The Energy Information Administration reports that by 2000 the U.S. gas industry could expand underground storage deliverability almost 31% from the 1993 level.
EIA said new and expanded sites could add 495 bcf of working gas capacity and 20.7 bcfd of deliverability in projects listed as planned for construction in 1994-99. Added to the volumes in service in 1993, planned projects would boost the respective totals to 4.19 tcf and 88.475 bcfd.
About one third of the proposed additions to working gas capacity are for high deliverability salt cavern storage projects. They allow greater flexibility for withdrawals and injections throughout the year than is available in more traditional facilities.
EIA data show the U.S. industry can store about 8 tcf of natural gas in 375 sites around the country. Of this, about 46% (3.7 tcf) is working gas that can be withdrawn as required to meet demand.
On a peak day, the industry can deliver more than 120 bcf to consumers, and underground storage can supply about half of that.
To service the heavy heating load in the Northeast and Midwest, more than half of present U.S. working gas capacity lies east of the Mississippi River.
In addition to natural gas sites, the industry has proposed two liquefied natural gas storage projects-one new, one expansion-for 1995 and 1998 (51677 bytes), respectively. Combined, those would add 4 bcf of working gas capacity, and 1 bcfd of deliverability to the nation's total. (66971 bytes)
FLEXIBLE SYSTEM
EIA pointed out that flexibility is increasingly valuable in today's gas market.
It said, "The key role storage plays in the natural gas market was demonstrated during January and February 1994, when severe weather placed enormous demands upon the industry "The additional storage capacity placed in service since the frigid December of 1989 played a role in allowing successful delivery of gas to markets during January 1994. The ability to deliver gas from storage has increased by nearly 10% over levels available in December 1989."
EIA also said regulatory changes during the past decade have resulted in significant changes in storage operations.
"Higher utilization of storage facilities is evident throughout the year in injection and withdrawal activities.
"However, new programs for storage markets, such as market based rates and secondary markets for storage capacity, have experienced limited growth."
SALT CAVERNS
Things such as the need to resolve pipeline imbalances quickly and the desire to take advantage of short term changes in gas prices have spurred construction of high deliverability storage facilities such as salt caverns. More than one third of the 21 existing salt facilities have been brought on line since 1991.
EIA said, "The greater deliverability of salt cavern storage, compared with either depleted field or aquifer facilities, can be seen in plans for new storage construction proposed for 1994 through 1999.
"During this period, salt cavern facilities will account for only 28% of the total additions to capacity, yet they will provide 68% of the additional withdrawal capability."
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