Global Natural Gas Storage Market: Rising Energy Security Concerns to Drive Demand, says TMR
The global natural gas storage market is dominated by players such as Gazprom, Spectra Energy Corporation, TransCanada Corporation, Chiyoda Corporation, Cardinal Gas Storage Partners LLC, Enbridge Gas Distribution Inc., Centrica Storage Ltd., Niska Gas Storage Partners LLC, Engie S.A., and NAFTA A.S. According to Transparency Market Research (TMR), the global natural gas storage market is quite fragmented and lacks a clear market leader. However, entering the natural gas storage market is difficult, as players need extensive pipeline and distribution networks. As a result, the market could be headed towards a phase of consolidation.
According to TMR, the global natural gas storage market’s total storage capacity volume is expected to reach 421,102.54 mcm by the end of 2016 and further rise to 548,566.74 mcm by the end of 2023.
North America, Europe to Retain Clear Dominance despite Steady Growth of Asia Pacific Market
Geographically, Europe was the leading contributor to the global natural gas storage market in 2014 and is likely to remain the clear regional leader in the natural gas storage market through the 2015-2023 forecast period. “Europe is expected to consistently account for a majority share in the global natural gas storage market due to the widespread availability of advanced natural gas storage technologies,” elaborated TMR’s lead analyst. Europe is expected to account for 54.6% of the global natural gas storage market by the end of 2023, followed by North America.
Asia Pacific and the rest of the world markets for natural gas storage collectively accounted for just over 3% of the global natural gas storage market in 2014. Despite steady growth of the market in Asia Pacific, whose share in the global natural gas market is expected to grow by close to threefold over the 2015-2023 forecast period, these two regions are likely to remain minor contributors to the global natural gas storage market in the coming years.
By storage type, underground storage was the overwhelmingly dominant segment of the natural gas storage market in 2014, with above-ground storage accounting for less than 1% of the market. The share of above-ground storage technologies in the natural gas storage market is unlikely to increase significantly in the 2015-2023 forecast period, as it can’t match the logistical and economic convenience of underground storage. However, the rising Asia Pacific market could provide a second wind for the above-ground natural gas storage market, as new players often opt for above-ground natural gas storage before moving on to underground facilities.
Rising Demand for Natural Gas as Clean Fuel to Drive Demand
The key driver for the global natural gas storage market is the rising utilization of natural gas in household and commercial applications. Natural gas is a cleaner fuel than most other fossil fuels, which has become a vital property in light of the increasing government and public support to environmentalism. The demand for natural gas has received a strong boost in the form of the rising demand for gas-fired turbines in combined heat and power generation plants, which are likely to remain popular over the coming years due to their low overall impact on the environment.
Another key driver for the global natural gas storage market is the rising concern regarding energy security. Due to the mounting scarcity of fossil fuels, allied to the geopolitical problems in many oil-producing regions, natural gas storage has become commercially as well as politically important. On the other hand, the capital-intensive nature of natural gas storage is likely to restrict expansion of the market in the coming years.
The information in this preview comes from a Transparency Market Research report titled ‘Natural Gas Storage Market - 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 Geography
- North America
- Asia Pacific
- Rest of the World
Transparency Market Research (TMR) is a market intelligence company, providing global business information reports and services. Our exclusive blend of quantitative forecasting and trends analysis provides forward-looking insight for thousands of decision makers. TMR’s experienced team of analysts, researchers, and consultants, use proprietary data sources and various tools and techniques to gather, and analyze information. Our business offerings represent the latest and the most reliable information indispensable for businesses to sustain a competitive edge.
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