So what exactly is Natural Gas Storage?
Natural gas as you know or may not know is a colorless, odorless gas that can be stored in a number of different ways for an indefinite period of time. Natural gas that is transported through the pipelines is not always needed right away, and is put into storage for later use. Most natural gas in the United States is stored in depleted natural gas or oil fields underground. These underground storage fields take advantage of existing wells, gathering systems and pipeline connections. Natural Aquifers, Salt caverns and abandoned mines are also used to store natural gas.
Types of Underground Natural Gas Storage Facilities
The demand for natural gas is normally higher in the winter than in the summer. This is mostly due to the fact that most homes and organizations use natural gas for heating in the winter. The stored natural gas delivered during the summer months normally at a lower price again due to supply and demand, is ready and available for use during the increased demand of the winter months. The natural gas in storage can also be used as insurance against natural disasters or other unforeseen accidents which may affect the production or delivery of natural gas.
Before 1992 natural gas was a regulated commodity and storage was required for the operational requirements of the pipelines to meet the needs of the utilities. In 1992 the Federal Regulatory Commission introduced Order 636 which opened up the natural gas market to deregulation. What Order 636 did was make storage available to industry participants for commercial reason. For example Realgy Energy Services Storage program which stores gas when prices are low, and withdraws it when prices are high.
Underground Natural Gas Storage Facilities in the Lower 48 States
Most utilities and industry participants pocket the savings from storing gas at a lower rate and sell it at an increased rate for a profit. What makes Realgy Energy Services Storage program unique is that the savings from stored gas is always passed along to our customers.
Realgy Energy Services offers the Summer Storage Program to our customers to help offset the cost of winter natural gas usage. Under the program customers put away 20% of their historic usage into storage at the lower summer rates to be used in the winter when the price of natural gas normally increases.
If you would like more information on The Realgy Energy Services Storage Program you can contact one of our Energy Brokers at (877) 300-6747 or check out our website www.realgyenergyservices.com
Sources:
U.S Energy Information Administration The Basics of Underground Natural Gas Storage
NaturalGas.Org Storage of Natural Gas
Natural Gas Storage Season is here
Realgy Energy Services Natural Gas Storage Program is just one more way we help our customers save money on their energy usage.
Natural Gas Storage is the service of purchasing a percentage of your annual gas usage during the summer months and storing it. This stored gas is then delivered to you during the winter months. That is why we call it “winter gas at summer prices.”
Natural Gas Storage injections begin in April and run through October. As part of our customer Benefits Realgy Energy Services purchases approximately 20% of your annual Natural Gas usage during the months of April, May, June, July, August, September and October. For each of these seven months we will buy approximately 2.85% more gas than you use, at the low spring and summer variable rates.
Then during the 5 winter months of November, December, January, February, and March, this stored Natural Gas will be withdrawn and delivered to you. Since you have already purchased this Natural Gas, you will see an even greater savings during the winter months.
Realgy offers this storage program whenever we can. If your Utility allows Realgy to offer a storage program, it will be listed in our Service Plan table on our website www.realgyenergyservices.com, or you can contact customer service at 877-300-6747.
What is PriceWatch™?
Realgy Energy Services offers our PriceWatch™ winter fixed-price program to all of our Natural Gas customers who have a valid email address on file.
PriceWatch™ utilizes Realgy Energy Services’ proprietary trading and computer services. PriceWatchTM is designed to send out alerts when fixed pricing is such that it can reduce costs over the winter months.
It’s that time of year again when Realgy’s staff of Energy Advisers start to look into the future to see whether locking in your natural gas at a certain price for the winter months will save you money.
Our Energy Advisers start monitoring the market prices of natural gas in early August and continue to monitor prices through September and October. Historically, natural gas prices are lower in September and October before rising again in the winter months due to rising demand.
Realgy’s staff of Energy Advisers monitor future prices every day to recommend the best time to lock in a price so our customers save the most money on their natural gas usage this winter season.
PriceWatch™ is time-sensitive and requires all customers who want to participate to have a valid email address on file with Realgy Energy Services.
Our Energy Advisers need a response within 48 hours in order to lock in the best price.
PriceWatch™ Benefits
- We monitor the market and recommend pricing
- We charge no additional fee
- You choose to participate
- You are protected against rapid price increases
- Not a one-time purchase but proactive consultation
If you have any further questions please feel free to contact a Realgy Energy Services Customer Service Representative by phone, (877) 300-6747, by email, support@realgy.com, by fax (860) 233-3884, or by mail, 675 Oakwood Avenue, West Hartford, CT 06110.