ALBUQUERQUE, N.M. (KRQE) – Natural gas customers could see more stable prices and supply if a new storage facility is built in Rio Rancho, but customers might also see a rate boost from the construction. Either way, the changes wouldn’t be felt for a few years.
Friday, the New Mexico Gas Company [NMGC] filed an application with the state’s Public Regulation Commission hoping to authorize construction for a new liquefied natural gas storage facility. If approved, the facility would have a 1 billion cubic foot storage tank, according to the gas company.
“It will help ensure reliable gas supply for NMGC customers and also reduce customer exposure to gas price volatility,” the company said in a press release. The proposal comes in response to an order requiring the company to consider ways to improve gas supply in New Mexico after high gas prices during the winter of 2021.
The proposed facility would take up about 25 acres of a 160-acre property near Double Eagle II airport. The company plans on getting the facility operational by 2026, pending approval.
The New Mexico Gas Company says that the proposal won’t immediately lead to a rate increase for customers, because the company won’t seek to recover costs until the facility starts operating. But, portions of the estimated $180 million cost for the facility will eventually fall on customers.