Posted in | Energy Efficiency

INGAA Report: Natural Gas will Retain its Key Role in the U.S. Power Sector for the Next 20 Years

The new flagship report from INGAA Foundation Inc. discovers that natural gas will retain its important role in the U.S. power sector for at least the next two decades even if renewable energy takes up a major part of the nation’s electricity market.

According to Black & Veatch, the author of the report, this trend, together with increasing global demand for U.S. liquefied natural gas (LNG) exports, emphasizes the need for continued investment of the gas industry in infrastructure to meet these mounting demands.

The report titled “The Role of Natural Gas in the Transition to a Lower-Carbon Economy” looks at vital drivers that could influence the utilization of natural gas and the use of gas infrastructure from 2020 to 2040 and is commissioned by the INGAA Foundation, which represents the complete value chain of the natural gas transmission industry.

With widespread analyses supported by modeling and industry expertise, the report revolves around two instances that concentrate on different paths toward an energy combination that is more and more dependent on renewable energy. The report concludes that natural gas is likely to complement renewable resources.

The report, published on May 7th, 2019, suggests that the scenario for natural gas infrastructure investment continues to be strong as the market is being reformed by increasing global gas supply from the United States and other newer suppliers. Investments aimed at incorporating flexibility to the system will be decisive to support the fast-growing electricity market.

The case for investment is also backed by global policy choices supporting cleaner energy sources, the growth in demand from developing Asian economies, major geopolitical shifts, and reduced costs for renewables. Although Europe, Africa, and India have set vigorous renewable energy targets by 2030, as per Black & Veatch’s recent 2019 Strategic Directions: Natural Gas Report, natural gas is desirable to growing markets because of certain benefits over newer technologies such as battery storage and other alternative fuels on the basis of reliability, cost, and accessibility. The infrastructure that will allow the transport of gas to export amenities will play a crucial role in supporting these markets.

On the basis of natural gas’ profile as a flexible, safe, low-cost, and clean-burning catalyst for reliable energy around the world, the INGAA Foundation report provides some important findings:

  • Natural gas will play a crucial role in a balanced pathway to a low-carbon economy by offering reliable, low-cost base load power and the flexibility to incorporate more renewables.
  • Despite a highly vigorous scenario of renewables penetration, the existing domestic natural gas pipeline infrastructure will continue to serve customary end-use sectors and also budding markets, such as liquefied natural gas and pipeline exports to the global market for the next 20 years.
  • Increasing gas production and demand could urge the need for up to 21 billion cubic feet per day (Bcf/d) of new gas pipelines.
  • The need for more flexible and dispatchable power resources may promote the development of the gas transmission industry.

Natural gas has undergone a transformation over the past decade, and this study illustrates that its evolution will continue, as a valuable flexible energy source within a low carbon U.S. energy mix. We have a decades-long track record of providing deep expertise on gas-electric interdependence issues, and we’re honored to have partnered with the INGAA Foundation in this thoughtful examination.

Deepa Poduval, Associate Vice President and Industry Executive for Oil and Gas, Black & Veatch Management Consulting

Don Santa, the INGAA Foundation’s president, stated the analysis in the flagship report can notify important stakeholders, policymakers, and the industry about the role that natural gas and gas pipeline infrastructure can play in the shift to a cleaner energy economy.

Being a reliable partner with companies working to satisfy the world’s need for energy through everything from natural gas to renewables and power solutions, Black & Veatch has decades of established performance on over 3000 natural gas-related assignments in a large number of countries.

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