ABSTRACT As gas storage becomes increasingly important in managing the nation’s gas supplies, there is a need to develop more gas storage reservoirs and to manage them more efficiently. Using computer reservoir simulation to predict gas storage reservoir performance, we present specific procedures for optimization of gas storage reservoir performance for two different problems. The first is maximizing working gas volume and peak rales for a particular configuration of reservoir, well and surface facilities. We present a simple procedure to determine the maximum performance with a minimal number of simulation runs. The second problem is minimizing the cost to satisfy a specific production and injection schedule, which is derived from the working gas volume and peak rate requirements. We demonstrate a procedure to determine the optimum combination of cushion gas volume, compression horsepower and number and locations of wells. The use of these procedures is illustrated through application to gas reservoir data.