2011-2020 GHGRP Sector Profile

Natural Gas and Natural Gas Liquids Supply

2011-2020 Greenhouse Gas Reporting Program Sector Profile:
Natural Gas and Natural Gas Liquids Suppliers

Tableof Contents

NATURAL GAS AND NATURAL GAS LIQUIDS SUPPLIERS SECTOR	2

Highlights	2

About this Sector	2

Who Reports?	4

Reported Greenhouse Gas Information	5

Natural Gas and Natural Gas Liquids Supply Sector Trend in Total Reported GHG
Quantity 2011 to 2020	9

Natural Gas Supply Trends	9

Natural Gas Liquid Supply	10

Calculation Methods Used	13

Data Verification and Analysis	14

GLOSSARY	14

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2011-2020 GHGRP Sector Profile

Natural Gas and Natural Gas Liquids Supply

NATURAL GAS AND NATURAL GAS LIQUIDS SUPPLIERS SECTOR

All emissions presented here are as of8/7/2021. Natural gas and NGL suppliers do not report actual emissions from
a facility. Suppliers report the quantity of product placed into the economy and the emissions that would result if
the products were completely combusted, oxidized, or released when used.

Highlights

•	The reported greenhouse gas (GHG) quantity associated with Natural Gas Liquids (NGL) supply has
increased from 211.5 to 433.6 million metric tons (MMT) of CO 2 from 2011 to 2020.

•	The reported GHG quantity associated with natural gas supplied by local distribution companies
(LDCs) increased from 715.9 to 777.5 (MMT) of CChfrom 2011 to 2020.

Aboutth tor

This sector comprises NGL fractionators and LDCs.

•	NGL fractionato rs aredefinedas installations thatreceive bulk natural gas ornatural gas liquids from
producers and then fractionated at leastsome of these raw inputs into individual liquid products
(ethane, propane, normal butane, isobutane, orpentanes plus) and supplied those products into the
economy duringthe reportingyear.

•	LDCs are generally the same companies to which you pay your gas bill eveiy month. They receive
natural gas from a transmission pipeline company and physically deliver the gas to end users.

Some facilities in the Natural Gas and Natural Gas Liquids Supply sector also submit GHG reports
for their direct emissions (i.e. emissions from fuel combustion, process vents, and equipmentleaks).
Direct emissions data reported by these facilities are available in the industrial profiles for
Petroleum and Natural Gas Systems and Petroleum Refineries. Greenhouse gas information
associated with imports and exports of natural gas liquids is reported by suppliers of petroleum
products.

Figure 1 shows the natural gas and natural gas liquid supply chain and highlights the information
reported by LDCs and NGL fractionators.

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2011-2020 GHGRP Sector Profile

Natural Gas and Natural Gas Liquids Supply

Figure 1: Flows of Natural Gas and Natural Gas Liquids3

Natural Gas Well

Ethane
Propane
Butane
Isobutane
Pentanes Plus

Electricity
Generation
End Users

Delivered
Directly to
End-Users

(Not Reported
Under Subpart NN)

Local
Production

a Quantities marked with green arrows are reported to EPA by NGL Fractionators or Local Distribution Companies
underSubpartNN.

Although mostnatural gas consumers receivetheir natural gas from LDCs, some natural gas is
delivered directly to end-users by other distributers, including transmission pipeline companies,
producers, gatherers, and storage companies. These companies mostly supply large-volume end
users, such as large industrial and electric power generation customers. The natural gas delivered
directly to end users is not reported to the Greenhouse Gas Reporting Program (GHGRP) by
transportation pipeline companies or LDCs. Based on information from the U.S. GHG Inventory for
2019, roughly 51.1% of CChe associated with natural gas combustion is being reported to GH GRP by
LDCs (see Table 1),1 However, most of the COze associated with the combustion of gas that is not
reported by LDCs is combusted at large installations thatare themselves required to report their
GHG emissions to EPA. Therefore, the GH GRP covers the vast majority of emissions associated with
natural gas use in reporting by either the supplier or the end-user.

'Total CChe associated with gas supply reported to the GHGRP by LDCs divided by the total C02e associated with U.S. natural gas
consumption. Total CChe associated with gas supply reported to the GHGRP by LDCs was calculated by multiplyingtotal reported
gas deliveries by 0.0544x(10-6],theaverageC02 emissions from combustion of 1 Mscf of natural gas, and by the global warming
potential (GWPJ ofl for CO2, measured in MMT CChe. InventoiyofU.S. Greenhouse Gas Emissions and Sinks: 1990-2019. U.S.
Environmental Protection Agency. April 14,2021. EPA 430-R-21-005. Available at:
https://www.epa.gov/ghgemissions/inventoiy-us-greenhouse-gas-emissions-and-sinks-1990-2019.

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2011-2020 GHGRP Sector Profile

Natural Gas and Natural Gas Liquids Supply

Table 1: Natural Gas Supplied to End-Users in 2019

End-Use Sector

Total C02e associated
with gas supply reported
to the GHGRP by LDCs
(MMT)b

Total C02e
associated with U.S.

natural gas
consumption (MMT)C

Percentage of natural
gas consumption
reported to the
GHGRP by LDCs

Commercial Customers

185.7

192.8

96.3%

Electricity Generating Facilities

136.7

616.0

22.2%

Industrial Customers

220.2

503.3

43.8%

Residential Customers

267.9

275.3

97.3%

All Sectors

810.5d

1,587.4

51.1%

0 GHGRP data from 2019 was used to be most directly comparable with the most recent GHG Inventory data.
b Estimated by multiplying total reported gas deliveries by 0.0544 x 106, the average C02 emissionsfrom
combustion ofl Mscf of natural gas, and by the global warming potential (GWP) ofl forCC>2, measured in MMT
C02e.

c Inventory of U.S. Greenhouse Gas Emissions and Sinks: 1990-2019. U.S. Environmental Protection Agency. April 14,
2021. EPA 430-R-21-005. Available at: https://www.epa.gov/ghgemissions/inventory-us-greenhouse-gas-
emissions-and-sinks-1990-2019.

d TheC02e quantity for all sectors shown in this table differs from that presented in Table 5. Thevaluein this table
is calculated usingthe defaultC02e emissions per unit of naturalgas, whereasthevalueprovidedin Table5 is
calculated using supplier specific values for CO 2e per unit of natural gasdelivered, where reported.

Who Rep

Table 2 includes applicability information for the Natural Gas and Natural Gas Liquids Supply
Sector as well as their corresponding reporting schedules. Table 3 summarizesthe number of
suppliers in the Natural Gas and Natural Gas Liquids Sector that submitted a GH G report from 2011
to2020.In2020,489 suppliers in the sector submitted a report to GHGRP. Out of all suppliers
reporting to the GHGRP, 50.2% are in the Natural Gas and Natural Gas Liquids Supply Sector. Table
2 includes details ofthe applicability of each reporter category as well as their corresponding
reporting schedules. Table 4 shows the GHGRP coverage for Natural Gas and Natural Gas Liquids
Supply.

Subpart

Source Category

Applicability

First Reporting
Year

NN

Local Distribution Companies

LDCs that deliver >=
460,000 Mscf of natural
gas annually.

2010

NN

NGL Fractionators

All NGL Fractionators
are required to report.a

2010

0 All NGLfractionators are required to report to the GHGRP. However, suppliers may discontinue reporting if the
quantity of GHG supplied is less than 25,000 metric tons C02e per year for five consecutive years or less than 15,000
metric tons C02eperyearfor three consecutive years.

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2011-2020 GHGRP Sector Profile

Natural Gas and Natural Gas Liquids Supply

Table3: Natural Gas and Natural Gas Liquids SupplySector- Number of Reporters

(2011-2020]	

Subsector	2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Local Distribution Companies	381 386 385 383 383 381 379 376 372 365

NGL Fractionators	116 119 126 130 125 124 124 123 123 124

Total Natural Gas and Natural Gas 497 505 511 513 508 505 503 499 495 489
Liquids Sector	

Table4: Natural Gas and Natural Gas Liquids SupplySector-

GHGRP Coverage

f2020]







Subsector

GHGRP Applicability

Estimated Percent of
Suppliers Covered by
GHGRP

Estimated Percent of CO2B
Associated with Products
Covered by GHGRP

Local Distribution

LDCs that deliver

30%a

99%a

Companies

>=460,000 Mscfof natural
gas annually.





NGL Fractionators

All Fractionators

98%b

~100%b

0 Estimate of size of industry and estimate of total CC>2e coverage are based on reports submitted by LDCsto EIA via
form 176,2020. All operating LDCs are required to submitthisform to EIA regardless of the size of their operations.
The form contains the quantity of gas delivered by theLDCto end-users. The estimated total C02e covered by the
GHGRP was calculated by taking the total deliveries reported to EIA and subtracting the fraction of natural gas
supplied by LDCs below the GHGRP reporting threshold.

bAII natural gas liquids fractionators are required to report to the GHGRP; since 2012,26facilities have ceased
reporting because they met the criteria for off-rampingorhad anothervalid reason to discontinue reporting. We
have determined that of these 26 facilities, 2 have ceased reporting because they met the criteria for off-ramping.
See FAQ: When is a Facility Eligible to Stop Reporting?Available at:
http://www.ccdsupport.com/confluence/pages/viewpage.action?pageld=243139271.

Rep	tion

Table 5 includes the C02e quantities (MMT] for the Natural Gas and Natural Gas Liquids Supply
Sector from 2011 to 2020. The total quantity of C Che reported by N atural Gas and N atural Gas
Liquids Suppliers was 1,211 MMT in 2 020 (Table 5], This excludes the quantity reportedby 20 NGL
fractionators that supply only one product, because their production quantities are considered to
be confidential business information and are not published by EPA. The total C02e quantity
reportedby these 20 fractionators is relatively small.

Because C02e emissions associated with each product do not occur until the product is combusted
or otherwise used, not all of the total reported 1,211 MMTCChe was necessarily emittedto the
atmosphere in 2020. Some ofthe products maybe in storage for use in future years. Additionally,
some natural gas and about 67% of NGLs 2 are used for non-energy purposes such as feedstocks for
petrochemical production. Table 6 shows the percentage of NGLs used for fuel and non-fuel

2 Value was calculated by dividing the total heat content of NGLs (ethane, propane, butane/isobutane, and pentane plus] used for
fuel purposes in 2020 by the total heat content of all NGLs supplied in 2020, multiplying by 100 to convert to percentage and
then subtracting from 100 to determine the percentage of NGLs used for non-energy purposes. Data source: EIA, Petroleum &
Other Liquids, Supply and Disposition. Annual, 2020. Available here:
https://www.eiagov/dnav/pet/pet_suni_snd_d_nus	mbbl	a	cur.htni

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2011-2020 GHGRP Sector Profile

Natural Gas and Natural Gas Liquids Supply

purposes, by product. Some carbon emissions from these products will be released at downstream
chemical plants, and the remaining carbon emissions do not occur until the petrochemical product
(e.g., plastic] decomposes or is combusted, such as in a landfill or a waste incinerator.

Some CC>2e associated with natural gas supplied by LDCs is also reported to EPA by end-users ofthe
gas. To account for emissions already reported to the GHGRP by end-users under other subparts,

LDCs are required to report the quantity of gas delivered to large end-users, defined as those who
receive greater than 460 million scfofgas per year. This threshold was selected as it is roughly
equivalentto25,000 metric tons C02e; facilities that emit above this level are required to report
their direct GH G emissions to the EPA.

Table 5: Natural Gas and Natural Gas Liquids Supply Sector C02e Quantity (2011-

2020]	

Subsector	2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Total Natural Gas and 927.3 943.7 994.7 1,054.1 1,053.7 1,057.9 1,063.3 1,172.8 1,222.9 1,211.0
Natural Gas Liquids
Supply Sector (MMT)a

NGL Fractionators3 211.5 234.3 222.8 261.9 288.1 305.2 320.3 358.3 400.0 433.6

Local Distribution 715.9 709.5 771.9 792.2 765.6 752.6 743.0 814.5 822.9 777.5
Companies

COie associated with 206.5 242.0 236.8 247.2 261.0 260.8 256.3 275.3 276.6 273.0
LDC deliveries to
large end-users

0 Excludes CO2e reported by 20 NGL Fractionators whose reported quantities are classified as confidential business
information (CBI). Note: GHGRP data differs from EIA data in that their emission estimates are based on products
supplied (which considers imports and exports) whereas GHGRP's is based on products produced atfractionating
facilities.

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2011-2020 GHGRP Sector Profile

Natural Gas and Natural Gas Liquids Supply

Table 6: Percentage of NGL Used for Fuel and Non-Fuel Purposes

Natural Gas Liquid

Percent Used for Fuel Purposes3

Percent Used for Non-Fuel Purposes

Ethane

0%

100%b

Propane

76%

24%c

Butane/isobutane

15%

85%b

Pentane Plus

50%

50%b

0 Percent used for fuel purposes was calculated bysubtracting the amount used for non-fuel purposesfrom 100%.
b Ethane, butane/isobutane, and pentane plus values were obtainedfrom Monthly Energy Review, October2021.
U.S. Energy Information A dministration, pg.27, Hydrocarbon Gas Liquids (HGL) definition. A vailablehere:
https://www.eia.gov/totalenergy/data/monthly/archive/00352110.pdf.

c Propane for non-fuel purposes was calculated using total odorized propane sales data in 2019 from PERC
(Availablehere: https://cloudhary.propane.eom/images/vl608647918/webate-media/2019-Annual-Retail-
Propa ne-Sal'es-Report-Final/2019-Annual-Retail-Pro pa ne-Sales-Report-Final.pdf; pi) and propane products supplied
in 2019 (Available here: https://www.eia.gov/dnav/pet/pet_sum_snd_d_nus_mbbl_a_cur-l.htm). The percentage
was calculated as follows: (1-Propane Sales/Propane Products Supplied)*100.

Figure 2 shows the locations of LDCs that reported to the GHGRP, their service areas (if avail able],
and the C02e associated with natural gas supplied. The color of the shading corresponds to the
quantity of C02e reported by that LDC. There are also LDCs reporting C02e associated with natural
gas supplied located in Alaska and Hawaii.

Readers can view maps and identify the LDCs reporting the largest C02e quantity by visiting the
Facility Level Information on Greenhouse Gases (FLIGHT] website (http://ghgdata.epa.gov].

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2011-2020 GHGRP Sector Profile

Natural Gas and Natural Gas Liquids Supply

Figure 2: Location and Reported CChe Quantity (metric tons) for Each LDC in the
Natural Gas and Natural Gas Liquids Supply Sector

Natural Gas Suppliers
Local Distribution Companies
Quantitiy Supplied (Metric Tons C02e)

I

>20,000,000
10,000,000 -20,000,000
5,000,000- 10,000,000
3,000,000 - 5,000,000
1,000,000 -3,000,000
0- 1,000,000

Figure 3 shows the locations of NGL fractionators that reported. The reported CChe is not emitted at
these locations. These products are supplied into the economy and are either combusted or used as
a chemical feedstockby down-stream users. Readers can identify the NGL fractionators reporting
the largestCOze quantity byvisitingthe Facility Level Information on Greenhouse Gases(FLIGHT)
website [http://ghgdata.epa.gov].

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2011-2020 GHGRP Sector Profile

Natural Gas and Natural Gas Liquids Supply

Figure 3: Location of NGLFractionators in the Natural Gas and Natural Gas Liquids
Supply Sector

i

ZD



; . *





GHGRP, 2020
Natural Gas Fractionators Facility Location

Natural Gas and Natural Gas Liquids Supply Sector Trend in Total
Reported GHG Quantity 2011 to 2020

Natural Gas Supply Trends

In general, the CO2 associated with natural gas supplied by local distribution companies (LDCs]
varies due to fluctuations in weather, the relative price of natural gas compared to other fuels and
the prevailing economic conditions. The annual CO2 reported for natural gas supplied by LDCs has
ranged between a low of 709.5 million metric tons (MMT] in 2012 and a high of 822.9 MMT in 2019
and is directly proportional to the quantity of natural gas supplied. The total volume of natural gas
supplied increased by 10 percent in 2 018 and by 1 percent in 2 019 but decreasedby 5 percent in
2020. The increase in natural gas supplied in 2 018 and 2 019 was primarily due to economic
growth, relatively low natural gas prices resulting from high levels of natural gas production, and

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2011-2020 GHGRP Sector Profile

Natural Gas and Natural Gas Liquids Supply

greater reliance on natural gas to fuel power plants.3-4-5 The lower C02e reported for 2 02 0 is due to
a reduction in demand by residential, commercial (which includes restaurants, hotels and schools]
and industrial consumers. Natural gas supplied to residential, commercial and industrial customers
in 2020 decreased by 6.6 percent, 10.1 percent and 6.3 percent, respectively, compared with 2 019,
despite the lower natural gas prices.6 The decrease in natural gas consumption by residential users
is likely due to milder winter weather in January - March 2020 and November - December 2020,
while the lower consumption in the commercial and industrial sectors is likely caused by the
COVID-19 pandemic closures.7 Natural gas consumption by the electric power sector increased by
4.4 percent in 2 02 0. The increase in natural gas consumed by the electric power sector over the last
three years is due in part to low gas prices, the retirement of coal-fired power plants and in 2 02 0 to
higher-than-normal summer temperatures.89'10

The reported C O2 for 2 011 and 2012 are also affected by changes in the default emission factors.
The default emission factor for natural gas supplied was revised in 2 013 to a value about 1 % less
than the default emission factor used in years prior to 2 013. For an LDC that uses the default
emission factors, the total CO2 value reported in 2013 andsubsequentyearsis 1% lower than
would have been reported if the emission factor had not been updated. Since many LDCs use
emission factors developed using their own data, the overall impact on CO2 for the sector is small.
However, the total CO2 for the sector is lower for 2 013 and subsequentyears than would have been
reported if the emission factor had remained unchanged.

Natural Gas Liquid Supply

F or suppliers of natural gas liquids, the CO2 associated with natural gas liquids (N GLs] supplied to
the U.S. economy (i.e., ethane, propane, butane, isobutane and pentanes plus] has gradually
increased from 211.5 million metric tons (MMT]in 2011 to 43 3.6 MMT in 2020. Except for a small
decrease in 2 013, the supply of N GLs has increased steadily every year with ethane and propane
making up about 7 0 percent by volume of the NGLs supplied each year by U.S. fractionators.11

The increase in NGL supply is due to increased production of natural gas in areas that are high in
natural gas liquids; increased U.S. demand for N GL products; increased production capacity due to
construction of new fractionation plants (124 plants in 2020 compared with 116 in 2011]; and
increased production at existing plants (ratio of C O2 to number of plants increased from 2.6

3	U.S. Department of Energy, Today in Energy, U.S. Natural Gas Production, Consumption, and Exports Set New Records in 2019,
October 5,2020. Available at: https://www.eiagov/t(xlayincnergy/dctail.php?id=45377.

4	U.S. Department of Energy, T oday in Energy, In 2019, the United States Produced and Consumed Record Volurres of Natural
Gas, July 10,2020. Available at: https://www.eiagov/todayinenergy /detail,php?id=44336.

5	U.S. Department of Energy, Today in Energy, In 2020, U.S. Natural Gas Prices were the Lowest in Decades, January 7,2021.
Available at: https;//www,eia,goy/todayiii;nergy/detail,plip?id=46376

6	Ibid.

7	U.S. Department of Energy, Today in Energy, U.S. Natural Gas Consumption was Lower in 2020 in All Sectors Except Electric
Power, March 10,2021.https;//www,eia,goy/todayinenergy/detail,php?id=47076

8	U.S. Department of Energy, T oday in Energy, In 2019, the United States Produced and Consumed Record Volumes of Natural
Gas, July 10,2020. Available at: https://www.eiagov/todayinenergy /detail,php?id=44336.

9	U.S. Department of Energy, Today in Energy, In 2020, U.S. Natural Gas Prices were the Lowestin Decades, January 7,2021.
Available at: https;//www,eia,goy/todayiii;nergy/detail,plip?id=46376

10	U.S. Department of Energy, Today in Energy, More than 100 Coal-fired Plants have been Replaced or Converted to Natural Gas
Since 2011, August 5,2020. Available at: https://www.eiagov/t()dayinenergy/detail.php?id=44636.

11	U.S. Department of Energy, Energy Information Administration, U. S. Energy Information Administration/Petroleum Supply
Annual 2019, Volume 1, Table 15. Natural Gas Plant Net Production and Stocks of Petroleum Products by PAD and Refining
Districts, 2019, August 31,2020. Available at: https://www.eiagov/petro1euni/supply/annual/vo1uniei/pdl'ytab]el5.pdl\

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2011-2020 GHGRP Sector Profile

Natural Gas and Natural Gas Liquids Supply

MMTCOz/plantin 2017 to 3.5 MMTCO2 /plant in 2020]; The year-over-year increases in the CO2
emissions from NGLs were approximately 11.8 percentfor 2 018,11.6 percent for 2019, and 8.4
percent for 2 0 2 0. The increased NGL production reported in recent years is also partly due to
increased exports due to the construction of new pipelines and export terminals.12 Exports of
propane have increased every year since 2012 due to strong market demand in Asia.13 Ethane
supply increased in 2 019 in response to increased demand from new petrochemical facilities in the
U.S. thatuse ethane as a feedstock.14

The reported C O2 for 2 011 and 2012 are also affected by changes in the default emission factors.
F or suppliers of natural gas liquids, the default emission factors used for calculating the C O2 for
ethane, propane, butane and isobutene were revised in 2013. The default emission factors for
propane, butane and isobutane were increased by a few percent over those used prior to 2 013,
while the default emission factor for ethane was decreased by over 30 percent. The impact these
changes had on the total CO2 reported by an NGL fractionator depends on the mixture of products
the plant supplies and whether the fractionator used the default value or a measured value. Since
most NGL fractionators supply ethane, the reported CO2 across the industry was lower beginning in
2013 than would have been reported ifthe factors had not been updated.

Table 7 shows the heating and cooling degree days as well as the natural gas consumption
quantities for these sectors from 2011 to 202 0. Table 8 includes the amount of natural gas
deliveries that are reportedto GHGRP by LDCs from 2011 to 202 0.

12	U.S. Department of Energy, Energy Information Administration, This Week in Petroleum, In 2020, Increased Propane, Other
HGL Exports Contribute to Continued Strong Product Exports Despite Reductions in Major Transport Fuels, September 23,2020.
Available at: https://www.eia.gov/petro1euni/weekly/archive/2020/200923/includes/analysis	print.php.

13	U.S. Department of Energy, Energy Information Administration, The United States Exported More Propane than Distillate in
2020, March 8,2021. Available at: https://www.eiagov/todayinenergy/det:ail.php?id=47036

14	U.S. Department of Energy, Energy InformationAdministration.HydrocarbonGas Liquids Explained, October 31,2019.
Available at: https://www.eia.gov/energycxplained/hydrocarbon-gas-liquids/prices-lbr-hydrocarbon-gas-liquids.php

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2011-2020 GHGRP Sector Profile

Natural Gas and Natural Gas Liquids Supply

Table 7: Weather Data and Natural Gas Consumption

Year

Heating
Degree Days a

Natural Gas Consumption:
Residential and Commercial
Sector (MMcf)b

Cooling
Degree Days a

Natural Gas
Consumption: Electric
Power Sector (M Mcf)b

2011

4,324

7,869,096

1,456

7,835,473

2012

3,780

7,044,444

1,479

9,380,065

2013

4,491

8,192,673

1,287

8,198,389

2014

4,594

8,553,779

1,272

8,193,449

2015

4,128

7,814,622

1,457

9,731,656

2016

3,921

7,456,172

1,528

10,313,964

2017

3,876

7,577,938

1,390

9,599,491

2018

4,340

8,511,508

1,547

10,918,248

2019

4,374

8,533,084

1,455

11,596,874

2020

3,967

7,844,533

1,476

11,719,674

Percent Change
(2011-2020)

-8.3%

-0.3%

1.4%

49.6%

0 U.S. Environmental Protection Agency, Climate Change Indicators: Heating and Cooling Degree days from the
National Oceanic and A tmosphericA dministration, Climate at a glance. A vailable at:
https://www.epa.gov/climate-indicators/climate-change-indicators-heating-and-cooling-degree-days
b U.S. Department of Energy, Energy Information Administration, total natural gasconsumption by sector. These
numbers differ from Table 8 because they represent all gas consumption, based onEIA data, which includes gas not
delivered by an LDC. A vailable at:

https://www.eia.gov/naturalgas/ngqs0?yearl=2O15&year2=2O2O&company=Name

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2011-2020 GHGRP Sector Profile

Natural Gas and Natural Gas Liquids Supply

Table 8: Natural Gas Deliveries Reported to GHGRP by LDCs (Bcfl

Point in the
Supply Chain

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

Commercial
Customers

3,040

2,807

3,196

3,372

3,110

3,022

3,075

3,394

3,414

3,068

Electricity

Generating

Facilities

1,860

2,403

2,242

2,236

2,540

2,493

2,165

2,475

2,514

2,626

Industrial
Customers

3,294

3,518

3,674

3,788

3,689

3,763

3,842

4,021

4,048

3,791

Residential
Customers

4,639

4,086

4,848

5,006

4,546

4,289

4,350

4,917

4,925

4,600

Total Reported
Deliveries

12,833

12,814

13,960

14,402

13,885

13,568

13,431

14,808

14,900

14,085

Calculation Methods Used

Suppliers in the Natural Gas and Natural Gas Liquids Suppliers sector can choose one of two
different methodologies for calculating the C02e quantity associated with the combustion or
oxidation of the quantities of natural gas and natural gas liquids supplied.

•	Calculation Methodology 1 - Multiply the volume of product supplied by the higher heating
value (HHV]anda C02e emission factor (EF], Use either measured or default fuel HHVs and
CChe emission factors.

•	Calculation Methodology 2 - Multiply the volume of product supplied by a C Che emission
factor. Use either measured or default C02e emission factors.

Table 9 shows the portion of reported CC^e associated with natural gas supplied by different
calculation methodologies in GHGRP. For NGLFractionators, more than 90% of reporters used the
default HH V and emission factor values as opposed to measured values.

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2011-2020 GHGRP Sector Profile

Natural Gas and Natural Gas Liquids Supply

Table9: Portion of Reported C02e Associated with Natural Gas Supplied by
Calculation Method

Methodology

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

Measured Higher
Heating Value (HHV) &
Measured Emission
Factor (EF)ab

1.7%

1.7%

3.0%

1.4%

1.3%

8.1%

9.2%

8.0%

7.9%

8.3%

Measured HHV &
Default EFbc

17.9%

23.6%

15%

22.5%

21.7%

12.9%

15.7%

15.3%

11.5%

15%

Default HHV & Default
EFbd

80.5%

74.7%

81.9%

76.1%

77.0%

78.9%

75.1%

76.7%

80.5%

76.7%

0 Includes LDCs that used Calculation Methodology 1 with both a measured CO 2 emission factorandHHVand those
who used Methodology 2 with a measured C02 emissionfactor.

b CO 2 calculated using Calculation Methodology 1 and 2 is converted to C02e by multiplying by a GWP ofl.
c Includes LDCs that used Calculation Methodology 1 with a measured HHVand default C02 emissionfactor.
d Includes LDCs that used Calculation Methodology 1 with a default HHVand CO 2 emission factor and those that
used Methodology 2 with a default CO2 emissionfactor.

• • ' ificati 1 . ;

As a part of the reporting and verification process, EPA evaluates annual GH G reports with
electronic verification checks. EPA contacts facilities regarding potentialreportingissues.
Additional information on EPA's verification process is available here.

Some of the information reported by LDCs and N GL fractionators is similar to data reported to the
U.S. Energy Information Administration (EI A], EPA and EI A have collaborated to use some of this
data to help verify that information submitted to each agency is correct.

GLOSSARY

Bcf means Billion standard cubic feet.

CBI means confidential business information.

Direct emitters are facilities that combust fuels or otherwise put greenhouse gases into the
atmosphere directly from their facility. Alternatively, Suppliers are entities that supply certain
fossil fuels or fluorinated gases into the economy that—when combusted, released or oxidized—
emit greenhouse gases into the atmosphere.

EIA means the U.S. Energy Information Administration, which is an independent agency within the
U.S. Department of Energy that develops surveys, collects energy data, and analyzes and models
energy issues.

GHGRP means the Greenhouse Gas Reporting Programunder 40 CFR part98.

HHV means higher heating value of a fuel.

IPCC AR4 refers to the Fourth Assessment Reportby the Intergovernmental Panel on Climate
Change. Climate Change 2007: The Physical Science Basis. Contribution ofWorking Group I to the
Fourth Assessment Reportofthe Intergovernmental Panel on Climate Change [Core Writing Team,

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2011-2020 GHGRP Sector Profile

Natural Gas and Natural Gas Liquids Supply

Pachauri, R.K. and Reisinger, A. (eds]]. IPCC, Geneva, Switzerland, 2007. The AR4 values also can be
found in the current version of Table A-1 in Subpart A of 40 CFRpart98.

LDC means a local distribution company for natural gas.

MMT means million metric tons.

MMcf means million cubic feet.

Mscf means thousand standard cubic feet.

NGL means natural gas liquid (ethane, propane, butane, isobutene,and pentanes plus],
scf means standard cubic feet.

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