Highlighting the growing need for natural gas storage at the LDC Gas Forum

^{Spire Midstream President Scott Smith presenting at the LDC Gas Forum} 

Last month, Spire Midstream President Scott Smith presented at the LDC Gas Forum: Rockies & West conference in San Diego on the growing need for additional natural gas infrastructure.

Scott provided perspectives on the current role and benefits of natural gas and emphasized the growing need for storage in the Western U.S. driven in part by the retirement of coal plants, increase in renewable energy generation, and the growing electricity needs driven by electrification, data centers, bitcoin, AI and extreme weather.

He also shared an update on the Spire Storage expansion project, which is increasing working gas storage capacity at the facility from 23 Bcf to 39 Bcf.

Seasonal market outlooks

Mid-continent
DTN’s latest seasonal forecast (August 28) predicts for this winter a weak La Niña with a potential to strengthen. Currently, for December through February, Southern Star basis is valued at ~$0.80 and Panhandle basis is ~$0.50.

Why it matters
La Niña often brings colder, wetter winters to the North and warmer, drier winters to the South. A moderate or stronger La Niña could lead to cold snaps in key Midwest cities like Chicago, which could impact natural gas demand and pricing.
For example, during a cold snap last January, Southern Star and Panhandle both saw significant premiums over Henry Hub, with Southern Star $1.89 higher and Panhandle $1.32 higher.

With winter around the corner, we’re keeping an eye on:

• Rig count: Rigs in major Midcontinent basins are roughly flat compared to last year
• Storage levels: According to the Sept. 5, 2024, Energy Information Administration (EIA) report, storage levels are projected to be the highest in the last five years, with 52 Bcf more in storage in the Midwest region than this time last year
• Planned service outages: Southern Star has four planned service outages impacting winter capacity, while ONEOK Gas Transportation (OGT) has one planned outage

Rockies & West
The weaker La Niña event is expected to bring a colder, wetter weather to the Pacific Northwest, warmer, drier conditions to Southern California and the Rockies. As of Sept. 5, winter strips in the region are:

• SoCal Citygate: ~$5.14
• PG&E Citygate: ~$5.01
• Malin: ~$4.55
• NWP Rockies: ~$4.57

We’re also keeping our eye on:

• Clay Basin Expansion: Williams has requested to increase working gas capacity by 8 Bcf. The FERC deadline for protests is Sept. 23. If no protests are filed, the project will be authorized, and service could begin immediately
• Storage Levels: The Sept. 5 EIA report shows storage is up by 53 Bcf in the Mountain region and 38 Bcf in the Pacific region compared to this time last year. The Mountain region is forecast to enter winter with the highest storage levels in five years
• Planned service outages:
  • Kern has one planned outage impacting winter capacity
  • Ruby has one planned outage impacting winter capacity
  • Northwest has no planned outages

Spire Storage hosts congressional staffers at Wyoming facility 

In August, Spire Midstream welcomed a delegation of congressional staffers from Washington, D.C. to tour its Spire Storage West facility near Evanston, Wyo. Attendees learned how it serves as a critical component of U.S. energy infrastructure and received an update on the facility’s expansion due to be completed later this year.

The two underground natural gas storage fields are located near the Opal Hub, a major gas trading hub, which is interconnected to several interstate natural gas pipelines and enables Spire Storage to serve major markets through the Western U.S.

Supporting a community favorite in Evanston

Over Labor Day weekend, we sponsored Evanston Cowboy Days at the Uinta County Fairgrounds. Members of our team enjoyed the annual event, which draws families from throughout the surrounding areas for activities, food and music that promote the western spirit.