LNG Peak Shaving
Peak shaving means storing LNG and vaporizing it during short periods of very high demand, such as cold snaps or heat waves, instead of paying for pipeline capacity that sits idle most of the year. The U.S. Energy Information Administration describes peak shaving as regasifying stored LNG when demand is high or pipeline delivery capacity is constrained.
Who uses peak shaving
Gas utilities have run peak shaving plants for decades to serve winter heating peaks. The same idea now serves power plants during demand spikes, industrial facilities whose pipeline contracts are interrupted on peak days, and campuses that face steep demand charges. Trucked LNG makes peak shaving available to sites too small to justify building their own liquefaction plant.
Two ways to do it
The traditional model liquefies pipeline gas onsite during low demand months and stores it. The virtual pipeline model skips the liquefaction plant entirely: LNG is trucked in and stored ahead of the peak season, or delivered on demand during peak events. Trucked supply has far lower capital cost and can be contracted for a single winter.
The economics
Peak shaving pays off when the alternative is expensive: firm pipeline capacity charges, interruptible service penalties, spot gas at peak prices, or lost production during curtailment. A stored LNG buffer converts those exposures into a known seasonal cost.
Who provides this service
VP Ventures provides trucked LNG peak shaving programs for utilities and industrial facilities, including seasonal storage ahead of peak periods and on demand delivery during peak events. The service is turnkey: LNG supply, transportation, onsite storage, regasification, and ongoing logistics coordination under one contract, with no infrastructure investment required at the point of use.
Frequently asked questions
What does peak shaving mean in natural gas?
Storing gas as LNG and vaporizing it during short demand peaks, so a facility or utility avoids buying pipeline capacity or peak priced gas it rarely needs.
Do we need our own liquefaction plant?
No. Trucked LNG fills onsite storage without any liquefaction equipment at your site.
How much storage does a peak shaving program need?
Enough to cover your worst expected peak event, typically sized from historical demand data plus a safety margin. Storage is modular and leased.
Can peak shaving work for electricity demand charges too?
Yes. Stored LNG can fuel onsite generation during grid peaks, reducing demand charges or earning demand response revenue.