PUBLISHER: Acute Market Reports | PRODUCT CODE: 1271326
PUBLISHER: Acute Market Reports | PRODUCT CODE: 1271326
The global underground gas storage market is expected to grow at a CAGR of 3% during the forecast period of 2023 to 2031. Underground gas storage facilities are generally constructed to meet the global seasonal demand for gases. Gases are retained in storage facilities during periods of low demand and removed during periods of high demand. Utilizing large underground reservoirs to store gases. Globally utilized underground natural gas storage facilities include depleted gas reservoirs, salt caverns, and aquifer reservoirs. These storage facilities are crucial for ensuring a steady supply of gas to fulfill the expanding worldwide energy demand.
The key element driving the expansion of this industry is growing industrialization. Natural gas is regarded as the world's most important energy source. It is anticipated that this gas will continue to play an increasingly important role in countries with high energy demands due to its abundance, eco-friendliness, and expanding use in a wide variety of applications. Hydrogen consumption has also surged in the United States as a result of the widespread development and acceptance of hydrogen cells and hydrogen-powered cars. Several corporations have begun investing in underground hydrogen storage facilities in the United States to meet the nation's rising need for hydrogen.
Due to the widespread applications of natural gas, hydrogen, and others in many industries, the natural gas segment led the industry in 2022 and accounted for 92% of the worldwide volume share. In the business sector, natural gas is used to heat buildings and water, operate refrigeration and cooling equipment, cook, dry clothes, and illuminate outdoor areas. Natural gas is also employed in heat and power systems as a fuel. In 2022, the commercial sector accounted for around 11% of total natural gas consumption and 20% of total commercial energy consumption in the United States.
Storage of natural gas underground is necessary to meet the demand for gas supply. Nearly 430 billion cubic meters (bcm) of natural gas have been stored globally as of 2022, which is almost 10% of the total demand. Gas storage facilities can meet both short-term and seasonal swings in demand. Seasonal fluctuations in natural gas prices between winter and summer and short-term price volatility are the two primary growth drivers for the sector. Underground hydrogen storage refers to the process of storing hydrogen underground in salt domes, abandoned oil and gas fields, and caves. Large quantities of gaseous hydrogen have been stored in caves for many years. Hydrogen can be stored underground in mines, aquifers, excavated rock caverns, solution-mined salt domes, or other structures to provide grid energy storage, which is essential for the hydrogen economy. The remaining portion consists of carbon dioxide and helium. Underground storage is possible for supercritical Carbon Dioxide (CO2) with a critical point of 31.1°C and 72.9 atm (about 1,050 psi). At high temperatures and pressures, CO2 exhibits both gaseous and liquid properties. CCS is utilized to extract CO2 from industrial emissions before their release into the atmosphere; the gas is then stored in subsurface geological formations.
The segment of types includes depleted gas reservoirs, aquifer reservoirs, salt caverns, and others. Due to rising gas production, the depleted gas reservoir segment led the market in 2022 and accounted for 65 % of the worldwide volume share. In use for decades, depleted natural gas reservoirs account for 76% of the world's total natural gas storage volume. Gas fields are more extensive and contain more volume than salt caverns. The global demand for these reservoirs is anticipated to be driven by rising government regulation of their expansion. As of 2022, around 11% of the existing underground natural gas storage volume was contained under aquifers. Aquifer geology is comparable to that of depleted natural gas deposits. Aquifers are underground water storage structures composed of porous and permeable rock. However, they are the least desirable and most expensive alternative for storing natural gas. Existing salt deposits are what form salt caverns. They are useful for gas storage because their walls have the structural strength of steel, making them resistant to reservoir degradation over the lifetime of the storage facility.
Unless it is deliberately retrieved, a small amount of natural gas that is injected into storage can escape from salt caverns. The walls of the salt storage facility are durable and airtight throughout time. Salt caverns are typically considerably smaller than depleted gas reserves and aquifer storage facilities. The remainder of the stretch consists of lined hard rock cavern storage and more storage. Inlined hard rock caves, natural gas liquids (propane, butane), and crude oil are stored. In hard rock caves, hydrogen is also stored as a liquefied or compressed gas at pressures between 100 and 250 bar.
Europe dominated the global industry in 2022, accounting for about 55% of the market share. Russia has the world's largest proven natural gas reserves, at 38 trillion cubic meters (1,341 trillion cubic meters). In Europe, approximately 4,269.6 bcf (billion cubic feet) of underground gas storage is available at over 170 locations, 42% of which are in Germany. In terms of depleted reservoirs, the demand for natural gas storage is greatest in France, Germany, Russia, and Italy. Due to their depth and natural hydrocarbon resources, depleted fields contain the greatest quantity of natural gas.
During the projection period, North America is anticipated to emerge as the leading regional market. This is due to the region's increased exploration and production of natural gas and hydrogen. The United States is the largest market for underground gas storage in North America due to its massive production of natural gas. The bulk of existing underground gas storage facilities is situated in exhausted natural gas or oil sources near their respective consumption hubs. However, there has been an increase in the number of natural aquifer and salt cavern-based underground gas storage facilities in the United States.
Due to increased domestic demand from end-use industries in countries such as China, Asia-Pacific is projected to experience a substantial growth rate throughout the forecast period. There have been growing investments in underground gas storage and the construction of new facilities in China. The nation has constructed gas storage facilities to meet the rising demand. China has recently constructed Bannan gas storage, Suqiao gas storage, and Dagang, North China gas storage clusters to bury natural gas.
The global market is highly competitive as a result of the presence of relatively concentrated and highly competitive multinational corporations. On the worldwide underground gas storage market, some of the most notable companies are ADNOC, Baker Hughes Company, Chart Industries, Enbridge Inc., NAFTA a. s., NOV Inc., Royal Vopak, TransCanada PipeLines Ltd, and others.
This study report represents analysis of each segment from 2021 to 2031 considering 2022 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2022 to 2031.
The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.
The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Underground Gas Storage market are as follows:
Micro and macro environment factors that are currently influencing the Underground Gas Storage market and their expected impact during the forecast period.
Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.