Northern offers several flexible storage options that can play an important role in the successful and efficient operation of your natural gas business. Northern operates three natural gas storage facilities and two liquefied natural gas peaking units. Firm delivery service from these storage facilities is fully contracted and are central to meeting our customers' peak-day system requirements. The storage facilities’ total firm and operational capacity is 75 Bcf, including 4 Bcf of liquefied natural gas. Northern has firm and interruptible storage services that are available as a reliable and flexible customer supply source to meet short-and long-term market demand and arbitrage opportunities.
- As a producer, you can use these services to maximize production and maximize netbacks. Our strategic mid-continent location on the interstate pipeline grid gives you access to numerous supply basins and markets throughout the country.
- As a marketer, you can limit financial and physical risk with our injection/withdrawal or withdrawal/injection options. This service will assist you in maximizing your winter deliverability and increase the reliability of your service.
- As an LDC, you can provide your customers supply reliability and peaking options via Northern's storage service. Storage is a valuable service when supply interruptions or price swings disrupt your portfolio. Storage service also allows you to manage your gas costs by purchasing lower cost supplies during the non-winter months for storage withdrawal during the typically higher cost winter season.
Storage services are offered at these points on Northern's system:
Northern offers storage services at numerous points on its system. A list of current storage points can be found under
Support - Training Materials - Storage Information - Deferred Delivery (Storage) Points.
Firm Deferred Delivery Service (FDD)
The annual cycle for this firm storage service is June 1 through April 30. The injection season begins June 1 and ends October 31. The withdrawal season begins November 1 and ends April 30. FDD provides a level of firm withdrawals during the injection season and provides a level of firm injections during the withdrawal season. In addition, as a firm storage customer, you may choose your withdrawal service parameter option, which will be set forth in the contract. The withdrawal service options include 1) Gas-In-Place (GIP); 2) Step Withdrawal Option; 3) 3-Step Withdrawal Option; and 4) EG Withdrawal Option. These service alternatives give you the choice of deliverability options that best fit your needs. Daily deliverability under the GIP option is dependent upon the amount of gas in the storage account and gives you a great deal of flexibility regarding early season withdrawals versus late season withdrawals. The 4-Step and 3-Step options provide for fixed levels of deliverability on a monthly or semi-monthly basis to provide for simplicity of supply planning. The EG Option offers enhanced firm daily injection and withdrawal rights and provides firm daily rights in May. Firm Deferred Delivery (FDD) service is offered in conjunction with transportation service on Northern's system.
FDD gives you the following flexibility:
- FDD provides firm storage service for supply reliability
- FDD provides firm scheduling priority in grid time bump cycles.
- FDD provides real-time injection or withdrawal nominations up to one hour prior to the end of the gas day.
- FDD provides firm counter-cycle injections and withdrawals.
- FDD provides for multi-cycling your storage for more flexibility and for a lower FDD unit rate.
- FDD allows you to provide service to both price sensitive and time sensitive markets.
- FDD provides you with firm supply or a firm market to offset other marketplace interruptions or accommodate price swings in the marketplace.
Interruptible Deferred Delivery (IDD) and Preferred Deferred Delivery Service (PDD)
Preferred Deferred Delivery (PDD) storage service is available on a year-round basis and is available in many term combinations. PDD service is offered in conjunction with transportation service on Northern's system.
- PDD has a higher scheduling priority than IDD service.
- You can tailor your injection and withdrawal parameters to meet your individual service requirements.
- Terms for PDD are flexible. PDD service is scheduled daily by price, with the highest price receiving highest priority.
PDD can be a multi-month service that allows customers to inject gas one month, and then withdraw gas over one or more subsequent months. PDD is used to take advantage of price arbitrage opportunities, or in conjunction with FDD to meet market demand.
PDD is typically used as follows:
- For storage opportunities that need higher priority than IDD and the shipper provides a commitment to parameters for service to receive this higher priority.
- On a seasonal basis with summer injections by month and winter withdrawals by month.
- On a month-to-month basis to take advantage of monthly price swings.
Interruptible Deferred Delivery (IDD) storage service is available on a year-around basis. IDD service is offered in conjunction with transportation service on Northern's system.
- Terms for IDD are flexible. IDD service is scheduled daily by price, with the highest price receiving highest priority.
- IDD is an extremely flexible service to meet your variable supply or market needs.
IDD is typically used as follows:
- For storage opportunities that do not require a commitment from the Shipper.
- Within a month to level day-to-day supply or market swing volumes.
The following PDD and IDD service variations are available for your use:
- Available to withdraw gas first and inject the gas at a later date.
- Available to inject gas first and withdraw the gas at a later date.