Moving forward with facility expansion plans 

To meet growing energy demands in the Rockies and Western U.S., we are proceeding with the expansion of our Spire Storage facilities in Wyoming, with partial availability of additional natural gas storage capacity beginning in 2024 and more coming online in 2025.

Specifically, we anticipate between 6-8 Bcf of available, incremental capacity in April 2024. A binding open season is expected in late summer/early fall of 2023. Periodically, we’ll update new volumes as storage expansion development continues. Incremental capacity will be available into our existing connections with five major interstate natural gas pipelines serving California, the Rockies, the Southwest and the Pacific Northwest. Read more about the expansion project here.
 

By the numbers: Our facility expansion

Consistent with the Federal Energy Regulatory Commission (FERC) 7(c) project approval and FERC’s issuance of a Notice to Proceed, we recently started construction of the initial project phase at our Wyoming facility. Here’s what’s happening:

• Full project completion is expected to take place over the next two years. Construction involves the addition of new storage wells, compression, pipeline infrastructure, and gas processing capability
• When complete, the expansion project will increase Spire Storage underground working gas storage capacity from 23 Bcf to 39 Bcf

What it means: The project is anticipated to deliver expanded services to existing and new customers. With this expansion, we will be in a stronger position to meet growing demand and serve projected future needs as on-demand availability of natural gas becomes increasingly important in the Western U.S.

Marketplace trends point to growing demand for natural gas storage
As the Western U.S. energy landscape continues its dynamic transition, experts and customers predict underground storage will be needed more than ever for the efficient and reliable operation of both natural gas and electric markets. As a result of this transition, demand for underground storage services will rise. Spire Storage is well-positioned to meet these evolving energy needs with our Wyoming facility expansion, as well as our connections with five of the most important natural gas pipelines serving the Western U.S.
 
Scott Smith, president of Spire Storage, shares marketplace insights and dynamics that are driving the increased demand for natural gas storage, especially in the Western U.S. Read more in this interview with S&P Global Market Intelligence.
 
In addition to current and prospective customers indicating a need for future natural gas storage services, our proprietary research indicates a need for future demand to support. Reasons for anticipated demand include: 

• Increased reliance on intermittent renewable resources (e.g., solar and wind generation) – especially in the Western U.S. – creating more variable demand for natural gas on a daily and seasonal basis
• Regional LDCs wanting to economically meet seasonal/peaking demand needs by acquiring and storing gas in the summer and withdrawing those supplies to meet winter peaking demands
• LDCs and other end-users seeking supply diversity and security
• Producers seeking the ability to efficiently and reliably balance their production relative to highly variable demand for natural gas throughout year

Natural gas storage supports the need for grid security, safety and reliability by providing critical backup supply to manage variable energy demand. That’s why underground storage is projected to play an increasingly important role. 
 
Strong support from customers, officials for expansion
We appreciate our customers and federal, state and local government officials in Wyoming – including U.S. Sen. John Barrasso, Wyoming Gov. Mark Gordon and several Wyoming state representatives and senators – and other valued stakeholders, who have continued to provide strong support for our plans. In addition, we thank our employees in Wyoming, Houston and St. Louis for their ongoing work, including during construction.