WASHINGTON – A new report prepared by Energy Ventures Analysis at the request of the Natural Gas Council finds that the natural gas system performed well during Winter Storm Fern, demonstrating strong preparation and planning, advancements in winterization of production infrastructure and significant reliability for customers with no known losses of service to natural gas utility customers due to the storm’s impact on production.
“Winter Storm Fern demonstrated meaningful resilience in the natural gas system,” the report states. “Overall, natural gas reliability for natural gas utilities depends on sustained infrastructure development and maintenance, operational preparedness, and multiple supply and balancing tools working together during weather events. Natural gas pipelines and utilities met their obligation to serve firm customers and provided essential services to homes and businesses despite the high energy demand during Winter Storm Fern.”
The report, Holding the Line: U.S. Natural Gas Performance During Winter Storm Fern, found that what distinguished Fern from prior major cold weather events was not peak temperature severity but duration, with sustained below-normal temperatures over more than 10 consecutive days driving natural gas demand across the Central and Eastern United States to near-record single-day levels. Despite the weekslong cold temperatures, the natural gas system performed well in terms of production, transportation and storage and record deliveries. Additionally, the report underscores how market-driven efforts to winterize natural gas production yielded significant dividends.
The report also makes recommendations to further advance natural gas reliability during future storms, most notably pointing to the need for additional pipeline and storage capacity and infrastructure investment to prevent constraints and help mitigate price impacts to consumers, particularly in the Northeast. Modeling included in the analysis found that additional pipeline capacity in the Northeast could have materially reduced regional price increases during peak demand periods, better insulating natural gas customers and lowering electric bills.
Based on the findings, the report recommends the following actions:
- Policymakers and regulators should prioritize expedited review and permitting of natural gas pipeline and storage projects, particularly where infrastructure constraints most directly translate into consumer price volatility and regional reliability risk.
- Federal and state policymakers should consider implementing frameworks to protect critical natural gas infrastructure from load shedding to help ensure that critical natural gas infrastructure cannot be curtailed during electric emergencies.
- Electric market design reforms should encourage electric generators to contract for firm pipeline and storage capacity or tailored pipeline and storage services commensurate with their fuel security obligations, rather than relying on interruptible contracts. Reforms should also support long-term investment in pipeline and storage capacity to meet power demand during storms and support demand growth.
- Storage capacity expansion, with associated transportation capabilities, particularly in market areas close to demand centers in the Mid-Atlantic and Northeast, should be treated as a reliability investment alongside pipeline expansion.
- The industry should continue to bolster weatherization investment programs in South Central producing regions, recognizing that the full stress test of post-Uri improvements has not yet occurred under Uri-level temperature conditions, including working with state officials to help ensure roads are promptly cleared to provide passable conditions.
Read the full report here.
About the Natural Gas Council
The Natural Gas Council is comprised of five associations composed of thousands of companies that represent the industry from start to finish – from the wellhead to the burner tip. The council includes the American Gas Association, American Petroleum Institute, Independent Petroleum Association of America, Interstate Natural Gas Association of America and Natural Gas Supply Association.
###
AGA Media Contact:
Emily Ellis
(202) 824-7278
API Media Contact:
Scott Lauermann
(508) 863-1962
IPAA Media Contact:
Jennifer Marsteller
(202) 857-4722
INGAA Media Contact:
Amy Conway
(202) 216-5935
NGSA Media Contact:
Maura Seikaly
(202) 326-9314
About the Natural Gas Council
The Natural Gas Council is comprised of five associations composed of thousands of companies that represent the industry from start to finish – from the wellhead to the burner tip. The Council addresses industry issues and concerns, and issues joint statements, reports, letters and filings representing the unified views of the industry.