Enhancing Gas System Resilience and Reliability
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June 14
th
, 2021
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Current production capacity is 0.6
million metric tons/year
•
Production capacity is expected to
grow significantly in the next
decade
•
Platts estimates by 2028
production will reach 3.3 million
mt/yr
COLD
COLDER
COLDEST
Total Demand
Generation
~20 GW
Narrowly Avoided
Catastrophe
Massive
Outages
Normal conditions, with gas tracking
wind….
Sun - Thurs
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Estimated to have contributed to about 10% of outages
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Fuel delivery issues had several causes
•
Main challenges in the upstream, per a survey commissioned by TXOGA, included loss
of power (65%), wellhead and equipment freeze-offs (13%) and not being able to get
production out due to issues with third-party facilities (8.7%).
•
Midstream operators faced similar challenges—80% cited power outages as a main
cause of outages.
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Texas legislature
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SB3—requires upgrades for power generators and transmission lines to make them better
withstand extreme weather.
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New legislation signed into law to ban wholesale electricity plans.
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Federal/national efforts
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FERC and NERC are conducting a joint inquiry on events in South and Central states.
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Other regions
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MISO report in June 2021 recommends Resource Adequacy evolution.
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Continued replacement of coal with natural gas--including innovative lower
emissions plants.
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Deployment of low-carbon hydrogen and other lower-emissions fuels will
require overcoming physical and regulatory barriers related to infrastructure
deployment.
•
API and member companies support policies to advance the global low-carbon
hydrogen economy.
Building gas system resilience is crucial for ensuring energy security and stability. Challenges such as fuel delivery issues and extreme weather conditions highlight the need for proactive measures. Steps like upgrading power infrastructure and transitioning to lower-emission fuels are essential for enhancing system reliability and resilience against future disruptions.
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Presentation Transcript
Building gas system resilience Jeff Stein Jeff Stein Senior Policy Advisor Senior Policy Advisor Policy, Economics, and Regulatory Affairs Policy, Economics, and Regulatory Affairs June 14th, 2021
Total Demand COLDEST Current production capacity is 0.6 million metric tons/year Normal conditions, with gas tracking wind . COLDER ~20 GW Production capacity is expected to grow significantly in the next decade COLD Generation Platts estimates by 2028 production will reach 3.3 million mt/yr Narrowly Avoided Catastrophe Massive Outages Sun - Thurs
Fuel delivery issues Fuel delivery issues Estimated to have contributed to about 10% of outages Fuel delivery issues had several causes Main challenges in the upstream, per a survey commissioned by TXOGA, included loss of power (65%), wellhead and equipment freeze-offs (13%) and not being able to get production out due to issues with third-party facilities (8.7%). Midstream operators faced similar challenges 80% cited power outages as a main cause of outages.
Some next steps to address resilience Some next steps to address resilience Texas legislature SB3 requires upgrades for power generators and transmission lines to make them better withstand extreme weather. New legislation signed into law to ban wholesale electricity plans. Federal/national efforts FERC and NERC are conducting a joint inquiry on events in South and Central states. Other regions MISO report in June 2021 recommends Resource Adequacy evolution.
Reliabiltiy Reliabiltiy and Resilience with lower emissions fuels and Resilience with lower emissions fuels Continued replacement of coal with natural gas--including innovative lower emissions plants. Deployment of low-carbon hydrogen and other lower-emissions fuels will require overcoming physical and regulatory barriers related to infrastructure deployment. API and member companies support policies to advance the global low-carbon hydrogen economy.
