U.S. Natural Gas Storage Breaks New Record

---

Researched by Industrial Info Resources (Sugar Land, Texas)--Last week's natural gas storage report (issued Nov. 17) from the U.S. Energy Information Administration (EIA), the statistical arm of the U.S. Department of Energy, showed that for the week ending November 11, natural gas storage in the lower 48 states had reached a new all-time high. Estimates from the EIA indicated that 3.85 trillion cubic feet of natural gas was in storage for the week, which was 14 billion cubic feet (Bcf) higher than the corresponding period of 2010 and approximately 10 Bcf more than the previous record, which was set the week ending November 5, 2010.

Click on image at right for a graph showing natural gas storage in the lower 48 states from January 2006 through November 2011.

"The record levels of 2010 brought the U.S. natural gas storage caverns, aquifers and fields to near-full levels," said Jesus Davis, vice president of research for the Oil & Gas Terminals Industry. "Hopefully, the grassroot and expansion projects for natural gas storage will keep us from reaching the 100%-full mark in coming years, although increased production from the shale plays is consistently increasing demand for new storage."

The EIA reports that net injections into underground storage facilities between September 1 and October 1 this year were 858 Bcf, which is 45% higher than the five-year average injections during this period from 2006 through 2010. The EIA points to continued strong production and mild weather during this time period for the high level of injections.

Industrial Info is tracking more than $2 billion in U.S. natural gas storage projects, not including planned liquefied natural gas (LNG) terminals. An example of the continuing grassroot and expansion projects is the Leaf River Natural Gas Storage caverns near Stringer, Mississippi. Construction of two salt dome storage caverns, each with a working gas capacity of 8 Bcf was completed in late summer 2010. The company is doubling the capacity of the storage facility by constructing two identically sized caverns at the site, which are tentatively planned to be completed by the end of this year. Information on these and other natural gas storage projects is available in Industrial Info's North American Terminals Industry Database.

View Plant Profile - 1074758
View Project Report - 3002936 3002937 3003129

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, 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.