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
The Average American Has No Idea How Much Money You Can Make Today (Sponsor)
The last few years made people forget how much banks and CD’s can pay. Meanwhile, interest rates have spiked and many can afford to pay you much more, but most are keeping yields low and hoping you won’t notice.
But there is good news. To win qualified customers, some accounts are paying almost 10x the national average! That’s an incredible way to keep your money safe and earn more at the same time. Our top pick for high yield savings accounts includes other benefits as well. You can earn up to 3.80% with a Checking & Savings Account today Sign up and get up to $300 with direct deposit. No account fees. FDIC Insured.
Click here to see how much more you could be earning on your savings today. It takes just a few minutes to open an account to make your money work for you.
Our top pick for high yield savings accounts includes other benefits as well. You can earn up to 4.00% with a Checking & Savings Account from Sofi. Sign up and get up to $300 with direct deposit. No account fees. FDIC Insured.
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.