There should be a comfortable natural gas supply and demand balance through 2011 in the Pacific Northwest, according to the latest consensus regional outlook published by the Northwest Gas Association, a trade organization of nine major interstate pipelines and distribution utilities in Idaho, Oregon, Washington and British Columbia.

Demand for natural gas will continue to grow over the next five years, but supplies should be adequate from western Canada and the Rocky Mountain region in the United States, according to “The 2006 Northwest Gas Outlook.” Only an extreme peak in demand “could stretch the region’s infrastructure capacity,” said the report, which sees some continued moderation in wholesale gas prices after a continued run-up from 2002 through last year.

Demand growth is projected to increase 2.1% annually over the next five years, with peak load growing more rapidly than baseload, the report said. “This has significant implications for the type of new capacity most appropriate to serve the region’s needs,” according to the gas association’s outlook, which saw customer growth in the region staying brisk.

While the Northwest has good proximity to two major gas producing basins on both sides of the U.S.-Canada border, competition for those resources is increasing, and the report cites as a current example the proposed Rockies Express Pipeline to ship up to 1.8 Bcf/d from the Rockies to Ohio and Pennsylvania.

Eventually, the Northwest will need new supply sources, the report noted, listing liquefied natural gas, Alaskan gas, Canadian frontier and offshore supplies as potential additions. “To ensure supply can keep pace with demand, we must build on recent efforts to encourage exploration, development and production and reexamine the restriction on offshore drilling,” the report concluded.

The Northwest Gas Association members sponsoring the report are Avista Corp., Cascade Natural Gas, Duke Energy Gas Transmission, TransCanada, Intermountain Gas Co., Northwest Natural Gas, Puget Sound Energy, Terasen Gas and Williams.

©Copyright 2006Intelligence Press Inc. All rights reserved. The preceding news reportmay not be republished or redistributed, in whole or in part, in anyform, without prior written consent of Intelligence Press, Inc.