Quote from texrex2002:
Found this this morning, not sure if you guys can see it. Yield Curve: Prices Respond to Storage Changes.
Papa Roach: my company has some storage in Ohio, and we do exactly as you said: Well in advance of injection season we'll buy April - October and simultaneously sell November - March to lock in a spread (but we do it with swaps, not futures). As these swaps settle financially we have exactly the right amount on $ to inject (for buying spot gas to flow into storage) and on the withdrawal side we immediately sell the gas to meet our finacial swap obligations.
Not much different than renting a supertanker to park oil in a contango market.
We're somewhat restrained by "ratchets" that dictate how much gas we need to have in storage by certain times, so it's not fully de-regulated, but it's still a nice little cash machine.