PUBLISHER: The Business Research Company | PRODUCT CODE: 1620150
PUBLISHER: The Business Research Company | PRODUCT CODE: 1620150
Underground natural gas storage facilities are used to store large volumes of natural gas, which can be withdrawn and distributed during periods of high demand. These facilities help stabilize natural gas prices by preventing sudden spikes caused by demand surges or supply shortages. By releasing stored gas when demand is high, they ensure a consistent market supply and manage price volatility.
The main types of underground natural gas storage include depleted gas reservoirs, salt caverns, aquifers, and other methods. Depleted gas reservoirs are former gas fields that have been emptied of their original contents and repurposed for new gas storage, leveraging their proven capacity and geological stability. These storage facilities can hold various products such as natural gas and hydrogen, and they support several applications, including residential, commercial, and industrial uses.
The underground natural gas storage market research report is one of a series of new reports from The Business Research Company that provides underground natural gas storage market statistics, including underground natural gas storage industry global market size, regional shares, competitors with an underground natural gas storage market share, detailed underground natural gas storage market segments, market trends, and opportunities, and any further data you may need to thrive in the underground natural gas storage industry. This underground natural gas storage market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The underground natural gas storage market size has grown strongly in recent years. It will grow from $306.46 billion in 2023 to $322.13 billion in 2024 at a compound annual growth rate (CAGR) of 5.1%.The growth during the historic period can be attributed to the expansion of natural gas infrastructure, rapid urbanization and population growth, the rise of liquefied natural gas (LNG) trade, and increasing investment from both public and private sectors.
The underground natural gas storage market size is expected to see strong growth in the next few years. It will grow to $395.43 billion in 2028 at a compound annual growth rate (CAGR) of 5.3%. The anticipated growth during the forecast period can be credited to rising energy consumption, the expansion of renewable energy sources, the increase in liquefied natural gas (LNG) exports and imports, as well as advancements in emergency preparedness and resilience. Key trends expected during this period include enhancements in cavern construction techniques, improved monitoring systems, the expansion and upgrading of storage facilities, integration with renewable energy sources, a greater focus on safety and environmental impact, and the adoption of digital technologies.
The growing production of natural gas is anticipated to drive the expansion of the underground natural gas storage market in the future. Natural gas primarily consists of methane (CH4), along with small amounts of other hydrocarbons like ethane, propane, and butane, which are viewed as cleaner alternatives to other fossil fuels. Several factors, such as the shift to cleaner energy, industrial growth, and the need for energy security, are fueling the rising demand for natural gas. Underground storage helps manage natural gas supply fluctuations by storing excess gas during periods of low demand and releasing it during high-demand peaks, ensuring price stability and a reliable supply. Additionally, it aids in maintaining grid stability and supports renewable energy integration by offering backup when renewable power generation is insufficient. For example, in September 2024, the U.S. Energy Information Administration (EIA) reported that U.S. dry natural gas production reached 37.8 trillion cubic feet (Tcf) in 2023, or 103.6 billion cubic feet per day (Bcf/d), marking a 4.3% increase from the 2022 production of 99.3 Bcf/d. As a result, the growing production of natural gas is expected to fuel the growth of the underground natural gas storage market.
Leading companies in the underground natural gas storage sector are focusing on developing advanced solutions, such as the hydrogen storage salt caverns initiative, to enhance energy security and lower carbon emissions. This initiative aims to leverage the unique properties of salt deposits to store hydrogen securely and efficiently. For instance, in March 2024, the European Consortium, a UK-based association of 17 partners led by Storengy, a UK-based natural gas storage company, launched the FrHyGe project. Funded by the European Union's Clean Hydrogen Partnership, the project has a budget of €43 million ($46.91 million) and aims to validate large-scale underground hydrogen storage in salt caverns. The project plans to build an industrial prototype in Manosque, France, and explore replication in Harsefeld, Germany, with potential applications across Europe. Key objectives include converting natural gas or brine salt caverns into hydrogen storage facilities, demonstrating the capability to inject and withdraw 100 metric tons of hydrogen over cycles ranging from one hour to one week, exploring market penetration and supply chains, and planning for replication at other European sites. Additionally, the project will assess environmental impacts, safety criteria, and regulatory requirements ahead of deployment on the GeoH2 (Manosque) and SaltHy (Harsefeld) projects.
In January 2024, Williams, a US-based oil and gas company, acquired a portfolio of natural gas storage assets from Hartree Partners LP for $1.95 billion. This acquisition included six underground storage facilities in Louisiana and Mississippi with a combined capacity of 115 billion cubic feet (Bcf), as well as 230 miles of gas transmission pipelines and 30 pipeline interconnects, connecting to key markets including LNG and Transco. Hartree Partners LP is a US-based company that specializes in underground natural gas storage facilities.
Major companies operating in the underground natural gas storage market are Exxon Mobil Corporation, Equinor ASA, Uniper Energy Storage GmbH, Gazprom, Enbridge Inc., Southern Company, ONEOK Inc., Targa Resources Corp., DTE Energy, Sempra, TC Energy Corporation, The Williams Companies Inc., EnLink Midstream LLC, NiSource Inc., Weatherford International, Atmos Energy, Naftogaz Group, National Fuel Gas Company, Hess Midstream LP, NAFTA a. s., Texas Brine Company LLC
Europe was the largest region in the underground natural gas market in 2023. The regions covered in the underground natural gas storage market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the underground natural gas storage market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The underground natural gas storage market consists of revenues earned by entities by providing services such as seasonal supply balancing, operational flexibility, strategic reserve, and emergency backup. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Underground Natural Gas Storage Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on underground natural gas storage market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for underground natural gas storage ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The underground natural gas storage market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.
The impact of higher inflation in many countries and the resulting spike in interest rates.
The continued but declining impact of COVID-19 on supply chains and consumption patterns.