Natural gas has real opportunities for growth in the upper Midwest and nationally, especially in the industrial and transportation fuel sectors, Nicor Gas President Elizabeth Reese told the LDC Gas Forum Mid-Continent meeting Monday in Chicago.

Calling this “an exciting time to be in the gas industry” with innovation and technology advancements abounding, Reese urged industry participants to “seize” an abundant set of opportunities running through most segments of the natural gas business. The industrial and transportation sectors in the Mid-Continent region are where the greatest growth opportunities can be found, she said as part of keynote remarks, “Gazing into the Crystal Ball: the Next Big Thing in Natural Gas,” kicking off the three-day conference.

Urging the industry to be “more forward-looking” in going after increasing growth opportunities, Reese noted that growth recovery for her 2.2-million-customer gas utility operations in Northern Illinois is averaging more than 30% annually these days after new residential and commercial hookups took a nosedive with the recessionary economy from late 2008 until the last two years. Nicor has 90% market share in its territory, and it is aggressively going after the remaining 10% through conversions, she said.

In the industrial sector, Nicor is finding that it is tough to compete on price alone, so Reese said the utility is emphasizing the reliability of gas and its environmental advantages compared to coal-fired electricity, which still dominates the upper Midwest region. “Electricity is becoming more competitive [in the industrial sector], and we cannot compete on price alone on new electrically driven equipment, so this is where we have to differentiate ourselves,” she said.

“How do we do that? First, we have to focus on reliability, because today we know we are the most reliable energy source available, and certainly this is true compared to electricity.” She said Nicor is targeting electrically driven industrial equipment with gas alternatives among its industrial customers.

Noting that Chicago is a transportation hub for rail, highways and agriculture, Reese said Nicor is stressing the added gas demand potential found in asphalt production, agricultural processes and vehicle transportation. Nicor sees the growth in asphalt plants and agricultural applications for gas as being both real and immediate, she said. “Both of these industries are looking for new ways to use natural gas.”

“These are examples of potential new market segments that want to use our natural gas products,” Reese said. “With the changing, challenging market conditions of today, we need to examine our growth opportunities in more detail.”