Magnum Gas Storage has started a 30-day, non-binding open season for the first phase of a proposed Utah natural gas storage project
OREANDA-NEWS. Magnum Gas Storage has started a 30-day, non-binding open season for the first phase of a proposed Utah natural gas storage project.
In the first phase, Magnum plans to develop two high-deliverability, multi-cycle storage caverns with a combined firm gas capacity of 19.3 Bcf/d (547mn m3/d). A second phase would include development of two more caverns for a total of 38 Bcf/d.
Phase one will take gas at the Goshen Hub from Kern River Gas Transmission and from Questar Gas Pipeline with injection capacity of up to 348mn cf/d and withdrawal capacity of up to 483mn cf/d.
Commercial storage services for phase one could begin in early 2020.
Changes in the western US energy markets will increase gas price volatility, said Magnum's executive vice president Kevin Holder, citing solar and wind development, tighter pipeline balancing requirements, dependability issues with existing infrastructure, along with new gas-fired generation and coal and nuclear plant retirements.