Summary
Facilities used for storing natural gas to balance supply and demand, ensuring energy security and stability of gas prices. The gas storage levels indicate whether there is more demand or supply in gas markets, thus influencing the price levels.
Gas storage refers to the process of storing natural gas in large quantities for later use, typically in underground facilities. It plays a critical role in ensuring a reliable energy supply by balancing seasonal demand fluctuations, managing unexpected supply disruptions, and supporting market stability.
Importance:
- Seasonal Demand Management: Gas storage helps meet higher demand during winter months or peak consumption periods.
- Energy Security: Provides a buffer against supply disruptions caused by geopolitical issues, weather events, or infrastructure failures.
- Market Flexibility: Allows for price stabilization by storing gas when prices are low and using it when prices rise.