Natural Gas Storage Market

Natural Gas Storage Market: By Type and Region

Market Synopsis:

Global Natural Gas Storage Market is projected to grow at a CAGR of 4.8% during the forecast period, 2022–2028. Natural Gas Storage offers a range of benefits to energy utilities and natural gas consumers. As the natural gas market has become increasingly deregulated over the past few decades, Natural Gas Storage has evolved into an important component of natural gas supply and demand management. There are several types of Natural Gas Storage operating across North America: depleted natural gas wells, aquifers, salt caverns, and underground natural bodies like coal beds. For example, the Southern Star Central Gas Pipeline (SSCGP) in Texas operates three Natural Gas Storage facilities with almost 50 Bcf of working natural gas capacity; SSCGP operates depleted oil and natural gas wells through which natural gas can be injected during low demand periods and drawn from during high demand periods.

Growing Reliance on Natural Gas an Energy Source to Drive Demand for Natural Gas Storage Market

The natural gas market is changing more than ever and the Natural Gas Storage industry is changing too. Demand for Natural Gas Storage has risen as natural gas production has increased and the natural gas industry has become more globalized. Other factors also affect storage demand, including processing of natural gas liquids (NGLs) to help meet rising demand for petrochemical feedstocks; rising reliance on natural gas for electricity generation; energy efficiency efforts that reduce electricity use or shift it from off-peak hours to on-peak hours; reduced plant utilizations that constrain output during certain hours, forcing companies to store the excess output until needed; changes in pipeline connections with adjacent facilities that can allow shortfalls at one location to be made up by drawing down another adjacent facility; and other factors.

Market Segmentation:

Global Natural Gas Storage Market is segmented by type and region. The type segment is further categorized into underground, above ground, and floating. Wherein, the underground segment is holding the dominance due to widescale adoption of the underground storage of natural gas for various end-use, especially for power generation. On the other hand, North America is holding the prominent share of the market and is projected to continue leading the Global Natural Gas Storage Market.

By Storage Type, Underground Segment to Dominate the Natural Gas Storage Market

Natural Gas Storage is defined as natural gas stored within the natural underground reservoir over time, which could be used at a later stage. Natural gas is stored in an isolated underground natural reservoir for future use instead of selling it immediately to customers. The extent to which natural gas accumulates in the form of Natural Gas Storage depends on the price of natural gas that varies with supply and demand. The existing findings found that natural gas prices are increasing due to growing global natural gas consumption combined with increased production costs, mainly due to natural gas shortage.

The underground gas storage segment is expected to dominate the Natural Gas Storage Market during the forecast period. North America and Europe are expected to show high growth rates in terms of investment development and infrastructure developments, because economic conditions in these regions allow companies to achieve maximum ROI with minimal investments, growing NGLs activities throughout the value chain, increased demand for natural gas as a cleaner burning fuel source leading large number of new LNG import/export terminals being built or expanded and growing petrochemical industry that needs feedstock such as ethane and propane.

North America to Dominate Natural Gas Storage Market

The Natural Gas Storage industry in North America is growing at a rapid pace. The use of natural gas in the region, especially in the US has changed significantly over the last few years, impacting the Natural Gas Storage Market in terms of demand for natural storage. As per our analysis, the US is dominating the regional market by holding more than 80% share of the regional market due to the increased natural gas production due to shell gas discovery and growing demand from various industries such as manufacturing, power generation and transportation.

The Natural Gas Storage Market in North America is growing at a rapid pace due to its increasing use as natural storage and various other factors such as natural gas production, expanding natural gas distribution network and government regulations. According to IEA (International Energy Agency), the total natural gas consumption will grow from 24 billion cubic meters per day in 2010 to 29 billion cubic meters per day by 2015 and 37 billion cubic meters per day by 2035. To meet this demand, North America has more than 150 Natural Gas Storage facilities with more than 160 Bcf of working capacity. US is one of the biggest importers of natural gas accounting for around 40% share in global trade and holds one-third of the total world recoverable natural gas reserves. In addition, natural gas accounts for a significant share of the US electricity generation accounting to more than 38% in 2019. This is forecasted to reach 40% by 2025. Also, with increasing natural gas production from shale gas and growing demand from various industries such as manufacturing, power generation and transportation, natural storage market would see an exponential growth in North America region.

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Key Players:

Some of the key vendors in the Global Natural Gas Storage Market are Worley Parsons (Australia).

Natural Gas Storage Market is segmented as folllows:

Natural Gas Storage Market is tabulated as folllows: