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May 15, 2008 2:18 PM

A new Bentek Energy LLC, Golden CO, analysis of Southeast/Gulf region natural gas storage development reveals that 31 storage projects planned between 2008-2010, including new fields and expansions, could add more withdrawal capacity than there is available pipeline capacity to move the gas out of the region.

If all 31 projects are completed, it would add 305 billion cubic feet (Bcf) of working gas capacity and 17.5 Bcf/d of high-deliverability withdrawal capacity from multi-turn, salt-dome facilities, according to the analysis.

"During the same time these storage facilities are scheduled for completion, new pipelines will bring incremental domestic production into the Southeast/Gulf region from Texas, said E Russell Braziel, managing director of Bentek Energy. "New LNG terminals will also add to the rapid build-up of inbound capacity into the region. The risk of overbuild will not be defined by excess storage capacity so much as it will be driven by an excess of deliverability within the region.

"During high withdrawal periods in the winter heating months, storage gas will compete head to head with increasing pipeline deliveries in the region. And, given pipeline constraints on outbound capacity from the area until new construction is completed, we expect to see unprecedented imbalances in regional storage, flows, and pricing over the next few years."