Global Natural Gas Storage Market - Growth, Trends, and Forecast (2018 - 2023)
Gas storage ensures availability during times of peak demand and stores the surplus that is produced when demand is low. Several economies in the world, like China, India, the United States, France, Germany, and others, are planning to increase the share of natural gas in their energy mix and driving the demand for gas storage facilities. Texas is home to numerous depleted oil & gas stores, while in Europe, the 43 bcm Severo-Stavropolskoye UGS facility in southern Russia and the UK’s offshore 130 bcm Rough field stand out. Further, the global LNG trade is expected to increase by 90-100 million metric ton between 2016 and 2020, driving the demand for onshore LNG storage facility.
Underground Storage expected to have the Largest Share in the Market
Underground storage system accounts for the largest share among gas storage facilities. Depleted fields are known to petroleum engineers and geologists and require only modification of existing extraction and distribution infrastructure. In the United States and Europe, depleted oil & gas field account for the largest share in the storage facility, and several storage facilities are expected to come during the forecast period in Europe. Mexico lacks natural gas storage facility and policy for the same is expected to be drafted by the end of 2018. Underground storage is most favorable option of Mexico. As a result, the underground storage system is expected to account for the largest share in the coming years.
Europe to be one of the Largest Market
The dependency of European countries on natural gas is increasing, and demand for natural gas storage infrastructure is increasing for securing the availability, irrespective of season. Ukraine has the largest natural gas storage facilities in the region. Germany, France, and Italy can store up to one-third of their annual natural gas demand. Depleted fields accounts for around 70% of the regions storage facility. Several underground gas storage facilities are under construction or planned in Italy, Turkey, Germany, the United Kingdom, Bulgaria, and others.
China to be one of the Fastest Growing Market
China has 25 natural gas storage facilities with a total capacity of more than 10 billion cubic meters. The country is one of the top oil & gas producer. CNPC is planning to build storage facilities in the country with total capacity of 21 billion cubic meters and is expected to cost USD 3.3 billion. Further, it overtook South Korea and became the world’s second-largest LNG importer in 2017. The demand for LNG in China is expected to grow by 78% during the forecast period, as the country plans to phase out coal-based fired power plants and use natural gas for power generation. As a result, the demand for onshore LNG storage is poised to grow.
Key Developments in the Market