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8 Pages

Gas Pipeline Capital cuts: what does this mean for the market


Gas Pipeline Capital cuts: what does this mean for the market

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. 

What's included?

This report includes 2 file(s)

  • Gas Pipeline Capital cuts: what does this mean for the market PDF - 364.94 KB 8 Pages, 0 Tables, 10 Figures
  • Pipeline unit costs WM format flattened.xls XLS - 243.00 KB

Description

This Gas Markets Insight report highlights the key issues surrounding this topic, and draws out the implications for those involved.

For participants, suppliers and advisors who want to look at the trends, risks and issues surrounding this topic, this report gives you an expert point of view to help inform your decision making.

We provide detailed supply, demand and price forecasts based on our integrated upstream, power, coal and LNG research. Our regional gas experts are based in the markets they analyse, providing comprehensive analyses of regional and global gas markets.

If you want to understand complex gas market dynamics and plan for the future, Wood Mackenzie is the premier resource to help you gain a clear, competitive advantage.

  • Introduction: a techno-economic overview of gas pipelines
  • Pipeline Investment Costs
  • Pipeline unit costs have fallen by over 30% in the last five years
  • The fall in steel prices
    • Pipeline construction trends
    • What does it mean for the gas market?

In this report there are 10 tables or charts, including:

  • Introduction: a techno-economic overview of gas pipelines
  • Pipeline Investment Costs
    • Figure 1: Pipeline unit investment cost breakdown
    • Figure 2: Compressor station unit investment breakdown
  • Pipeline unit costs have fallen by over 30% in the last five years
    • Figure 3: Current European pipeline construction costs
    • Figure 4: Average pipeline (48") construction cost
    • Figure 5: Cost evaluation of major pipeline projects
  • The fall in steel prices
    • Gas Pipeline Capital cuts: what does this mean for the market: Image 6
    • Natural gas pipeline unit costs in the US
    • Compressor station unit costs
    • Gas Pipeline Capital cuts: what does this mean for the market: Image 9
    • Table 1: Summary of Typical pipe costs (Real 2016)*
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