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Natural Gas Pipelines Deliver Energy Savings

dimock verdictGeorge Stark
Director, External Affairs at Cabot Oil & Gas

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PA shale gas has already delivered energy savings to so many families & businesses in the Commonwealth, the PennEast will deliver those saving even further.

Residents across Pennsylvania take comfort. If you use natural gas or electricity (increasingly fueled by natural gas) for heating, cooking and everyday uses, Pennsylvania’s natural gas producers are ready for this upcoming winter.

At Cabot, we produce over 1.5 billion cubic feet of natural gas every day from Pennsylvania’s vast shale supplies. Cabot’s development in Northeastern Pennsylvania helped the commonwealth become the country’s second-largest natural gas producing state in 2015, as Pennsylvania’s natural gas production exceeded 4.6 trillion cubic feet.

energy savings

Ascending to the country’s second-highest gas producing state has meant savings for families and businesses. More and more households and commercial customers are converting to natural gas, utilities are working to build out their local delivery networks, and the state just announced $24 million in grant funding to help construct the last few miles of natural gas distribution lines to businesses, schools and municipalities.

UGI Utilities provided the details on their growth and customer savings at a luncheon in Hazleton this year. Compared to 2008, UGI estimates that residential customers are saving approximately $700 a year on average. That equates to $415 million saved in 2015 compared with 2008. Since 2008, UGI has converted 53,000 households and more than 70 large commercial and industrial facilities to natural gas.

The state’s other utility customers are experiencing this type of savings as well. The Pennsylvania Utility Commission shows the price utilities have paid for natural gas across the commonwealth has dropped more than 50 percent from 2008 to 2015. Lower natural gas prices mean savings on your electric bill as well. According to the PUC, the electric cost savings for the consumers from Marcellus Shale natural gas from 2011 through the first half of 2014 were $2.1 billion.

Pennsylvania’s economy – its families and businesses – have benefited greatly from the state’s natural gas revolution. However, the often unmentioned and unseen link between natural gas production and energy costs savings are pipelines.

Simply put, pipelines deliver savings.

energy savings

As electric power plants shift to greater reliance on natural gas, as large manufacturers site or expand operations in the region, and as utilities seek to serve new customer demand, the pipeline transmission network has become critically constrained. We have the supply of natural gas, but need expanded and additional pipeline infrastructure to continue delivering savings to homes and businesses.

However, help is on the way. One new pipeline project that will address regional constraints is the PennEast Pipeline.

Cabot is a “shipper” on this proposed project – meaning the company has contracted to use part of PennEast’s one billion cubic feet of natural gas per day capacity. Cabot is excited to help eastern Pennsylvania and New Jersey families and businesses have a new, direct link to Pennsylvania’s prolific natural gas reserves.

With regard to savings, had PennEast been in service in the 2013-2014 winter, Pennsylvania and New Jersey energy customers would have saved $893 million. That’s only one winter.

Of PennEast’s projected savings during just the 2013-2014 winter, $530 million would have been realized by electric customers. That savings is indicative of the growing role of natural gas in the electric sector, and reveals insufficient pipeline capacity when natural gas and electricity demand spikes.

Reliable natural gas supplies to fuel our electric grid are essential.

Natural gas is a vital part of our clean energy future. Cabot is committed to safely and responsibly developing local natural gas, and to providing the fuel to help keep families warm. However, it’s vital to add new cost-saving pipelines, like PennEast, to ensure natural gas is able to affordably and reliably reach local communities.

Reposted from Well Said Cabot.

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5 thoughts on “Natural Gas Pipelines Deliver Energy Savings

  1. Natural Gas pipelines are also a future network to transport Renewable energy without loss of electrical output. Power to Gas technology is nothing new however it is generally finding receptive eyes and ears in places like Germany and California. Wind Energy without a customer to use it at 2 am is converted to Hydrogen and then injected to mix with Natural GAS. The volumes of mixing a mere 5 percent of a Natural Gas pipeline with Hydrogen makes for a huge energy storage media. in Germany, a relatively small Steel Natural Gas pipeline system, filling the national NG system with Natural Gas combined with 5 percent H2 makes for enough energy to power 500,000 homes without emissions. Building more Natural Gas lines is not only benefitting the environment via cleaner fuel delivery but also delivering Hydrogen in the future. It is actually happening now with pilot projects across the globe.

  2. “…without emissions.”

    Presuming that the natural gas/methane is combusted (along with the hydrogen), how can it be that there are zero emissions?

  3. “…$24 million in grant funding to help construct the last few miles of natural gas distribution lines….”

    Is this a subsidy?

  4. Too bad that Rip Van Cuomo is too stupid to ignore the fact that he heats all of New York City with nice clean, hydro fracked natural gas. Now the simpleton wants to be President of the United States. I don’t think so.

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