A new report shows that the average estimated pipeline capital cost in 2014 has doubled since 2007.
The “Pipeline Cost” report released by Ziff Energy, a division of HSB Solomon Associates LLC, analyzes capital costs for new natural gas transportation infrastructure in Canada, the United States and Mexico. Ziff Energy’s pipeline cost database incorporates 10 years of assessment data for more than 180 pipelines.
“The U.S. Northeast is the most expensive region for building new pipelines, with a typical cost 95 percent greater than the North American average,” said Julia Sagidova, Ziff Energy gas analyst and report author. “This higher cost is due to higher steel, labor and construction costs, as well as higher population density. The northeastern region of the U.S. will require huge pipeline infrastructure investments in order to support the growth of low full-cycle cost new natural gas supply in that region.”