Underground Gas Storage: Issues Beneath the Surface

摘要

The storage of natural gas by re-injection into the surface has become quite commonplace in various developed countries around the world. It is a relatively new phenomenon in Australia, and issues, not yet resolved, remain. The ability to store gas underground has enormous implications for the competitiveness of the gas market in Australia. Underground storage allows producers effectively to manage their gas flow in times of high and low demand. For gas users, underground storage has the potential to increase the choice of suppliers. For gas commodity traders, underground storage provides increased ability to hedge gas contracts which in turn will help to foster a strong spot market for gas in Australia.