EBF 301
Global Finance for the Earth, Energy, and Materials Industries

Mini-lecture: Distribution

Graphic illustration showing steps of process to get raw products from wells to markets with the distribution phase highlighted. Described in text below
Figure 6. Distribution

The final step in the logistics chain for natural gas is delivery to the burner-tip. This can be accomplished by Local Distribution Companies (“gas companies”), or pipelines can deliver gas directly to connected end-users. We generally classify the end-users as utility, residential, commercial, and industrial.

The following lecture explains the function of Local Distribution Companies (LDCs) and presents various other natural gas end-user groups.

Key Learning Points for the Mini-Lecture: End-Users

While watching the Mini-Lecture, keep in mind the following key points and questions:

  • Local Distribution Companies (LDCs) are gas utilities.
  • LDCs lower the pressure of the gas coming from the transmission pipelines and distribute it to end-users.
  • Electricy is produced by both public (utilities) and private companies.
  • Generation can be simple-cycle, combined cycle, or co-generation.
  • Natural gas is used in various commercial, residential, and industrial applications.
  • The use of Natural Gas Vehicles (NGVs) is growing.
EBF 301 Lesson 5 Natural Gas End Users
John A. Dutton e-Education Institute
EBF 301 Lesson 5 Liquified Natural Gas mini-lecture
John A. Dutton e-Education Institute


World LNG Estimated Landed Price: July 2017