Natural Gas Distribution

Natural Gas Distribution

Overview

The 2,600 natural gas local distribution companies (LDCs) in the US supply gas for residential usage, commercial usage, industrial usage, and electric power generation. The operations and financial performance of a natural gas distributor are highly dependent on the regulatory structure in which the company operates.

Expanding Use for Electric Power Production

Environmental concerns about greenhouse gases emissions is causing many power producers to begin replacing the coal burning plants with alternatives.

Expansion of Domestic Supplies from Unconventional Sources

The successful use of hydraulic fracturing to obtain unconventional natural gas from shale formations with high organic content has increased domestic natural gas production from 20 trillion cubic feet (tcf) in 2000 to 32 tcf in 2018.