Underground Natural Gas Storage Market is predicted to reach USD 597.603 bcm at a CAGR of 3.59% during the forecast period

Pune, India, Sep 2022, MRFR Press Release/Market Research Future has published a Cooked Research Report on the Global P Underground Natural Gas Storage Market.

The demand for underground natural gas storage is growing significantly in the global market, primarily due to increasing demand for natural gas storage systems. The global underground natural gas storage market is projected to grow at 3.59% CAGR during the forecast period, 2022–2030.The global underground natural gas storage market has been segmented based on type and region. Based on type, the global underground natural gas storage market has been segmented into depleted gas reservoirs, aquifer reservoirs, and salt caverns. The depleted gas reservoir segment is expected to grow at the fastest rate during the forecast period. In 2020, the depleted gas reservoir segment held a share of 79.4% of the global underground natural gas storage market.  

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Underground Natural Gas Storage

Market Synopsis

According to the MRFR analysis, the global underground natural gas storage market size is projected to reach 597.603 Bcm by 2030 at a CAGR of 3.59%.

Natural gas storage facilities are primarily used to meet seasonal demand. The gas is stored during periods of low demand and withdrawn from storage during peak/high demand periods. Natural gas is stored underground in large storage reservoirs. The three types of underground natural gas storage facilities are depleted gas reservoirs, aquifer reservoirs, and salt caverns. The COVID-19 outbreak has had detrimental effects on the global economy as many industries have been affected by the current circumstances, and operations of various sectors have come to a standstill. In the oil & gas industry, companies are dealing with several challenges due to a decline in prices amid the COVID-19 outbreak.

Underground Natural Gas Storage Market Competitive Landscape

The global underground natural gas storage market consists of various global and regional service providers who are continuously evolving to enhance their market position. Economic growth, urbanization, and low-carbon development are the key factors that are contributing to the market growth. However, high storage costs are expected to limit the growth of the market during the forecast period. The underground natural gas storage companies compete based on technology, efficiency, and reliability of services to sustain in the market. It is vital for underground natural gas storage manufacturers to provide solutions according to the need of the industry and customers’ needs and advanced technology to maintain their market position and gain a competitive advantage. Vendors in the underground natural gas storage market are focusing on improving their technologies and upgrading solutions and expanding into the developing economies.

McDermott, NAFTA a. s, TC Energy Corporation, Royal Vopak, Chart Industries, Uniper SE, ENBRIDGE Inc are the major players in the market.

Underground Natural Gas Storage Market Segmentation:

Based on Type:

• Depleted Gas Reservoir: Depleted fields are generally used for seasonal storage instead of peak shaving storage. Depleted reservoirs are among the oldest and most popular forms of natural gas storage. While the working natural gas storage capacity of depleted fields tends to be larger than that of other types of storage facilities, deliverability rates, and injection are typically low relative to size. To maintain pressure in depleted natural gas reservoirs, about 50% of the gas must be reserved as cushion gas. Gas storage is mainly used to meet the seasonal energy demand; it is stored during low demand and withdrawn from storage during peak/high demand periods.


• Aquifer Reservoir: Aquifer reservoirs are natural water reservoirs formed from an underground layer of water-bearing permeable rock and rock fractures. Because geological categorization is required before storage, this is the least desirable and most expensive type of natural gas storage facility. Gas reservoirs have a high recovery rate and are less affected by permeability uncertainty. However, an aquifer has a significant impact on the recovery of gas reserves, and an aquifer has a high level of unpredictability. Aquifers are generally found at discovery pressure gradients close to hydrostatic pressure 8 to 12 kPa/m (kilopascal per meter).


• Salt Caverns: Existing salt resources are used to create a salt cavern. They are useful for gas storage because their walls have steel structural strength, making the caverns resistant to reservoir degradation over the storage facility's lifetime. Salt caverns are the most effective means of ensuring hydrogen purity and hermetic storage. Salt caverns have several applications, such as fuel cells and pure hydrogen storage. When measured in dollars per thousand cubic feet of working gas capacity, cavern construction is more expensive than depleted field conversions.

Based on region:

• North America: North America covers the US, Canada, and Mexico. This region is anticipated to be the largest contributor of natural gas storage for underground storage facilities to the underground natural gas storage market. The key factor driving the regional market's growth is the demand for oil & gas storage is the urgent need for storage space for strategic petroleum reservoirs of the underground natural gas storage market in this region. Furthermore, favourable government regulations for low carbon content fuels compared to other fossil fuels are also expected to contribute to the rise in demand for natural gas. In addition, technological advancements and increasing awareness regarding natural gas being a clean fuel will increase the market demand.


• Europe: Europe region covers the UK, Germany, France, Italy, and the Rest of Europe. The underground natural gas storage market in this region is expected to register a high growth rate as the dependence of European countries on natural gas is increasing and the requirement for natural gas storage infrastructure is rising to ensure the availability of power, irrespective of the season. As of 2018, Europe had 113 billion cubic meters of underground storage capacity, and therefore the total storage capacity accounts for nearly 21% of the annual gas consumption in Europe. In the coming years, gas storage is likely to be a backup service for electricity generation, boosting the regional market's growth.


• Asia-Pacific: Asia-Pacific comprises China, Japan, Australia, and the Rest of Asia-Pacific. Storage facilities are essential for the continuous supply required to provide rising energy demand. Rapid industrialization and increasing urbanization in emerging economies of Asia-Pacific are projected to drive the regional market's growth significantly over the forecast period. The rising demand for natural gas has led to the increased exploration of natural gas fields, which has led to an increase in underground storage facilities. The countries such as China, India, Japan, South Korea, and Australia are the largest contributors in the global underground natural gas storage markets.


• Rest of the world comprises CIS, Middle East, and Central & South America. The Middle East & Africa covers Saudi Arabia, the UAE, South Africa, and the Rest of the Middle East & Africa. The regional market is expected to witness significant growth during the forecast period. The Middle East & Africa is expected to hold a substantial market share due to high investments, high usage of underground storage, and government initiatives. In addition, power generation and transport industries in the region are increasing the demand for underground natural gas storage. Most of the producing gas wells in Saudi Arabia are in the eastern part of the country, including the offshore fields in the Arabian Gulf. The underground natural gas storage market in Saudi Arabia is expected to fuel owing to the rise in investments in underground storage systems.