Environmental Engineering Reference
In-Depth Information
400
350
300
250
Depleted Fields
Aquifers
Salt Cavern
Other
Total:
U.S. and
Canada = 466
200
Total:
Europe = 129
150
100
50
0
United States & Canada
Europe
FIGURE 8.2
Underground storage fields in the United States, Canada, and Europe. (From American Gas
Association and U.S. Department of Energy.)
long distance carriers (LDCs), electric generators, and large industrial users
responsible for their own gas supply arrangements. Most storage owned
and operated by the pipelines is redefined and unbundled from merchant
services; thus, pipeline storage and transportation are no longer managed
for end users, but operate for many diverse companies using common
facilities.
The re-emergence of natural gas as an energy source of choice after the
lifting of restrictions on its use as a fuel occurred primarily due to over-
supply conditions arising from drilling in the early 1980s, the recession of
1983, the Clean Air Act movement, and increased imports from Canada. The
result changed the profile of storage use from baseload 90 to 150 day deliver-
ies and 200+ day re-injection periods to shorter durations and more flexible
utilization.
Recent changes in the market for natural gas have changed the role and
economics of natural gas storage. The development of market hubs increased
the importance of strategically located storage fields and expanded the
types of services available from storage providers. Changes in pipeline rate
structures and the increase in importance of pipeline capacity discounting
and capacity release altered the economics of many storage facilities. LDC
restructuring is impacting the storage and contracting practices of many
LDCs. In addition, the change in natural gas demand mix, particularly the
growth in gas demand for electric generation, affected the overall load factor
of natural gas demand, with a significant impact on storage requirements.
These factors together have led to significant changes in natural gas storage
operations.
