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Title: LNG Peakshaving Plant Costs Update
Author: Philip J. Anderson, J. Reed Welker
Source: American Gas Association 1985
Year Published: 1985
Abstract: U.S. utility companies added LNG peakshaving facilities to distribution systems fell sharply. Many factors combined to bring about this change. Concerns expressed by the public and governmental officials about LNG facility safety led to the promulgation of Federal Safety Standards, which caused some utilities to postpone plans to construct such facilities. The mid- to late-1970s was also a period in which natural gas supply/demand/price relationships were changing rapidly, making projection of peakshaving requirements more difficult and uncertain. Construction costs escalated significantly as the effects of oil-price driven inflation were felt. The result has been that only two LNG peakshaving plants were completed and began operation in the 1980s: Northern Indiana Public Service Company (N1PSCO) began operation of its Plant No. 2 at Rolling Prairie, Indiana, in 1981, and in 1982 Southwest Gas Corporations LNG peakshaving plant near Lovelock, Nevada, came on-stream.

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