FERC Order 636 spawns flurry of U. S. gas storage projects

Journal Article · Mon Oct 25 04:00:00 EDT 1993 · Oil and Gas Journal; (United States)

OSTI ID:5895572

Precisely how storage utilization will affect U.S. gas markets is uncertain because many new players are offering storage services through mostly untested contractual arrangements. But a positive development is that available gas storage capacity in the U.S. is increasing. And that is due in large part to storage's relative value in markets taking on added luster as a result of Federal Energy Regulatory Commission Order 636, which takes effect Nov. 1. Order 636 in most cases ends interstate pipeline companies merchant functions, unbundles pipeline interstate gas transportation services and fees, and opens interstate transmission capacity to access by any qualified shipper on firm or interruptible basis. Interstate pipeline gas storage capacity is among the transportation services affected. As markets set values on controlling or aggregating gas supplies at given points on the U.S. interstate pipeline grid and on transporting those volumes to end use customers, storage will be valued according to its contribution in each supply chain. And because Order 636 allows storage to play a greater role in the supply chain, its value to producers, shippers, and consumers will grow as well. The paper discusses gas storage expansions, supply area storage, seasonal versus peak storage, salt cavern storage, storage service flexibility, and several specific storage facilities.

• OSTI ID: 5895572
• Journal Information: Oil and Gas Journal; (United States), Journal Name: Oil and Gas Journal; (United States) Vol. 91:43; ISSN OIGJAV; ISSN 0030-1388
• Country of Publication: United States
• Language: English

Related Subjects

03 NATURAL GAS
032000* -- Natural Gas-- Transport
Handling
& Storage
CAPACITY
CAVITIES
ENERGY SOURCES
FLUIDS
FOSSIL FUELS
FUEL GAS
FUELS
GAS FUELS
GASES
MARKET
NATIONAL ORGANIZATIONS
NATURAL GAS
PIPELINES
REGULATIONS
SALT CAVERNS
STORAGE
STORAGE FACILITIES
TRANSPORT
US DOE
US FERC
US ORGANIZATIONS