What Is Natural Gas?

Natural gas is one of the cleanest, safest and most versatile energy sources available. Colorless and odorless in its pure form, natural gas is a combustible mixture of hydrocarbon gases generated from the remains of plants, animals and microorganisms that lived millions of years ago. But unlike other fossil fuels, natural gas is clean burning, produces low emissions and is abundant in the US; making it a highly viable and increasingly used alternative energy source.

When burned, natural gas produces a tremendous amount of energy. This energy is used to heat homes and water, cook food, operate electric power generator equipment, cool commercial and industrial buildings, power vehicles and for many other residential, commercial and industrial purposes. Chances are, you use natural gas in your home and/or business.

Our Thirst For Natural Gas

Long-term need for natural gas is on the rise. In California alone, demand for natural gas is expected to grow by about 14.5% from 2008 to 2020. This escalating demand is driven by a number of factors:

• Our growing consumption of energy.
• Environmentally focused government policy that promotes the use of low-emission domestically available natural gas.
• The increased use of natural gas as a viable transportation fuel.
• Increasing number of utilities and electric power generators required to provide cleaner energy.

Electric utilities are under tremendous pressure from federal and state agencies to produce an increasing amount of their power using renewable sources. This drives the need for additional natural gas supplies. Because renewable power generation sources tend to be inversely correlated to daily load curve, renewables will be unable to consistently meet peak day requirements. Natural-gas-fired generation and underground natural gas storage can help bridge this gap.

Controlling Price Volatility

Demand for natural gas fluctuates significantly, depending on multiple outside factors including weather and availability. When demand for natural gas peaks, so does the price. This creates an environment of price volatility which impacts everyone; from the utilities to the transportation companies to the gas sellers to the end consumer.

The key to managing and controlling that price volatility is high-speed, high-deliverability natural gas storage that allows customers to store natural gas when prices are low, and withdraw it when prices are high.

The Natural Gas Pipeline System

How It Works

Crisscrossing the US is an intricate network of interstate pipelines that move natural gas to the homes and businesses that use it to fuel their energy needs. Most of these pipelines are buried two to five feet underground and are out of sight. Natural gas storage, usually located thousands of feet beneath the ground surface, accepts natural gas from these pipelines, temporarily stores it until it’s needed, and then gives it back to the pipelines to transport to natural gas markets.

Typically, natural gas is injected into and then stored in these underground facilities during “off-peak” seasons when demand for natural gas is lower (summer months, for example), and then supplied back into the pipeline system during “peak” seasons (such as winter), when heating demands are high.

However, since increasing numbers of power generators now run their equipment on natural gas, summer months also have become “peak” demand seasons in areas where air conditioning is frequently used. For this reason, natural gas storage is needed  throughout the entire year; not just during winter months.

Natural Gas Storage

Why We Need It

A recent study that includes the Western US shows that demand for natural gas has risen 24% in the last 20 years, while the capacity to store natural gas has increased by only 4%.  For example, in California alone, 87% of natural gas consumed in this state is supplied by outside states. Other Western states face similar circumstances.

So while California is a voracious consumer of natural gas, it does not produce or store enough to meet this growing appetite. In the event of another energy crisis like the one experienced in 2000-2001, California’s current supply and storage facilities will not keep up with the demand; potentially costing California and its taxpayers billions of dollars in natural gas.

The Western US, therefore, has a critical need for new high-deliverability storage facilities to meet the escalating demand for natural gas, ensure predictability of supply, and to counter price volatility. Underground natural gas storage, like Tricor Ten Section Hub, helps balance the load requirements of gas users and provides a readily available supply of natural gas to serve the market during periods of peak demand.

Types of Natural Gas Storage

Natural gas is temporarily stored underground in depleted oil and/or gas fields or reservoirs, salt caverns or aquifers. Most of the natural gas storage in the US consists of naturally-occurring gas or oil reservoirs that have been depleted through production. An underground gas storage facility must contain enough “base gas” or “cushion gas” that provides ample pressure to extract natural gas.

Tricor Ten Section Hub Natural Gas Storage

Tricor Ten Section Hub is a depleted reservoir located about 8,000 feet beneath the ground surface on the Ten Section Oil Field. Offering the high-deliverability and capacity needed to inject and withdraw large volumes of working natural gas (referred to as our storage capacity); Tricor Ten Section Hub will be able to meet the ever-growing natural gas demands of gas sellers and users, while also stabilizing prices even during times of peak demand.

Tricor Ten Section will provide a secure energy supply and greater access to clean natural gas for household use, power generation and industrial demand.

Natural Gas Storage

Is It Safe?

Yes. Natural gas storage used in interstate commerce, including Tricor Ten Section Hub’s, is regulated by federal agencies that closely monitor operations to ensure adherence to stringent safety and environmental standards.

The Tricor Ten Section Hub facility is a depleted reservoir located about 8,000 feet below the ground surface and far from residential areas. Tricor engineers will adhere to the strictest safety practices in completing the facility, and will continue to maintain the highest safety protocols for storage operation.