Gas storage technology consortium

Abstract

Gas storage is a critical element in the natural gas industry. Producers, transmission and distribution companies, marketers, and end users all benefit directly from the load balancing function of storage. The unbundling process has fundamentally changed the way storage is used and valued. As an unbundled service, the value of storage is being recovered at rates that reflect its value. Moreover, the marketplace has differentiated between various types of storage services, and has increasingly rewarded flexibility, safety, and reliability. The size of the natural gas market has increased and is projected to continue to increase towards 30 trillion cubic feet (TCF) over the next 10 to 15 years. Much of this increase is projected to come from electric generation, particularly peaking units. Gas storage, particularly the flexible services that are most suited to electric loads, is critical in meeting the needs of these new markets. In order to address the gas storage needs of the natural gas industry, an industry-driven consortium was created-the Gas Storage Technology Consortium (GSTC). The objective of the GSTC is to provide a means to accomplish industry-driven research and development designed to enhance operational flexibility and deliverability of the Nation's gas storage system, and provide amore » cost effective, safe, and reliable supply of natural gas to meet domestic demand. This report addresses the activities for the quarterly period of July 1, 2006 to September 30, 2006. Key activities during this time period include: {lg_bullet} Subaward contracts for all 2006 GSTC projects completed; {lg_bullet} Implement a formal project mentoring process by a mentor team; {lg_bullet} Upcoming Technology Transfer meetings: {sm_bullet} Finalize agenda for the American Gas Association Fall Underground Storage Committee/GSTC Technology Transfer Meeting in San Francisco, CA. on October 4, 2006; {sm_bullet} Identify projects and finalize agenda for the Fall GSTC Technology Transfer Meeting, Pittsburgh, PA on November 8, 2006; {lg_bullet} Draft and compile an electronic newsletter, the GSTC Insider; and {lg_bullet} New members update.« le