Western US Natural Gas Market Seeks More Storage Amid Pipeline Congestion
Natural gas buyers and others are seeking more storage capacity in the Western US market due to fully subscribed pipelines and increasing volatility.
The demand for additional storage is driven by the region's growing need for natural gas, particularly in California, where utilities and other end-users are looking to diversify their energy sources.
However, expansion projects face several challenges, including regulatory hurdles and cost considerations. Brownfield projects, which involve repurposing existing infrastructure, may offer an advantage over greenfield developments.
Some expansions, such as those by Bear River Midstream and SoCalGas, are currently underway or in the planning stages.