Increased US Natural Gas Storage Capacity in 2024

The U.S. Energy Information Administration said that underground natural gas storage capacity will increase in 2024 in the Lower 48 States, according to a report published late on Wednesday.

The agency uses two metrics for assessing working gas storage capacities - demonstrated maximum capacity and working gas designed capacity.

The working gas is the gas injected into and removed from the reservoir. This is the gas that is injected and withdrawn from the reservoir.

According to the EIA, the demonstrated peak capacity (which represents the total of the highest volume of working gases reported for each storage area over a period of five years) increased by 1.7% in 2024 to 4,277 billion cubic feet (bcf).

EIA reported that the working gas design capacity (which represents a theoretical maximum on how much gas can be stored underground, withdrawn and used) increased by 0.1% in 2024 to 4,671 Bcf.

EIA reported that demonstrated peak capacity had increased for the second consecutive year. This year's increase was primarily due to an increasing use of gas storage installations.

A material change to the California gas regulations was another factor that helped ensure reliability of the energy market ahead of winter 2023-24.

After a massive leak of gas from Southern California Gas’ Aliso Canyon Storage Facility in 2015, California utility regulatory agencies limited the amount that could be stored there.

EIA stated that these restrictions were somewhat eased in 2023 when the California Public Utilities Commission approved an increase in the amount of gas which could be stored at Aliso Canyon.

Southern California Gas is an energy company in California.

EIA reported that overall gas storage capacity increased in 2024, with increases in the Mountain regions outweighing declines in East and South Central. (Reporting and editing by David Gregorio, Scott DiSavino).

(source: Reuters)