PIPELINE CONSTRUCTION BOOSTS U.S. NATURAL GAS DELIVERABILITY

Gas pipeline construction is significantly expanding U.S. deliverability, the American Gas Association reports. AGA data show that in 1990 and the first month of 1991 pipeline projects totaling 8,730 miles had been approved or were awaiting approval at the Federal Energy Regulatory Commission and other regulatory bodies or were under construction. The projects could add up to 10 bcfd of pipeline capacity, although AGA pointed out that might not equate to increased throughput.

Feb. 11, 1991

2 min read

Gas pipeline construction is significantly expanding U.S. deliverability, the American Gas Association reports.

AGA data show that in 1990 and the first month of 1991 pipeline projects totaling 8,730 miles had been approved or were awaiting approval at the Federal Energy Regulatory Commission and other regulatory bodies or were under construction.

The projects could add up to 10 bcfd of pipeline capacity, although AGA pointed out that might not equate to increased throughput.

AGA Pres. Mike Baly said, "The approval process for pipeline projects needs to be streamlined. FERC Chairman Martin Allday has made a good start. The government needs to encourage increased exploration on the Outer Continental Shelf, where energy produced in the form of natural gas is twice that of oil.

"And the country needs to consider the environmental and economic effects of energy use. For example, what is the job impact in an area if a natural gas pipeline project is not built?

"Recent exploratory and development drilling have identified new supplies that need access to market areas. Improving access to new gas supplies is one motive for new pipeline construction in areas such as the San Juan, Arkoma, and Black Warrior basins, as well as Mobile Bay off Alabama.

"Another significant motivation for pipeline construction involves expectation of greatly increased demand for natural gas in specific regions, such as southern California and the Northeast." AGA says 10 bcfd of additional pipeline capacity-some in supply areas, some in demand regions, and some long lines-is well along in the process of being added to gas transmission capacity in the U.S. Another 9 bcfd is in various stages of planning or regulatory approval.

"Obviously not all of the projects will be built, nor are all projects additive for the purpose of determining how much capacity eventually will be available to serve supply and demand sectors and therefore, aggregate capacities cannot be attributed to end users," AGA said.

"However, this summary illustrates that significant dollar expenditures and capacity increases are on the horizon for the natural gas transmission industry."