Market Need - Transmission Pipelines:

With pipeline replacement cost at a staggering $1.1 million per mile the annual cost of corrosion to the 600,000 miles of gas and liquid transmission pipelines is approximately $7 billion. The demand for natural gas in the United States expected to grow by 18.3% over the next 13 years, and because a majority (68%) of the pipeline network is dedicated to the transmission of natural gas, protecting the new and existing pipeline infrastructure becomes increasingly important. The U.S. Department of Energy estimates that most of the growth within the natural gas market is expected to be concentrated in the southeast region of the United States. This rapid localized growth requires a projected investment in pipeline infrastructure of approximately $34.4 billion to be able to service the growing demand by 2010. The staggering cost of corrosion to the existing pipeline network coupled with the large projected investments to expand the network provide the opportunity to add significant value to the gas and liquid transmission pipeline industry by protecting and monitoring these very expensive infrastructure investments.