Highlight the importance and distribution of natural gas
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Natural gas will remain a significant contributor to the energy portfolio and to economic growth in the United States over the next two decades, playing a key role in meeting low-carbon goals, a new study commissioned by the INGAA Foundation finds.
Conducted by Black & Veatch Management Consulting, the report, “The Role of Natural Gas in the Transition to a Lower-Carbon Economy,” presents a comprehensive analysis of the future role of natural gas and natural gas infrastructure in a greener economy over a 20-year period from 2020 to 2040. The study analyzes and compares two scenarios: a Balanced Future scenario, representing a balance of policy initiatives and market economics; and a Rapid Renewables Transition scenario, representing a transition heavily driven by policy and intended to accelerate the penetration of renewables in power generation.
“This research provides policymakers, key stakeholders and the industry context about the diversity of natural gas’ role in our nation’s economy and how natural gas – and gas pipeline infrastructure – will play an essential role in facilitating the transition to a lower-carbon energy economy,” said INGAA Foundation President Don Santa.
The report’s findings, supported by detailed modeling and industry subject matter expertise, are based on two future scenarios that consider different levels of renewable escalation and how these levels will affect natural gas demand, representing possible paths toward an energy portfolio that is increasingly reliant on renewable energy.
In both scenarios studied, natural gas will play a key role in the transition to a greener economy, and natural gas infrastructure will continue to be needed.
“As demonstrated by this report, America’s natural gas will serve both domestic and global needs for many years to come,” said Santa. “The members of the INGAA Foundation look forward to contributing to the safe, efficient and environmentally responsible transmission of natural gas to customers as we transition to a lower-carbon economy.”
•Importance of natural gas:
Many environmentalists view natural gas as a natural bridge fuel between the dominant fossil fuels of today and the renewable fuels of tomorrow. For a given amount of heat energy, burning natural gas produces about half as much carbon dioxide, the main cause of global warming, as burning coal. Since one of the primary consumption of natural gas is as a source for electrical generation & it is increasingly becoming popular because it burns cleaner than oil and coal and produces less greenhouse gases. This ability of natural gas raises the possibility that it could emerge as a critical transition fuel that could help to battle global warming.
•Distribution of natural gas: Distribution is the final step in delivering natural gas to customers. While some large industrial, commercial, and electric generation customers receive natural gas directly from high capacity interstate and intrastate pipelines (usually contracted through natural gas marketing companies), most other users receive natural gas from their local gas utility, also called a local distribution company (LDC). LDCs are regulated utilities involved in the delivery of natural gas to consumers within a specific geographic area. There are two basic types of natural gas utilities: those owned by investors, and public gas systems owned by local governments.