Natural Gas Storage Market to Grow with a CAGR of 6.19% through 2028
Increasing demand for natural gas and Technological
advancements are likely to drive the market in the forecast period.
According to TechSci Research report, “Above Ground
Natural Gas Storage Market – Global Industry Size, Share,
Trends, Competition Forecast & Opportunities, 2028”, the Global
Above Ground Natural Gas Storage Market stood at USD 179.08 billion in 2022 and
is anticipated to grow with a CAGR of 6.19% in the forecast period. One of the key drivers of the
global Above Ground Natural Gas Storage market is the continuous growth in
natural gas demand and evolving supply dynamics. Natural gas has gained
prominence as a versatile and relatively clean-burning fossil fuel, used for
electricity generation, heating, industrial processes, and as a transportation
fuel. As energy needs increase globally, driven by population growth,
urbanization, and industrialization, the demand for natural gas remains on an
upward trajectory. Natural gas storage facilities, particularly above ground
storage, play a pivotal role in addressing the dynamics of supply and demand.
They allow for the accumulation of excess natural gas during periods of low
demand, such as the summer months when heating requirements are minimal. This
surplus gas can then be withdrawn during peak demand seasons, such as the
winter, ensuring a reliable and continuous supply of natural gas.
Furthermore, changes in supply dynamics,
including the growth of shale gas production and the emergence of liquefied
natural gas (LNG) as a global commodity, have added complexity to the natural
gas market. Above ground storage facilities offer flexibility in accommodating
shifts in supply sources and can serve as crucial points for the distribution
and transportation of LNG. As natural gas continues to be a vital component of
the global energy mix, the demand for above ground storage facilities is
expected to persist and grow, making them a key driver in the natural gas
storage market.
Energy security and the need for
resilient energy infrastructure are driving factors in the global Above Ground
Natural Gas Storage market. Governments and energy stakeholders recognize the
critical role that natural gas storage facilities play in ensuring a stable and
secure energy supply, particularly during emergencies and supply disruptions. Energy
security involves safeguarding the availability and reliability of energy
resources, reducing vulnerability to supply interruptions, and minimizing the impact
of unforeseen events. Above ground natural gas storage provides a strategic
means of achieving these goals by acting as a reserve for maintaining gas
supply during crises. Storage facilities are essential for responding to
various scenarios, such as extreme weather events, geopolitical tensions
affecting gas pipelines, or sudden fluctuations in gas demand. By stockpiling
natural gas in above ground storage tanks during periods of surplus and
releasing it during emergencies or peak demand, energy security is enhanced. Resilience
in energy infrastructure is another crucial driver. Aging infrastructure,
cybersecurity threats, and the need for modernization have underscored the
importance of maintaining robust and adaptable energy systems. Above ground storage
facilities, when well-maintained and equipped with advanced safety and security
measures, contribute to the resilience of the overall natural gas supply chain.
Governments and regulatory bodies often prioritize energy security and
infrastructure resilience through policies that encourage the development and
maintenance of natural gas storage capacity. As a result, the Above Ground
Natural Gas Storage market is driven by the imperative to bolster energy
security and ensure the uninterrupted supply of natural gas, especially in
times of crisis or uncertainty.
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Above Ground Natural Gas Storage Market.”
The Global Above Ground Natural Gas Storage Market is
segmented into location, application and region. Based on location, The Urban segment had the
largest market share in 2022 & expected to maintain it in the forecast
period. Urban centers are characterized by dense populations, extensive
commercial and industrial activities, and a high demand for energy, including
natural gas. These areas require a reliable and continuous supply of natural
gas to meet the heating, electricity generation, and industrial process needs
of residents and businesses. Locating above ground natural gas storage
facilities in urban areas ensures proximity to end-users. This proximity
minimizes transportation costs and transmission losses, allowing for more
efficient and cost-effective gas distribution. It also enables a quick response
to fluctuations in demand, which is crucial in urban settings where energy
consumption can vary significantly. Urban areas are often critical hubs for
economic and social activities. Ensuring a stable energy supply is paramount
for maintaining the functioning of critical infrastructure, such as hospitals,
data centers, transportation systems, and emergency services. Above ground
storage facilities in urban locations enhance energy resilience by providing a
readily available gas supply during emergencies or supply disruptions. Urban
areas are subject to stringent safety and environmental regulations. Above
ground storage facilities, when designed and operated in compliance with these
regulations, can provide a higher level of safety assurance compared to underground
storage options. Governments and regulatory bodies may encourage above ground
storage in urban areas to ensure compliance with safety standards. Urban areas
have well-developed transportation and utility infrastructure, making it easier
to establish and maintain above ground storage facilities. These areas are
often served by pipelines, distribution networks, and roads, facilitating the
transportation and installation of storage equipment. Above ground storage in
urban locations can play a crucial role in demand response strategies. It
allows for quick injections and withdrawals of natural gas to respond to sudden
increases in demand, especially during peak consumption periods in cold
weather. This flexibility contributes to grid stability and ensures a reliable
gas supply. Urban areas experience daily fluctuations in gas demand due to
residential heating, commercial activities, and industrial processes. Above
ground storage facilities can help balance gas supply by absorbing excess gas
during low-demand periods and releasing it during peak demand, contributing to
stable gas prices and uninterrupted supply.
Based on application, The Commercial segment had the
largest market share in 2022 and is projected to experience rapid growth during
the forecast period. The commercial sector includes a wide range of industries
such as manufacturing, hospitality, retail, and healthcare, each with diverse
natural gas usage patterns. These industries often require natural gas for
heating, power generation, hot water supply, cooking, and various industrial
processes. The versatility of natural gas makes it a preferred energy source
for meeting the diverse needs of these businesses. Commercial enterprises place
a premium on a reliable and uninterrupted energy supply to ensure smooth
operations. Natural gas storage facilities enable businesses to maintain a
consistent energy supply, regardless of fluctuations in gas production or
delivery. This reliability is particularly crucial for critical operations,
such as hospitals, hotels, and manufacturing plants. Some commercial sectors, like the hospitality
industry, experience pronounced seasonal variations in energy demand. For
instance, hotels and resorts may require more natural gas for heating during
the winter months and cooling during the summer. Natural gas storage allows
businesses to stockpile gas during periods of low demand and access it when demand
surges. Businesses in the commercial sector are often sensitive to energy
costs. Natural gas is frequently chosen for its cost-effectiveness, and storage
facilities enable businesses to take advantage of favorable market prices by
purchasing and storing gas during periods of lower prices. Natural gas is
considered a cleaner-burning fossil fuel compared to coal and oil. Many
commercial enterprises are conscious of their environmental impact and opt for
natural gas as an environmentally friendly energy source.
Major companies operating in the Global Above Ground
Natural Gas Storage Market are:
- PJSC
Gazprom
- ExxonMobil
Corporation
- China
National Petroleum Corporation
- Shell plc
- Chevron
Corporation
- TotalEnergies
SE
- Saudi
Aramco
- PJSC
Lukoil
- Engie
Group
- Uniper SE
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“The Global Above Ground Natural Gas Storage Market is
expected to rise in the upcoming years and register a significant CAGR during
the forecast period. The
global demand for natural gas is expected to grow significantly in the coming
years, due to population growth and economic development. This is leading to an
increase in the need for natural gas storage. Governments around the world are
providing financial and regulatory support to promote the development of
natural gas storage facilities. This is helping to reduce the cost of
developing new natural gas storage facilities and making them more attractive
to investors. Also, Technological advancements in natural gas storage
technology are making natural gas storage facilities more efficient and
cost-effective. For example, new storage methods and advanced control systems
are helping to improve the efficiency of natural gas storage facilities. Therefore, the
market of Natural Gas Storage is expected to boost in the upcoming years.,”
said Mr. Karan Chechi, Research Director with TechSci Research, a
research-based management consulting firm.
“Natural Gas Storage Market - Global Industry
Size, Share, Trends, Opportunity, and Forecast, 2018-2028 Segmented By Location
(Urban, Rural, Others), By Application (Residential, Commercial, Others), By
Region, By Competition”, has evaluated the future growth potential of Global
Above Ground Natural Gas Storage Market and provides statistics &
information on market size, structure and future market growth. The report
intends to provide cutting-edge market intelligence and help decision-makers make
sound investment decisions., The report also identifies and analyzes the
emerging trends along with essential drivers, challenges, and opportunities in the
Global Above Ground Natural Gas Storage Market.
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