Peak shaving facilities in the United States

Date Published: February 17, 2025
Written By: Alice Ni
Visualized By: Cutler Cleveland

A peak shaving facility is an energy storage and supply system designed to manage fluctuations in fuel demand during peak usage periods. In the United States, these facilities often store natural gas as liquefied natural gas (LNG) during periods of low demand and release the fuel when demand is high, thus “shaving” the peak demand and avoiding shortages and possible sharp price increases.

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Most peak shaving facilities based on LNG usually share the same basic equipment. LNG storage tanks are large, insulated tanks that hold the LNG at cryogenic temperatures (-162°C or -260°F). The volume of natural gas in its liquid state is about 600 times smaller than in its gaseous state. Some facilities have liquefaction units that convert incoming pipeline natural gas into LNG. Others have loading equipment for transferring the LNG from tankers. Vaporizers are heat exchangers that use ambient air to warm the LNG back into a gaseous state for injection into a pipeline or other infrastructure.

Where are you likely to find LNG peak shaving facilities in the United States?

• Large metropolitan regions such as New York City where natural gas is a primary fuel for heating or electricity generation.
• Areas where existing natural gas pipeline capacity cannot meet peak demand, particularly during extreme weather events. Such is the case in the Northeast where winter heating demand frequently exceeds pipeline capacity.
• Near ports and transportation infrastructure. LNG facilities near ports simplify transport logistics for importing or exporting LNG via ships or trucks. The Newport LNG Facility in Newport, Oregon is close to major pipelines, has a strategic coastal location, and provides grid stability in a region that is ramping up its use of renewable energy in electricity generation.

Trucks are uniquely important in the Northeast where many areas are not served by natural gas pipelines and harsh winters make energy reliability critical. Onshore and offshore LNG import terminals combined with good port infrastructure enable trucks to connect with LNG supply. In contrast, other regions of the United States rely more on pipelines to distribute the fuel.

Electricity, Natural Gas, Power Plants, United States

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