Pipeline Outlook: Studies Indicate Strong Years Ahead

January 2011 Vol. 66 No. 1

Increase
The World Onshore Pipelines Report from Douglas-Westwood forecasts an 11 percent increase in kilometers of pipelines installed over the period 2011-2015, compared to the historic 2006-2010 period. Nearly 74 percent of the associated expenditure is expected to be spent in Asia, Eastern Europe and the FSU and North America. More than 68 percent of this expenditure is expected to be spent on gas pipelines.

According to the report, Asia stands out as the largest forecast market – by both length of pipeline construction and associated expenditure – accounting for $55 billion of forecast capital expenditure.

Douglas-Westwood officials say the forecasting process involved the scrutiny of all announced pipeline prospects on a project-by-project basis. This process resulted in a significant number of announced pipeline projects being “slipped out” of the forecast period. Also, some projects currently expected to go ahead will slip, but likewise some new projects will certainly come to fruition over the forecast period – compensating somewhat for potential project slippage.

In light of the strength of market drivers and the volume of announced projects, Douglas-Westwood expects the onshore pipelines industry to recover strongly and experience substantial and sustained levels of investment over the forecast period.

For more information on The World Onshore Pipelines Report 2011-2015, visit http://www.dw-1.com/shop/shop-infopage.php?longref=547~0

INGAA study
North American pipeline construction is expected to remain strong. Shifts in supply from traditional to unconventional sources are projected to continue to be the key driver of future pipeline construction.

The Natural Gas Pipeline and Storage Infrastructure Projections Through 2030 study, prepared for INGAA by ICF International, analyzes future natural gas infrastructure requirements under various market scenarios and anticipates a range of investments over the next 20 years, primarily to handle increased domestic production from unconventional shale basins and tight sands to the existing network.