About Gas Storage
Glossary of Terms
Aquifers
Underground formations that naturally contain water, usually NO hydrocarbons. These are sometimes used for natural gas storage.
Base or Cushion Gas
Gas injected into the reservoir in order to create and maintain sufficient reservoir pressure to support the desired deliverability. This gas remains in the reservoir for the economic life of the facility.
Contract Injection and Withdrawal Daily Quantity
The amount of rate a customer pays to use to put into and remove from the storage reservoir (also referred to as “rate”; not to be confused with the fees charged for the service).
Contract Inventory Capacity
The amount of “working gas” space a customer of the storage facility will pay to use.
Cycling Capability
The number of times in a year the working gas capacity could be completely filled and emptied, given the rate available.
Delta Pressuring
Operating the reservoir at pressures higher than the native discovery pressure, in order to store greater quantities and achieve higher withdrawal rates.
Depleted Hydrocarbon Reservoirs
These are the most common type of storage reservoirs.
Independent Storage
Storage owned and operated by an entity independent of the pipeline or utility company it connects to. Typically
built at the owner’s risk, such storage is usually less regulated, with no potential for subsidization by cost of service rate payers.
Salt Caverns
Underground salt formations. These can be developed as storage reservoirs by solution mining.
Top or Working Gas
The inventory or space that can be filled and emptied (or cycled) routinely for customers.
Utility Storage
This is storage usually affiliated with pipeline or utility companies and most often is included in the overall rate base of the assets. Either Federal or State/Provincial regulated.
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