Benefits of Gas Storage
Flex Gas believes Ahuroa has the potential to provide flexibility to gas users, shippers and producers from the following services:
- Flexibility in injection to take advantage of periods when the value of gas is low (i.e. low gas market prices or fixed volume contracts)
- Flexibility in withdrawal to take advantage of periods when the value of gas is high (i.e. high gas market prices or high electricity market prices)
- Insurance for interruptions to supply from shutdowns, unplanned outages.
The pre- and post-expansion injection and withdrawal capacities of the Ahuroa storage facility are shown in the schematics below. Further expansion is possible and will be investigated based on customer demand.
2016 Gas Use (PJ)
Total Ahuroa Volume as a Percentage of Annual Demand
|Open Ahuroa Volume as a Percentage of Annual Demand|
We believe these capacities provide material flexibility for gas users, shippers and producers. The total working storage volume of Ahuroa is estimated at 18 PJ, which is slightly less than 10% of 2016 annual consumption of 192 PJ. The breakdown of annual gas consumption by use is shown in the table below. The capacity of Ahuroa is material when compared to annual demand from industrial, petrochemical and power generation users. Ahuroa can also provide significant flexibility for retailers serving commercial and residential markets.
Flex Gas can start injection or withdrawal at Ahuroa with 6-8 hours’ notice if the facility is not operating. The facility can switch between injection and withdrawal within 2 hours. These response times provide the level of intra-day flexibility required to respond to changing market conditions.