Transcript Document

Replacing Infrastructure: Pipeline Safety
and Methane Reduction Benefits
2013 NASUCA Mid-Year Meeting: June 12, 2013
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.
4. Why replace pipe now?
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1400
1300
Miles of Main and Service per 1,000 miles
1200
1100
1000
900
Steel, Bare
800
Steel, Coated
700
Plastic
Cast Iron
600
Ductile Iron
Copper
500
Other
400
300
200
100
0
1995
1997
1999
2001
2003
Year
2005
2007
2009
2011
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States with Infrastructure Cost Recovery
Mechanisms as of June 2013
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
its inception in 1993.
Source: EPA GHG Inventory 2013
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Natural Gas Systems Lead the Pack on
Economy-wide Methane Reductions
U.S. Methane Emissions
(Million Metric Tons CO2-eq.)
650
619
Natural Gas
Systems
-29
Other Systems
-8
600
582
550
500
450
400
2007
2011
Source: EPA GHG Inventory 2013
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Technological advances, industry best
practices and infrastructure investment…
add up to a declining emissions trend
Methane Emissions from Natural Gas Systems
(Million Metric Tons CO2-equivalent)
180
161
160
168
159
163
151
144
145
2010
2011
140
120
100
80
60
1990
2005
2007
2008
2009
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
Natural Gas System Methane Emissions
(Million Metric Tons of CO2 Equivalent)
250
2012 Inventory
2013 Inventory
200
150
100
50
0
Field
Production
Processing
Transmission Distribution
and Storage
Total
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 EDF
Hi-Flow Meter – Measuring Methane from Low Grade Pipe Leak
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• 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.
LUAF is
Not a
Good
Measure
of
Emissions
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Why Replace Pipeline Now?
• Safety
• Natural gas commodity
prices are expected to
remain relatively affordable
and stable
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Future Supply of Natural Gas in
the United States (1990-2012)
3000
Trillion cubic Feet
2500
2000
NG Undiscovered Resources
(PGC)
1500
NG Reserves (EIA)
1000
And Then
There Was
Abundance
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.
500
0
Year End
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Natural Gas Price Outlook
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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Find Us Online
www.aga.org
www.truebluenaturalgas.org
http://twitter.com/AGA_naturalgas
Paula Gant
www.facebook.com/naturalgas
AGA Senior Vice President,
Policy and Planning
[email protected]
www.linkedin.com/company/50905
?trk=tyah
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