Conference News

Read the Latest From The Planning Team, Our Sponsors, and Natural Gas Utilization News

graph

"Storage is vital to the reliability and year-round availability of natural gas. With seasonal weather changes that impact both production and usage, storage helps balance the supply and demand curve to ensure consumers get natural gas when they need it," explains America's Natural Gas Alliance.

ANGA further explains:

Salt cavern storage has doubled in the Gulf Coast since 2008. [1] The majority of salt caverns used for storage are found in the southeastern United States and along the Gulf Coast. In fact, according to the Energy Information Administration (EIA), salt caverns provide 28 percent of daily deliverability, despite only accounting for 10 percent of underground storage locations.[2] Further, salt cavern storage accounts for only 7 percent of total stored natural gas volumes, while aquifers and depleted oil and gas fields represent 16 and 77 percent, respectively.[3]

With shifting demand for natural gas use in power generation and residential heating and cooling, salt caverns have become a more attractive choice in recent years due to their versatility compared to other storage options. These facilities provide better deliverability (gas gets to market quickly), can be cycled (the process of withdrawing and refilling gas supplies) multiple times per year, and allow natural gas to be stored at a higher pressure. [4]

Higher pressure storage allows salt facilities to deliver product to the market more quickly than other storage units, and a greater amount of cycling allows gas to be sold in the short-term with less price risk. [5] Depleted oil and gas fields and aquifer fields are typically limited to one cycle per year. Since gas from salt storage can be withdrawn and delivered easily, these storage units are often used to address weather-related demand peaks and peak day deliverability purposes.[6],[7]

Typically, natural gas demand is higher in the winter when heating needs in the residential sector are high, resulting in a surge of withdrawals. However, as natural gas gains popularity in the power generation fuel mix, withdrawals will become more common year-round and may encourage a further increase in the use of salt caverns for storage.

[1] Oil & Gas 360, "Natural Gas Salt-Facility Storage in the Gulf has Doubled Since 2008", July 27, 2015, http://www.oilandgas360.com/natural-gas-salt-facility-storage-in-the-gulf-has-doubled-since-2008/
[2] EIA, "Natural gas salt-facility storage serves special gas market needs", July 27, 2015, http://www.eia.gov/todayinenergy/detail.cfm?id=22232&src=email
[3] ANGA analysis, EIA "Underground Natural Gas Storage Capacity" data. 
[4] EIA, "Natural gas salt-facility storage serves special gas market needs", July 27, 2015, http://www.eia.gov/todayinenergy/detail.cfm?id=22232&src=email
[5] Oil & Gas 360, "Natural Gas Salt-Facility Storage in the Gulf has Doubled Since 2008", July 27, 2015, http://www.oilandgas360.com/natural-gas-salt-facility-storage-in-the-gulf-has-doubled-since-2008/
[6] FERC, "Natural Gas Storage – Storage Fields", June 3, 2015, https://www.ferc.gov/industries/gas/indus-act/storage/fields.asp
[7] EIA, "Natural gas salt-facility storage serves special gas market needs", July 27, 2015, http://www.eia.gov/todayinenergy/detail.cfm?id=22232&src=email.

 

Utilization_Conference_Oct_28-29

Media Inquiries

A limited number of complimentary media registrations are available. Please email us for more information.

Additionally, members of the 2015 Conference Planning Team are available to preview this year's topics and address breaking natural gas announcements. Please email us to schedule an interview.

Email Media Request

Ready To Register?

Are you ready to join us in Canonsburg this October?
Register Today