2023-06-07 19:23:11 ET
The buildout of natural gas infrastructure has not kept pace with rising demand for the commodity, Williams ( NYSE: WMB ) President and CEO Alan Armstrong warned Wednesday, echoing views expressed by pipeline operators that have invested in expanding natural gas storage facilities.
Demand for U.S. gas including exports jumped 56% from 2010 to 2022, Armstrong said, citing data from S&P Global Commodity Insights, while, U.S. pipeline capacity increased 27% and storage delivery capacity added just 12%, according to Williams' ( WMB ) analysis of U.S. Energy Information Administration data.
"That is a recipe for disaster if you think about how much we're leaning on this old infrastructure and not allowing ourselves to expand it because of regulatory and environmental opposition," the CEO told the Reuters Global Energy Transition conference, as reported by S&P Global Platts. "Eventually we're going to have ourselves in a crisis."
Building pipeline capacity also would have the added benefit of reducing reliance on heavier hydrocarbons like fuel oil during times of peak demand in gas-constrained regions such as New England, Armstrong said.
More on Williams:
- Financial and valuation comparison to sector peers
- Analysis: The Williams Companies Falls Short Despite A Long Dividend History
- Stock price return: Down 2.5% YTD, down 17% in the past 12 months
For further details see:
Slow pace of U.S. gas infrastructure buildout a coming 'crisis,' Williams CEO says