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Public Utilities, Second Edition

Old Problems, New Challenges

David E. McNabb

A thoroughly updated introduction to the current issues and challenges facing managers and administrators in the investor and publicly owned utility industry, this engaging volume addresses management concerns in five sectors of the utility industry: electric power, natural gas, water, wastewater systems and public transit.
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Chapter 5: Natural gas utilities

David E. McNabb


Chapter 5 is an introduction to the natural gas utility sector. Activities in this industry are divided into three categories: upstream, midstream, and downstream operations. Upstream operations are activities performed by exploration, drilling and production companies. Midstream activities include the gathering of gas, processing it into its component hydrocarbons such as butane, propane, ethane, and methane, and removing other contaminants such as water and sand. The final activity in the stage is the above and below ground storage of gas. Downstream activities include the interstate pipeline companies that move from regions where it is produced and processed to the communities, commercial and industrial end users of the gas. Local distribution companies may consist of companies owned by equity shareholders, local governments or independent nonprofit utilities.

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