Market Trends of Natural Gas Storage Industry
This section covers the major market trends shaping the Natural Gas Storage Market according to our research experts:
Underground Storage to Dominate the Market
- Underground storage facilities account for the largest share among gas storage facilities, which is further segmented based on type of natural gas underground storage into depleted reservoirs, salt formations and aquifers.
- With natural gas consumption increasing by 5.3% in 2018, natural gas storage plays an important role in maintaining the balance between supply and demand. Hence, the market is expected to be driven with increasing natural gas demand during the forecast period.
- In the United States and Europe, depleted oil & gas field account for the largest share in the storage facility, and several storage facilities are expected to come during the forecast period in Europe. Texas is home to numerous depleted oil and gas stores, while in Europe, the 43 bcm Severo-Stavropolskoye UGS facility in southern Russia and the United Kingdom's offshore 130 bcm Rough field standing out.
- Mexico lacks natural gas storage facility and policy for the same is expected to be drafted by the end of 2018. Underground storage is most favourable option of Mexico. As a result, the underground storage system is expected to account for the largest share in the coming years.
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Europe to be the Fastest Growing Market
- The dependency of European countries on natural gas is increasing, and demand for natural gas storage infrastructure is increasing for securing the availability, irrespective of season. Ukraine has the largest natural gas storage facilities in the region. Germany, France, and Italy are also expected to store up to one-third of their annual natural gas demand, hence driving the market.
- As of 2018, Europe has 113 billion cubic meters of underground storage capacity and the total storage capacity represents 21% of the annual gas consumption in Europe. In coming years, gas storage is likely to be a back-up service for electricity generation, bolstering the market.
- Depleted fields account for around 70% of the region's storage facility. Several underground gas storage facilities are under construction or planned in Italy, Turkey, Germany, the United Kingdom, Bulgaria, and others.
- In 2019, European Union listed out 32 new gas facilities valued at over EUR 60 billion including natural gas storage facilities, for several end-users such as commercial and industrial sector.
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