Why is natural gas stored?
Natural gas storage is a tool used by gas and power companies to provide added supply to their systems on peak days, provide back up reliability, and to manage price risks. Storage can be considered a form of insurance to help manage supply and price risks and to provide flexibility. The delivery of natural gas on a peak day is limited by the size of the gas pipelines serving an area. By storing natural gas at the end of the pipelines, most desirably near where it’s consumed, additional quantities can be delivered on peak days. Storing natural gas is cheaper than building a new long-haul pipeline which may only be used for a few peak days each year. Natural gas storage also provides back up supply if there is an unexpected problem with the main pipeline. Most pipeline problems can usually be corrected in a few days. Demand for natural gas is rapidly increasing, in Florida and throughout the country. Because of growth in demand, gas supply reliability is a very important consideration f
