ISO

NGL volumes continue to climb because of all the surging “wet” shale gas production.  These days about 7% of gas plant NGL production is “isobutane”, (also known as IC4, I Grade, methylpropane, R600a, iso and “izo” to our friends in Canada).  Over the past two years gas plant production of iso is up about 25%, and that volume is expected to increase another 30% over the next two years.  Most isobutane is used by refineries to make high-octane alkylate, but what about the rest?  Today we take a closer look at this lesser known natural gas liquid (NGL) and the sometimes exotic uses it is put to.

Growth in natural gas demand forecasts these days rely heavily on projections of increased power burn. Lack of coordination between the gas and electric industries threatens to limit that expansion. The greatest challenge is the security of gas supply to the generators and how that impacts reliability. Regional differences in the electric power market appear to make national regulations to secure gas supplies unworkable. Today we review FERC efforts to understand and perhaps attempt to standardize those regional differences.

During 2012 the FERC jumped into the ring to involve itself in the long running debate to improve coordination between the gas and electric power industries. The FERC is motivated by concerns about reliability and the trend to increase power generation from natural gas at the expense of coal and oil. The commission held 5 regional conferences to identify the industry’s concerns and the role of regulation in any solutions. Today we examine progress on this important initiative.