re: Tell me if this is a good investment (CNG tanks)

quote:

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The oversupply of nat gas makes storage considerations a nonissue right now

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So you're saying that current production is having difficulty finding a market?

It used to be in the NG market that storage was not necessarily the issue. The issue was getting the NG from storage to market in a timely manner. The bottleneck was due to the lack of pipeline and compression infrastructure during peak demand (i.e, usually cold winter days and/or hot summer days). Essentially what you're saying is that the pipelines and storage is full and the producers can ramp up production on peak demand?

If so, I can generally see hydraulically how the addition of more producers (and I'm thinking of the TX, OK, LA, AK, MS, and AL areas) has alleviated some of the the storage withdrawal bottlenecks thus shaving off some of the price spikes that we have seen in the past during peak demand.