Natural Gas Storage Market Size (2024 - 2029)

The natural gas storage market is anticipated to experience growth driven by the increasing demand for natural gas in various sectors, particularly in Asia-Pacific countries. The market's expansion is supported by the fuel's clean-burning and efficient characteristics, aligning with global low-carbon economy initiatives. Despite challenges such as seasonal demand fluctuations and supply-demand imbalances, the underground storage segment is projected to dominate due to its cost advantages and operational benefits, especially in North America. Opportunities are emerging from research into innovative storage methods, such as chilling salt formations, which could reduce development costs. Europe is expected to witness rapid growth due to its rising reliance on natural gas.

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Market Size of Natural Gas Storage Industry

Natural Gas Storage Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
CAGR 3.50 %
Fastest Growing Market Europe
Largest Market North America

Major Players

Natural Gas Storage Market Major Players

*Disclaimer: Major Players sorted in no particular order

Natural Gas Storage Market Analysis

The global natural gas production is expected to grow at a CAGR of more than 3.5% over the period of 2020-2025. Factors such as increasing demand for natural gas in chemical sector, industrial sector, and transportation sector majorly from Asia-Pacific countries is expected to drive the natural gas storage market during the forecast period. Moreover, the advantages for usage of natural gas as a clean-burning, versatile and efficient fuel for variety of purposes along with global efforts for low-carbon economy is likely to increase the demand for natural gas in the future. However, seasonal and volatile nature of demand, coupled with supply and demand imbalance is expected to hinder the growth of natural gas storage market.

  • Underground storage (UGS) segment is expected to have the largest share in the market, owing to its several advantages over above-ground storage and increasing number of facilities due to low operational and infrastructural cost, led by North America which has highest share of UGS capacity.
  • The research being done by the United States Department of Energy regarding salt formations to be chilled for storing more gas, leading to cheaper development cost is creating opportunity for the market being studied.
  • Europe is expected to be the fastest growing market, with increasing dependency on natural gas as a fuel and to secure natural gas availability irrespective of supply and demand.

Natural Gas Storage Industry Segmentation

The natural gas storage market report include:

Type
Underground Storage
Above-Ground Storage
Geography
North America
Europe
Asia-Pacific
South America
Middle-East and Africa
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Natural Gas Storage Market Size Summary

The natural gas storage market is poised for growth, driven by the increasing demand for natural gas across various sectors such as chemicals, industry, and transportation, particularly in Asia-Pacific regions. The market benefits from the clean-burning and efficient nature of natural gas, aligning with global initiatives towards a low-carbon economy. However, challenges such as seasonal demand fluctuations and supply-demand imbalances may impede market expansion. The underground storage segment is anticipated to dominate the market due to its cost-effectiveness and operational advantages, with North America leading in capacity. Innovations, such as those by the United States Department of Energy in salt formation storage, are expected to further enhance market opportunities.

Europe is projected to be the fastest-growing market, driven by the increasing reliance on natural gas and the need for secure storage infrastructure. The region's underground storage facilities, including depleted reservoirs, salt formations, and aquifers, play a crucial role in balancing supply and demand. The market is moderately fragmented, with key players like John Wood Group PLC, Enbridge Inc., Engie SA, Gazprom PAO, and Uniper SE. As natural gas consumption rises, particularly in Europe, the demand for storage facilities is expected to grow, with several new projects planned across the continent. This trend underscores the importance of natural gas storage in maintaining energy security and supporting electricity generation.

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Natural Gas Storage Market Size - Table of Contents

  1. 1. MARKET OVERVIEW

    1. 1.1 Introduction

    2. 1.2 Market Size and Demand Forecast in USD billion, till 2025

    3. 1.3 Natural Gas Production Forecast, in Billion Cubic Meters, till 2025

    4. 1.4 Recent Trends and Developments

    5. 1.5 Government Policies and Regulations

    6. 1.6 Market Dynamics

      1. 1.6.1 Drivers

      2. 1.6.2 Restraints

    7. 1.7 Supply Chain Analysis

    8. 1.8 Porter's Five Forces Analysis

      1. 1.8.1 Bargaining Power of Suppliers

      2. 1.8.2 Bargaining Power of Consumers

      3. 1.8.3 Threat of New Entrants

      4. 1.8.4 Threat of Substitutes Products and Services

      5. 1.8.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 Type

      1. 2.1.1 Underground Storage

      2. 2.1.2 Above-Ground Storage

    2. 2.2 Geography

      1. 2.2.1 North America

      2. 2.2.2 Europe

      3. 2.2.3 Asia-Pacific

      4. 2.2.4 South America

      5. 2.2.5 Middle-East and Africa

Natural Gas Storage Market Size FAQs

The Natural Gas Storage Market is projected to register a CAGR of greater than 3.5% during the forecast period (2024-2029)

John Wood Group PLC, Enbridge Inc., Engie SA, Gazprom PAO and Uniper SE are the major companies operating in the Natural Gas Storage Market.

Natural Gas Storage Market Report Snapshots

Natural Gas Storage Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)