To meet the growing energy demands in the Rockies and Western U.S., Spire Storage is proceeding with the expansion of its facilities in Wyoming, with partial availability of additional natural gas storage capacity in fiscal 2024 and more in 2025.
"We've seen an increasing recognition of the value of natural gas storage over the last few years given the impact on energy security caused by Winter Storm Uri in 2021 and recent global events. Natural gas plays a key role in ensuring that security for the future," said Scott Smith, president of Spire Storage. "Natural gas storage also helps to support and balance seasonal gas heating demand and the intermittent nature of renewable power generation, which is an increasingly important generation source in the Western U.S."
Consistent with the Federal Energy Regulatory Commission (FERC) 7(c) project approval and FERC's issuance of a Notice to Proceed, Spire Storage started limited construction of the initial project phase in mid-August. Full project completion is expected to take place over the next two years during construction seasons that run April through October in Wyoming.
The expansion project will increase Spire Storage underground working gas storage capacity from 23 Bcf to 39 Bcf, and involves the addition of injection and withdrawal wells, compression, pipeline infrastructure, and gas processing capability. Capital expenditures for the project are expected to total $195 million.
With this expansion, Spire Storage will be in a stronger position to serve Western U.S. markets, given its interconnects with five pipelines serving California, the Rockies, and the Southwest and Northwest. The project is anticipated to deliver expanded services to existing and new customers, as well as a strong return on investment. We anticipate earnings per share accretion beginning in fiscal 2025.
