Report projects US, Canadian infrastructure outlays through 2035

The US and Canada will require an average $26 billion/year, or $546 billion from 2015 to 2035, to build new natural gas, crude oil, and natural gas liquids infrastructure, a study commissioned by the INGAA Foundation Inc. concluded.

The report, “North American Midstream Infrastructure through 2035: Leaning into the Headwinds,” was conducted by ICF International for the Interstate Natural Gas Association of America’s foundation that works to advance the use of gas. It updates a 2014 infrastructure report to reflect changes in the gas, NGL, and crude oil industry in recent years.

“We saw a need to reexamine infrastructure needs in light of significantly lower commodity prices,” said INGAA Pres. Donald F. Santa, who also leads the INGAA Foundation. “While exploration and production activity may dip temporarily because of lower prices, we still will need significant capital investment, particularly in natural gas midstream infrastructure.”

Gas transportation systems make up more than 60% of the needed energy infrastructure by 2035, with investments totaling $290-376 billion—$333 billion midpoint—required, the report predicted. They include gathering and transmission pipelines, compressors, laterals, gas-lease equipment, processing, gas storage, and liquefied natural gas export facilities.

Another $137-190 billion of crude oil infrastructure—gathering pipeline, lease equipment, mainline pipeline and pumping, storage laterals, and storage tanks—and $43-55 billion of new gas liquids systems—transmission pipelines, pumping, fractionation and NGL export facilities—will be required in the next 20 years, it indicated.

The midstream investment that the report projected would add $655-861 billion of value to the US and Canadian economies and result in employment of 323,000-425,000 workers/year, the report suggested. While many of the jobs associated with midstream development would be concentrated in the Southwestern and Northeastern US and in Canada, the positive economic impacts would be geographically widespread, it said.

The study also projected $24 billion in capital spending for incremental integrity management and emissions in US and Canadian gas midstream operations over the next 20 years.

“This report shows a vibrant gas market in the future, and this creates the need for additional midstream infrastructure to deliver affordable natural to consumers,” Santa said as the report was released on Apr. 12. “The good news is that the natural gas industry has a proven track record of constructing and financing this level of infrastructure.”

Contact Nick Snow at

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