focused in the U.S. Northeast.” Meaning a lot of the money to build pipelines will go to our region. And this: “The study estimates about 25 billion cubic feet per day of new capacity to move Marcellus and Utica supplies to consumers and export facilities through 2035.” Whoa! According to the updated EIA Drilling Productivity Report issued on Monday, the Marcellus/Utica region will produce 28.9 Bcf/d of natural gas in July. Another 25 Bcf/d on top of that (essentially doubling current production) means by 2035 our region will produce over 50 Bcf/d of natgas. Incredible! No wonder we need more pipeline investment. Here’s an overview, along with a copy of the full study…

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