Underground Natural Gas Storage Market Trends

Global Underground Natural Gas Storage Market Overview:

Underground Natural Gas Storage Market Size was valued at USD 415.29 billion in 2023. The Underground Natural Gas Storage market industry is projected to grow from USD 430.20 Billion in 2024 to USD 550.68 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 3.13% during the forecast period (2024 - 2032). Increasing demand for natural gas storage systems and government assistance has greatly influenced the demand for natural gas, encouraging the natural gas storage industry to bethe key market driver enhancing the market growth.

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Underground Natural Gas Storage Market Trends

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  Increasing demand for natural gas storage systems is driving market growth

  
  

The demand and production of natural gas are rising rapidly, mainly due to its growing applications in power generation and transport industries. Natural gas can be easily stored for an indefinite time. Natural gas is only sometimes needed immediately, so it is stored underground. Moreover, the US Department of Energy (DoE) and industry partners have checked the feasibility of storing chilled natural gas in mined, hard-rock facilities. The concept of chilling gas before storage, if applied to planned or existing bedded salt storage caverns, could significantly increase the storage capacity in the existing volume of natural gas. However, due to the lack of demand in the last few months due to the ongoing pandemic, many countries are facing gas storage problems. This factor drives the market CAGR in the forecast period.

The demand will also be increased by technical developments and growing public knowledge of natural gas's environmental benefits. During the forecast timeframe, factors such as rising natural gas consumption in the industrial, chemical, and transportation sectors, mostly from Asia-Pacific countries, are anticipated to propel the gas storage market. Additionally, as the world works toward a low-carbon economy, the benefits of using fossil fuel as a clean-burning, versatile, and economical fuel are anticipated to lead to an increase in natural gas prices in the future. However, it is anticipated that the demand's seasonality and volatility, along with the mismatch between demand and supply will impede the market's expansion for natural gas storage. The high natural gas production is anticipated to spur oil and gas production and boost the Underground Natural Gas Storage market revenue.

Underground Natural Gas Storage Market Segment Insights:

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  Underground Natural Gas Storage Type Insights

  
  

The Underground Natural Gas Storage market segmentation is based on the type of Depleted Gas Reservoir, Aquifer Reservoir, and Salt Caverns. The depleted gas reservoir segment is expected to have the highest CAGR and dominate the market share during the forecast period. 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 storage facilities, deliverability rates and injection are typically low relative to size. About 50% of the gas must be reserved as cushion gas to maintain pressure in depleted natural gas reservoirs. 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.

September 2021: ENBRIDGE INC. announced that it has entered into a purchase agreement with EnCap Flatrock Midstream to acquire Moda Midstream Operating, LLC. The acquisition will significantly advance the company's US gulf coast export strategy and connectivity to low-cost and long-lived reserves.

September 2021: Uniper SE has announced they will work together as a strategic partnership.

Figure 1: Underground Natural Gas Storage Market, by Type, 2024 & 2032 (USD billion)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

 Underground Natural Gas Storage Regional Insights

By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American underground natural gas storage market will dominate this market due to the increasing exploration and production of natural gas and hydrogen in the Region.

Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: Underground Natural Gas Storage Market Share By Region 2022 (%)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Due to government assistance, Europe's Underground Natural Gas Storage market accounts for the second-largest market share. It has greatly influenced the demand for natural gas, encouraging the natural gas storage industry. Further, the German Underground Natural Gas Storage market held the largest market share, and the UK Underground Natural Gas Storage market was the fastest-growing market in the European Region.

The Asia-Pacific Underground Natural Gas Storage Market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to developing economies in the Region.Moreover, China’s Underground Natural Gas Storage market held the largest market share, and the Indian Underground Natural Gas Storage market was the fastest-growing market in the Asia-Pacific region.

Underground natural gas storage Key Market Players& Competitive Insights

Leading market players are investing heavily in research and development to expand their product lines, which will help the Underground Natural Gas Storage market grow even more. Market participants are also undertaking various strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. The underground natural gas storage industry must offer cost-effective items to expand and survive in a more competitive and rising market climate.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the Underground Natural Gas Storage industry to benefit clients and increase the market sector. The Underground Natural Gas Storage industry has offered some of the most significant environmental advantages in recent years. Major Underground Natural Gas Storage market players, including McDermott (US), NAFTA a. s. (Slovakia), TC Energy Corporation (Aberta), Royal Vopak (Netherlands), Chart Industries (Georgia), Uniper SE (Germany), ENBRIDGE Inc (Canada), and others are attempting to increase market demand by investing in research and development operations.

Enbridge Inc. is a multinational pipeline and energy company headquartered in Calgary, Alberta, Canada. Enbridge owns and operates pipelines throughout Canada and the United States, transporting crude oil, natural gas, and natural gas liquids. ENBRIDGE INC. announced that it has entered into a purchase agreement with EnCap Flatrock Midstream to acquire Moda Midstream Operating, LLC. The acquisition will significantly advance the company's US gulf coast export strategy and connectivity to low-cost and long-lived reserves.

Uniper SE is an energy company based in Düsseldorf, Germany. The company's name is a portmanteau of "unique" and "performance" given by long-term employee Gregor Recke. Uniper was formed by separating E.ON's fossil fuel assets into a separate company that began operating on 1 January 2016. Uniper SE has announced they will work together as a strategic partnership.

Key Companies in the underground natural gas storage market include

• McDermott (US)


• NAFTA a s (Slovakia)


• TC Energy Corporation (Alberta)


• Royal Vopak (Netherlands)


• Chart Industries (Georgia)


• Uniper SE (Germany)


• ENBRIDGE Inc (Canada)

Underground natural gas storage Industry Developments

The TotalEnergies on May 25, 2024 announced a significant investment in expanding its LNG production capabilities in Mozambique. The move is aimed at adding to the company’s LNG portfolio and meeting growing global needs for cleaner energy sources.

In May 2024, Uniper said that it has completed the first phase of a green hydrogen pilot project in the UK. Under this project, Uniper aims to generate green hydrogen by use of renewable energy to fit into Uniper’s aims of sustainable development and green energy goals set by Europe.

In February 2024, Engie signed an important contract with Shenergy Group of China concerning the provision of LNG within the next decade. It gives momentum to Engie in the global market for Liquefied Natural Gas (LNG) thereby supporting its “greening” strategy.

December 2023: Sempra Infrastructure, which is a subsidiary of Sempra Energy, signed long-term LNG supply agreement with provisions for expansion of natural gas storage holdings. This forms part of Sempra’s build-out plan for its expanding US LNG exporting operations.

November 2023: There was a significant improvement in Uniper's financial performance as they reported strong earnings for H1-23 based on increased sales volume from natural-gas markets under positive pricing conditions.

Crisis Protests against Gazprom based on suspicions that proceeds obtained from North Sea activities may be used to sustain Russia’s actions towards Ukraine were intensified during November 2023. Concerns have been raised among stakeholders, such as politicians who are calling on authorities to limit Gazprom’s further involvement so that money could not be employed prolonging the war.

Enbridge Inc. acquired Aitken Creek Natural Gas Storage from FortisBC Holdings in May 2023 to meet the increased demand for West Coast LNG exports.

August 2021: McDermott announced that its subsidiary, CB&I Storage Solutions, completed designing a 40,000 cubic meter liquid hydrogen sphere. The conceptual design for the double-wall liquid hydrogen sphere is approximately eight times larger than the world's largest liquid hydrogen sphere.

December 2020: Royal Vopak and BlackRock's Energy & Power Infrastructure Fund (GEPIF) announced the acquisition of three major industrial terminals from Dow in the US Gulf Coast. Launches a new Commander for the people who play and work hard. This has raised the bar of fun and capability, whether cruising trails, dirt roads, or ranch/farmland with ease. This vehicle is built for longer rides and a wider horizon.

January 2019: NAFTAA.S., through its subsidiary NAFTA Bavaria GmbH, completed the acquisition of underground gas storage facilities Inzenham in Bavaria from DEA Deutsche Erdoel AG and Storengy Deutschland GmbH. This acquisition helped it to expand its business footprint.

Underground Natural Gas Storage Market Segmentation:

Underground natural gas storage Type Outlook

• Depleted Gas Reservoir


• Aquifer Reservoir


• Salt Caverns

Underground natural gas storage Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America