Middle East Natural Gas Storage

Middle East Natural Gas Storage

The Middle East natural gas storage market plays a crucial role in the regional energy system, due to the rising demand for energy security and the steady increase in natural gas production. With the region remaining a consistently prominent exporter of natural gas, nations like Saudi Arabia, the UAE, Qatar, and Iran have continued to prioritize the development and growth of their stored natural gas. These facilities help predict fluctuations in demand throughout the year, stabilizing the supply of gas, and improving the export of liquefied natural gas (LNG). The market is backed by a well-developed network of existing underground storage infrastructure, depleted oil and gas reservoirs, and salt domes, helping to meet the domestic consumption as well as export demand.

Furthermore, the region’s governments are also focusing on the storage of natural gas for energy diversification, reducing dependence on oil and transitioning to renewable energy sources. The advancements in storage technologies combined with rising capital investments by domestic and international energy companies are adding more fuel to the market's growth. Furthermore, due to the geopolitical factors that exist globally and the uncertainty in the supply of energy, countries in the Middle East are improving their storage facilities.

• Based on type, the Middle East natural gas storage market is segmented into underground storage and above-ground storage. The underground storage segment acquired a significant share of the natural gas storage market. This dominance is mainly due to the region's natural endowment where there are significant opportunities for underground storage facilities including oil and gas fields and salt cavities. The availability of underground storage also helps to compensate for the seasonal fluctuations of the demand, ensuring stable and sufficient supply, and the potential for optimization of the export of liquefied natural gas (LNG). Also, underground storage is safer and more secure than the above group because the gas is stored in deeper pits thus there are fewer chances of leakage and explosions.
• For a better understanding of the market adoption of Natural Gas Storage, the market is analyzed based on its country-wise presence in the Middle East such as Saudi Arabia, UAE, Qatar, Kuwait, and the Rest of Middle East. Qatar influences a considerable market demand for natural gas storage across the Middle Eastern region. This dominance is mainly because of the supply of natural gas, particularly from the North Field, the largest non-associated natural gas field in the world. Natural gas has been a primary strategic resource in Qatar’s economy placing the country among the world leaders in LNG production, export, and storage with large investments in both liquefaction and storage assets. Among other Middle East countries like Saudi Arabia and UAE, Qatar also has immense natural gas production and storage, but due to its specific concentration on natural gas, especially LNG, and abundant proved reserves occupies the premier position in the Middle East natural gas storage market.
• Some of the major players operating in the market include Abu Dhabi National Oil Company (ADNOC), Saudi Aramco, QatarEnergy, Kuwait Petroleum Corporation, Dana Gas, Oman Oil Company, Bahrain Petroleum Company (BAPCO), ExxonMobil Corporation, ENOC Group, and TAQA.