Rising Demand for Natural Gases Boosts Global Natural Gas Storage Market

The global natural gas storage market has gained momentum over the past few years. The rapid rise in demand for natural gases and their expensive and time-consuming exploration, production and transportation have triggered the need to store them properly. The rising concerns over energy security have also increased the demand for natural gas storage, fueling the market to a great extent.

Transparency Market Research (TMR), a market intelligence and research firm, has recently published a research study on the worldwide natural gas storage market, stating that it reached a total of 392,831.22 mcm in 2014, in terms of storage capacity. Rising at a CAGR of 3.70% during the period from 2015 to 2023, the market is likely to reach a storage capacity of 548,798.39 mcm by the end of 2023.

Global Natural Gas Storage Market in Asia Pacific to Report Fastest Growth in Near Future

Europe and North America are the leading regional markets for natural gas storage at present. The regions collectively hold a share of 90%, in the overall market. The natural gas storage market in Asia Pacific is currently at a budding stage. However, it is projected to report the fastest growth rate in the coming years on account of the increased construction of natural gas storage units in China.

The global natural gas storage market is a consolidated market and is primarily led by Cardinal Gas Storage Partners, Spectra Energy Corp., Engie, NAFTA, Enbridge Gas Distribution Inc., TransCanada Corp., Niska Gas Storage Partners, Chiyoda Corp., Centrica Storage Ltd., WorleyParsons, Saipem SpA, Foster Wheeler, Samsung SDI, E.ON, GDF Suez, Technip, and Gazprom in the global arena. Here is a snapshot of recent happenings in this market.

Gazprom Armenia, an Armenian subsidiary of Gazprom Russia, has announced an investment program valuing US$94.1 mn for 2016-2018. As per the terms of the program, the company plans to invest US$23.5 mn in 2016, US$27.8 mn in 2017 and US$42.7 mn in 2018. The Abovyan underground gas storage in Armenia will receive an investment of US$22.3 mn during the period from 2016 to 2018 for the construction of a new booster station. Two new reservoirs will also be constructed by the company in 2016 and 2017.

Italy-based Saipem SpA and Japan-based Chiyoda Corp. has ventured into a liquefied natural-gas project worth US$15 bn in Mozambique with Chicago Bridge and Iron Co. They will be working on the construction of two LNG facilities with a 6 mn MT of storage capacity each.

With these developments, the future of the global market for natural gas storage looks thriving. However, it is expected to face severe challenges by the high investment required for the construction and maintenance of these facilities, together with increasing incidence of gas leakage, in the coming years.


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