US Underground Natural Gas Storage Market to Grow at 0.87% through 2020
Consistent increase in natural gas consumption in the electricity generation and industrial sectors, and increasing production owing to the shale revolution, to drive the natural gas storage market in the United States
According to a recently published TechSci Research report “United States Natural Gas Storage Market Forecast and Opportunities, 2020”, the underground natural gas storage market in the US is projected to register a CAGR of 0.87% during 2015-20, in volume terms. Although, the market has reached a state of equilibrium, a significant increase in the production owing to the shale revolution, is expected to drive growth in the market. Additionally, the natural gas consumption is continuously increasing, which would further boost the market.
United States natural gas storage market is expected to renew growth, due to increasing natural gas production and consumption. While, production is expanding owing to the shale revolution, the demand for natural gas is also rising given the increased consumption in the electricity generation industry. However, demand from various sectors has been erratic during the past few years, and it has become difficult to gauge demand for a given period. This has resulted in demand for natural gas storage facilities, in order to have access to gas as and when required.
In 2014, the total natural gas storage volume was 6.63 Tcf, which is expected to grow further during the forecast period, owing to increasing natural gas production. The rise in natural gas production is, primarily, on account of the shale reserves. The production from shale reserves served 37% of the natural gas consumption in the US in 2014. Increase in production has resulted in higher injections, narrowing the natural gas storage deficit. Although, residential sectors are estimated to decrease their natural gas usage, the lowering temperature suggests a contradictory trend.
“The demand for natural gas in the US is rising due to increasing consumption by electricity-generating and industrial sectors. In addition, the increase in production of natural gas in the country, mainly on account of shale reserves has allowed injection rates to pick up, consequently reducing the storage deficit. This trend is expected to continue over the next few years, restoring growth in the natural gas storage market in the US.” said Mr. Sanat Kumar, Research Manager with TechSci Research, a research based global management consulting firm.
“United States Natural Gas Storage Market Forecast and Opportunities, 2020” has evaluated the future growth potential of natural gas storage market in the US and provides statistics and information on market structure, size, share and future growth. The report is intended to provide cutting-edge market intelligence and help decision makers to take sound investment evaluation. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges and opportunities present in the US natural gas storage market.