Global Natural Gas Storage Market: Economic Benefits of Use of Natural Gas and Concerns for Long-term Energy Security Boost Growth, says TMR
The global natural gas storage market features a fragmented competitive landscape with a handful of major players, notes a new market study by Transparency Market Research (TMR). This is because majority of natural gas storage owners operate in close proximity to natural gas production sites within limited geographies.
However, top companies in the market are building capacity to provide services to customers beyond their existing geographical service areas. This includes technical upgrades for added transmission capacities and expansion of existing storage and processing facilities.
Some of the key players in the market include Spectra Energy Corporation, Niska Gas Storage Partners LLC, Centrica Storage Ltd., TransCanada Corporation, Cardinal Gas Storage Partners LLC, Gazprom, Chiyoda Corporation, NAFTAA.S, Enbridge Gas Distribution Inc., and Engine S.A.
The global natural gas storage market is expected to expand at a CAGR of 3.7% between 2015 and 2023 to increase from 392,831.22 mcm in 2014 to 548,798.39 mcm by 2023 in terms of volume.
Use of Newer Technology and Shale Gas Boom Boosts North America Natural Gas Storage Market
Europe stood as the leading regional market for natural gas storage in 2014. The region is expected to display strong demand for natural gas storage facilities due to long term plans for energy security in the long run. Furthermore, favorable government regulations for processing of natural gas and incentives for the use of natural gas in industries is aiding growth of the natural gas storage market in Europe
A natural gas storage facility is useful for balancing peak seasonal demand and to ensure sustained natural gas supply. Countries such as Italy, Germany, and France are expanding their natural gas storage capacities to reduce natural gas imports and for easy availability of natural gas for applications such as combined heat and power generation and district energy. Russia is currently the leader in terms of natural gas storage capacity in Europe. However, factors such as high initial set up cost and high cost of operations is limiting the growth of this regional market to some extent.
North America stood as the second-largest regional market for natural gas storage in 2014 in terms of volume. The rising production of natural gas due to hydraulic fracturing technology and the recent shale gas boom has led to the construction of new facilities for storage of natural gas in the region. The U.S. accounts for the highest natural gas storage capacity in North America. Underground storage facilities held the larger share of the regional market in 2014.
Asia Pacific is expanding its natural gas storage capacity due to the increasing awareness about the benefits of natural gas over conventional fuels and for energy security in the long run. China is expected to lead the Asia Pacific natural gas storage market in the near future. Asia Pacific is anticipated to display the fastest growth amongst other regional markets for natural gas storage during the report’s forecast period. The Rest of the World region held the least share of the global market in 2014.
Underground storage facilities hold the dominant share in the global market for natural gas storage. Construction of depleted reservoirs surpassed other underground storage facilities in 2014 with the former accounting for over 75% of total underground storage facilities.
Natural Gas Storage Facilities Aid Uninterrupted Supply of Natural Gas
The natural gas storage market is driven by increasing concerns of energy security in the long run and for uninterrupted supply of natural gas in the event of natural disasters and unforeseen accidents that may affect production of natural gas temporarily.
The review presented is based on the findings of Transparency Market Research report, titled “Natural Gas Storage Market (Type - Above-ground Storage and Underground Storage (Depleted Reservoirs, Salt Caverns, and Aquifers)) - Global Industry Analysis, Size, Share, Growth Trends and Forecast, 2015 - 2023.”
The global natural gas storage market is segmented as follows:
Global Natural Gas Storage Market: By Type
- Above-ground Storage
- Underground Storage
- Depleted Reservoirs
- Salt Caverns
Global Natural Gas Storage Market: By Region
- North America
- The U.S.
- Rest of North America
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Rest of World (RoW)
- Other Countries
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