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Natural Gas Current Capabilities and Future Needs


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Natural Gas Current Capabilities and Future Needs presented by Ann Chamberlain, Manager-Gas Supply for Virginia Natural Gas

Presented to the Mayor's Energy Task Force-City of Virginia Beach, a series of task force meetings to educate the members on the opportunities and challenges facing us as we search for renewable, sustainable and environmentally sound energy sources.

June 3,2009

Published in: Technology
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Natural Gas Current Capabilities and Future Needs

  1. 1. Natural Gas Current Capabilities and Future Needs Virginia Beach Alternative Energy Task Force June 3, 2009
  2. 2. Natural Gas Pipeline Systems
  3. 3. Natural Gas Supply Basins
  4. 4. Natural Gas Fuels Our Economy • Natural gas serves 27% of the nation’s energy demand • Lower cost of energy (NYMEX, May 5, 2009) – Natural Gas: $4.52/MMBtu – Fuel Oil: $12.15/MMBtu • Large variety of applications – residential, commercial, industrial, & transportation
  5. 5. Natural Gas is Part of the Climate Change Solution Natural gas offers an immediate Natural Gas 117 answer to address climate change Gasoline 156 Diesel 161 • Existing, commercially viable E i ti i ll i bl technology Fuel Oil 174 – Natural gas power generation; Bituminous Coal 206 biogas technologies; natural Anthracite Coal 228 gas vehicles 0 50 100 150 200 250 • Clean burning fossil fuel Emissions (lbs CO2 e / MMBtu) – 43% less CO2 than coal; 28% less CO2 than fuel oil; 11% less CO2 than propane – Zero SO2 and particulate matter, significantly lower NOx , g y
  6. 6. Natural Gas Also Provides the “Bridge” to Renewables Natural Gas technologies are clean, efficient, and commercially viable today Natural Gas provides clean, reliable power to support the expanded use of resource dependent renewable technologies in the national generation portfolio
  7. 7. Source of Supply
  8. 8. Looking Offshore Untapped Potential Recoverable natural gas in TCF from areas g g generally y covered by federal moratoriums on offshore drilling This graphic appeared in The Wall Street Journal, August 22, 2005
  9. 9. Atlantic OCS estimates • On the Atlantic coast, MMS estimates 50 6 t illi cubic ti t 50.6 trillion bi feet of natural gas in the Atlantic OCS. Divided into 26 planning areas areas. • Totals approximately 15.13 trillion cubic feet of gas in the Mid-Atlantic area. Mid Atlantic area • Va makes up 11% of the Mid- Atlantic area.
  10. 10. Potential for VA-Offshore Drilling VA Offshore • Reductions in natural gas prices • Enhanced supply di E h d l diversity it • Decreased price volatility • Jobs • Increased payroll and payroll taxes • New investment • Royalties
  11. 11. Hampton Roads, Virginia p , g • Virginia Natural Gas serves the Cities of Virginia Beach, Norfolk, parts of Chesapeake and Suffolk, and all of the Cities and Counties along the 64 corridor ending in Hanover • Distribution system has been physically separated into two divisions by Hampton Roads Harbor. H b • Reliability - Single pipeline supply into South Hampton Roads. • Cost of Gas Commodity – Limited flexibility in moving the most cost effective gas supplies throughout the system. • Economic Development – Limited gas capacity insufficient to keep up with residential and commercial growth throughout the region.
  12. 12. Infrastructure in VA VNG SUPPLY SIDE MANAGEMENT INITIATIVES •JUP •Propane Facility •HRX
  13. 13. HRX Crossing Pipeline Project • Distribution system connection creates an integrated gas supply for region i • Reliability – minimize risk due to gas interruptions or mechanical problems on a single supply pipeline. • Cost of Gas Commodity – flexibility in gas delivery will optimize gas cost for all consumers in region. g • Additional increment of gas supply from Dominion will provide for growth and economic development in region. region
  14. 14. Conservation as Part of the Supply Equation VA energySMART Program includes: •Community outreach and customer education program •High efficiency home heating and water heater rebates •Low income weatherization •Seasonal check-up rebates Seasonal check up •Energy Star residential new construction program •Free programmable thermostats th t t •Air filter discounts