Infrastructure, regulation, investment and security of supply: A case study of the restructured US natural gas market

In this paper, we discuss the relationship between infrastructure regulation and investment in light of the emerging “security of supply” debate. We approach the subject by surveying the literature of the past two decades, especially examining the interactions among restructuring, regulation, and investment. The empirical section of this paper relies on case studies of the relationship between the regulatory framework for the US natural gas sector and the development of investment in LNG terminals, interstate pipelines, and storage facilities in the US. I find that there is little reason for concern about infrastructure investments, resource adequacy, and supply security.