Central Kansas Natural Gas Storage Draws Renewed Interest

Underground natural gas storage facilities in central Kansas are attracting renewed investment, as utilities and traders look to buffer against the sharp price swings that have rattled energy markets in recent years.

Kansas sits atop geology well suited to storing gas, allowing operators to inject fuel when prices are low and withdraw it during winter demand peaks. The storage business, long a quiet corner of the energy sector, has gained strategic importance as extreme cold snaps have exposed the fragility of just-in-time supply.

"Storage is insurance, and everybody has decided they want more insurance," an energy consultant said. Operators are upgrading compression and monitoring equipment at several sites.

The activity brings jobs and tax revenue to the counties where the facilities are located, though the industry keeps a relatively low profile.