AGA PROGRAM SEEKS TO BOOST U.S. GAS USE

The American Gas Association has begun a program to increase U.S. natural gas demand at least 2.5 tcf by 1995. Richard Farman, chairman of AGA and of Southern California Gas Co., the program will seek to unite producers, pipelines, and distributors in a drive to increase near term demand over projected levels. "if we focus on our customers we have an opportunity to work together," Farman said. "Producers are coming to understand there has to be a coordinated effort to stimulate gas demand. We

Dec. 23, 1991

3 min read

The American Gas Association has begun a program to increase U.S. natural gas demand at least 2.5 tcf by 1995.

Richard Farman, chairman of AGA and of Southern California Gas Co., the program will seek to unite producers, pipelines, and distributors in a drive to increase near term demand over projected levels.

"if we focus on our customers we have an opportunity to work together," Farman said. "Producers are coming to understand there has to be a coordinated effort to stimulate gas demand. We have had flat gas prices the past 2 years."

CAMPAIGN DETAILS

Under the program, all three gas industry segments would cooperate in product commercialization, marketing, and advertising.

They would lobby the federal government to substitute gas for imported oil wherever possible and encourage federal and state governments to facilitate gas use for environmental purposes.

A primary goal is to increase gas demand for electrical power generation, a potential market of 1 tcf by 1995.

Sponsors of the effort will lobby federal agencies to promote gas burning capability in 70 power plants that burn only oil.

Another objective could add 50,000 natural gas vehicles to commercial fleets by 1995, increasing demand a potential 10 bcf. It would establish a coordinated buying program and seek more conversions of federal fleets.

Another goal is to shift homes and businesses from oil heat to natural gas, increasing gas demand a potential 1.5 tcf and reducing oil 750,000 b/d by 1995.

Industry would establish a program to encourage conversions in the residential commercial sectors and lobby the federal government to convert 90,000 oil burning buildings at 18,000 federal sites to natural gas.

Another goal is to increase commercial gas cooling applications, a potential increase of 20-30 bcf by 1996. That would include a nationwide advertising campaign and funding for commercialization of gas cooling technology.

The program would seek to convert electric hot water headers to gas hot water heaters in 500,000 homes that use gas anyway. By 1995, that could increase use a potential 2-3 bcf.

MARKET SHARE

Mike Baly, AGA president, said market share for natural gas among all U.S. energies is more than 24% this year, the highest level since 1985.

"it is important to note that the weak economy and warm weather masked strong fundamentals for gas," Baly said.

"The unusually warm winter weather will result in a heating load loss for gas of about 400 bcf, compared with a year with normal weather.

"Even so, while overall energy consumption will be down in 1991 because of weak economic activity, natural gas will maintain its previous year's demand level of 19.4 quadrillion BTU."