Trusted Business Insights answers what are the scenarios for growth and recovery and whether there will be any lasting structural impact from the unfolding crisis for the Natural Gas Storage market.
Trusted Business Insights presents an updated and Latest Study on Natural Gas Storage Market 2020-2029. The report contains market predictions related to market size, revenue, production, CAGR, Consumption, gross margin, price, and other substantial factors. While emphasizing the key driving and restraining forces for this market, the report also offers a complete study of the future trends and developments of the market. The report further elaborates on the micro and macroeconomic aspects including the socio-political landscape that is anticipated to shape the demand of the Natural Gas Storage market during the forecast period (2020-2029).
It also examines the role of the leading market players involved in the industry including their corporate overview, financial summary, and SWOT analysis.
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Report Overview: Global Natural Gas Storage Market
The global natural gas storage market size was valued at 371.7 BCM in 2019 and is projected to register a compound annual growth rate (CAGR) of 2.5% from 2021 to 2027. Storage facilities are integral for continuous supply required to cater to rising energy demand. Rapid industrialization coupled with increasing urbanization in emerging economies of the Asia Pacific region is projected to spur the growth significantly over the forecast period 2021-2027. However, high capital investment is expected to hinder the market growth. The U.S. accounted for the largest share of 76.41% in 2019 in North America market and the trend is projected to continue over the forecast period. As per the U.S. Energy
Information Administration (EIA), almost 120 entities operate over 400 active underground storage sites in the U.S. (excluding Alaska and Hawaii).
Increasing demand for natural gas storage in the U.S. on account of rising importance of depleted reservoir storage is anticipated to boost market growth. Growing production of natural gas coupled with rising seasonal demand from various end-use applications and industrial sectors in the region is projected to spur the market growth over the coming years.
Moreover, favorable government regulations for low carbon content fuels as compared to other fossil fuels is anticipated to remain a promising factor for rise in demand for natural gas. In addition, technological advancements coupled with increasing awareness regarding natural gas being a clean fuel will spur the demand further.
Type Insights: Global Natural Gas Storage Market
Underground storage type accounted for the largest market share of 91% in 2019. 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 2019 and is anticipated to register a decent CAGR during the forecast period.
Underground Storage Type Insights: Global Natural Gas Storage Market
Depleted reservoir segment accounted for the largest market share of 77.4% in 2019 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: Global Natural Gas Storage Market
North America accounted for the major market share of over 40% in 2019. 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 highest 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 Companies & Market Share Insights: Global Natural Gas Storage Market
The key companies are actively engaged in merger & acquisition, technological innovations, research & development, and partnerships to improve their dominance in the market. Furthermore, many companies have invested in the expansion of their production capabilities to enhance their portfolios and regional presence. Some of the prominent players in the natural gas storage market include:
Key companies Profiled: Global Natural Gas Storage Market Report
- McDermott International, Inc.
- NAFTA A.S.
- TransCanada Corp.
- Royal Vopak N.V.
- Chart Industries
- Enbridge, Inc.
- Martin Midstream Partners L.P.
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. Trusted Business Insights has segmented the global natural gas storage market report based on type, underground storage type, and region:
Type Outlook (Volume, BCM, 2016 – 2027)
Underground Storage Type Outlook (Volume, BCM, 2016 – 2027)
- Depleted Gas Reservoir
- Aquifer Reservoir
- Salt Caverns
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