Ensuring Natural Gas Supply

All PGC members employ process and manufacturing applications that require the use of natural gas. These industrial end users require a consistent supply of natural gas at competitive prices.  Rising natural gas prices will continue to hinder all sectors of the nation’s economy until affirmative measures are taken to bolster energy supply.  PGC supports initiatives that help ensure that natural gas supply meets the growing demand. 

OCS Legislation and Related Access Issues

PGC supports the pursuit of environmentally-responsible options for exploration and production in the Outer Continental Shelf (OCS).  PGC supports policies that encourage locational diversity of supplies and the formulation of an OCS 5-year plan that develops resources in previously unexplored areas. 

PGC applauds the Senate Energy and Natural Resources Committee for approving legislation (S. 2253) that would require the Secretary of the Interior to offer portions of the 181 area of the Gulf of Mexico for oil and gas leasing.  The OCS has become an increasingly integral part of domestic natural gas and oil supply over the last 50 years.  PGC is hopeful that with the Committee’s strong support for the opening of the 181 area for leasing, Congress will seek to expand OCS resource development in a prudent fashion.  In order to strengthen our nation’s economy and to facilitate offshore resource production, PGC urges the Senate to promptly proceed with deliberations on this legislation. 

Gas Quality Specifications/Interchangeability

PGC is part of an industry-wide collaborative effort, under the auspices of the Natural Gas Council, to discuss policy options that may ultimately be proposed to the  Federal Energy Regulatory Commission (FERC or the Commission) to address gas quality and interchangeability problems.

PGC supports the setting of hydrocarbons liquid (HDP) parameters in order to avoid liquids drop out problems that can wreak havoc on industrial end users’ plants and equipment.
Additionally, PGC supports liquefied natural gass (LNG) interchangeability standards that will encourage as much natural gas supply as possible while avoid setting standards that are so strict as to discourage gas supplies from either LNG or domestic sources (such as from small production wells in Appalachia).

PGC participated with the Natural Gas Council in the development of the HDP and Interchangeability White Paper, which was provided to FERC in October, 2004. 
PGC is continuing to work with the Commission and the Natural Gas Council to try to address these issues on a generic basis at FERC.