Key Learning Points: Lesson 5
- Natural gas travels through several stages from “wellhead-to-burnertip.”
- Wells must be connected to pipelines and/or processing plants.
- The raw wellhead natural gas must be purified and heavy hydrocarbons must be removed.
- Processing plants produce needed natural gas liquids (NGLs) such as: ethane, propane, butane, iso-butane, and natural gasolines.
- Transmission pipelines are large-diameter pipes that carry gas from the producing areas to the market areas.
- Storage facilities provide extra supply in times of high demand and a place to store excess gas in times of low demand.
- End-users can vary from utilities to houses to commercial and industrial facilities.
- Liquefied Natural Gas (LNG) will start being exported from the US in late 2015/early 2016.
- LNG provides 600 times the amount of energy as an equivalent amount of natural gas.
- The abundant shale gas in the US has led producers to find new markets in the form of LNG exports.
All pipelines are regulated by the Federal Energy Regulatory Commission, which has rules for how they conduct business. The services that pipelines provide and the rates they charge must be posted on their websites. These requirements came about after years of heavy regulation, which eventually led to de-regulation of the industry and a more competitive environment.
- Fundamental Factors
- Energy Commodities Logistics Activity
Log onto Canvas and complete the Lesson 5 Quiz.
Reminder - Complete all of the lesson tasks!
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