|Title:||United States gas utility expenditures in dollars for 2008 to 2011, and forecast for 2012|
|Source:||Pipeline & Gas Journal|
Start of full article - but without data
U.S. GAS UTILITY EXPENDITURES, 2008-2012
Estimated Spending ($XXX) 2012 2011 2010
New Construction X,XXX,XXX X,XXX,XXX X,XXX,XXX XRs X,XXX,XXX X,XXX,XXX X,XXX,XXX
TOTAL XX,XXX,XXX XX,XXX,XXX XX,XXX,XXX
Estimated Spending ($XXX) 2009 2008
New Construction X,XXX,XXX X,XXX,XXX XRs X,XXX,XXX X,XXX,XXX
TOTAL XX,XXX,XXX XX,XXX,XXX
The nation's natural gas distribution industry delivers gas to the homes or places of business of more than XX million customers every day. These customers consumed approximately XX.X Tcf of gas in 2010. Some X.X million miles of pipeline of varying sizes and pressures are used to transport natural gas annually from the wellhead to customers throughout the U.S.
In 2010, XX% of the natural gas consumed in the U.S. was produced in the U.S., the remaining gas supply came from Canada (XX.X%) with X.X% imported as LNG. Approximately XX% of the natural gas used in the U.S. is delivered to residential customers for heating, cooking and other domestic needs.
Natural Gas Outlook
According to the Energy Information Administration's Annual Energy Outlook, the United States possesses X,XXX Tcf of potential natural gas resources. Natural gas from shale resources, considered uneconomical just a few years ago, accounts for XXX Tcf of this resource estimate, more than double the estimate published last year. At the 2010 rate of U.S. consumption (about XX.X Tcf per year), X,XXX Ycf of natural gas is enough to supply the U.S. for more than XXX years. The Outlook reports that shale gas resource and production estimates increased significantly between the 2010 and 2011 and are likely to increase in the future.
According to the report, the EIA expects marketed natural gas production to average XX Bcf/d in 2011, a X.X Bcf/d (X.X%) increase over 2010. The entirety of this growth is coming from increases in onshore production in the lower XX states which will more than offset a steep year-over-year decline of over X.X Bcf/d (XX%) in the federal Gulf of Mexico (GOM) and a small decline in Alaska. EIA predicts that overall production will continue to grow in 2012, but at a slower pace, increasing X.X Bcf/d (X.X%) to an average of XX.X Bcf/d.
The EIA Outlook notes that growing domestic natural gas production has reduced reliance on natural gas imports and contributed to increased exports. EIA expects that pipeline gross imports of natural gas will fall by X.X% to X.X Bcf/d during 2011 and by another X.X% to X.X Bcf/d in 2012. Projected imports of LNG fall from X.X Bcf/d in 2010 to X.X Bcf/d in 2011 and to X.X Bcf/d in 2012. Pipeline gross exports to Mexico and Canada are expected to average X.X Bcf/d in 2011 and X.X Bcf/d in 2012, compared with X.X Bcf/d in 2010.
The report points out that the Henry Hub spot price averaged $X.XX per MMBtu in September 2011, XX cents lower than the August 2011 average. EIA projected Henry Hub spot prices to fall further in October before rising above $X per MMBtu in December.
EIA expects the average Henry Hub price in 2012 to be $X.XX per MMBtu.
As of February XX, 2010, LDCs were required to establish a Distribution Integrity Management Program (DIMP). Local distribution companies had until August X, 2011 to write and implement their program.
The DIMP regulation requires all jurisdictional gas distribution pipeline operators (i.e., local gas companies) to develop, write, and implement a natural gas distribution system integrity management program that demonstrates the following elements:
Knowledge of the pipeline system
Identification of system threats and the risk associated with those threats
Evaluation and ranking of risks
Identification and implementation of measures to address risks
Provisions for plan measurement and performance, monitoring of results, and evaluation of effectiveness
Provisions for program improvement
Provisions for program reporting
Also under Federal Pipeline Safety Regulations XX CFR XXX.XXX, LDCs are required to install an Excess Flow Valve on all new and renewed service lines that serve only one single-family residence.
Strong demand, regulatory and legislative changes are seen as drivers for near-term LDC spending. For this reason, Pipeline & Gas Journal's latest survey figures indicate gas utility spending to serve new customers, and rehabilitate, repair and replace the nation's X,XXX,XXX miles of distribution mains and XX,XXX,XXX services, meters, valve, regulators, cathodic protection, SCADA networks and peak-shaving facilities will total approximately $XX,XXX,XXX,XXX in 2012, compared to $XX,XXX,XXX,XXX this year.
Distribution Mains And Service Lines
Natural gas distribution mains and service lines are composed of several different pipe materials as systems were constructed during the XXth and XXth Century. As of December XX, 2009 plastic and steel pipe made up approximately XX% of the mileage of natural gas distribution pipelines. The remaining X% is primarily iron pipe, either cast iron or ductile iron.
According to the Pipeline and Hazardous Materials Safety Administration (PHMSA): At the end of 2004, XX,XXX miles of cast iron main were remaining in natural gas distribution service compared to XX,XXX miles of cast iron main as of the end of 2009. The mileage of cast iron mains was reduced by X,XXX miles (XX.X%) over the five year period.
At the end of 2009 cast iron distribution pipelines were operated in XX states.
Fifty percent of the mileage resides in four states: New Jersey, New York, Massachusetts and Pennsylvania.
Eighty percent of the mileage resides in ten states: New Jersey, New York, Massachusetts and Pennsylvania, Michigan, Illinois, Alabama, Connecticut, Maryland and Missouri.
The National Association of Pipeline Safety Representatives (NAPSR) has reported (as of XX responses on X/XX/2011) that XX of the XX states with cast iron mains have cast iron main replacement programs. Of the XX states that contain XX% of the cast iron main mileage (as described previously), Maryland is the only states that does not have a cast iron replacement program. Seven of the eight states (Massachusetts has no projection for completing cast iron replacement) with replacement programs have reported that their replacement programs should be completed by projected dates as follows: New Jersey--XXXX; New York--XXXX; Pennsylvania--XXXX; Michigan--XXXX; Illinois--XXXX; Alabama-XXXX; Connecticut--XXXX; Missouri--XXXX.
Some state pipeline safety authorities have mandated operators replace all or parts of their cast iron systems. Atlanta (XX-year replacement of all cast iron and bare steel, to be completed in 2013) and the District of Columbia (XX-year replacement of the X-inch and XX-inch cast iron pipes, completed in 2004) are two examples. When state authorities mandate the pipe replacement program, operators are generally assured that they will recover their costs through their rate base. If the program is voluntary, the operator does not know if the cost is recoverable until they file a rate case.
Once again, P&GJ surveyed LDC managers for comments on several subjects including pipe replacement programs and the cost of finding and repairing leaky mains. The cost figures and comments from industry participants on these and other topics follow:
Figures provided by survey participates on main costs indicate that X-, and X-inch mains remain widely used in the gas utility industry, accounting for XX-XX% of new main installations in developed areas.
LDCs reported wide use of plastic mains and provide the following as typical per foot installation costs: $X.XX-XX.XX for X-inch; $XX-XX for X-inch; $XX-XX for X-inch; and $XX-XX for X-inch.
While most recipients indicated they no longer used steel mains for new installations, others provided the following as costs for protected steel main installations: X-inch, $X.XX-XX; X-inch, $XX-XX; X-inch, $XX.XX-XX; and X-inch, $XX.XX-XX.
Steel, Cast Iron Replacement
Survey figures indicate that XX% of this year's participants have replacement programs in progress to remove unprotected steel and cast iron in existing system. Although XX% of survey respondents reported no cast iron or unprotected steel in their existing system, those reporting cast iron or unprotected steel in existing systems said they traditionally relied on leak history, location and pipe maintenance and repair history to select mains and service lines for replacement.
Only X% of this year's survey recipients indicated they had not yet started a long-term program to replace bare steel and cast iron in existing systems.
Xcel Energy has had an Accelerated Main Replacement Program (AMRP) in place since 2008. According to the Xcel website, under the AMRP XXX miles of cast iron, bare steel and PVC distribution mains will be removed from the company's system.
In 2012, the company plans to replace approximately XX,XXX feet of PVC mains, XXX,XXX feet of cast iron, and XX,XXX feet of bare steel.
Also, Columbus Gas of Ohio has a $X billion, XX-year program under way to replace bare steel and cast-iron distribution pipe in its system. According to the company website, approximately $XXX million a year is spent replacing main lines and service lines, and another $XX million a year operating and maintaining these lines.