The dominant pipeline market in natural gas will always be regional, but companies’ strategic sights increasingly will be global, as the geographic dislocation of reserves to market is partly mitigated by new ways of linking stranded fields and customers, according to a report released on Wednesday by PricewaterhouseCoopers (PWC).

For some companies, integration will be vital, while others may choose to become specialists. Whatever the scenario. “control of costs, innovation and successful customer management” will be key, according to “Going Global: Change and Challenge in the Gas Market.” The report was put together by analysts with PWC’s Global Energy and Utilities Group.

The largest markets for natural gas, Europe and North America, will become more dependent on imports as indigenous reserves are depleted, noted the PWC analysts. “The U.S., for example, has only around eight years of supplies remaining,” they said, citing a report published in 2002 by the International Energy Agency. “The full potential of gas reserves, however, will depend on the extent to which technology and transport can be successful in bringing remote reserves into cost-effective use.”

Another factor in play is politics, analysts found. “It is estimated that over two-thirds of world gas reserves are in the former Soviet Union, the Middle East and Caspian Sea, while the major consuming areas are Europe and North America. The need for additional infrastructure to connect remote and stranded gas sources with markets will underpin strong growth in the world’s pipeline network.”

One day soon, said the analysts, gas-to-liquid (GTL) technology may even rival oil. “The commercial viability of GTL remains distant, but, given the prize of converting gas into a readily transportable end fuel, the prospect of GTL breakthroughs cannot be discounted.”

For more information on PWC’s outlook for global gas, visit the web site at www.pwc.com/energy. The report may be downloaded.

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