SCOPE This plan will explore the current state of natural gas in South Dakota. It will outline the current supply network, including the geographic layout, capacities, and current usage. The plan will identify major stakeholders within the State and discuss the constraints and factors impacting the role natural gas plays in economic development. Additionally, the plan will outline predicted growth metrics within South Dakota and economic development goals for the State. The plan will also explore potential options for meeting the goals, the viability of the options, and recommendations for implementing the best solutions.
Natural gas supply has been a major barrier to economic development in South Dakota in recent years. In the eastern part of the State, natural gas supply is contingent on a network of interstate pipelines that are currently operating at full capacity. Supply increases require significant investment. Most of western South Dakota lacks a natural gas supply network. The portions around Rapid City where a natural gas supply network exists, there is a lack capacity for future growth without significant investment. Emerging trends may offer solutions for the development of natural gas infrastructure supply within South Dakota. In the short-term, new technologies may be paired with pipeline gas to bridge supply gaps and offer additional flexibility. In the long-term, renewable natural gas (RNG) generation within the State has the potential to significantly increase supply and decrease dependence on the interstate pipeline network bringing natural gas into the State. Long-term trends shifting away from fossil fuels may reduce demand on the system. However, population growth continues to fuel increased demand.
48 | Natural Gas
South Dakota Governor’s Office of Economic Development
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