INGAA: At Least $133 Billion Investment in Natural Gas Infrastructure Needed by 2030

Projected growth in North American natural gas supplies and market growth will require billions of dollars of additional investment in pipeline, storage and other midstream infrastructure through 2030, according to a new study released Oct. 20 by the INGAA Foundation Inc.

“Natural Gas Pipeline and Storage Infrastructure Projections Through 2030” analyzes future natural gas infrastructure requirements under various market scenarios anticipates a range of investment from $133 to $210 billion in infrastructure over the next 20 years (between $6 and $10 billion per year), primarily to attach increased domestic natural gas production from unconventional shale basins and tight sands to the existing pipeline network. Anticipated market growth from the electric generation and industrial sectors as well as the potential to connect vast Arctic resources and LNG supplies to the grid will also be key drivers for additional investment, according to the study.

“The domestic supply picture for natural gas has been redrawn and experts agree we now have more than 100 years of technically recoverable gas in the U.S. and Canada,” said Gary Sypolt, chairman of the INGAA Foundation. “This study spotlights what this sea change in domestic supply will mean for investment in additional pipeline, storage and midstream infrastructure.”

According to the study, by 2030, the U.S. and Canada will need approximately 29,000 to 62,000 miles of additional natural gas pipelines and 370 to 600 billion cubic feet (Bcf) of additional storage capacity, in order to accommodate market requirements. The majority of storage capacity additions are projected to be high deliverability salt cavern storage, which would essentially double current capacity. Insufficient infrastructure development could lead to price volatility, reduced economic growth and diminished delivery of gas supply to consumers who need it most.

Other key conclusions from the study include: