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Mississippi   Mississippi Profile

State Profile and Energy Estimates

Profile AnalysisPrint State Energy Profile
(overview, data, & analysis)

Last Updated: May 18, 2017

Overview

Mississippi's Gulf Coast is home to facilities vital to the nation’s energy infrastructure.

Located on the nation's Gulf Coast and bordered to the west by the river that shares its name, Mississippi has a substantial energy infrastructure. The state has many natural gas, crude oil, and refined product pipelines, as well as several ports. The state's larger ports, located on the Gulf of Mexico and the Mississippi River, handle coal, crude oil, petroleum coke, and other refined petroleum products.1,2 Although it is not as rich in crude oil and natural gas resources as some of its neighboring Gulf Coast states, the role Mississippi plays in America's energy supply becomes particularly evident when an approaching hurricane forces the temporary shutdown of the state's natural gas processing plants and the large oil refinery located along Mississippi's Gulf of Mexico coastline.3,4,5

Mississippi's humid sub-tropical climate is typified by long, hot summers, mild winters, and abundant rainfall. Its rich soils, especially between the Mississippi River and the Yazoo River, provide fertile farmland, where soybeans, corn, and cotton are the most valuable crops. Although agriculture played a central role in Mississippi's economy in the past, manufacturing is now the state's leading economic sector.6,7,8 Petroleum production and refining, and the manufacture of chemicals; food, beverage, and tobacco products; machinery; and motor vehicles and other transportation products are all substantial contributors to the state's economy.9 Industry is the leading end-use energy-consuming sector in Mississippi, followed closely by the transportation sector.10 The strong demand for electricity for cooling during summer and heating in winter helps place Mississippi's per capita energy consumption in the top one-third of all states.11,12 Overall, Mississippi consumes more energy than it produces.13

Petroleum

Mississippi is the 14th-largest crude oil producing state in the nation.14 Mississippi produced about 1% of the nation's crude oil for more than 30 years but now contributes about 0.6% to the nation's total annual petroleum production and holds about 0.5% of the nation's proved reserves.15,16,17 Most of the state's crude oil wells and all three of Mississippi's oil refineries are located in the southern half of the state.18,19 The combined capacity of the three refineries is about 364,000 barrels of crude oil per day and accounts for about 2% of the nation's total capacity.20 The Pascagoula refinery, one of the nation's largest, is located on Mississippi's Gulf coast and supplies motor gasoline, jet fuel, diesel fuel, and other petroleum products to markets in the southeastern United States, as well as to Central and South America. About two-thirds of the refinery's products are shipped by marine vessels. Another three-tenths are sent through two major interstate pipeline systems to markets throughout the southeast. The rest is shipped by truck and rail.21 Mississippi's two other refineries are much smaller; however, the one in Vicksburg on the Mississippi River is the world's largest manufacturer of naphthenic process oils, which are used worldwide in many industrial applications.22 The smallest Mississippi refinery produces asphalt in Sandersville.23

One in eight Mississippi households use propane as their main home heating fuel.

Petroleum contributes more than one-third of the energy consumed in Mississippi.24 Most of the petroleum consumed in the state is used in the transportation sector, primarily as motor gasoline.25,26 Very few Mississippi homes are heated with fuel oil or kerosene (about 1 in 700), but about 1 in 8 households in the state use propane as their primary home heating fuel. By comparison, only about 1 in 20 U.S. households use propane as the primary fuel for home heating.27

Natural gas

Mississippi has far fewer natural gas reserves and much less production than its neighboring Gulf Coast states. Mississippi's natural gas production accounts for only about 0.2% of the nation's total.28,29 Following a brief increase in the 1980s, the state's marketed natural gas production has fallen over the past three decades, and has not regained its peak level of more than 250 billion cubic feet per year seen in the mid-1950s, about 2.5% of U.S. production at that time.30,31,32 By 2015, the state's marketed production had dropped to about 58 billion cubic feet.33

Mississippi's working natural gas storage capacity is almost 4% of the U.S. total.

Mississippi is crossed by nearly two dozen interstate natural gas pipelines.34 Natural gas supplies move into the state primarily from Louisiana, Arkansas, Alabama, and from the offshore Gulf of Mexico. Nearly nine-tenths of the natural gas that enters Mississippi by interstate pipeline continues on to other states, mostly through Alabama and Tennessee.35 Mississippi is one of the few states with large underground salt caverns capable of storing natural gas. Half the state's 12 storage fields are in salt caverns. The rest are in depleted oil and gas fields. Mississippi has almost 4% of the nation's total natural gas storage capacity.36

Mississippi has several natural gas processing plants. The largest is the Pascagoula plant on the Gulf Coast. It was built to handle the growth in natural gas production in the Gulf of Mexico. That facility, one of the largest natural gas processing plants in the United States, has a capacity of more than 1 billion cubic feet of natural gas per day.37,38 Mississippi also has a liquefied natural gas (LNG) terminal near Pascagoula that was scheduled to begin receiving shipments of LNG in 2011. However, because of higher U.S. natural gas production, much of it from shales, the facility never received any LNG shipments after the initial delivery that was used to acclimate the tanks.39 The terminal's owners now plan to export LNG.40,41

The largest share of the natural gas consumed in Mississippi is used to generate electricity, and that amount has increased substantially over the past two decades. The industrial sector, which typically consumes less than half as much natural gas as the electric power sector, is the second-largest natural gas-consuming sector in the state.42,43 Although about 3 in 10 households in Mississippi use natural gas for home heating, usually as much or more natural gas has been consumed by the many natural gas leases, processing plants, pipelines, and distribution systems in the state as in the residential sector.44,45

Coal

All of the coal mined in Mississippi is lignite, which has a lower heat content than other types of coal.

Mississippi has abundant lignite deposits. Lignite is a soft coal that has a lower energy density and higher moisture content than other types of coal.46,47 The Red Hills surface coal mine, located in Choctaw County, Mississippi, was, for more than a decade, the only producing coal mine in the state. All of the lignite produced at that mine supplies the nearby Red Hills Power Plant.48,49 Liberty Fuels Company won final approval from the state in the summer of 2012 to operate Mississippi's second coal mine. Lignite from that mine will supply a new integrated gasification combined cycle generating station in Kemper County.50,51 The Kemper mine began actively producing lignite coal in 2014. When it reaches full operation, the mine will be the largest in the state.52,53 About three-fifths of the coal consumed in Mississippi is mined in the state, and the rest comes from a handful of other states, primarily Colorado, Wyoming, Illinois, Kentucky, and West Virginia.54

Electricity

Although Mississippi's two largest power plants by capacity are coal-fired and nuclear, natural gas is Mississippi's main fuel for electricity generation, supplying nearly four-fifths of the state's net generation in 2016.55 Nuclear power, coal, and biomass supply almost all of the rest of the state's net electricity generation. The Grand Gulf Nuclear Power Station is the largest single-unit nuclear power plant in the nation, and it typically provides almost one-fifth of Mississippi's power.56 However, because of an extended shutdown that began in September 2016, Grand Gulf provided less than one-tenth of the state's net generation in 2016.57,58 Currently, less than one-tenth of the state's generation is fueled by coal. The new 582-megawatt coal-fired power plant in Kemper County is scheduled to come online in 2017 using a state-of-the-art coal gasification process designed to reduce carbon emissions.59

The largest share of retail electricity sales in Mississippi goes to the state's residential sector.60 Air-conditioning use during the hot summer months and the widespread use of electricity for home heating during the mild winter months drives strong demand for electricity in Mississippi households. More than half of the state's homes use electricity for home heating.61,62,63

Renewable energy

Mississippi does not have a renewable portfolio standard. Renewable resources—in the form of biomass—provide only slightly more than 2% of the state's utility-scale power generation and are not a significant part of Mississippi's energy supply mix.64,65 However, with almost two-thirds of the state forested and more than one-fourth of the state's land used for agriculture, Mississippi has an abundant renewable biomass resource.66 Biomass from wood and wood waste provides almost all of the state's utility-scale renewably fueled power generation.67 Mississippi biomass comes from the wood products and paper manufacturing industries, which together contribute almost one-tenth of the state's manufacturing gross domestic product; logging residues also contribute to the biomass total in Mississippi.68,69 The state has additional biomass resources, including landfills and agricultural wastes such as poultry litter and crop residues, which could be used.70

Although Mississippi's hot and humid weather conditions create clouds and haze that decrease the effectiveness of electricity generation from solar photovoltaic panels, solar energy potential does exist, and small-scale, customer-sited arrays of solar panels have been installed at residential and commercial locations. Solar capacity in the state, although small, has been rapidly increasing, rising from about 3 megawatts in 2015 to 10.2 megawatts of installed solar capacity by the end of 2016.71,72,73 Mississippi's potential for wind-powered generation is also relatively small because of the state's scarce wind resources. There has been no utility-scale wind development in the state.74,75

Mississippi has one operational ethanol plant, located in Vicksburg. The plant, which uses corn as a feedstock, began operating in 2007 and has since been upgraded.76 Two more ethanol plants have been proposed, one of which is a cellulosic ethanol plant that would use wood waste as feedstock.77 Mississippi also has five biodiesel production plants that use a variety of feedstocks, including soy oil.78

Endnotes

1 U.S. Energy Information Administration (EIA), Mississippi Profile Data, Distribution and Marketing, accessed April 19, 2017.
2 World Port Source, Mississippi United States, Port Index, accessed April 19, 2017.
3 U.S. EIA, Crude Oil Proved Reserves, Reserves Changes, and Production, 2015, accessed April 19, 2017.
4 U.S. EIA, Natural Gas Reserves Summary as of Dec. 31, 2015, Dry Natural Gas, accessed April 19, 2017.
5 American Petroleum Institute, Hurricane Response and Market Effect, accessed April 19, 2017.
6 Mississippi State University, Department of Geosciences, Office of the Mississippi State Climatologist, Mississippi Climate, accessed April 19, 2017.
7 U.S. Department of Agriculture, National Agricultural Statistics Service, 2016 State Agriculture Overview, Mississippi.
8 Wallenfeldt, Jeff, David G. Sansing, and John N. Burrus, Mississippi, State, United States, Encyclopaedia Britannica, updated February 2, 2015.
9 U.S. Bureau of Economic Analysis, Interactive Data, GDP and Personal Income, Regional Data, Annual Gross Domestic Product (GDP) by State, GDP in current dollars, All industries, Mississippi, 2014.
10 U.S. EIA, State Energy Consumption Estimates 1960 through 2014, DOE/EIA-0214(2014) (June 2016), Table C10, Energy Consumption Estimates by End-Use Sector, Ranked by State, 2014.
11 U.S. EIA, Electricity Data Browser, Retail Electricity Sales, Mississippi Monthly, January 2001 through January 2017.
12 U.S. EIA, Rankings: Total Energy Consumed per Capita, 2014.
13 U.S. EIA, State Energy Production Estimates 1960 through 2014, Table P3, Energy Production and Consumption Estimates in Trillion Btu, 2014.
14 U.S. EIA, Crude Oil Production, Annual, Thousand Barrels, 2011–16.
15 U.S. EIA, Mississippi Field Production of Crude Oil, 1981–2016, accessed April 19, 2017.
16 U.S. EIA, U.S. Field Production of Crude Oil, 1981–2016, accessed April 19, 2017.
17 U.S. EIA, Crude Oil Proved Reserves, Reserves Changes, and Production, Proved Reserves as 12/31, Annual, 2015.
18 Mississippi State Oil and Gas Board, Oil and Gas Map of Mississippi (May 2014).
19 U.S. EIA, Mississippi Profile Overview, Petroleum Refinery Map Layer, accessed April 19, 2017.
20 U.S. EIA, Refinery Capacity Report 2016 (June 2016), Table 3, Capacity of Operable Petroleum Refineries by State as of January 1, 2016.
21 Chevron Pascagoula Refinery, Refinery Products, accessed April 19, 2017.
22 Ergon, Refining and Marketing, accessed April 19, 2017.
23 Hunt Refining Company, Refining Operations, accessed April 19, 2017.
24 U.S. EIA, State Energy Consumption Estimates 1960 through 2014, DOE/EIA-0214(2014) (June 2016), Table C3, Primary Energy Consumption Estimates, 2014.
25 U.S. EIA, State Energy Data System, Table F15, Total Petroleum Consumption Estimates, 2015.
26 U.S. EIA, State Energy Consumption Estimates 1960 through 2014, DOE/EIA-0214(2014) (June 2016), Table C2, Energy Consumption Estimates for Major Energy Sources in Physical Units, 2014.
27 U.S. Census Bureau, American FactFinder, United States and Mississippi, Table B25040, House Heating Fuel, 2011–2015 American Community Survey 5-Year Estimates.
28 U.S. EIA, Natural Gas Reserves Summary as of Dec. 31, 2015, Dry Natural Gas.
29 U.S. EIA, Natural Gas Gross Withdrawals and Production, Dry Production, Annual, 2015.
30 U.S. EIA, U.S. Dry Natural Gas Production, 1930–2016.
31 Mississippi State Oil and Gas Board, Gas Production Beginning with 1951, accessed April 19, 2017.
32 U.S. EIA, Mississippi Natural Gas Marketed Production, accessed April 19, 2017.
33 U.S. EIA, Natural Gas Gross Withdrawals and Production, Dry Production, Annual, 2015.
34 U.S. EIA, Mississippi Profile Data, Distribution and Marketing, accessed April 19, 2017.
35 U.S. EIA, International and Interstate Movements of Natural Gas by State, Mississippi, accessed April 19, 2017.
36 U.S. EIA, Natural Gas Annual 2015 (September 30, 2016), Table 14, Underground natural gas storage capacity by state, December 31, 2015.
37 U.S. EIA, Mississippi Profile Overview, Map Layer Natural gas processing plant, accessed April 20, 2017.
38 Enterprise Products Partners L.P., Natural Gas Processing Plants and Related NGL Marketing, accessed April 20, 2017.
39 "LNG facility hoping to begin exporting natural gas," Mississippi Business Journal (May 21, 2013).
40 Federal Energy Regulatory Commission, North American LNG Export Terminals, Proposed (January 5, 2017).
41 Kinder Morgan, Natural Gas Pipelines, Project Overview, accessed April 24, 2017.
42 U.S. EIA, Natural Gas Consumption by End Use, Mississippi, Annual, 2015, accessed April 20, 2017.
43 U.S. EIA, Mississippi Natural Gas Deliveries to Electric Power Consumers, 1997–2016, accessed April 20, 2017.
44 U.S. Census Bureau, American FactFinder, United States and Mississippi, Table B25040, House Heating Fuel, 2011–2015 American Community Survey 5-Year Estimates.
45 U.S. EIA, Natural Gas Consumption by End Use, Mississippi, Annual, 2011–15, accessed April 20, 2017.
46 U.S. EIA, Annual Coal Report 2015 (November 2016), Table 6, Coal Production and Number of Mines by State and Coal Rank, 2015.
47 Thieling, Stan, David E. Thompson, and Michael B. E. Bograd, Lignite Resources of Mississippi, Mississippi Department of Environmental Quality, Office of Geology, Fact Sheet 2 (August 2009).
48 Coal Diver, Mississippi Region, accessed April 20, 2017.
49 PurEnergy L.L.C., Choctaw Generation LP, Red Hills Power Plant, accessed April 20, 2017.
50 North American Coal Corporation, About Liberty Fuels Company L.L.C., Liberty Mine, accessed April 20, 2017.
51 Mississippi Power, About Energy, Plants, Kemper County Energy Facility, Quick Facts, accessed April 20, 2017.
52 U.S. EIA, Detailed data from the EIA-7A and the U.S. Mine Safety and Health Administration (back to 1983), Historical Coal Production Data: 2012, 2013, 2014.
53 Amy, Jeff, "Miss. OKs coal mine to feed Kemper power plant," Associated Press (June 13, 2012).
54 U.S. EIA, Annual Coal Distribution Report 2015 (November 2016), Mississippi, Table DS-23, Domestic Coal Distribution, by Destination State, 2015.
55 U.S. EIA, Mississippi Electricity Profile 2015, Table 2A, Ten largest plants by capacity; Table 2B, Ten largest plants by generation.
56 Entergy, Grand Gulf Nuclear Station, accessed April 20, 2017.
57 "NRC to inspect Grand Gulf Nuclear Station in Mississippi following shut down," Daily Energy Insider (November 2, 2016).
58 U.S. EIA, Electric Power Monthly (February 2017), Tables 1.3.B, 1.4.B, 1.7.B, 1.9.B, 1.15.B.
59 Mississippi Power, About Energy, Kemper County Energy Facility, Gasification and TRIG, accessed April 20, 2017.
60 U.S. EIA, Electric Power Monthly (February 2017), Table 5.4.B.
61 Mississippi State University, Department of Geosciences, Office of the Mississippi State Climatologist, Mississippi Climate, accessed April 20, 2017.
62 U.S. EIA, Residential Energy Consumption Survey (RECS), 2015 RECS Survey Data, Air conditioning, Table HC7.8, Air conditioning in homes in the South and West regions, 2015.
63 U.S. Census Bureau, American FactFinder, United States and Mississippi, Table B25040, House Heating Fuel, 2011–2015 American Community Survey 5-Year Estimates.
64 NC Clean Energy Technology Center, DSIRE, Summary Maps, Filter Option, Renewable Portfolio Standards, accessed April 21, 2017.
65 U.S. EIA, Electric Power Monthly (February 2017), Tables 1.3.B, 1.10.B, 1.11.B, 1.15.B, 1.17.B.
66 Mississippi Development Authority, Developing Our Biomass Resources, accessed April 21, 2017.
67 U.S. EIA, Electricity, Form EIA-860 detailed data, 2015 Form EIA-860 Data, Schedule 3, 'Generator Data' (Operable Units Only).
68 Mississippi Development Authority, Mississippi Works, Alternative Fuels, Biomass, accessed April 21, 2017.
69 U.S. Bureau of Economic Analysis, Interactive Data, GDP and Personal Income, Regional Data, Annual Gross Domestic Product (GDP) by State, GDP in current dollars, All industries, Mississippi, 2014.
70 Mississippi Development Authority, Developing Our Biomass Resources, accessed April 21, 2017.
71 Mississippi Power, About Energy, Solar Power, accessed April 21, 2017.
72 Solar Energy Industries Association, State Solar Policy, Mississippi Solar, accessed April 21, 2017.
73 U.S. EIA, Electric Power Monthly (February 2017), Table 1.17.B.
74 U.S. Department of Energy, Energy Efficiency and Renewable Energy, WINDExchange, Mississippi Wind Resource Map and Potential Wind Capacity, accessed April 21, 2017.
75 American Wind Energy Association, U.S. Wind Energy State Facts, Mississippi, accessed April 25, 2017.
76 Sapp, Meghan, "Ergon BioFuels brings Vicksburg ethanol plant back online," Biofuels Digest (June 25, 2015).
77 Ethanol Producer Magazine, U.S. Plants, Proposed, updated April 21, 2017.
78 Biodiesel Magazine, USA Plants, operational, updated December 12, 2016.