A number of technologies developed by the gas storage industry in the United States and Europe have potential application to CO2 sequestration. The most utilized method of storing natural gas in geologic formations is injection into Develop better understanding of maximum delta temperature that casings can withstand without failure of cement or joints. Improve corrosion […]

Gas storage technology development has been conducted continuously since the evolution of the first storage fields. Better understanding of reservoir TABLE 8.1 New North American Gas Storage Requirements Incremental Working Gas Capacity 2004 to 2008 (Bcf) 2009 to 2020 (Bcf) Total (Bcf) Western Canada 30 40 70 Eastern Canada and 36 74 110 Michigan Midwest […]

Storage has been and continues to be an important element in the U. S. natu­ral gas supply portfolio. In the future, the value of storage will be driven by new market forces and paradigm shifts in the magnitude of short-term and seasonal gas price volatilities. The relative values of storage components will change. Seasonal storage […]

Underground natural gas storage presents a variety of economic justifica­tions, depending on the perspective of the entity attempting to value a facil­ity or service. In traditional rate making, the value attached to natural gas storage service was determined by the avoided cost economics of alternatives such as no-notice service. While avoided cost still plays a […]

Order 636 caused little change in the gas business. The same producers are selling gas in the market. The same pipelines are transporting it to the same end users. Some issues have changed. Who controls the pipe­line capacity? How is it billed? Who is selling the value-added services available from storage (or comparable paper constructs […]

In the past, producers acted as limited participants or nonparticipants in gas storage and marketing, primarily because of the corporate culture that per­vades most major players that categorize their primary business as explora­tion and production (E&P). The E&P cultural issue is compounded by the fact that storage operators rarely earn more than a 15% return […]

Storage has been a significant organizational function of interstate pipeline com­panies for many years. Open access and the elimination of merchant gas sales and services caused pipeline storage areas to effectively become "warehouse" operations. Order 636 allowed the pipelines to retain only such storage as required for operational integrity. Several major pipeline systems in the […]

Intrastate pipelines have emerged as the most aggressive targets in the pipe­line asset resale market. The value of storage for intrastate pipelines, whether procured as an equity investment or as a service lease, is essentially identical to the values set by large suppliers and aggregators. Value is defined by the contribution that the storage service […]