Pipeline Network

European natural gas consumers would welcome the addition of low-cost liquefied natural gas (LNG) from the U.S. to their gas-supply mix. For one thing, they want to reduce their reliance on Russia and other potentially sketchy sources of pipeline gas. For another, they want to weaken the link between oil and gas pricing—something U.S.-sourced LNG would help them do. What would it take for the U.S. to become one of Europe’s primary gas suppliers, and what would that mean for U.S. gas producers and LNG exporters? Today we continue our examination of the international LNG market with a look at what’s driving European curiosity about U.S. LNG.

The boom in U.S. oil and natural gas production has grabbed the headlines the last few years. What shouldn’t be forgotten, though, is that Americans depend on refined petroleum products like gasoline, diesel and jet fuel—not crude—to get from Point A to Point B, and that in some parts of the country, especially the Northeast, fuel oil—not natural gas or electricity—remains the space-heating fuel of choice. Transporting large volumes of petroleum products from refinery to consumer is a monumental and complicated task, a mission accomplished primarily by a still-growing, ever-evolving network of pipelines and storage facilities. Today, we begin a new series on how gasoline, distillate (diesel and heating oil), and jet fuel get to where they’re needed.