Natural Gas Storage Market Forecasts to 2030 – Global Analysis By Type (Underground Natural Gas Storage, Above Ground Natural Gas Storage and Other Types), Application (Residential, Commercial, Industrial and Other Applications) and by Geography

Natural Gas Storage Market Forecasts to 2030 – Global Analysis By Type (Underground Natural Gas Storage, Above Ground Natural Gas Storage and Other Types), Application (Residential, Commercial, Industrial and Other Applications) and by Geography

According to Stratistics MRC, the Global Natural Gas Storage Market is accounted for $12.32 billion in 2024 and is expected to reach $17.97 billion by 2030 growing at a CAGR of 6.5% during the forecast period. Securing energy security and supply stability is largely dependent on natural gas storage. As a result, variations in production and consumption are balanced. Natural gas is stored during times of low demand and extracted during times of high demand. Owing to their capacity and ability to maintain gas quality, subterranean storage facilities like depleted gas fields and salt caverns are frequently used. Moreover, securing a consistent supply of energy for a range of industries, including power generation, commercial, industrial, and residential, depends on efficient storage management in order to maximize pricing and satisfy seasonal demand.

According to the American Gas Association, natural gas storage facilities are critical infrastructure components that enhance energy reliability and enable utilities to meet varying consumer demands throughout the year.

Market Dynamics:

Driver:

Growing use of natural gas in energy production

Due to the fact that it produces fewer greenhouse emissions than coal and can be used to complement renewable energy sources like solar and wind power, natural gas is becoming a more popular choice for power generation. In order to guarantee a consistent fuel supply, the shift to natural gas-fired power plants has increased demand for surrounding storage facilities. Additionally, gas storage keeps the grid stable, allows power plants to react swiftly to changes in the demand for electricity, and facilitates the integration of intermittent renewable energy sources.

Restraint:

Regulatory and environmental difficulties

Natural gas storage facilities may be subject to strict environmental laws governing safety requirements, emissions, and land use. Methane leaks during transportation and storage, possible groundwater contamination from storage activities, and the effect on regional ecosystems are among the environmental issues. Furthermore, adherence to these regulations frequently necessitates substantial investment in cutting-edge technologies and operational procedures in order to mitigate environmental hazards and guarantee regulatory compliance.

Opportunity:

Digitalization and innovation in storage technologies

Natural gas storage facilities can now increase their capacity, efficiency, and operational flexibility owing to technological developments in storage technologies like depleted gas fields, underground salt caverns, and sophisticated monitoring systems. Real-time gas inventory monitoring, storage operations optimization, and proactive risk management for safety and the environment are made possible by investments in digitalization, data analytics, and predictive maintenance technologies. Moreover, these developments raise natural gas storage facilities' overall competitiveness in the changing energy market, save costs, and increase operational efficiency.

Threat:

Volatility of market prices and economic uncertainties

Natural gas storage operators are exposed to market price volatility, influenced by factors such as supply-demand dynamics, geopolitical events, weather patterns, and global economic conditions. Fluctuations in natural gas prices can impact the economic viability of storing and withdrawing gas from storage facilities, affecting revenue streams and profitability. Additionally, economic downturns or geopolitical tensions may lead to reduced energy demand, lower natural gas prices, and decreased utilization rates of storage facilities, posing financial risks to operators and investors.

Covid-19 Impact:

The COVID-19 pandemic caused a sharp decline in global energy demand, disrupted supply chains and operations, and had a significant impact on the natural gas storage market. Natural gas prices fell, energy consumption fell, and industrial activity was curtailed as a result of lockdowns and economic slowdowns. Natural gas storage facilities consequently had to deal with issues like lower utilization rates and surplus gas inventory, which had an effect on their earnings. Furthermore, the pandemic also hastened the adoption of energy-saving and renewable energy trends, which has an impact on long-term energy demand patterns and investment priorities in the natural gas storage industry.

The Underground Natural Gas Storage segment is expected to be the largest during the forecast period

It is projected that underground natural gas storage facilities will hold the largest share of the natural gas storage market. Because underground storage can hold large amounts of natural gas in geological formations like salt caverns, aquifers, and depleted gas fields, it is preferred. Comparing these facilities to their above-ground counterparts, there are benefits such as increased security, decreased operating costs, and less environmental impact. Additionally, because they balance supply and demand fluctuations, they are essential to maintaining energy security, especially during periods of peak demand or when there are disruptions in the gas supply.

The Industrial segment is expected to have the highest CAGR during the forecast period

The industrial segment typically exhibits the highest CAGR. Industrial users include manufacturing facilities, power plants, and other large-scale consumers who require reliable and continuous natural gas supply for operations. This segment's growth is driven by increasing industrialization, expansions in manufacturing sectors, and rising energy demands for industrial processes. Moreover, industrial users often opt for natural gas storage solutions to mitigate supply disruptions, manage costs, and ensure uninterrupted operations, thus contributing significantly to the overall expansion of the natural gas storage market.

Region with largest share:

The market for natural gas storage is dominated by North America. This area has an established network of subterranean storage facilities, taking advantage of salt caverns and depleted gas fields as well as other geological formations. North America's dominance in this market is further reinforced by the existence of vast pipeline networks and a sophisticated natural gas industry. Additionally, North America plays a major role in maintaining energy security and stability within the natural gas market on a regional and global scale due to its strategic reserves and capacity to balance seasonal demand fluctuations.

Region with highest CAGR:

The natural gas storage market is expected to grow at the highest CAGR in the Asia-Pacific area. Rising levels of industrialization, urbanization, and energy demand in the region's emerging economies are the main drivers of this rapid growth. Expanding natural gas infrastructure, including storage facilities, is being funded by governments and businesses in an effort to improve energy security, meet rising demand, and lessen reliance on imported energy sources. Furthermore, the Asia-Pacific natural gas storage market has experienced strong growth, establishing it as a major growth area within the global energy landscape.

Key players in the market

Some of the key players in Natural Gas Storage market include Engie S. A., Chart Industries, Royal Dutch Shell plc, Centrica plc, Uniper SE, Enbridge, Inc., Antero Resources Corporation, TransCanada Corporation, Martin Midstream Partners L.P., Spectra Energy Corporation, Royal Vopak N.V., Cardinal Gas Storage Partners LLC, McDermott International, Inc., Samsung Heavy Industries Co., Ltd. and Chiyoda Corporation.

Key Developments:

In April 2024, Uniper and Deutsche Bahn are long-standing partners in the field of secure and sustainable power supplies – a good example of this is the contract supplying the Deutsche Bahn for 100 years this year with hydropower from the Walchensee. These two companies’ partnership also encompasses other products and solutions: in March 2024, for example, they also concluded a power purchase agreement (PPA).

In March 2024, Centrica Energy, Taaleri Energia, a leading renewable energy developer and fund manager, and Lords LB Asset Management, a Lithaunia based fund manager, have today announced the signing of a Power Offtake Agreement for the Rokiškis and Jonava wind farms, developed in cooperation between the Taaleri SolarWind II fund and closed end investment company Atsinaujinančios Energetikos Investicijos.

In May 2023, Chart Industries and Koch Engineered Solutions (KES), have signed a Memorandum of Understanding, marking the beginning of their CCUS collaboration and a combined pursuit of new knowledge and new carbon capture opportunities. Chart Industries is a global manufacturer of highly engineered equipment, servicing projects in the clean energy and industrial gas markets.

Types Covered:
• Underground Natural Gas Storage
• Above Ground Natural Gas Storage
• Other Types

Applications Covered:
• Residential
• Commercial
• Industrial
• Other Applications

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements