INGAA Warns of the Costs of Not Using Gas

A new study by the INGAA Foundation on gas infrastructure requirements warns that the government's current environmental goals may not be reached if regulators and legislators don't start making more of an effort to ensure the required gas infrastructure can be built to serve a 30 Tcf market by 2010.

Although it's costing generators quite a lot these days to burn natural gas, INGAA said not using gas could mean the loss of about $1.2 billion a year to additional emissions controls on coal-fired plants. Furthermore, reliance on coal plants would pump much more carbon dioxide into the atmosphere.

Those are the conclusions of a new report by INGAA, titled Implications of Reduced Gas Use on Emissions from Power Generation. The report, prepared by Energy and Environmental Analysis Inc., is a follow-up on a January 1999 INGAA report that outlined the storage and infrastructure requirements to reach the U.S. Energy Information Administration's projections of a record 30 Tcf natural gas market by 2010.

"The initial report outlined the challenges of the 30 Tcf market, and this report shows us the consequences of not reaching that goal," said Cuba Wadlington, CEO of Williams Gas Pipeline and chairman of the Board Task Force on Environment for INGAA.

The initial report projected that 6.5 Tcf of new gas demand would come from electric power generation. The new report says that failure to reach the projected level would increase emissions of mercury and uncapped NOx emissions by 10%, and CO2 emissions by 4% because coal fired generation likely would be the replacement. The report costs $100 and can be ordered by calling (202) 216-5943.

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