Natural Gas Storage Update

May 2024

Across the country, most large natural gas distribution companies have access to storage as part of a strategy to provide reliable service. New Mexico Gas Company leases gas storage capacity in underground salt caverns from a third party in West Texas.

While most of the natural gas we purchase on behalf of our customers comes from the San Juan and Permian basins here in New Mexico, we also use storage to ensure that customers have gas when the weather turns cold or if we encounter a supply disruption.

We regularly evaluate our use of storage, as well as how storage supports and impacts our gas supply strategy.

In March 2024, we did not receive approval from the New Mexico Public Regulation  Commission for a proposed liquefied natural gas storage facility. Assessment of storage in light of that decision is ongoing. Check back here for updates on our efforts.