Importance of Storing Natural Gas
Natural gas storage plays a vital role in maintaining the reliability of supply needed to meet the demands of consumers, and also serves as insurance against any unforeseen accidents, natural disasters, or other occurrences that may affect the production or delivery of natural gas.
The Evolution of Natural Gas Storage
In the past, natural gas has been a seasonal fuel. That is, the need for natural gas is usually higher during the winter, partly because it is used for heat in residential and commercial settings. However, demand for natural gas during the summer months is now increasing due to the call for electricity to power air conditioners and for other natural gas fired electric generations.
Essentially, natural gas storage was required for the operational requirements of the pipelines in meeting the needs of the utilities. Since its deregulation in 1992, gas storage is now available to anyone seeking storage for commercial purposes or operational requirements.
Now, in addition to serving as a buffer between transportation and distribution, natural gas storage is also used by industry participants for commercial reasons; storing gas when prices are low, and withdrawing and selling it when prices are high, for instance.
*The information above was derived from the following sources:
The Energy Information Administration
http://www.eia.doe.gov/pub/oil_gas/natural_gas/analysis_publications/storagebasics/storagebasics.html
The American Gas Association
http://www.naturalgas.org/naturalgas/storage.asp
The Federal Energy Regulatory Commission
http://www.ferc.gov/industries/gas/indus-act/storage.asp