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