PUBLISHER: The Business Research Company | PRODUCT CODE: 1927328
PUBLISHER: The Business Research Company | PRODUCT CODE: 1927328
Underground natural gas storage facilities are used to store large volumes of natural gas, which can be withdrawn and distributed during periods of high demand. These facilities help stabilize natural gas prices by preventing sudden spikes caused by demand surges or supply shortages. By releasing stored gas when demand is high, they ensure a consistent market supply and manage price volatility.
The main types of underground natural gas storage include depleted gas reservoirs, salt caverns, aquifers, and other methods. Depleted gas reservoirs are former gas fields that have been emptied of their original contents and repurposed for new gas storage, leveraging their proven capacity and geological stability. These storage facilities can hold various products such as natural gas and hydrogen, and they support several applications, including residential, commercial, and industrial uses.
Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.
Tariffs have influenced the underground natural gas storage market by increasing costs of drilling equipment, compressors, and monitoring technologies. Infrastructure development has been most affected in north america and europe, where imported components play a critical role. Higher tariffs have delayed some expansion projects and increased capital expenditure. However, tariffs have also promoted domestic manufacturing of storage equipment and localized service capabilities.
The underground natural gas storage market research report is one of a series of new reports from The Business Research Company that provides underground natural gas storage market statistics, including underground natural gas storage industry global market size, regional shares, competitors with a underground natural gas storage market share, detailed underground natural gas storage market segments, market trends and opportunities, and any further data you may need to thrive in the underground natural gas storage industry. This underground natural gas storage market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The underground natural gas storage market size has grown strongly in recent years. It will grow from $339.93 billion in 2025 to $358.14 billion in 2026 at a compound annual growth rate (CAGR) of 5.4%. The growth in the historic period can be attributed to seasonal gas demand fluctuations, growth of natural gas consumption, price volatility management needs, expansion of pipeline networks, government energy security policies.
The underground natural gas storage market size is expected to see strong growth in the next few years. It will grow to $436.25 billion in 2030 at a compound annual growth rate (CAGR) of 5.1%. The growth in the forecast period can be attributed to hydrogen blending initiatives, demand for grid balancing, expansion of LNG infrastructure, decarbonization transition needs, digital monitoring of storage assets. Major trends in the forecast period include rising investment in energy storage infrastructure, growing use of salt cavern storage facilities, expansion of strategic gas reserves, increasing integration with smart grid systems, higher focus on supply security and reliability.
The growing production of natural gas is anticipated to drive the expansion of the underground natural gas storage market in the future. Natural gas primarily consists of methane (CH4), along with small amounts of other hydrocarbons like ethane, propane, and butane, which are viewed as cleaner alternatives to other fossil fuels. Several factors, such as the shift to cleaner energy, industrial growth, and the need for energy security, are fueling the rising demand for natural gas. Underground storage helps manage natural gas supply fluctuations by storing excess gas during periods of low demand and releasing it during high-demand peaks, ensuring price stability and a reliable supply. Additionally, it aids in maintaining grid stability and supports renewable energy integration by offering backup when renewable power generation is insufficient. For example, in September 2024, the U.S. Energy Information Administration (EIA) reported that U.S. dry natural gas production reached 37.8 trillion cubic feet (Tcf) in 2023, or 103.6 billion cubic feet per day (Bcf/d), marking a 4.3% increase from the 2022 production of 99.3 Bcf/d. As a result, the growing production of natural gas is expected to fuel the growth of the underground natural gas storage market.
Leading companies in the underground natural gas storage sector are focusing on developing advanced solutions, such as the hydrogen storage salt caverns initiative, to enhance energy security and lower carbon emissions. This initiative aims to leverage the unique properties of salt deposits to store hydrogen securely and efficiently. For instance, in March 2024, the European Consortium, a UK-based association of 17 partners led by Storengy, a UK-based natural gas storage company, launched the FrHyGe project. Funded by the European Union's Clean Hydrogen Partnership, the project has a budget of €43 million ($46.91 million) and aims to validate large-scale underground hydrogen storage in salt caverns. The project plans to build an industrial prototype in Manosque, France, and explore replication in Harsefeld, Germany, with potential applications across Europe. Key objectives include converting natural gas or brine salt caverns into hydrogen storage facilities, demonstrating the capability to inject and withdraw 100 metric tons of hydrogen over cycles ranging from one hour to one week, exploring market penetration and supply chains, and planning for replication at other European sites. Additionally, the project will assess environmental impacts, safety criteria, and regulatory requirements ahead of deployment on the GeoH2 (Manosque) and SaltHy (Harsefeld) projects.
In January 2024, Williams, a US-based oil and gas company, acquired a portfolio of natural gas storage assets from Hartree Partners LP for $1.95 billion. This acquisition included six underground storage facilities in Louisiana and Mississippi with a combined capacity of 115 billion cubic feet (Bcf), as well as 230 miles of gas transmission pipelines and 30 pipeline interconnects, connecting to key markets including LNG and Transco. Hartree Partners LP is a US-based company that specializes in underground natural gas storage facilities.
Major companies operating in the underground natural gas storage market are Exxon Mobil Corporation, Equinor ASA, Uniper Energy Storage GmbH, Gazprom PJSC, Enbridge Inc., ONEOK, Inc., Sempra Energy, TC Energy Corporation, The Williams Companies, Inc., National Joint Stock Company Naftogaz of Ukraine, National Fuel Gas Company, China National Petroleum Corporation, Snam S.p.A., ENGIE SA, E.ON SE, Centrica plc, Kinder Morgan, Inc., Dominion Energy, Inc., Polskie Gornictwo Naftowe i Gazownictwo S.A., VNG-Verbundnetz Gas AG
Europe was the largest region in the underground natural gas market in 2025. The regions covered in the underground natural gas storage market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
The countries covered in the underground natural gas storage market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain
The underground natural gas storage market consists of revenues earned by entities by providing services such as seasonal supply balancing, operational flexibility, strategic reserve, and emergency backup. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Underground Natural Gas Storage Market Global Report 2026 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses underground natural gas storage market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for underground natural gas storage ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The underground natural gas storage market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
Added Benefits available all on all list-price licence purchases, to be claimed at time of purchase. Customisations within report scope and limited to 20% of content and consultant support time limited to 8 hours.