Shale gas market to triple by 2020, lead to more midstream investment - report
Infrastructure investments for the shale gas industry are growing amid rising global demand for natural gas, with current levels likely to triple by 2020 to reach 12.6TcF (trillion cubic feet), according to a new report from energy research firm SBI Energy.
In the US, shale gas production increased at an annual rate of 48% from 2006 through 2010, reaching 4.8Tcf and representing 23% of the total US natural gas production.
After several prudent years due to uncertainty regarding reserve estimates and production-related risks, shale gas processing assets are now regarded as an attractive form of investment, the report says.
An increase in gas and natural gas liquid products from these shale plays over recent years has led to billions of dollars worth of investments in gas processing infrastructure.
"Investments in shale gas from the midstream sector reached over $7.7 billion in shale gas processing infrastructure, including $3.8 billion plus spent on equipment and components alone in 2010," said Shelly Carr, publisher of SBI Energy. "This market is being driven by a growing demand for natural gas."
The current market for shale gas processing equipment and components is limited to the North American continent, specifically in the US and Canada.
While the US market has grown exponentially over the past five years, production increases are also occurring in Canada, where unconventional gas accounted for 25% of the country's natural gas production in 2010.
"Since technological advancements have made shale gas production economically viable, all major natural gas producers in North America have turned their attention to shale plays," added Carr.
The report, entitled “Shale Processing Equipment and Component Manufacturing Markets Worldwide”, contains comprehensive data on the gas processing equipment and components market, as well as segment forecasts through 2020.
It also analyzes key trends and profiles major manufacturers and product end-users.
For more details on the report, click here.
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