An executive with the TC Energy, a group that is among the largest operators of natural gas pipelines in North America, said electricity demand from energy-intensive data centers will support an increased need for the fuel in the coming years.
Stanley Chapman, executive vice president and COO of Calgary, Alberta-based TC Energy, in a May 3 company earnings call said he expects demand for natural gas tied to data center operations will rise by as much as 8 billion cubic feet a day (Bcf/d) by 2030. That level is equal to about 21% of the current demand for the fuel at U.S. gas-fired power plants.
Said Chapman, “We do see a meaningful load-in growth opportunity and increased demand in coming years due to data centers.” Chapman said his company is upgrading its pipeline network across some states, and increasing connections to local distribution networks, as part of its strategy to support the demand growth for natural gas.
A Wells Fargo analysis of the electricity sector, published in April, said data centers and technology related to artificial intelligence (AI) alone are expected to add about 323 TWh of power demand in the U.S. by 2030. Goldman Sachs has said data centers will account for 8% of total U.S. electricity consumption by the end of the decade.
Data centers are driving increased demand for electricity worldwide, in part because they support technology related to AI and computing networks. The power demand is so great that many analysts say growth in the use of renewable energy resources will not be enough to satisfy increased electricity consumption, including from electrification of transportation.
That’s why Chapman and others in the natural gas industry say demand for their fuel will increase as a cost-effective way to produce power. Richard Kinder, executive chairman of pipeline operator Kinder Morgan, during the company’s earnings call in April said, “This type of need demonstrates that the emphasis on renewables as the only source of power is fatally flawed in terms of meeting the real demands of the market. The primary use of these data centers is big tech and I believe they’re beginning to recognize the role that natural gas and nuclear must play.”
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There is a concerted effort by the Natural Gas Industry to stop renewables from dominating the growth of electrical power generation. They want all the coal fired power plants to be replaced by natural gas fired plants. They are already doing this in several places in the country:
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GE Vernova has bagged the Tennessee Valley Authority’s (TVA’s) first order as part of a fast-track project to replace the 1.3-GW Kingston Fossil Plant in Tennessee with a 1.5-GW modern complex. https://www.powermag.com/tva-secures-16-ge-vernova-aeroderivative-gas-turbine-packages-for-kingston-replacement/
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Louisville Gas and Electric Co. and Kentucky Utilities Co. (LG&E and KU) will replace two aging coal generation units at Mill Creek Generating Station in Kentucky—a combined 600 MW—with a 645-MW GE Vernova hydrogen-ready 7HA.03 gas turbine. https://www.powermag.com/coal-fired-mill-creek-generating-station-readies-for-new-7ha-03-gas-fired-unit/
I do not buy their propaganda! Natural Gas power plants still emit CO2 and the get natural gas out of the earth, processed and put into pipelines to deliver the gas to the power plants results in significant amounts of methane leaked into the atmosphere.strong text Solar with batteries and wind with batteries will kill the economics of Natural Gas slowly but surely. And when non-battery long term energy storage (> 24 hours) is developed into economic technology we will see less stress and strain put on the Lithium battery materials mining and processing.