Introduction to Natural Gas Utilities
American households typically receive two physical goods as utilities: water and natural gas. Water utility is a local service that gathers, processes, and delivers water from a nearby natural source. In contrast, natural gas production often occurs far from consumption areas, requiring it to travel long distances, making transportation costly and challenging.
History and Transportation of Natural Gas
Natural gas was once considered worthless, but it became a profitable commodity when transportation economics improved with the construction of pipelines. These pipelines often cross private land, but the pipeline operators do not own the land, instead they own an easement, which is a right to pass through the land, acquired through negotiation or eminent domain.
Pipeline Construction and Maintenance
Pipeline construction can be relatively straightforward and fast, with crews installing up to a mile of pipe a day. However, it also requires additional infrastructure, such as compressor stations, to facilitate the flow of natural gas through the pipeline. Compressor stations play a crucial role in making the economics of transportation work, compressing the gas to between 500 and 1,400 pounds per square inch.
Regulation and Storage of Natural Gas
US pipelines are highly regulated by the Federal Energy Regulatory Commission, requiring interstate operators to provide non-discriminatory open access to qualified shippers and regulating rates. Natural gas is stored in underground facilities, typically between 1,000 to 5,000 feet below the ground, with depleted natural gas fields being the most common and inexpensive method.
Types of Natural Gas Storage
There are several types of natural gas storage, including:
- Depleted natural gas fields: the most common and inexpensive method
- Salt caverns: increasingly used due to their high withdrawal and injection rates
- Drained aquifers: shares similar characteristics with depleted oil fields, providing underground natural storage areas
Liquefied Natural Gas (LNG) and Global Trade
Natural gas is increasingly transported globally as a liquid, with large carriers playing a key role in crossing oceans to reach far-flung markets. The demand for natural gas is high, but suppliers are often far away, making pipeline projects infeasible. As a result, natural gas is typically transported by ship, but this requires cooling it to a liquid state at -260° F, which is expensive.
LNG Tankers and Regasification Plants
There are two main categories of LNG tankers: those with independent tanks and those with integral tanks. Liquefied gas tanks are heavily insulated to minimize boil-off, with systems in place to slow the process if it occurs. Japan has a long history of importing LNG and is home to around 30 regasification plants, but demand for natural gas is expected to peak soon as new buildings are being built with heat pumps and electric alternatives.
Conclusion
In conclusion, natural gas is a vital energy source that plays a crucial role in meeting global energy demands. The transportation and storage of natural gas require complex infrastructure and regulation, but the benefits of using natural gas as a clean and efficient energy source make it an important part of the global energy mix.
Key Vocabulary
| Term | Definition | Example Usage |
|---|---|---|
| Natural Gas | A fossil fuel composed primarily of methane, used as a source of energy. | American households typically receive natural gas as a utility, which is used for heating and cooking. |
| Pipeline | A system of pipes used to transport natural gas from production areas to consumption areas. | Pipelines often cross private land, requiring pipeline operators to acquire an easement to pass through the land. |
| Easement | A right to use someone else’s property for a specific purpose, such as transporting natural gas. | Pipeline operators acquire an easement to pass through private land, allowing them to construct and maintain pipelines. |
| Compressor Station | A facility used to compress natural gas, increasing its pressure to facilitate transportation through pipelines. | Compressor stations play a crucial role in making the economics of transportation work, compressing the gas to between 500 and 1,400 pounds per square inch. |
| Regulation | The process of controlling or directing the behavior of natural gas utilities, often through government agencies. | US pipelines are highly regulated by the Federal Energy Regulatory Commission, requiring interstate operators to provide non-discriminatory open access to qualified shippers and regulating rates. |
| Depleted Natural Gas Field | An underground geological formation that has been depleted of its natural gas, often used for storage. | Depleted natural gas fields are the most common and inexpensive method of storing natural gas, typically located between 1,000 to 5,000 feet below the ground. |
| Liquefied Natural Gas (LNG) | Natural gas that has been cooled to a liquid state, often used for global transportation. | LNG is transported globally by ship, requiring cooling to a liquid state at -260° F, which is expensive but necessary for long-distance transportation. |
| Regasification Plant | A facility used to convert liquefied natural gas back into its gaseous state, making it suitable for use. | Japan has a long history of importing LNG and is home to around 30 regasification plants, which play a crucial role in meeting the country’s energy demands. |
| Eminent Domain | The power of the government to take private property for public use, often used in the construction of pipelines. | Pipeline operators may acquire an easement through negotiation or eminent domain, allowing them to construct and maintain pipelines on private land. |
| Compressor | A device used to increase the pressure of natural gas, facilitating transportation through pipelines. | Compressors are used in compressor stations to compress natural gas to between 500 and 1,400 pounds per square inch. |
| Non-Discriminatory Open Access | A regulatory requirement that pipeline operators provide equal access to their pipelines for all qualified shippers. | US pipelines are required to provide non-discriminatory open access to qualified shippers, ensuring fair competition and equal access to pipeline capacity. |
Watch The Video
Vocabulary Quiz
1. What is an easement in the context of natural gas pipeline construction?
A) The land owned by the pipeline operators
B) A type of compressor station used in pipeline construction
C) A right to pass through the land, acquired through negotiation or eminent domain
D) A method of natural gas storage
2. What is the primary function of compressor stations in natural gas transportation?
A) To store natural gas underground
B) To regulate the flow of natural gas through pipelines
C) To compress the gas to between 500 and 1,400 pounds per square inch
D) To construct pipelines
3. Which of the following is a type of natural gas storage?
A) Depleted oil fields
B) Salt caverns
C) Drained coal mines
D) All of the above, including depleted natural gas fields
4. What is the purpose of regasification plants in the context of liquefied natural gas (LNG)?
A) To liquefy natural gas for transportation
B) To store LNG in underground facilities
C) To convert LNG back into its gaseous state for use
D) To construct LNG tankers
5. Why is natural gas often transported as a liquid, despite the high cost of cooling it to a liquid state?
A) Because it is more efficient to transport natural gas through pipelines
B) Because it allows for the use of smaller tankers
C) Because suppliers are often far away, making pipeline projects infeasible
D) Because it is required by regulatory bodies
Answer Key:
1. C
2. C
3. B
4. C
5. C
Grammar Focus
Grammar Focus: The Use of Gerunds and Infinitives
Grammar Quiz:
Choose the correct form of the verb in parentheses to complete each sentence.
- The primary purpose of compressor stations is (to facilitate / facilitating / to be facilitating / facilitation) the flow of natural gas through the pipeline.
- The construction of pipelines often involves (negotiating / to negotiate / negotiation / negotiates) with landowners to acquire easements.
- The use of LNG tankers requires (to cool / cooling / cooled / to be cooled) the natural gas to a liquid state at -260° F.
- The demand for natural gas is expected (to peak / peaking / peaked / to be peaking) soon as new buildings are being built with heat pumps and electric alternatives.
- The regulation of US pipelines involves (providing / to provide / provision / provides) non-discriminatory open access to qualified shippers and regulating rates.
Answer Key:
- to facilitate
- negotiating
- cooling
- to peak
- providing
