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Jun 26, 2020

OEB Decision Supports Increase in Natural Gas Storage Capacity

By Fred D. Cass

In a decision issued on June 25, 2020, the Ontario Energy Board (OEB) approved a proposal by Enbridge Gas Inc. to increase the maximum operating pressures of three natural gas storage pools located near Sarnia, Ontario. The purpose of the increase in maximum operating pressures is to increase the gas storage capacity of the pools. To facilitate the increase, Enbridge Gas proposes to install new master valves, new wellheads and new emergency shutdown valves. The additional gas storage capacity resulting from the increased pressures will be sold at non-utility, market-based prices to storage service customers as part of the unregulated storage operations of Enbridge Gas.

The project is the first phase of a larger initiative by Enbridge Gas to increase deliverability and storage capacity at its gas storage facilities. Enbridge Gas is completing the work at its storage facilities in phases so as to minimize the impact of the work on ongoing operations and to maintain injectability of gas into its storage pools.

The OEB found that the project is needed and the proposed facilities are appropriate. The OEB approved the increase in maximum operating pressures for the three storage pools subject to conditions, including a condition that Enbridge Gas will continue to adhere to the requirements of the applicable Canadian Standards Association standard to the satisfaction of the Ministry of Natural Resources and Forestry.

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