Why Should I Care about AGL’s LNG?
Atlanta Gas Light (AGL) is one of the largest companies providing cheap natural gas in this part of the country – so AGL’s new LNG energy facility could be big news for its customers. But wait, what’s LNG? Why does it help our provider AGL? And what does that mean for the ME? Let’s take a closer look at this new power development. And then we’ll see why it’s good news for AGL customers…
What’s LNG, and What’s AGL Doing With It?
First thing’s first! Liquified natural gas, or LNG, is the form natural gas takes when it hits around -260°F. It’s about 1/600th the volume of its gaseous counterpart. This makes it easier to transport when pipelines aren’t available – and far easier to store.
At AGL’s LNG facility in Cherokee County, GA, the company have broken ground on a project that’ll add a whole new LNG storage tank. Why is this important? Well, gas prices can fluctuate – dramatically. Heck, sometimes the gas supply can shut off altogether. But greater storage capacity means providers can better shield their customers in case of a shut-off. Plus, these reserves can be built up by purchasing natural gas when prices are low, and passed onto customers at a lower price. So more storage means more energy security for customers, and a good chance of locking in rates that are market-competitive.
The new tank at the Cherokee Country facility will double AGL’s storage capacity once it’s completed in three years’ time. Now, this doesn’t mean you’ll be seeing half-price natural gas rates. What it will do, however, is wedge a buffer between AGL customers and the vicissitudes of the natural gas market. Here’s why.
What AGL’s LNG Facility Means for You
Georgia is one of the highest consumers of natural gas in the States. But the state has to import 100% of what it uses. This dependency and high consumption makes Georgia vulnerable to whims of the natural gas market – and boy is it getting whimsical these days. The US was originally shielded from much of the European gas market skyrocketing of recent months, but with pressure piling on from Gazprom’s pipeline closures and various existing market issues, now US prices are climbing too.
One plucky new LNG tank in Cherokee isn’t gonna hold back the rising tide. But it will mean AGL has more wiggle room when it comes to how they can navigate spikes and droughts. Some providers’ rates lifted substantially just last month, reflecting a substantial hike in the market. If a provider has more cheap gas in storage, like AGL will do in future, customers will still be bit by this – but (possibly) not quite so hard.
Good News for Future AGL Gas Customers!
So in summary, the boost in AGL LNG facility storage means the provider will, in future, be able to lock in cheaper gas for longer. This means AGL customers have a better chance of weathering the various gas rate storms. So, how does AGL’s LNG help its customers? In future – quite a lot, but you can help yourself now by locking in a cheap summer natural gas rate at www.georgiagassavings.com!