Citizens Gas Utility District offers unique opportunities to industry seeking competitive natural gas prices through the use of a local natural gas storage facility, the Indian Creek Storage Field in Morgan County. The Indian Creek Storage Field is capable of holding up to 2,200,000 DKT of natural gas and can deliver gas at a daily rate up to 20,000 DKT per day.
The availability of on system storage will reduce the expensive and complicated transportation charges that are associated with purchasing natural gas through the inter-state pipelines. The ability to store natural gas when the price per DKT is at the lowest point can also be a valuable tool in reducing production cost for industrial customers that are dependent on using natural gas in the production process.
In addition to the natural gas storage fields, Citizens Gas Utility District has several sources of natural gas available. Citizens Gas receives its natural gas supply from the East Tennessee Gas Pipeline which is owned by Duke Energy, Delta Natural Gas, Inc. in Kentucky, Columbia Natural Resources from both Tennessee and Kentucky, as well as local gas well production in Scott, Morgan, Fentress, and Anderson Counties in Tennessee including local production from McCreary County, Kentucky.
The low pressure distribution systems of Citizens Gas Utility have a normal operating pressure from 20 psi to 50 psi. Citizens Gas’ 6″ and 8″ steel mains operate from 200 psi to 1,000 psi.
Citizens Gas has 8″ steel, 6″ steel, or 6″ plastic gas mains available to all industrial parks in Scott County and Morgan County Tennessee.
Citizens Gas offers the industrial customers on the CGU system a very flexible pricing plan. Industrial customers may purchase any combination of Firm Gas Supply and or Interruptible Gas Supply. The industrial customer may select their own choice of purchasing natural gas at the Tennessee Louisiana index for the month of deliveries, storing natural gas during the months when the index price is low for delivery during the months when the index price is up, fixed pricing through Citizens Gas using pricing hedges placed at the industrial customers discretion, fixed pricing through Citizens Gas using pricing hedges placed at Citizens Gas’ discretion, or any combination of the above methods.