NASUCA 2013 Mid-Year Meeting Seattle, WA June 10, 2013 Distributed Energy Resources.
Replacing Infrastructure: Pipeline Safety and Methane Reduction Benefits 2013 NASUCA Mid-Year...
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Transcript of Replacing Infrastructure: Pipeline Safety and Methane Reduction Benefits 2013 NASUCA Mid-Year...
![Page 1: Replacing Infrastructure: Pipeline Safety and Methane Reduction Benefits 2013 NASUCA Mid-Year Meeting: June 12, 2013.](https://reader038.fdocuments.net/reader038/viewer/2022110206/56649d1a5503460f949efebc/html5/thumbnails/1.jpg)
Replacing Infrastructure: Pipeline Safety and Methane Reduction Benefits2013 NASUCA Mid-Year Meeting: June 12, 2013
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Overview
1. Safety First
2. Consumers and the public benefit from pipe replacement.
3. Methane Emissions:It’s time to cool off the hype and engage in fact-based analysis.
• Why replace pipe now?
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States with Infrastructure Cost Recovery Mechanisms as of June 2013
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Source: Rethinking Natural Gas, A Future for Natural Gas in the U.S. Economy, p.6, American Gas Association, ©2012, Citing Source: Wood MacKenzie Spring 2012. See paper for outlook limitations.
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Natural gas systems represent a small share of annual GHGs
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its inception in 1993.
Source: EPA GHG Inventory 2013
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Natural Gas Systems Lead the Pack on
Economy-wide Methane Reductions
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Source: EPA GHG Inventory 2013
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Technological advances, industry best practices and infrastructure investment…add up to a declining emissions trend
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Source: EPA GHG Inventory 2013
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Distribution: Methane Emissions Shrinking
• Methane emissions from distribution shrank 16 percent since 1990 …
• even though we added almost 300,000 (30 percent more) miles of distribution mains …
• to serve 17 million (30 percent) more customers
• Why? Because we replaced thousands of miles of existing cast iron and bare steel pipe with modern PE plastic pipe
• Result: EPA estimates distribution systems emitted 0.3% of produced natural gas in 2011
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New data has significantly revised emissions estimates downwards
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Source: EPA GHG Inventory 2012/2013
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Methane Emissions Estimations Declining as they become more accurate
• EPA 2012 Annual Inventory of U.S. Greenhouse Gas Emissions
• originally estimated 2.5% – 3.2% of produced gas emitted in 2010 from well to customer.
• New 2013 EPA Inventory
• only estimates 1.5% of produced gas emitted in 2011 from well to customer, and of this,
• only estimtes 0.3% of produced gas was emitted from gas distribution in 2011.
• EPA also found emissions from distribution have declined over time due to replacing cast iron and bare steel pipe.
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Field Studies to Measure Methane from Distribution | GTI and EDFHi-Flow Meter – Measuring Methane from Low Grade Pipe Leak
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LUAF is Not a GoodMeasure of Emissions
• What is Lost and Unaccounted For (LUAF) Gas?
• LUAF includes small amounts for gas theft and emissions, but there is no correlation between LUAF and emissions.
• EPA has long recognized the limitations of LUAF and rejected idea of using LUAF to measure or estimate methane emissions.
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Why Replace Pipeline Now?
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•Safety
•Natural gas commodity prices are expected to remain relatively affordable and stable
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The U.S. estimated future supply of natural gas (reserves plus resources) stood at 2,689 trillion cubic feet (Tcf) at year end 2012 — enough natural gas to meet America’s diverse energy needs for decades.
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And Then
There Was Abundance
Future Supply of Natural Gas in the United States (1990-2012)
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Natural Gas Price Outlook
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Our nation’s strong natural gas supply fundamentals and robust and reliable natural gas delivery infrastructure suggest that over the next decade, a range of demand scenarios can be met by a diverse and responsive supply market within an estimated price band of $4.00 to $6.50 per MMBtu.
Source: Rethinking Natural Gas, A Future for Natural Gas in the U.S. Economy, p.6, American Gas Association, ©2012, Citing Source: Wood MacKenzie Spring 2012. See paper for outlook limitations.
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Paula GantAGA Senior Vice President, Policy and [email protected]
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Find Us Online
www.aga.org
www.truebluenaturalgas.org
http://twitter.com/AGA_naturalgas
www.facebook.com/naturalgas
www.linkedin.com/company/50905?trk=tyah