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US NATURAL GAS—Conclusion: Plans to add storage along US gulf threaten possibility of overbuild

07/14/2008
Currently planned storage capacity increases in the Southeast US-Gulf Coast region would add nearly 30% to working-gas storage capacity and have an even greater effect on withdrawal capacity.Thirty-one storage projects have been announced for 2008-10 in the Southeast US-Gulf Coast region; adding 304.9 bcf of working-gas capacity and 17.5 bcfd of withdrawal capacity (Table 1). The increased withdrawal capacity spreads across four states, with Louisiana receiving 29% of the increase, Texas 28%, Mississippi 27%, and Alabama 16%. Click here to enlarge imagePart 1 of this article (OGJ, July 7, 2008, p. 74) examined the basis shifts already under way and expected as a result of ongoing pipelin...
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