Investment Incentives Must Grow With Capacity Demand

摘要

Despite vast U.S. shale gas resources and technological advances making recovery economically feasible, an absence of incentives supporting the usual investment model in which a company builds, owns and operates new pipelines - supported by long-term contracts for capacity - is hampering construction. This is according to an analysis from the law firm of White & Case which added that the lack of coordination between the gas and power sectors has hampered demand for long-term capacity among gas-fired electric generators - a major source of growth. "The United States has a golden opportunity to become a powerhouse in global energy markets, but that path is far from assured without a major expansion of the long-distance pipeline network," said Daniel Hagan, head of the Energy Markets and Regulatory Practice division at law firm White & Case.