Underground Gas Storage Market to Record Sturdy Growth by 2024
The
rate at which the natural gas is consumed fluctuates from day to day.
The demand of the natural gas is quite high in the winter season as
compared to the summers. The underground gas storage industry has
borrowed much of its technology from oil and gas exploration, gas
distribution and ground water utilization. Underground natural gas
storage consists of a wide network of pipelines, local distribution
companies and producers with an inventory management tool. In order
to cope with the rising demand of energy the back up for the energy
resource has to be maintained. With the rising demand of natural gas
the industry for underground storage industry is growing at a healthy
rate.
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Diminishing
fossil fuel reserves and increasing energy security concerns are the
major drivers for the underground gas storage market. The concerns
regarding energy security plays an important role in the storage
industry as every country is focused on the uninterrupted and
continuous energy supply. Cost of setting processing units and
maintenance costs are the major drivers for the underground gas
storage market. The increasing demand for energy and exploration of
new gas reserves adds new opportunities for the existing and new
market players to invest in the underground gas storage market.
Underground
Gas Storage Market: Segmentation
The
underground gas storage market can be segmented on the basis of type
of storage used for storing gas. Gas can be stored in the depleted
oil or natural gas fields, aquifers and salt caverns. The gas in the
storage facility is stored in the same location where it was
naturally found. Natural gas is usually found in porous rocks locked
up in the pores with a maximum diameter of 0.1 mm between the grain
and the sand stones. Conversion of production fields into storage
fields takes advantage of existing wells and pipeline networks.
Depleted
oil and gas reserves are widely used as underground storage units
because of their availability in abundance. In few areas natural
aquifers are also converted into gas storage facilities. An aquifer
is best suited for gas storage, if the sedimentary rocks are
overlapped by the impermeable rock cap. As the geology of the
aquifers are same as the depleted oil and gas reserves, their use in
gas storage requires greater amount of gas and greater supervision of
injection and withdrawal performance. Salt caverns deliver high
injection and withdrawal rates for the gas storage capacity. Base gas
requirements are generally low in salt caverns as compared to
aquifers.
Majorly
all the of salt cavern storage facilities are constructed in salt
dome formations. The cost of construction of salt caverns is high
when compared to depleted oil and natural gas reserves, but the
ability to perform several injection and withdrawal cycles reduces
the cost associated with per thousand cubic feet of gas injected and
withdrawal.
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Underground
Gas Storage Market: Regional Insights
At
the global level, approximately 688 underground gas storage
facilities are in operation. In the North American region the United
States with 414 underground storage units followed by Canada with 59
storage units. The European region holds the second rank on the list
with 144 underground storage units. The Asia pacific region has 18
underground storage sites.
Key
players in the underground gas storage market are Niska Gas Storage,
Saltville Gas Storage, Floridian Natural Gas Storage Company, LLC,
TransCanada, Gazprom and Enbridge Inc, and others.
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