Rising global power demand underscores the dire need to scale up investments in natural gas, the International Gas Union (IGU)’s 2024 Global Gas Report stresses, noting the world could risk a 22% global supply shortfall by 2030.
The surge in electricity needs, driven primarily by technology advancements, has heightened the call for more efficient, yet still affordable, energy on the global market. Enhanced natural gas investments are critical “to contain the growth of greenhouse gas emissions and to make global gas market equilibrium resilient,” the IGU states.
Already producing nearly 20% of the U.S.’s natural gas, tapping Pennsylvania’s energy abundance would help address the expected shortfall while also providing enhanced reliability and sustainability.
IGU’s report serves as a warning and comes as a hot summer has further strained the electric grid in the U.S., leading to power outages and escalating consumer costs. Just last week, the regional grid operator PJM issued a maximum generation alert, requiring power generators to run at maximum output to avoid disruptions as a heat wave blanketed the Mid-Atlantic region.
Across the entire PJM operating area, 89% of baseload power came from natural gas, nuclear and coal on one of the hottest days in the past month, underscoring the reality that consumers continue to depend upon reliable, abundant baseload power generation each and every day.
Natural gas from Pennsylvania is the backbone of PJM’s electric generation capacity, where the 13-states and the District of Columbia are dependent upon the Commonwealth to keep the lights – and the AC – running.
“Pennsylvania generates roughly one-third of the electricity produced in PJM, which means it directly powers about 7% of the country’s GDP,” a recent report from Pittsburgh Works pointed out.
Consumers a few hundred miles north of Pennsylvania, however, are deprived of the cost, reliability and environmental benefits provided by American produced natural gas. Government mandated “renewable-only” energy policies have constrained the New England region’s power market, and they are forced to rely on expensive natural gas imports from Trinidad and Tobago and elsewhere for energy needs. As the U.S. Energy Information Administration (EIA) reported this week, the area once again found themselves relying upon imports from other nations to keep the electricity on during another heat wave in June.
New England’s natural gas-fired electricity generation peaked at 61% on June 22, clearly demonstrating the domestic demand for a reliable and easily dispatchable fuel source in times of peak demand.
New England’s woes reaffirm warnings PJM issued back in the spring: “The future demand for electricity cannot be met simply through renewables given their intermittent nature.”
As energy consumption grows and the need for grid reliability increases, expanding the natural gas power generation infrastructure is crucial to ensure reliable and cost-effective electricity to consumers. Natural gas power plants, especially those utilizing modern combined cycle technology, deliver substantial benefits by converting fuel into electricity with high efficiency and significantly reduced emissions. These facilities implement both gas and steam turbines to improve energy production, enabling them to meet peak demand and guarantee a stable power supply.
By attracting the development of more natural gas-powered facilities, Pennsylvania can further its role in the energy economy while enhancing America’s energy security.
Moreover, harnessing the state’s natural gas resources aligns with the broader goal of meeting ever-increasing global energy demand while advancing toward a cleaner, more sustainable energy future. Equally as important, Pennsylvania can help provide these solutions to allies and trading partners across the globe.
U.S. LNG can be transported where pipelines are not feasible, addressing energy supply constraints in emerging and remote areas of the world, but also in areas with limited access to reliable energy. Investing in natural gas infrastructure, including LNG terminals and distribution networks, not only supports economic growth and job creation, but also enhances America’s role in providing global energy security. Expanding LNG export and import facilities, developing efficient transportation networks, and supporting research and innovation in technologies are essential steps in this endeavor.
Our world’s increasing energy demand – which shows no signs of slowing down – necessitates a strategic, forward-thinking approach in which natural gas plays a key role. By promoting policies that boost interstate and intrastate pipeline infrastructure and technology, we can address today’s energy needs and lay the groundwork for a more sustainable and secure energy future.
