Underground Natural Gas Capacity Slow to Grow in U.S.

---

Researched by Industrial Info Resources (Sugar Land, Texas)--New underground natural gas storage capacity has shown little growth in the Lower 48 states in recent years, according to the U.S. Energy Information Administration (EIA), but projects being tracked by Industrial Info could help to change the situation.

One way in which the EIA measures natural gas storage capacity is by design capacity, the sum of the working gas capacity for all active facilities in the Lower 48 states. Design capacity rose by 34 billion cubic feet (Bcf), or 0.7%, between November 2016 and November 2017, increasing to 4,725 Bcf, according to the EIA. In 2017, for the fourth consecutive year, no new underground storage facilities began operations. Ten facilities expanded by 1 Bcf or more last year.

The 0.7% increase in design capacity between November 2016 and November 2017 was driven by expansion in the East storage region, the EIA said, where design capacity grew by 30 Bcf (2.9%). Most of the incremental capacity in 2017 came from expansions to existing facilities. Several facilities in Ohio and West Virginia likely expanded in 2017 to accommodate increasing levels of natural gas production in the Appalachian Basin.

Slow growth notwithstanding, Industrial Info is tracking nearly $2.9 billion in underground and aboveground natural gas storage project activity in the U.S., but only $48 million worth is in the construction phase.

Click on the image at right for a graph showing potential project spending by state.

In Delta, Utah, Magnum Gas Storage LLC (Holladay, Utah) plans to build a facility containing four underground solution-mined storage caverns capable of storing 54 Bcf of natural gas. It would be interconnected with the interstate natural gas pipeline system by a new 61-mile-long header pipeline, according to the company. Completion of the $120 million project is expected in early 2019. However, the expected kickoff of construction has slipped 67 months from the originally planned kickoff date, according to Industrial Info's project database. For more information, see Industrial Info's project report.

In Mississippi, D'Lo Gas Storage (LaFayette, Louisiana) continues to review plans to develop three storage caverns worth $225 million. The caverns would have a working gas capacity of 24 Bcf, with a withdrawal capacity of up to 1.2 Bcf per day and an injection capacity of .59 Bcf/d. Construction of the first cavern project would begin in early 2019, with completion in second-quarter 2020. See Industrial Info's project reports on D'Lo's first, second and third storage caverns.

About 5.5 miles south of Tallulah, Mississippi, Midstream Energy Holdings LLC (Houston, Texas) continues to review plans for an $80 million natural gas storage cavern with a working capacity of 8 Bcf. It would be the first of three caverns with a total capacity of 24 Bcf. The combined total investment value (TIV) of the three storage caverns and surface facilities is $270 million. The initial project is currently expected to kick off construction in first-quarter 2019, with completion in first quarter 2020. So far, however, the start of construction has slipped 97 months from the originally planned start date. For more information, see Industrial Info's project report.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.