Natural Gas Storage Report

Topics: Natural gas, Natural gas storage, Liquefied natural gas Pages: 17 (4644 words) Published: February 10, 2014

Weekly Natural Gas Storage Report
for week ending August 9, 2013. | Released: August 15, 2013 at 10:30 a.m. | Next Release: August 22, 2013

Working gas in underground storage, lower 48 states
Historical Comparisons
billion cubic feet (Bcf)Year ago
(08/09/12)5-Year average
Region08/09/1308/02/13change(Bcf)% change(Bcf)% change East1,4591,408 511,660-12.1 1,558-6.4
West49448410 4940.043812.8
Producing1,0531,04941,105 -4.79678.9
Salt261265-4221 18.115766.2
Nonsalt7927848883 -10.3811-2.3

The weekly storage regions are:

East Region - Connecticut, Delaware, District of Columbia, Florida, Georgia, Iowa, Illinois, Indiana, Kentucky, Massachusetts, Maryland, Maine, Michigan, Missouri, North Carolina, Nebraska, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, South Carolina, Tennessee, Vermont, Virginia, Wisconsin, and West Virginia

West Region - Arizona, California, Colorado, Idaho, Minnesota, Montana, Nevada, North Dakota, Oregon, South Dakota, Washington, Wyoming, and Utah

Producing Region - Alabama, Arkansas, Kansas, Louisiana, Mississippi, New Mexico, Oklahoma, and Texas

The Basics of Underground Natural Gas Storage

Natural gas–a colorless, odorless, gaseous hydrocarbon–may be stored in a number of different ways. It is most commonly held in inventory underground under pressure in three types of facilities. These are: (1) depleted reservoirs in oil and/or gas fields, (2) aquifers, and (3) salt cavern formations. (Natural gas is also stored in liquid form in above-ground tanks. A discussion of liquefied natural gas (LNG) is beyond the scope.

Each storage type has its own physical characteristics (porosity, permeability, retention capability) and economics (site preparation and maintenance costs, deliverability rates, and cycling capability), which govern its suitability to particular applications. Two of the most important characteristics of an underground storage reservoir are its capacity to hold natural gas for future use and the rate at which gas inventory can be withdrawn–its deliverability rate (see Storage Measures, below, for key definitions).

Most existing gas storage in the United States is in depleted natural gas or oil fields that are close to consumption centers. Conversion of a field from production to storage duty takes advantage of existing wells, gathering systems, and pipeline connections. Depleted oil and gas reservoirs are the most commonly used underground storage sites because of their wide availability.

In some areas, most notably the Midwestern United States, natural aquifers have been converted to gas storage reservoirs. An aquifer is suitable for gas storage if the water-bearing sedimentary rock formation is overlaid with an impermeable cap rock. While the geology of aquifers is similar to depleted production fields, their use in gas storage usually requires more base (cushion) gas and greater monitoring of withdrawal and injection performance. Deliverability rates may be enhanced by the presence of an active water drive.

Salt caverns provide very high withdrawal and injection rates relative to their working gas capacity. Base gas requirements are relatively low. The large majority of salt cavern storage facilities have been developed in salt dome formations located in the Gulf Coast states. Salt caverns have also been leached from bedded salt formations in Northeastern, Midwestern, and Southwestern states. Cavern construction is more costly than depleted field conversions when measured on the basis of dollars per thousand cubic feet of working gas capacity, but the ability to perform several withdrawal and injection cycles each year reduces the per-unit cost of each thousand cubic feet of gas injected and withdrawn....
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