Printer Friendly

Storage study questions benefits of 2005 Energy Policy Act.

[GRAPHIC OMITTED]

A new report by Ziff Energy examines the increase in storage capacity in North America and the location of storage and capacity additions. The price spread between summer injection and winter gas delivery months has provided storage operators with an incentive to build more greenfield storage, expand existing working gas capacity, and add more compression and horsepower to inject and deliver gas more quickly.

The Energy Policy Act 2005 led to FERC Order No. 678 which allows storage operators to capture market-based rates. "The policy objective was to add more storage capacity, which has indeed happened," said Cameron Gingrich, Manager, Gas Services. "However, the increase in storage capacity has led to high injection season storage carryover volumes, leaving end users with higher carrying costs and increased storage costs from higher summer/winter prices spreads. One has to wonder if this policy is imposing greater costs than added benefits"

COPYRIGHT 2010 Oildom Publishing Company of Texas, Inc.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2010 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Title Annotation:Newsreel
Publication:Pipeline & Gas Journal
Article Type:Brief article
Geographic Code:1USA
Date:Apr 1, 2010
Words:150
Previous Article:Editor's notebook.
Next Article:Shell Pipeline Company receives Common Ground Alliance President's Award.
Topics:

Terms of use | Privacy policy | Copyright © 2020 Farlex, Inc. | Feedback | For webmasters