The U.S. gas transportation network continued to grow in 2003, although at a slower pace than in 2002.
At least 49 pipeline projects and 9 storage projects were completed during the year, and total U.S. gas pipeline system mileage increased by about 1 percent while overall system capacity increased by slightly more than 5 percent
These and related facts are presented in a special report from the Energy Information Administration (EIA), “U.S. Natural Gas Pipeline and Underground Storage Expansions in 2003.”
The report examines developments in the natural gas pipeline and underground storage industries. It includes a comparative analysis of recent growth and examines development proposed for the next several years.
Pipeline Capacity Additions
Pipeline capacity additions fell by 19 percent in 2003 compared with the record additions of the previous year.
Added mileage fell by 37 percent and pipeline construction expenditures fell 18 percent to $3.6 billion in 2003, well below the $4.4 billion spent in 2002.
There were fewer larger-scale pipeline projects (200 million cubic feet per day or greater) completed during 2003 than in 2002 (21 versus 26), and fewer new laterals (7 versus 17) serving new power generation plants. (A lateral is a smaller-diameter extension from the main pipeline to a new customer or service area).
At least 10 pipeline projects originally slated for development in 2003 were postponed or canceled because a planned power plant customer decided not to go forward with construction. The average gas pipeline project completed in 2003 was 46 miles, compared with 66 miles per project in 2002, and the average capacity addition per project was 6 percent less than in 2002.
Underground Storage Expansions
In 2003, additions to underground storage working gas capacity fell by 27 percent. New and expanded underground gas storage fields added 18.6 billion cubic feet (Bcf) of working gas with daily peak withdrawal capability increasing by 2 billion cubic feet per day (Bcf/d), compared with increases of 26 Bcf and 2.5 Bcf/d, respectively, in 2002.
Reflecting the market’s continuing demand for additional high-deliverability storage, more than 68 percent of new working gas capacity and 83 percent of added withdrawal capability in 2003 was new salt cavern development or expansion.
Import and Export Capacity
There was almost no growth in gas pipeline import capacity from Canada in 2003; only 44 million cubic feet per day (MMcf/d) of new gas pipeline capacity was added at two localized import points between Alberta and Montana. This was the smallest annual increase in Canadian import capacity since 1994.
In contrast, export capacity to Canada and Mexico increased substantially. Export capacity to Canada increased by about 6 percent and to Mexico by almost 25 percent.
Outlook
As of May 2004, there were 122 natural gas pipeline expansion projects in various stages of development with projected in-service dates between 2004 and 2008.
Of these, 38 are expected to be completed in 2004, adding 6.8 Bcf/d of capacity and about 1,033 miles of pipe, substantially less than placed in service over the last two years.
At least 73 underground natural gas storage projects have been proposed for the 2004-2008 period; 26 are new facilities and 47 are expansions to existing facilities. These projects have the potential to add as much as 346 Bcf to existing working gas capacity and 17 Bcf/d to daily withdrawal capability.
Natural Gas Pipeline Capacity Additions, 1998-2004
(Billion Cubic Feet per Day)
*Scheduled.
Source: Energy Information Administration.
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URL: http://www.eia.doe.gov/emeu/plugs/plngp03.html
File last modified: October 26, 2004
