Insight
Gas Pipeline Capital cuts: what does this mean for the market
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
In the last five years gas pipeline unit costs in the EMEARC region have fallen by almost 30% due to falling steel prices, exchange rate fluctuations and project cost optimisation. Unit costs for land based gas pipelines have fallen from $75,000/inch kilometre to less than $55,000/inch kilometre. This can have an important impact on gas markets, especially at a time when many competing LNG projects are entering the global market place, it will be important for gas pipelines to keep units costs as low as possible, to enable them to compete for global and regional market shares.
Table of contents
- Introduction: a techno-economic overview of gas pipelines
- Pipeline Investment Costs
- Pipeline unit costs have fallen by over 30% in the last five years
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The fall in steel prices
- Pipeline construction trends
- What does it mean for the gas market?
Tables and charts
This report includes the following images and tables:
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Figure 1: Pipeline unit investment cost breakdownFigure 2: Compressor station unit investment breakdownFigure 3: Current European pipeline construction costs
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Figure 4: Average pipeline (48") construction costFigure 5: Cost evaluation of major pipeline projectsGas Pipeline Capital cuts: what does this mean for the market: Image 6Natural gas pipeline unit costs in the USCompressor station unit costsGas Pipeline Capital cuts: what does this mean for the market: Image 9Table 1: Summary of Typical pipe costs (Real 2016)*
What's included
This report contains:
