|
|
| Gas Utility Industry Worldwide Directory |
 |
|
|
| Gas Utility Industry Overview |
 |
|
|
Gas Utilities (LDC's )
|
|
|
|
Gas Utilities or local distribution companies (LDC's) are companies involved in the delivery of natural gas to end users within a specific geographic area. Most customers receive delivery direct from the LDC, however; some large industrial and commercial end users receive natural gas directly from high capacity interstate and intrastate pipelines.
Some large consumers of natural gas (including electric power generation companies, schools, steel mills, glass plants, etc.) purchase gas directly or through marketing companies. In these instances the pipeline(s) are paid a transportation fee. There are, dependent on how they are classified, 1,237 US LDC's. 244 of these companies are investor owned individual LDC's or holding companies that operate one to several LDC's. Over 800 of the remainder are municipals, 118 are privately owned, and over 200 LDC's are part of companies that distribute both Gas and Electricity.
LDC's usually take custody of the natural gas at delivery points (city gates) along interstate and intrastate pipelines. The gas is then routed through thousands of miles of small-diameter distribution pipe and delivered to each individual customer's location of use. There exists over one million estimated miles of distribution pipeline in the United States. The price that an LDC pays for the gas, usually specifies delivery to the city gate(s). According to the Energy Information Administration (EIA), distribution costs can represent up to 47%, commodity cost 34%, transportation & storage 19% of the natural gas bill for a small usage residential consumer.
Distribution Pipelines/City Gate
|
|
|
|
Typical, transmission pipelines are 16" to 42 diameters; operate at pressures as high as 1,300 psi; carry large volumes, and deliver the natural gas to the city gate. The gas to be distributed is typically depressurized at or near the city gate to as low as 3 psi. The gas, although dry and of pipeline quality, is usually scrubbed and filtered to ensure low moisture and particulate content.
The LDC, because natural gas is odorless and colorless, adds Mercaptan prior to distribution to odorize the gas. Until fairly recently, distribution networks were constructed almost exclusively of rigid steel pipe. New technology is allowing the use of flexible plastic and corrugated stainless steel tubing in place of rigid steel pipe. This new type of construction reduces construction costs and makes installations more flexible.
Compressor Stations
|
|
|
|
Distribution involves moving small volumes of gas at low pressures over short distances to a great number of individual users. The natural gas is periodically compressed to ensure pipeline flow.
Custody Transfer & Measurement
|
|
|
|
When custody of natural gas change from the pipeline company to the LDC, it is measured for volume and tested for content. New and improved technology in multi-tasking liquid and gas flow computers, controllers, analyzers and related equipment have significantly increased the reliability and integrity of custody transfer measurement systems.
Electronic Meter Reading
|
|
|
|
Traditionally, meter-reading personnel had to visit, usually monthly, the consumer's site and record volumes used. New electronic meter-reading systems are capable of transmitting this information directly to the local distribution company. Some equipment is able to perform this task remotely.
| SCADA Systems |
|
|
|
Supervisory control and data acquisition (SCADA) systems, are used by local distribution companies to assimilate gas flow control and measurement with other accounting, billing, and contract systems to provide a comprehensive measurement and control system for the LDC. This allows accurate, timely information on the status of the distribution network to ensure efficient and effective service at all times
The Business of Oil and Gas Pipelines
Government Influence
|
|
|
|
Government regulations affecting pipeline regulatory changes culminated with the Federal Regulatory Commission’s (FERC) Order 636 effective November 1, 1993. Order 636 required interstate natural gas pipeline companies to unbundle their sales and transportation services and revise how rates were determined for transportation services.
Historically, interstate pipelines had served as gas merchants: both buying gas at the wellhead and selling it at the city gate to LDC's. In regulating the transportation of natural gas in interstate commerce, the commission sets rates, terms, and conditions for operation of interstate gas pipeline systems.
Today, virtually all natural gas is owned by shippers who arrange with pipeline companies for transportation. Generally, pipeline companies are separate from the producing companies, and the pipeline companies provide only transportation services.
LDC's have historically been looked upon as natural monopolies and were awarded exclusive rights to distribute natural gas in a specified geographic area. Because of this, LDC's have been regulated to ensure that monopoly power is not abused, and natural gas consumers do not fall victim to overly high distribution costs or inefficient delivery systems. State public utility commissions are charged with the oversight and regulation of investor owned local distribution companies.
Utilities owned by local governments are typically governed by that local government. State regulation of local distribution companies includes ensuring adequate supply, dependable service, and reasonable prices for consumers, while also allowing for an adequate rate of return for investor owned LDC's. Local distribution companies have historically offered only bundled services; however, recently there has been a movement towards the retail unbundling of natural gas sales. Several states now offer programs in which customers may choose from whom they purchase their gas, and use the distribution network in place simply to transport that natural gas to its point of consumption. These programs, commonly called "customer choice" programs, are in place or under development in a number of states.
Future Growth Prospects North America
|
|
|
|
North America presently consumes a little more than 30% of the natural gas consumed by the world. By 2020, it is estimated that the percentage will be 22% of the natural gas and 25.5% of total energy consumed. North America natural gas consumption will nearly double by 2020. The Energy Information Administration (EIA) in its Annual Energy Outlook 2002, estimates that natural gas demand in the United States could be between 32 Trillion cubic feet (Tcf) and 35 Tcf by the year 2020. That is an increase of 40 to 54% over 2000 demand levels of 22.8 Tcf. In order to meet that growth in demand, construction of over 300,000 additional miles of gas distribution line at a cost of over $125 billion will be required.
Midwest Publishing Company (MWP)
|
|
|
|
Midwest Publishing’s role is obvious, "to provide the most timely, comprehensive, and accurate information possible at a reasonable price" and thereby serve all parts of the industry. The PC Directory provides MWP the tools to accomplish this task and the opportunity for our subscribers to benefit from the inherent added value of the product.
| Gas Utility Industry Worldwide Directory |
|
|
|
|
|
