Proposed Pipeline Spending for 2009 Already Totals About $11.2 Billion

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Researched by Industrial Info Resources (Sugar Land, Texas)--Proposed pipeline spending for the U.S. and Canada reaches $11.184 billion for 2009. Several natural gas and petroleum pipeline proposals are already on the drawing boards of several corporations for a construction start-up in 2009. These new pipeline proposals will take the form of expansions and new major pipeline systems that will range from small compressor station unit additions to Spectra Energy's (NYSE:SE) (Houston, Texas) massive $3 billion, 1 Bcf/d Bronco Pipeline.

The $11.184 billion in projected pipeline spending for 2009 will be spread across 96 projects with an average cost of $116.5 million that represent the pipeline segments and supporting pump and compressor stations in 2008 dollars. The majority of the proposed capital representing 78 projects and $9 billion in spending will be concentrated in the natural gas transportation sector with the balance of $2.191 billion going to the crude and refined products transportation sector.

Breaking down the dollars in geographical terms, $6.349 billion will be spent on 63 projects in the U.S., and $4.79 billion will be spent on 31 projects in Canada. There is every assurance that the capital dollars to be expended will grow larger as 2009 approaches and new projects come to light. The top five regions in terms of spending are Western Canada, the Rocky Mountains, Southwest, Southeast and the West Coast. The top five states and provinces in capital dollars are Alberta with $2.19 billion and British Columbia with $1.745 billion in Canada, and Arkansas with $395 million, Texas with $345 million and Georgia with $340 million in the U.S.

The companies that are proposing these projects read like a who's who of the pipeline community. They include Spectra Energy, TransCanada (NYSE:TRP) (Calgary, Canada), Trunkline Gas, WesPac Pipeline, Ozark Gas Transmission, Pembina Pipeline, Questar (NYSE:STR) (Salt Lake City, Utah), Kinder Morgan (NYSE:KMP) (Houston), MarkWest NGS Energy Fund (NYSE:MWE) (Denver, Colorado), Northwest Natural (NYSE:NWN) (Portland, Oregon), Algonquin, Dominion Resources (NYSE:D) (Richmond, Virginia), Enbridge (NYSE:EEP) (Houston), EnCana (NYSE:ECA) (Calgary, Alberta), Foothills Pipeline, Trans Mountain Pipe Line and the El Paso Pipeline Partners (NYSE:EPB) (Houston) subsidiaries Colorado Interstate Gas, Tennessee Gas Pipeline Company and Southern Natural Gas.

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