Reliance on natural gas has grown significantly in Tennessee and it will remain a key component of the state’s energy portfolio for the foreseeable future. Adequate and stable natural gas supplies, along with competitive prices and a safe system of distribution, will be essential to the state’s economic security and its future path of economic development. In other words, energy security will support economic security in Tennessee.
The Tennessee State Energy Policy Council (SEPC) has commissioned this report because of growing concerns about natural gas supply constraints that may hamper economic growth. The goal is to determine whether a comprehensive natural gas needs assessment is warranted. The findings below indicate that such an assessment is in fact warranted.
The research presented here is based on a review of publicly-available resources, a survey of local natural gas utilities, and conversations with dozens of economic development practitioners and other stakeholders both inside and outside Tennessee.
The findings point to supply constraints in some areas of the state along with a series of other issues that should be evaluated in greater depth. Some of the problems, including pressure on the interstate system of natural gas distribution, are beyond the state’s purview. Other problems are within the scope of state and local government responsibility, working in partnership with the private sector. A detailed list of findings and recommendations are presented at the end of this report. A concise summary follows.