The underground natural gas storage market is expected to grow at a CAGR of 3.59% from 2023 to 2032, reaching a market value of $ 550.67 billion by 2032. The market growth is attributed to the increasing demand for natural gas and the need to ensure a reliable supply of the fuel.
Underground natural gas storage facilities are used to store natural gas during periods of low demand and withdraw it during periods of high demand. This helps to balance the supply and demand of natural gas, and it also helps to reduce price volatility.
Strong gas infrastructure helps increase LNG and underground gas storage capacity. Extensive natural gas infrastructures support domestic as well as national energy security.
Governments reform standards for responsible energy development, focusing on environmental, social, and governance (ESG). Well-developed certification standards aim to bring transparency to an opaque market and drive demand for certified natural gas.
Improved standards also help operators differentiate themselves through overall energy production. The price volatility and the acute shortages of natural gas encourage governments to increase natural gas storage facilities.
Major Players
· McDermott (US)
· NAFTA a s (Slovakia)
· TC Energy Corporation (Alberta)
· Royal Vopak (Netherlands)
· Chart Industries (Georgia)
· Uniper SE (Germany)
· ENBRIDGE Inc (Canada)
Global Underground Natural Gas Storage Market – Segmentations
The market is segmented into type and region. The type segment comprises depleted gas reservoirs, aquifer reservoirs, and salt caverns. The region segment comprises the Asia-Pacific, Americas, MEA, Europe, and rest-of-the-world.
Global Underground Natural Gas Storage Market – Geographical Analysis
North America is the largest market for underground natural gas storage. The continually increasing natural gas production, mainly in the US, has been increasing the market demand. Besides, the rising demand for natural gas storage from the oil & gas industry across the region drives the market growth. The rising need for strategically developed depleted gas and aquifer reservoir storage spaces fosters market revenues in this region.
Moreover, the large petroleum industry in this region substantiates market revenues. Favorable government regulations to reduce fossil fuel use and initiatives to promote low-carbon fuels contribute to the rise in demand for natural gas and its storage facilities. Large technological upgrades and the vast awareness of natural gas benefits in developing clean fuel increase the market demand.
The underground natural gas storage market is brisk in Europe. The presence of well-established industry players and automotive sectors in the region escalates the market value, creating a vast demand for natural gas. Additionally, vast industrialization and rising LNG production capacities in various end-use industries such as chemicals, metals, food & beverages, and healthcare & construction substantiate market revenues.
Global Underground Natural Gas Storage Market – Competitive Analysis
Fiercely competitive, the Underground gas reservoirs market appears fragmented, with various notable players forming a competitive landscape. These players increasingly focus on product development and incorporate strategic approaches, such as collaboration, mergers & acquisitions, expansion, and product launches, to gain a larger competitive share.
Leading market players develop innovative solutions to boost natural gas storage capacity. They also take projects to provide a wider opportunity to diversify LNG supply options and strengthen energy security. Such developments will be crucial in responding to concerns over supply, price, and climate impacts, as well as expanding natural gas consumption.
Industry/ Innovation/ Related News
Nov 10, 2022 --- Enbridge Gas Inc. (Canada), a leading natural gas storage, transmission, and distribution company, announced a partnership with EQT Corporation (EQT), a leading natural gas producer in the US, to bring responsibly sourced gas (RSG) to its facility. Enbridge Gas will purchase around 15 petajoules (PJ) of RSG from EQT from November 2022 to October 2023 and deliver and blend it into its distribution system.
Enbridge Gas aims for a sustainable energy future and is committed to meeting strict industry-wide criteria for quality. The addition of RSG would help escalate the current standards to ensure sustainability across the value chain as well as minimize environmental and community impacts.
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