Guest post by Aashi Mishra
Did you know that in 2023, natural gas consumption globally reached almost 4 trillion cubic meters? The humongous production of natural gas requires adequate storage. Gas is widely used in transportation, cooking, heating, and generating electricity. However, a lot of natural gas gets wasted during extraction. For instance, the average rate of natural gas leak rate is assumed to be between 2% to 3.5%.
Furthermore, plenty of market players are harnessing the benefits by compensating for the fluctuating gas consumption on a larger scale. It has been estimated that net profit on natural gas services in June 2024 was almost 9.2%. In this blog, we will understand various aspects associated to the natural gas storage market and types of storage facilities.
Natural gas can be stored for a long period as a commodity and numerous countries are buying much more than they need. Countries are exporting and importing between each other through pipeline networks or tankers. Demand for natural gas is highly fluctuating, however the production is relatively constant.
There are primarily, two types of storage commonly used that are underground and floating. Furthermore, underground storage can be classified as follows:
- Depleted gas reservoirs: It is the most commonly used storage method of natural gas. These are mostly situated close to consumption centers. Here, the field is converted into storage facilities and various companies garner benefits from existing wells and pipeline connections. A data published by the Energy Infrastructure website states that out of 400 active underground storage facilities in the United States, 79% are depleted gas reservoirs.
- Aquifer reservoir: Permeable rock formations act as natural water reservoirs. In various conditions, these are reconditioned and utilized as a natural gas storage avenue. However, aquifers are more expensive than depleted gas reservoirs and are used only in cases where no depleted reservoir is situated nearby. A data published by U.S Energy Information Administration states that in 2021, there were 403,747 aquifers present in the United States.
- Salt caverns: The underground storage caverns are utilized to store large quantities of natural gas. Salt caverns are adequate to store natural gas and allow little escape from the gas until purposely extracted. According to the Department of Transportation, there are almost 36 salt caverns for natural gas present in the US.
Natural Gas Storage Market Analysis:
The Natural Gas Storage Market garnered USD 8.34 billion by the end of the year 2023 and is anticipated to acquire a revenue of USD 14.4 billion by 2036. The growth-bolstering factors for the market are:
- Surge in import and export of natural gas
- Rising demand from the industrial sectors
- Increasing usage for electricity generation
- Rising usage of natural gas as fleet vehicle fuel
- Rising utilization in cooking
Some of the prominent companies in the domain of natural gas storage landscape are Foster Wheeler AG, WorleyParsons Limited, Centrica plc, British Gas Services Limited, Access Gas Services Inc, EON SE, Samsung Heavy Industries Co., Ltd, Chiyoda Corporation, Spectra Energy Corp, and Technip S.A.
Furthermore, Asia Pacific has become one of the prominent growth exhibiting region in the world. For instance, China consumed almost 364 billion cubic meters of natural gas in the year 2022 and became 3rd largest natural gas market. The growth of the market in the region can be attributed to the presence of a large consumer base.
Other than this, the US exports large amounts of natural gas to various countries such as Mexico and Canada. The extreme weather conditions lead to the widespread usage of natural gas for heating purpose. Let us take a glance at natural gas reserves country-wise:
Wrapping up
The above information illustrates that the natural gas storage market holds a plethora of lucrative opportunities of growth. However, for established as well as budding market players, market players must understand the market intricacies. An exhaustive research report helps market players in making sound business decisions. It includes important parameters such as regional analysis, market constraints and drivers, latest trends, revenue prediction, etc. These factors give a competitive edge to the entrepreneurs.
Source: https://www.researchnester.com/reports/natural-gas-storage-market/3487
About the author:
Aashi Mishra is currently working as a content developer with the Research Nester. An electronics engineer by profession, she loves to simplify complex market aspects into comprehensive information. She has experience of 3 years in this domain where she has mastered in tech writing, editing, copywriting, etc.
