Natural gas producer Sempra Energy (NYSE: SRE) said today that a subsidiary has added 7.5 billion cubic feet of natural gas storage capacity at the company’s hub in Simpson County, Mississippi. The addition doubles the facility’s capacity and the company plans to add another 7.5 billion cubic feet of storage at the site next year.
As the U.S. Energy Information Administration’s weekly natural gas storage report has been showing for months, current gas storage facilities in the U.S. are running at near-capacity. Sempra noted that demand for gas storage is only going to grow:
As more natural gas supply comes online and liquefaction terminals move forward, customer demand for additional underground storage at strategic pipeline hubs like Mississippi Hub Storage will continue to grow.
There’s really no arguing with that. The interesting point is that Sempra assumes that U.S. regulators will approve more natural gas liquefaction facilities that will, in turn, require more storage to keep the plants fed. This is very likely a reasonable assumption, but it’s no slam dunk.
Sempra’s shares are down about 1.2% today at $66.96 in a 52-week range of $48.38-$72.32. The growing stocks of natural gas and today’s price decline are likely responsible for the share price drop.
Paul Ausick
Are You Still Paying With a Debit Card?
The average American spends $17,274 on debit cards a year, and it’s a HUGE mistake. First, debit cards don’t have the same fraud protections as credit cards. Once your money is gone, it’s gone. But more importantly you can actually get something back from this spending every time you swipe.
Issuers are handing out wild bonuses right now. With some you can earn up to 5% back on every purchase. That’s like getting a 5% discount on everything you buy!
Our top pick is kind of hard to imagine. Not only does it pay up to 5% back, it also includes a $200 cash back reward in the first six months, a 0% intro APR, and…. $0 annual fee. It’s quite literally free money for any one that uses a card regularly. Click here to learn more!
Flywheel Publishing has partnered with CardRatings to provide coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.