U.S. natural gas infrastructure not keeping pace with demand.(News)

DERWENT, OH -- Demand for natural gas will be substantially higher in twenty years, hut the United States natural gas infrastructure is not adequate to meet this demand, according to a recent study by Basic Systems, a consulting engineering firm that specializes in pipeline and facility design and automation for the natural gas industry. This problem is compounded by the current economic state, which is slowing the pace of improvements--two-thirds of respondents have had capital projects canceled or postponed due to economic concerns.

In Basic Systems' Natural Gas Industry Survey, which was cosponsored by Pipeline & Gas Journal magazine, the firm surveyed individuals involved with the design of natural gas facilities across the United States. Some of the key results include:

* Infrastructure is not on pace to meet future demand. More than three-quarters of respondents (80%) say the U.S. natural gas infrastructure is not on pace to meet future demand. These respondents say this is due to budget constraints, insufficient infrastructure improvements, government/environmental regulations, a lack of pipeline capacity, and insufficient supply. The one-fifth of respondents (20%) that report the U.S. natural gas infra structure is on pace to meet future demand report this is because high gas prices will provide the funding for infrastructure improvements or sufficient capital improvement projects are in the works.

* Two thirds of respondents have had capital projects canceled or postponed due to economic concerns. Almost one half (48%) of respondents say they have projects that have been postponed due to economic concerns, while almost one fifth (18%) say they have projects that have been canceled. Of the respondents that have projects canceled or postponed. 51% say this makes it difficult to keep up with demand. About one-third (34%) of respondents report that despite economic concerns, their projects are still a go.

Tom Stemmer, senior project manager at Basic Systems, says, "From what we've seen, a large percentage of the dollars currently being spent on ...