Product Code: 48312
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.
Key Market Trends
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.
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.
The natural gas storage market is moderately fragmented. Some of the key players are John Wood Group PLC, Enbridge Inc., Engie SA, Gazprom PAO, and Uniper SE.
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Table of Contents
- 1.1 Scope of the Study
- 1.2 Market Definition
- 1.3 Study Assumptions
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET OVERVIEW
- 4.1 Introduction
- 4.2 Market Size and Demand Forecast in USD billion, till 2025
- 4.3 Natural Gas Production Forecast, in Billion Cubic Meters, till 2025
- 4.4 Recent Trends and Developments
- 4.5 Government Policies and Regulations
- 4.6 Market Dynamics
- 4.6.1 Drivers
- 4.6.2 Restraints
- 4.7 Supply Chain Analysis
- 4.8 Porter's Five Forces Analysis
- 4.8.1 Bargaining Power of Suppliers
- 4.8.2 Bargaining Power of Consumers
- 4.8.3 Threat of New Entrants
- 4.8.4 Threat of Substitutes Products and Services
- 4.8.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION
- 5.1 Type
- 5.1.1 Underground Storage
- 5.1.2 Above-Ground Storage
- 5.2 Geography
- 5.2.1 North America
- 5.2.2 Europe
- 5.2.3 Asia-Pacific
- 5.2.4 South America
- 5.2.5 Middle-East and Africa
6 COMPETITIVE LANDSCAPE
- 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
- 6.2 Strategies Adopted by Leading Players
- 6.3 Company Profiles
- 6.3.1 China National Petroleum Corporation
- 6.3.2 Chiyoda Corporation
- 6.3.3 Costain Group PLC
- 6.3.4 Enbridge Inc.
- 6.3.5 Engie SA
- 6.3.6 Gazprom PAO
- 6.3.7 John Wood Group PLC
- 6.3.8 Koninklijke Vopak N.V.
- 6.3.9 NAFTA a.s.
- 6.3.10 Uniper SE
7 MARKET OPPORTUNITIES AND FUTURE TRENDS