WORLD PIPELINE CONSTRUCTION PATTERNS SHIFTING AWAY FROM BIG NORTH AMERICAN GAS LINES

Reported here are the results of Oil & Gas Journal's annual pipeline construction survey. Highlights are as follows: The pattern of world pipeline construction has begun to shift away from large diameter gas lines in North America. Total miles of gas pipelines planned this year and beyond show big increases in Europe and Asia-Pacific regions. World products pipeline construction planned in 1992 and beyond shows the largest year to year gain, paced by projects in Latin America. A compilation of OGJ survey responses, industry sources, and published data indicates companies expect to lay more than 14,000 miles of pipeline worldwide in 1992. Spending for worldwide pipeline construction this year is expected to total about $7.8 billion. For 1992 and beyond, total pipeline construction costs are expected to approach $26 billion. Total U.S. gas lines to be completed in 1992 dropped by more than 1,100 miles from 1991's level. After 1992, Canadian gas pipeline construction is likely to experience a similar reversal. Several large diameter U.S. gas projects will start up in first half 1992, notably the Kern River pipeline from Wyoming to California, two large expansions in the San Juan basin, and the Iroquois pipeline to the U.S. northeast.