Natural Gas Storage Market (By Type: Underground, Aboveground, Floating; By Underground Storage Type: Depleted Gas Reservoir, Aquifer Reservoir, Salt Caverns; By Application: Residential, Commercial, Others) - Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2023-2032
The global natural gas storage market size was estimated at 517.59 bcm in 2022, and is projected to surpass around 726.56 bcm by 2032 with a registered CAGR of 3.5% during the forecast period 2023 to 2032.
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The U.S. market of natural gas storage is expected to develop as a result of the rising necessity of storing gas from fractured reservoirs. Over the next several years, increased seasonal consumption from a variety of end-use industries and manufacturing companies in the area is expected to combine with rising natural gas output to drive market expansion. Furthermore, it is projected that favorable government rules favoring fuels with low carbon content relative to certain other fossil fuels will continue to be a positive factor for growth in natural gas consumption.
The demand will also be increased by technical developments as well as growing public knowledge of natural gas's environmental benefits. During the forecast timeframe, factors such as rising natural gas consumption in the industrial, chemical, and transportation sectors, mostly from Asia-Pacific countries, are anticipated to propel the market of gas storage. Additionally, as the world works toward a low-carbon economy, the benefits of using fossil fuel as a clean-burning, versatile, and economical fuel are anticipated to lead to an increase in natural gas prices in the future. However, it is anticipated that the demand's seasonality and volatility, along with the mismatch between demand and supply will impede the market's expansion for natural gas storage. It is anticipated that the high natural gas production will spur oil and gas production and boost the requirement for storage facilities.
Subterranean storage areas and above storage areas are the two categories that compose the market. Aquifers drained lakes, and salt caves are the three main categories into which subterranean storage facilities are separated. The region's expanding chemical, commercial, and transportation industries will probably increase the need for natural pumped storage. Future oil and gas demand is also projected to increase due to the benefits of someone using gas as a spotless, versatile, and efficient fuel for a range of uses, as well as the global shift toward a reduced society.
Report Coverage | Details |
Market Size in 2023 | 533.11 BCM |
Market Size by 2032 | 726.56 BCM |
Growth Rate from 2023 to 2032 | CAGR of 3.5% |
Base Year | 2022 |
Forecast Period | 2023 to 2032 |
Segments Covered |
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Regions Covered |
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Gas storage is typically utilized to fulfill consumer needs; during times of economic downturn, gas is stored, also during times of maximum supply, gas is extracted from storage. The subterranean or above forms of storage of natural gas are the two categories that make up the market. Gaseous types of fossil fuels are primarily kept in subterranean storage facilities. Aquifer depletion, the depleted reservoir in oil and gas sectors, and salt cavern formations are the three main types of subterranean storage facilities.
The various storage options each have unique physical properties, including porosity, permeability, maintenance costs, and other relevant site abilities. The growth in oil & gas development that followed the rise in natural gas consumption resulted in more above- and below-ground storage sites. Thus, it is anticipated that the storage of the natural gas industry will experience steady expansion in the years to come.
Due to its many advantages placed above a white above-ground stockpiling and the rising number of sites due to their low operational and infrastructure costs, the subsurface memory (UGS) segment is anticipated to have the largest percentage of the market, led by the United States, with the greatest percentage of UGS capacity.
The US Department of Energy's investigation into chilling salt deposits to store more gas and reduce operating costs is opening up opportunities for the industry under study.
With a rising reliance on natural gasoline and to ensure natural gas supply regardless of demand and supply Europe is predicted to have the fastest-growing industry.
Key Market Drivers
Favorable government policies will boost the market for natural gas stockpiling
An increased focus on alternative fuels will help to drive demand
The market's expansion is driven by the widespread adoption of wearable sports equipment with RTLS embedded
Key Market Challenges
Storage for natural gas is expensive, and transmission capacity is constrained
Key Market Opportunities
Because of its favorable environmental effects, natural gas is being used in industry at an increasing rate
In 2022, the large underground type held the biggest market share (92%). Like the majority of other products, fossil fuel may be kept in storage for a very long time. Natural gas exploration and development typically take time. Additionally, natural gas sometimes isn't used right away after arriving at its location, so it's kept in facilities, probably underground. With seasonal changes, subterranean coal and gas storage has become a crucial component of the energy supply, especially for countries in Europe and North America. Production that is constant and consistent contrasts with demand and usage that are erratic and follows a seasonal pattern depending on the patterns. Due to the significant increase in demand for subterranean natural gas on the international market, the percentage of usage has been observed to increase steadily.
In addition, natural gas is kept in gaseous or liquid form in the above storage tanks. The locations in which the above-ground storage facilities are located lack subsurface caves. The above-ground storage tanks are generally inexpensive to install and provide simple access to storage facilities. Natural gas is additionally stored locally in portable tanks which are placed onto railroads or barges for lengthy transit in addition to stationary terrestrial storage tanks. The terrestrial segment, which had the second-largest share of the market in 2022, is expected to grow at a respectable CAGR over the course of the projected year.
The shallow groundwater type's drained reservoirs segment held the biggest market share in 2022. One of the earliest and most common types of gas storage is in fractured reservoirs. Formations known as depleted reservoirs have already had all of their exploitable fossil fuels extracted from them. Approximately 50% of the fossil fuels inside the deposit need to be preserved as a cushion gas to sustain pressure in fractured reservoirs. Due to the infrastructure already in place for gas storage, these reservoirs have mostly been utilized for this purpose. They offer a long combustion cycle of 50 to 200 days and a moderate gas delivery.
The CAGR that is anticipated to be the greatest during the forecast timeframe belongs to the salt cavern. Current salt resources give rise to salt caverns. Due to their steel-like structural strength, which makes the caverns resistant to reservoir deterioration over the course of the storage unit, they are appropriate for storing gas. Aquifers are underground formations of porous, permeable rock that serve as spontaneous water reservoirs. Due to the necessity for geological classification before storage, these structures are the least appealing and the costliest type of natural energy storage site. Aquifers are typically found in pressure distribution near water pressure upon exploration.
Natural Gas Storage Market Share, By Region, 2022 (%)
Regions | Revenue Share in 2022 (%) |
North America | 44.3% |
Asia Pacific | 22.5% |
Europe | 26.2% |
Latin America | 4% |
MEA | 3% |
In 2022, the North America region dominated the natural gas storage market due to its large reserves, well-developed infrastructure, and numerous storage options, such as salt caverns and depleted fields. The strategic geographical location of the region, technical improvements, and a market-friendly environment with government assistance all contribute to its growth. North America is a significant region in addressing dynamic energy requirements due to its liberalized energy market, reliance on a diverse energy mix, and flexibility to seasonal demand variations. Additionally, the U.S. is the major producer of natural gas which means that there is a large supply of natural gas available for storage. There are over 4,000 natural gas storage facilities in the United States, which can store a total of approximately 4 trillion cubic feet of natural gas. The demand for natural gas in the U.S. is also increasing due to the increased use of natural gas for power generation and the rising trend of natural gas-powered vehicles.
Segments Covered in the Report
By Type
By Underground Storage Type
By Application
By Geography
Chapter 1. Introduction
1.1. Research Objective
1.2. Scope of the Study
1.3. Definition
Chapter 2. Research Methodology
2.1. Research Approach
2.2. Data Sources
2.3. Assumptions & Limitations
Chapter 3. Executive Summary
3.1. Market Snapshot
Chapter 4. Market Variables and Scope
4.1. Introduction
4.2. Market Classification and Scope
4.3. Industry Value Chain Analysis
4.3.1. Raw Material Procurement Analysis
4.3.2. Sales and Distribution Channel Analysis
4.3.3. Downstream Buyer Analysis
Chapter 5. COVID 19 Impact on Natural Gas Storage Market
5.1. COVID-19 Landscape: Natural Gas Storage Industry Impact
5.2. COVID 19 - Impact Assessment for the Industry
5.3. COVID 19 Impact: Global Major Government Policy
5.4. Market Trends and Opportunities in the COVID-19 Landscape
Chapter 6. Market Dynamics Analysis and Trends
6.1. Market Dynamics
6.1.1. Market Drivers
6.1.2. Market Restraints
6.1.3. Market Opportunities
6.2. Porter’s Five Forces Analysis
6.2.1. Bargaining power of suppliers
6.2.2. Bargaining power of buyers
6.2.3. Threat of substitute
6.2.4. Threat of new entrants
6.2.5. Degree of competition
Chapter 7. Competitive Landscape
7.1.1. Company Market Share/Positioning Analysis
7.1.2. Key Strategies Adopted by Players
7.1.3. Vendor Landscape
7.1.3.1. List of Suppliers
7.1.3.2. List of Buyers
Chapter 8. Global Natural Gas Storage Market, By Type
8.1. Natural Gas Storage Market, by Type, 2023-2032
8.1.1 Underground
8.1.1.1. Market Revenue and Forecast (2021-2032)
8.1.2. Aboveground
8.1.2.1. Market Revenue and Forecast (2021-2032)
8.1.3. Floating
8.1.3.1. Market Revenue and Forecast (2021-2032)
Chapter 9. Global Natural Gas Storage Market, By Underground Storage Type
9.1. Natural Gas Storage Market, by Underground Storage Type, 2023-2032
9.1.1. Depleted Gas Reservoir
9.1.1.1. Market Revenue and Forecast (2021-2032)
9.1.2. Aquifer Reservoir
9.1.2.1. Market Revenue and Forecast (2021-2032)
9.1.3. Salt Caverns
9.1.3.1. Market Revenue and Forecast (2021-2032)
Chapter 10. Global Natural Gas Storage Market, By Application
10.1. Natural Gas Storage Market, by Application, 2023-2032
10.1.1. Residential
10.1.1.1. Market Revenue and Forecast (2021-2032)
10.1.2. Commercial
10.1.2.1. Market Revenue and Forecast (2021-2032)
10.1.3. Others
10.1.3.1. Market Revenue and Forecast (2021-2032)
Chapter 11. Global Natural Gas Storage Market, Regional Estimates and Trend Forecast
11.1. North America
11.1.1. Market Revenue and Forecast, by Type (2021-2032)
11.1.2. Market Revenue and Forecast, by Underground Storage Type (2021-2032)
11.1.3. Market Revenue and Forecast, by Application (2021-2032)
11.1.4. U.S.
11.1.4.1. Market Revenue and Forecast, by Type (2021-2032)
11.1.4.2. Market Revenue and Forecast, by Underground Storage Type (2021-2032)
11.1.4.3. Market Revenue and Forecast, by Application (2021-2032)
11.1.5. Rest of North America
11.1.5.1. Market Revenue and Forecast, by Type (2021-2032)
11.1.5.2. Market Revenue and Forecast, by Underground Storage Type (2021-2032)
11.1.5.3. Market Revenue and Forecast, by Application (2021-2032)
11.2. Europe
11.2.1. Market Revenue and Forecast, by Type (2021-2032)
11.2.2. Market Revenue and Forecast, by Underground Storage Type (2021-2032)
11.2.3. Market Revenue and Forecast, by Application (2021-2032)
11.2.4. UK
11.2.4.1. Market Revenue and Forecast, by Type (2021-2032)
11.2.4.2. Market Revenue and Forecast, by Underground Storage Type (2021-2032)
11.2.4.3. Market Revenue and Forecast, by Application (2021-2032)
11.2.5. Germany
11.2.5.1. Market Revenue and Forecast, by Type (2021-2032)
11.2.5.2. Market Revenue and Forecast, by Underground Storage Type (2021-2032)
11.2.5.3. Market Revenue and Forecast, by Application (2021-2032)
11.2.6. France
11.2.6.1. Market Revenue and Forecast, by Type (2021-2032)
11.2.6.2. Market Revenue and Forecast, by Underground Storage Type (2021-2032)
11.2.6.3. Market Revenue and Forecast, by Application (2021-2032)
11.2.7. Rest of Europe
11.2.7.1. Market Revenue and Forecast, by Type (2021-2032)
11.2.7.2. Market Revenue and Forecast, by Underground Storage Type (2021-2032)
11.2.7.3. Market Revenue and Forecast, by Application (2021-2032)
11.3. APAC
11.3.1. Market Revenue and Forecast, by Type (2021-2032)
11.3.2. Market Revenue and Forecast, by Underground Storage Type (2021-2032)
11.3.3. Market Revenue and Forecast, by Application (2021-2032)
11.3.4. India
11.3.4.1. Market Revenue and Forecast, by Type (2021-2032)
11.3.4.2. Market Revenue and Forecast, by Underground Storage Type (2021-2032)
11.3.4.3. Market Revenue and Forecast, by Application (2021-2032)
11.3.5. China
11.3.5.1. Market Revenue and Forecast, by Type (2021-2032)
11.3.5.2. Market Revenue and Forecast, by Underground Storage Type (2021-2032)
11.3.5.3. Market Revenue and Forecast, by Application (2021-2032)
11.3.6. Japan
11.3.6.1. Market Revenue and Forecast, by Type (2021-2032)
11.3.6.2. Market Revenue and Forecast, by Underground Storage Type (2021-2032)
11.3.6.3. Market Revenue and Forecast, by Application (2021-2032)
11.3.7. Rest of APAC
11.3.7.1. Market Revenue and Forecast, by Type (2021-2032)
11.3.7.2. Market Revenue and Forecast, by Underground Storage Type (2021-2032)
11.3.7.3. Market Revenue and Forecast, by Application (2021-2032)
11.4. MEA
11.4.1. Market Revenue and Forecast, by Type (2021-2032)
11.4.2. Market Revenue and Forecast, by Underground Storage Type (2021-2032)
11.4.3. Market Revenue and Forecast, by Application (2021-2032)
11.4.4. GCC
11.4.4.1. Market Revenue and Forecast, by Type (2021-2032)
11.4.4.2. Market Revenue and Forecast, by Underground Storage Type (2021-2032)
11.4.4.3. Market Revenue and Forecast, by Application (2021-2032)
11.4.5. North Africa
11.4.5.1. Market Revenue and Forecast, by Type (2021-2032)
11.4.5.2. Market Revenue and Forecast, by Underground Storage Type (2021-2032)
11.4.5.3. Market Revenue and Forecast, by Application (2021-2032)
11.4.6. South Africa
11.4.6.1. Market Revenue and Forecast, by Type (2021-2032)
11.4.6.2. Market Revenue and Forecast, by Underground Storage Type (2021-2032)
11.4.6.3. Market Revenue and Forecast, by Application (2021-2032)
11.4.7. Rest of MEA
11.4.7.1. Market Revenue and Forecast, by Type (2021-2032)
11.4.7.2. Market Revenue and Forecast, by Underground Storage Type (2021-2032)
11.4.7.3. Market Revenue and Forecast, by Application (2021-2032)
11.5. Latin America
11.5.1. Market Revenue and Forecast, by Type (2021-2032)
11.5.2. Market Revenue and Forecast, by Underground Storage Type (2021-2032)
11.5.3. Market Revenue and Forecast, by Application (2021-2032)
11.5.4. Brazil
11.5.4.1. Market Revenue and Forecast, by Type (2021-2032)
11.5.4.2. Market Revenue and Forecast, by Underground Storage Type (2021-2032)
11.5.4.3. Market Revenue and Forecast, by Application (2021-2032)
11.5.5. Rest of LATAM
11.5.5.1. Market Revenue and Forecast, by Type (2021-2032)
11.5.5.2. Market Revenue and Forecast, by Underground Storage Type (2021-2032)
11.5.5.3. Market Revenue and Forecast, by Application (2021-2032)
Chapter 12. Company Profiles
12.1. Cardinal Gas Storage Partners LLC.
12.1.1. Company Overview
12.1.2. Product Offerings
12.1.3. Financial Performance
12.1.4. Recent Initiatives
12.2. Centrica plc
12.2.1. Company Overview
12.2.2. Product Offerings
12.2.3. Financial Performance
12.2.4. Recent Initiatives
12.3. Chart Industries
12.3.1. Company Overview
12.3.2. Product Offerings
12.3.3. Financial Performance
12.3.4. Recent Initiatives
12.4. Chiyoda Corporation
12.4.1. Company Overview
12.4.2. Product Offerings
12.4.3. Financial Performance
12.4.4. Recent Initiatives
12.5. DTE Energy
12.5.1. Company Overview
12.5.2. Product Offerings
12.5.3. Financial Performance
12.5.4. Recent Initiatives
12.6. E. ON SE
12.6.1. Company Overview
12.6.2. Product Offerings
12.6.3. Financial Performance
12.6.4. Recent Initiatives
12.7. Enbridge Gas Distribution Inc.
12.7.1. Company Overview
12.7.2. Product Offerings
12.7.3. Financial Performance
12.7.4. Recent Initiatives
12.8. Engie S. A.
12.8.1. Company Overview
12.8.2. Product Offerings
12.8.3. Financial Performance
12.8.4. Recent Initiatives
12.9. Foster Wheeler
12.9.1. Company Overview
12.9.2. Product Offerings
12.9.3. Financial Performance
12.9.4. Recent Initiatives
12.10. Gazprom
12.10.1. Company Overview
12.10.2. Product Offerings
12.10.3. Financial Performance
12.10.4. Recent Initiatives
Chapter 13. Research Methodology
13.1. Primary Research
13.2. Secondary Research
13.3. Assumptions
Chapter 14. Appendix
14.1. About Us
14.2. Glossary of Terms
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