Caverns

With dry gas supplies ballooning, it’s probably a good thing that the industry grew demonstrated peak working capacity in underground storage caverns last year, according to the Energy Information Administration (EIA). From April 2011 to April 2012, Lower 48 state capacity increased 3%, or 136 Bcf, to 4,239 Bcf, according to a new EIA report.

MarkWest Energy Partners LP and MarkWest Liberty Midstream & Resources LLC have announced an acquisition as well as an infrastructure development deal to serve EQT Corp. and other producers in Appalachia.

Sempra Energy unit Sempra Pipelines & Storage said the first of two caverns at its Mississippi Hub gas storage facility has entered service.

Coming in some 15 Bcf below a number of industry surveys, Thursday’s news that only 116 Bcf was removed from the nation’s natural gas storage caverns for the week ending Feb. 26 had futures prices retreating to a three-month low. April natural gas dropped 18.2 cents from Wednesday’s close to finish Thursday’s regular session at $4.575.

Coming in some 15 Bcf below a number of industry surveys, Thursday’s news that only 116 Bcf was removed from the nation’s natural gas storage caverns for the week ending Feb. 26 had futures prices retreating to a three-month low. April natural gas dropped 18.2 cents from Wednesday’s close to finish Thursday’s regular session at $4.575.

Say what you will about storage caverns bloated with gas and an oversupplied U.S. market; when the mercury dropped earlier this month, pipeline imports of Canadian gas as well as liquefied natural gas (LNG) from incoming tankers and terminal-based storage helped to save the day, according to analysts at Barclays Capital.

Say what you will about storage caverns bloated with gas and an oversupplied U.S. market; when the mercury dropped earlier this month, pipeline imports of Canadian gas as well as liquefied natural gas (LNG) from incoming tankers and terminal-based storage helped to save the day, according to analysts at Barclays Capital.

With gas storage caverns bursting, strong production despite drilling cutbacks, and mild weather expected, “a fragile economic recovery” is the only positive for gas prices this winter, the Natural Gas Supply Association (NGSA) said last Wednesday.

With gas storage caverns bursting, strong production despite drilling cutbacks, and mild weather expected, “a fragile economic recovery” is the only positive for gas prices this winter, the Natural Gas Supply Association (NGSA) said Wednesday.