Development of Natural-Gas-Fired Generation Increases in the U.S.

SUGAR LAND--September 2, 2009--Written by Britt Burt, VP Power Industry for Industrial Info Resources (Sugar Land, Texas)--Over the past decade, the development of new natural-gas-fired generating assets has been similar to an amusement park roller coaster ride, in that there have been very high peaks, the lowest of lows, and fast and furious activity from one point to the other. The Power Industry is experiencing a growth period in terms of constructing new natural-gas-fired generating capacity. Since the bottom fell out in 2005, new construction activity for gas capacity has grown at a pace of more than 20% per year, and while we do not expect new construction activity in 2009 to surpass last year, the number of projects under development continues to grow. Right now projects currently on the books for kickoff by the end of the year could represent a 52% increase in construction kickoffs over the previous year.