The Timing Of An Initial Pipeline-Gas-From-Coal Enterprise

THERE has been a running discussion over the-past several years with respect to the life and adequacy of our natural gas reserves.. Some of the experts agree on one phase of the subject at least--that eventually it will be necessary to augment deliveries of natural gas in the northern markets by the development of a more or less comparable synthetic gas made from coal. The purpose of this paper is to point out: 1. It may be later than a good many people think-the demand for additional domestic and commercial pipeline gas in at least one section of the North will probably be felt rather keenly before an adequate synthetic pipeline-gas project, developed on economic lines, could be completed, even if ' initiated in the near future. 2. The evidence is considerable that such a project would be technically sound and economically self-supporting, although the margin of profit at first might be so small and the magnitude of an economic enterprise so great that financing would be impossible without Government aid in some form or other. The part of the country referred to is the heavily populated section in the northeast of the United States. To simplify an examination of the situation, let us take the potential marketing areas within range to the north and east of the three pipelines: 1. Tennessee Gas Transmission Co. as it enters Erie County, New York state. 2. Texas Eastern Transmission Corporation just before the tap that supplies the general Philadelphia area. 3. Transcontinental G& Pipe Line Corporation as it enters the state of New Jersey The sources of gas for these three pipelines are in Texas and Louisiana. The ultimate maximum combined capacity of the three lines at the points stated is approximately 1,200,000,000 cu ft per 24 hr at the maximum load factor probable of attainment in normal operation. The areas supplied by the three lines north and east of the points stated, or assumed as eventual markets, are: 1. Central New York state, from Buffalo to Albany (both inclusive).