Although it appears surprising that gas is put back into the ground after expending so much time, effort and money on extracting it in the first place, underground gas storage (UGS) plays an important role in the management of the gas supply chain. UGS has been used effectively for nearly a century to balance the mismatch in gas supply and demand. Its use continues to grow and with the advent of gas market liberalization, additional uses of UGS have been introduced. In several countries some 20-30% of the annual gas consumption is supplied through the use of UGS. This paper provides an overview of the most common use of UGS, the current status of UGS in the world and the main characteristics of the various types of facility: such as gas fields, aquifers and salt caverns. Aspects related to the planning and performance of gas storage facilities are also discussed.
The purpose of gas storageThe gas supply chain is characterized by large hourly, daily and annual imbalances between supply and demand. Although on the one hand, producers and transporters prefer to deliver the gas at the same constant rate at all times, users only need gas at certain times, e.g. during cooking, in winter for heating, harvest season for sugar factories etc. Gas storage plays an important role in bridging this gap between supply and demand. A typical daily demand profile for a year is shown in Figure 1. In this example the maximum daily demand is about twice the annual average demand. Without balancing measures, producers and transporters would have to double the production and transport capacity to satisfy demand. This could be extremely expensive if the gas needs to be transported over large distances.Underground gas storage (UGS) allows the full demand to be met, in a case where the supply transport (pipeline) capacity is only slightly larger than the annual average demand (Fig. 2). When demand is larger than the supply capacity, gas is withdrawn from the UGS facility ('send-out') and in times of low demand, the facility is refilled by injecting gas back into storage. This example is a typical case of 'seasonal storage', whereby the storage is filled during summer months and emptied during winter months. The same principles as described above for seasonal fluctuations during the year are also applicable for hourly fluctuations during a day. In some domestic markets, these fluctuations can even be larger than daily fluctuations over a year. This calls for 'daily storage', whereby the gas is injected during the night and produced mainly during the morning and evening hours.Since daily and hourly gas demand generally has a strong correlation with the ambient temperature, and given the irregular weather pattern in most countries, there will be occasional high peaks, where the demand is even higher then during a normal peak. This calls for the use of so-called 'peakshaver' facilities. A peakshaver delivers gas at relatively high rates for a short period of time, usually a few days. These are generally used only at peak periods during winter...