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Continued midstream infrastructure development expected after market rebound

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The INGAA Foundation has released its report, North American Midstream Infrastructure – A Near Term Update Through 2025, which shows the oil and gas markets should rebound and lead to further midstream infrastructure development.

The report was developed for the Foundation by ICF, a global consulting and digital services provider. It examines how the COVID-19 pandemic has affected oil and gas markets and midstream infrastructure, and how those impacts will ease over the next five years.

As the effects of the pandemic subside, ICF’s analysis indicates that markets will rebound as demand returns. Domestic natural gas use is expected to rise to an average of roughly 87.5 billion cubic feet per day in 2025 (about 3.6 percent above the 2019 level).

Exports are also expected to increase again, especially through pipelines to Mexico and LNG terminals serving world markets, prompting further infrastructure development.

“The pandemic has no doubt slowed the pace of infrastructure development as demand for natural gas and oil were impacted globally, but this report shows that will change as markets rebound,” said Tony Straquadine Jr, executive director of the INGAA Foundation.

He added: “The industry is well-positioned to respond to the needs and challenges outlined in this report as domestic demand and export capacity return to the trajectory we saw entering 2020.”

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