South Dakota Gas Storage Unit Agreement (Establish Unit on Depleted Producing Property)
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FAQ
Natural Gas Storage occurs underground in depleted oil and gas fields, aquifer reservoirs, and salt caverns. Liquefied Natural Gas is stored above ground in tanks.
Gas was injected for storage when its future price on the commodities futures market rose above its current market price. That gas would be sold with a future delivery date, creating an instant profit, and then held in the facility until the date contracted with the purchaser on which it was required to be delivered.
The largest single storage field is DTE Energy's Washington 10 field under Romeo, a 68.5 billion cubic feet field north of a 59-mile natural gas pipeline between Milford and Belle River.
The main function of gas storages is to inject and store natural gas at time of low prices and/or low demand and use the gas by withdrawing at times of higher prices and/or higher demand. We can identify three parameters to characterize a gas storage: working gas volume, injection capacity and withdrawal capacity.
Natural Gas Storage - Storage Fields The working gas requirement is generally about 50% of the total reservoir capacity. Gas is withdrawn in winter season and injected in summer. This type of storage facility can be used for long system supply or peak day.
It is most commonly held in inventory underground under pressure in three types of facilities. These underground facilities are depleted reservoirs in oil and/or natural gas fields, aquifers, and salt cavern formations. Natural gas is also stored in liquid or gaseous form in above?ground tanks.