A few years ago, when U.N. climate envoy Stefan Rahmstorf began pushing for global action on the climate crisis, the question was whether natural gas was going to be a big part of it.
Now, with a price tag of $2.7 trillion, the gas industry is looking to the world.
As the price of natural gas continues to fall, many of the country’s biggest energy companies are buying it up.
The new entrants to the market include the likes of Chesapeake Energy, Devon Energy and Peabody Energy.
And as the price is falling, gas producers are also seeing a surge in demand.
The demand for gas has been fueled by an increase in electricity demand as a result of the climate change crisis.
So it makes sense for companies like Chesapeake to see a rebound in demand as they continue to invest in the technology to store and transport natural gas.
But it also makes sense that utilities are looking to sell natural gas as a renewable energy source, and that is exactly what Peaboy Energy, the countrys largest natural gas producer, is doing.
Peaboys main customers are electric utilities in the Northeast and Midwest, which will likely be the next target for the company, said Todd Jorgensen, a senior vice president with the Peabones.
That will help keep demand for natural gas in check as the regions electric grid continues to degrade, he said.
Chesapeake has a $5.8 billion contract with Dominion Energy to supply natural gas for its Northeast natural gas transmission lines.
Peabooys other customers include the New York metropolitan area, which already has the most reliable natural gas pipeline in the nation, and the Midwest, where it also has a long-term pipeline.
Peabaoy has not announced which of its customers will get the contract, but Dominion has said it will buy at least half of the pipeline.
Cheson has been buying natural gas from natural gas pipelines since the 1980s, but the company has been slow to upgrade its infrastructure.
As demand has fallen, the company was unable to maintain its existing pipeline capacity and now has to rely on new ones, Jorgenson said.
In 2014, Peaboos pipeline was the second-worst in the U and third-worst on the East Coast, according to a report from the Energy Information Administration.
Now it has been upgraded and is one of the most efficient natural gas infrastructure companies in the country, he added.
Peabeys customers also include a number of electric utility companies that are expanding their gas storage facilities.
The company has already signed contracts to lease storage capacity from MetLife, the utility company, and is now working with Sunoco Logistics to build new storage facilities at its new plant in New Jersey, Jorgino said.
The gas company also recently signed a lease with the New Jersey Gas & Electric Authority to build storage facilities in New York, Pennsylvania and Connecticut, said Jorgens.
The contracts will provide Peabons customers with storage, but it will not be a major part of its business model, Jori said.
Peacrocks customers also are in a transition period.
Its natural gas supply is being stretched as a consequence of the ongoing climate crisis.
Cheso’s main customer is the New England utility company Electric Generation.
But Cheso is also in the midst of transitioning its gas production from natural to gas-burning equipment, which has been an option for years, Jorfensen said.
And because Peabonys customers are now buying natural from Cheso, they are also buying natural-gas equipment.
So, the new technologies that Cheso has in place will be an asset to Cheso in the future, Joris said.