Demand for Europe’s natural gas transmission infrastructure is increasingly in focus as the continent’s natural gas dependency continues to reach all-time highs. Amid steep year-over-year declines in natural gas production, the continent is increasingly reliant on LNG imports and international pipelines to supply key regions. But key restraints remain in areas where import capacity has insufficient access to growing demand centers. Additionally, emerging demand factors and remote upstream developments amid a push for lower carbon fuels provides a context for midstream infrastructure investment.
We examine the implications for managing the supply of natural gas through Europe to consumers. We examine capital investments, potential, and identify areas where a conflux of issues may lead to a gas transmission system shortfall. We examine regional natural gas transmission capacity and import facility capacities compared to the prospects of domestic supply and growing demand centers. Which areas require additional investment by midstream operators and what are the implications of this for the broader gas dynamics of Europe?
Nearly 10 years after the tidal wave known as the Bakken hit North Dakota, catapulting the state to the second most prolific oil producing state behind Texas and eclipsing production from historically oil-rich states such as Alaska, California and Oklahoma, the region continues to experience growing pains. As a result, companies are busying themselves trying to figure out how many expanded existing systems are needed and how many are designed for open markets. The result of this will be that more infrastructure will be built for all fuels.