Natural gas storage use for a central Texas electric utility

Date

1994

Authors

McAndrews, Neil Francis

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Abstract

Natural gas use in the United States has returned to a rapid growth rate. Forecasts for natural gas indicate that the electric utility sector will use substantially more gas in the future. Natural gas electric generation is planned to provide the majority of the new generation over the next ten years. This increasing use by new entrants into the natural gas market comes at a time of great changes in the natural gas marketplace. Natural gas prices are now virtually deregulated and subject to market conditions. Storage, marketing and transportation services have become "unbundled" allowing consumers many new choices as to supply features. The supply of storage curve and the implications of storage use in the natural gas market is helpful in planning natural gas procurement strategies. Natural gas risk management is finding many uses under a variety of market conditions. The new financial tools and procurement strategies help provide security and price management in a volatile environment. Mathematical models allow the consumer to measure different strategies under uncertain conditions. Filling and dispatching storage models aids natural gas purchasers in procuring and holding natural gas inventory

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