Future Capacity Expansion of Natural Gas Pipelines and Storage in North America

The INGAA Foundation is an organization made up largely of suppliers to the natural gas industry, including manufacturers of linepipe, pipe coatings, compressors, valves and metering equipment. Gas pipelines make up the remainder of the Foundation membership. The Foundation commissioned Energy and Environmental Analysis, Inc (EEA) to perform this study to provide the gas pipeline industry and its suppliers with a realistic outlook for new construction and major maintenance activities related to transmission and storage in North America over the next five years. It is the Foundation’s intent that this study, and possible periodic updates, will help material, equipment and service suppliers meet the demands of the gas industry in an efficient and timely manner.

Scope Of Study
The scope of this study was determined in consultation with a Steering Group drawn from the INGAA Foundation membership. The Steering Group decided that the study would be limited to the next five years rather than the original intent of 10 or 15 years because the planning horizon of suppliers to the gas industry is seldom longer than five years. Another decision made was to include Canada and Mexico in the study because of the increased importance of international trade to the U.S. gas market.

Items covered by the study were to include new and replacement transmission pipe, new and replacement compressor capacity and new storage capacity. Gathering systems were left out because of the difEculty of obtaining information from the many producers and gathering companies building gathering line and because of the expressed interest fiom the pipe manufacturing members of the Foundation that the study concentrate on large-diameter pipe. For similar reasons the study does not include investments in gas distribution systems. Metering and automation investments also were excluded from the study because the Steering Group felt obtaining good information from the pipelines would be difiicult given the uncertainty surrounding transition to the new market structure under FERC Order 636.