Natural Gas Storage Market Share Expands as Energy Security Takes Center Stage
The global natural gas storage market is experiencing significant growth, driven by a strong inclination towards strategic gas reserves, energy security, and future pricing pressures. The market has seen a surge in demand for natural gas storage facilities, especially since 2014, as producers and nations alike prepare for anticipated price rebounds in the near future.
Maintaining Energy Security and Price Stability
Natural gas storage plays a pivotal role in maintaining energy security and price stability. Excess gas production can be stored, allowing producers to hedge prices and reduce pricing volatility. This strategic practice has attracted several countries, including China, which are stockpiling natural gas to mitigate future pricing pressures. By importing and storing gas from natural gas-rich nations such as the US and Russia, these countries are ensuring energy security during peak periods when demand and prices are high.
Market Growth Drivers and Trends
The growing global population, coupled with increased electricity demand and investments in energy storage systems, has led to a rising demand for natural gas storage facilities. Electricity generation remains a dominant application for natural gas, aligning with rapid population growth and industrialization.
While underground storage facilities continue to dominate the global market, the growth of the liquefied natural gas (LNG) market has led to the development of above-ground storage facilities. Natural gas storage facilities are being utilized to balance gas supply and demand, optimize transmission networks, and provide supply security in case of interruptions.
In 2020, more than 750 underground gas storage facilities operated worldwide, with Europe leading the market, followed by North America. Europe has significantly expanded its existing storage facilities, but environmental concerns and a shift towards clean energy may impact future demand. Meanwhile, the Asia Pacific region is poised to outpace other regions by 2025, driven by high electricity demand and the need for efficient energy storage systems.
Key Market Players
Key players in the global natural gas storage market include Engie S.E., Gazprom, TransCanada Corporation, Spectra Energy Corporation, Royal Vopak N.V., NAFTA A.S, McDermott International, Inc., Enbridge, Inc., Chiyoda Corporation, TechnipFMC plc, and Samsung Heavy Industries Co. Ltd.
In April 2021, Siemens Energy was selected to supply low-emission compression trains for the Gazli underground gas storage project in Uzbekistan, further highlighting the industry’s commitment to expanding storage capacity.
The global natural gas storage market continues to evolve, driven by the need for energy security, strategic reserves, and price stability in the face of changing market dynamics. As the world strives to meet its energy demands, natural gas storage remains a critical component of the energy infrastructure.
Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2023-2030 – By Product, Technology, Grade, Application, End-user, Region: (North America, Europe, Asia Pacific, Latin America and Middle East and Africa) https://www.fairfieldmarketresearch.com/report/natural-gas-storage-market
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This press release first seen on Brilad