The global natural gas storage market was estimated at USD 497.8 BCM in 2021 and it is expected to surpass around USD 668.4 BCM by 2030, poised to grow at a CAGR of 3.33% from 2022 to 2030.
Report Highlights
Increasing natural gas usage over coal in industries owing to low cost and environmental benefits coupled with favorable government regulation is expected to drive the market growth during the forecast period.
Natural gas consumption is highest during the wintertime and lowest during mild-weather months in North America and Europe, in particular, thus there are significant variations in seasonal demand, which also drives the market. Storage facilities are vital for continuous supply required to cater to rising energy demand.
Demand for underground storage of natural gas is anticipated to register the fastest CAGR over the forecast period owing to energy security concerns with rising production. Storage providers are focusing on storing the gas with long-term contract. Numerous market players are engaged in the ownership of storage facilities, including pipeline operators, utilities, and storage owners, which offers investors the potential for profit.
Critical transmission capacity coupled with high installation price restraints are estimated to hinder the growth for the industry over the next seven years. However, ample supply of gas coupled with enhanced recovery technologies is projected to deliver several profitable opportunities to storage providers.
Scope of The Report
Report Coverage | Details |
Market Size in 2021 | USD 497.8 BCM |
Revenue Forecast by 2030 | USD 668.4 BCM |
Growth rate from 2022 to 2030 | CAGR of 3.33% |
Base Year | 2021 |
Forecast Period | 2022 to 2030 |
Segmentation | Type, underground storage type, region |
Companies Covered |
McDermott International, Inc.; NAFTA A.S.; TransCanada Corp.; Royal Vopak N.V.; Chart Industries; Uniper; Enbridge, Inc.; Gazprom; Martin Midstream Partners L.P. |
Type Insights
Underground storage type accounted for the largest market share of 93% in 2021. Like most of the other commodities, natural gas can also be stored for a long period of time. As exploration and production of natural gas usually take time. Also, the natural gas that reaches its destination is not always used immediately, so it is stored in storage facilities, most likely in underground facilities.
Underground natural gas storages have become an essential aspect of energy supply in seasonal demand, particularly for European and North American nations. A continuous and steady production stands in contrast to a volatile consumption and demand, which follows a seasonal cycle depended on the pattern. The rate of consumption has been recorded to continuously rise owing to high demand for underground natural gas in the global market.
Natural gas is also stored in aboveground storage tanks either in liquid or in gaseous forms. The aboveground storage facilities are built in places that do not have underground caverns. The aboveground storage tanks allow easy access to the storage facilities and can be installed at a relatively low cost. Apart from stationary aboveground storage tanks, natural gas is also stored temporarily in transportable tanks that are loaded onto trains or barges for long-distance transportation. The aboveground segment accounted for the second-largest market share in 2021 and is anticipated to register a decent CAGR during the forecast period.
Underground Storage Type Insights
Depleted reservoir segment accounted for the largest market share of 79.43% in 2021 for underground storage type. Depleted reservoirs are one of the oldest and prominent forms of gas storage. Depleted reservoirs are formations, which have already been tapped of all their recoverable natural gas. To maintain pressure in depleted reservoirs, about 50% of the natural gas in the formation must be kept as cushion gas. These reservoirs are primarily been used for gas storage as they have existing infrastructure for gas storage. They provide moderate delivery of gas with a long gas cycle ranging from 70 to 200 days.
Salt cavern is expected to register the highest CAGR during the forecast period. Salt cavern is formed from existing salt deposits. They are suitable for gas storage owing to walls possessing the structural strength of steel, making the caverns resilient against reservoir degradation over the life of the storage facility.
Aquifer is natural water reservoirs, formed from underground porous and permeable rock formation. These are the least desirable and most expensive type of natural gas storage facilities owing to geological characterization needed prior to storage. Aquifers are generally found at discovery pressure gradients of close to hydrostatic pressure (8 to 12 kPa/m).
Regional Insights
North America accounted for the major market share of over 45% in 2021. It is anticipated to retain its leading position owing to increasing exploration and production activities in the region coupled with rising seasonal demand for natural gas. Asia Pacific is expected to register the fastest CAGR from 2020 to 2027 owing to increasing demand from end-use industries.
China and India are among the largest markets in this region owing to rapidly expanding end-use applications in these countries. Many economies with less indigenous natural gas production employ natural gas storages to meet the demands. Such countries include Korea, Taipei, Indonesia, and Malaysia. All these factors are expected to propel the market growth in the Asia Pacific region.
Key Players
Market Segmentation
Chapter 1. Introduction
1.1. Research Objective
1.2. Scope of the Study
1.3. Definition
Chapter 2. Research Methodology
2.1. Research Approach
2.2. Data Sources
2.3. Assumptions & Limitations
Chapter 3. Executive Summary
3.1. Market Snapshot
Chapter 4. Market Variables and Scope
4.1. Introduction
4.2. Market Classification and Scope
4.3. Industry Value Chain Analysis
4.3.1. Raw Material Procurement Analysis
4.3.2. Sales and Distribution Channel Analysis
4.3.3. Downstream Buyer Analysis
Chapter 5. COVID 19 Impact on Natural Gas Storage Market
5.1. COVID-19 Landscape: Natural Gas Storage Industry Impact
5.2. COVID 19 - Impact Assessment for the Industry
5.3. COVID 19 Impact: Global Major Government Policy
5.4. Market Trends and Opportunities in the COVID-19 Landscape
Chapter 6. Market Dynamics Analysis and Trends
6.1. Market Dynamics
6.1.1. Market Drivers
6.1.2. Market Restraints
6.1.3. Market Opportunities
6.2. Porter’s Five Forces Analysis
6.2.1. Bargaining power of suppliers
6.2.2. Bargaining power of buyers
6.2.3. Threat of substitute
6.2.4. Threat of new entrants
6.2.5. Degree of competition
Chapter 7. Competitive Landscape
7.1.1. Company Market Share/Positioning Analysis
7.1.2. Key Strategies Adopted by Players
7.1.3. Vendor Landscape
7.1.3.1. List of Suppliers
7.1.3.2. List of Buyers
Chapter 8. Global Natural Gas Storage Market, By Type
8.1. Natural Gas Storage Market, by Type, 2022-2030
8.1.1. Underground
8.1.1.1. Market Revenue and Forecast (2017-2030)
8.1.2. Aboveground
8.1.2.1. Market Revenue and Forecast (2017-2030)
Chapter 9. Global Natural Gas Storage Market, By Underground Storage Type
9.1. Natural Gas Storage Market, by Underground Storage Type, 2022-2030
9.1.1. Depleted Gas Reservoir
9.1.1.1. Market Revenue and Forecast (2017-2030)
9.1.2. Aquifer Reservoir
9.1.2.1. Market Revenue and Forecast (2017-2030)
9.1.3. Salt Caverns
9.1.3.1. Market Revenue and Forecast (2017-2030)
Chapter 10. Global Natural Gas Storage Market, Regional Estimates and Trend Forecast
10.1. North America
10.1.1. Market Revenue and Forecast, by Type (2017-2030)
10.1.2. Market Revenue and Forecast, by Underground Storage Type (2017-2030)
10.1.3. U.S.
10.1.3.1. Market Revenue and Forecast, by Type (2017-2030)
10.1.3.2. Market Revenue and Forecast, by Underground Storage Type (2017-2030)
10.1.4. Rest of North America
10.1.4.1. Market Revenue and Forecast, by Type (2017-2030)
10.1.4.2. Market Revenue and Forecast, by Underground Storage Type (2017-2030)
10.2. Europe
10.2.1. Market Revenue and Forecast, by Type (2017-2030)
10.2.2. Market Revenue and Forecast, by Underground Storage Type (2017-2030)
10.2.3. UK
10.2.3.1. Market Revenue and Forecast, by Type (2017-2030)
10.2.3.2. Market Revenue and Forecast, by Underground Storage Type (2017-2030)
10.2.4. Germany
10.2.4.1. Market Revenue and Forecast, by Type (2017-2030)
10.2.4.2. Market Revenue and Forecast, by Underground Storage Type (2017-2030)
10.2.5. France
10.2.5.1. Market Revenue and Forecast, by Type (2017-2030)
10.2.5.2. Market Revenue and Forecast, by Underground Storage Type (2017-2030)
10.2.6. Rest of Europe
10.2.6.1. Market Revenue and Forecast, by Type (2017-2030)
10.2.6.2. Market Revenue and Forecast, by Underground Storage Type (2017-2030)
10.3. APAC
10.3.1. Market Revenue and Forecast, by Type (2017-2030)
10.3.2. Market Revenue and Forecast, by Underground Storage Type (2017-2030)
10.3.3. India
10.3.3.1. Market Revenue and Forecast, by Type (2017-2030)
10.3.3.2. Market Revenue and Forecast, by Underground Storage Type (2017-2030)
10.3.4. China
10.3.4.1. Market Revenue and Forecast, by Type (2017-2030)
10.3.4.2. Market Revenue and Forecast, by Underground Storage Type (2017-2030)
10.3.5. Japan
10.3.5.1. Market Revenue and Forecast, by Type (2017-2030)
10.3.5.2. Market Revenue and Forecast, by Underground Storage Type (2017-2030)
10.3.6. Rest of APAC
10.3.6.1. Market Revenue and Forecast, by Type (2017-2030)
10.3.6.2. Market Revenue and Forecast, by Underground Storage Type (2017-2030)
10.4. MEA
10.4.1. Market Revenue and Forecast, by Type (2017-2030)
10.4.2. Market Revenue and Forecast, by Underground Storage Type (2017-2030)
10.4.3. GCC
10.4.3.1. Market Revenue and Forecast, by Type (2017-2030)
10.4.3.2. Market Revenue and Forecast, by Underground Storage Type (2017-2030)
10.4.4. North Africa
10.4.4.1. Market Revenue and Forecast, by Type (2017-2030)
10.4.4.2. Market Revenue and Forecast, by Underground Storage Type (2017-2030)
10.4.5. South Africa
10.4.5.1. Market Revenue and Forecast, by Type (2017-2030)
10.4.5.2. Market Revenue and Forecast, by Underground Storage Type (2017-2030)
10.4.6. Rest of MEA
10.4.6.1. Market Revenue and Forecast, by Type (2017-2030)
10.4.6.2. Market Revenue and Forecast, by Underground Storage Type (2017-2030)
10.5. Latin America
10.5.1. Market Revenue and Forecast, by Type (2017-2030)
10.5.2. Market Revenue and Forecast, by Underground Storage Type (2017-2030)
10.5.3. Brazil
10.5.3.1. Market Revenue and Forecast, by Type (2017-2030)
10.5.3.2. Market Revenue and Forecast, by Underground Storage Type (2017-2030)
10.5.4. Rest of LATAM
10.5.4.1. Market Revenue and Forecast, by Type (2017-2030)
10.5.4.2. Market Revenue and Forecast, by Underground Storage Type (2017-2030)
Chapter 11. Company Profiles
11.1. McDermott International, Inc.
11.1.1. Company Overview
11.1.2. Product Offerings
11.1.3. Financial Performance
11.1.4. Recent Initiatives
11.2. NAFTA A.S.
11.2.1. Company Overview
11.2.2. Product Offerings
11.2.3. Financial Performance
11.2.4. Recent Initiatives
11.3. TransCanada Corp.
11.3.1. Company Overview
11.3.2. Product Offerings
11.3.3. Financial Performance
11.3.4. Recent Initiatives
11.4. Royal Vopak N.V.
11.4.1. Company Overview
11.4.2. Product Offerings
11.4.3. Financial Performance
11.4.4. LTE Scientific
11.5. Chart Industries
11.5.1. Company Overview
11.5.2. Product Offerings
11.5.3. Financial Performance
11.5.4. Recent Initiatives
11.6. Uniper
11.6.1. Company Overview
11.6.2. Product Offerings
11.6.3. Financial Performance
11.6.4. Recent Initiatives
11.7. Enbridge, Inc.
11.7.1. Company Overview
11.7.2. Product Offerings
11.7.3. Financial Performance
11.7.4. Recent Initiatives
11.8. Gazprom
11.8.1. Company Overview
11.8.2. Product Offerings
11.8.3. Financial Performance
11.8.4. Recent Initiatives
11.9. Martin Midstream Partners L.P.
11.9.1. Company Overview
11.9.2. Product Offerings
11.9.3. Financial Performance
11.9.4. Recent Initiatives
Chapter 12. Research Methodology
12.1. Primary Research
12.2. Secondary Research
12.3. Assumptions
Chapter 13. Appendix
13.1. About Us
13.2. Glossary of Terms