Pennsylvania’s underground natural gas storage fields could reach capacity this year due to a mild winter and a four-fold increased in gas production since 2009, according to recent reports. The last time Pennsylvania filled all of its underground gas-storage space was about a decade ago when the state had about 8% less underground storage space than today.

Industry insiders say that record-level production from the Marcellus shale and other deposits could cause the topping-off of some 777 billion cubic feet of capacity. The event would force regional gas prices to fall, or cause some gas well completions or production to be curtailed.

However, a long hot summer could encourage electricity producers to rely more on natural gas as a power-generation fuel, thus continuing the emerging trend for power producers. The change would lessen the demand for underground gas-storage space. In a public statement, Bentek’s energy analyst, Katie Jolly, said it is likely that Pennsylvania’s storage fields will hit maximum capacity this year.

Also, although the Energy Information Administration had not released Pennsylvania’s June storage totals as of press time, national data for May show the upward storage-level trend stretches across the country. By July 1, 2011, national gas inventories reached 2.9 trillion cubic feet (Tcf), about 31% higher than May 2011. According to Bentek’s projections, gas storage levels could reach 4.2 Tcf this fall season, up from 3.9 Tcf in 2011. The national storage capacity currently stands at 4.5 Tcf.

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