PUBLISHER: Grand View Research | PRODUCT CODE: 1224623
PUBLISHER: Grand View Research | PRODUCT CODE: 1224623
The global underground gas storage market size is expected to reach 565.74 BCM by 2030, according to a new report by Grand View Research, Inc., registering a CAGR of 2.5% from 2023 to 2030. The industry is projected to have substantial growth over the estimated period owing to the increasing reliability of gas in residential, commercial, industrial, and transportation applications. The industrial sector consumes underground natural gas as a fuel for power systems, combined heat, process heating, and primarily as a raw material in fertilizer, chemical, and hydrogen production.
With an increase in the production of natural gas, its storage is becoming increasingly important. The depleted gas reservoirs segment was dominant in 2022 and is expected to keep its position over the forecast period. Depleted natural gas reservoirs account for 76% of the world's total natural gas storage volume and are being used for decades. Gas fields are larger in volume and more widely distributed than salt caverns. The rock formation of depleted reservoirs can withstand recurring cycles of pressure rise and drop throughout the process of natural gas injection and gas production.
The discovery of new gas reservoirs provides an opportunity for industry players to explore oil and gas wells, which is likely to have a positive influence on industry growth during the forecast period. Demand for underground gas storage is projected to rise over the forecast period owing to supportive government policies and programs to cut carbon emissions. The increasing investments in research and development of underground hydrogen storage in developed countries, such as the U.S., China, and Russia, are further expected to strengthen industry growth.