Published Date : Feb 05, 2016
With advancements in the above-ground natural gas storage facilities and underground natural gas storage facilities, the demand for natural gas is expected to increase in the years to come. Growing energy security concerns, favorable government regulations, and increasing demand for natural gas are some of the factors expected to propel the global natural gas storage market.
As natural gas storage facilities offer energy security and insurance against natural disasters, unforeseen accidents, and other events, they have been increasingly used over the past few years. Natural gas is highest used during winters as it is used for electricity generation and for heating purposes. Stored natural gas makes sure that there is essential supply in summers to meet the increasing demand at the time of winters. Currently, the leading players in the global natural gas storage market are focusing on new storage technologies and techniques to create growth opportunities in the market.
Factors affecting the Growth of Global Demand for Natural Gas Storage
Fluctuating natural gas prices is a challenge for the leading players in the global natural gas storage market to plan production so as to cope up with the increasing demand. High capital requirements will restrict the expansion of the global natural gas storage market in the next few years.
Going ahead, the production of natural gas is expected to increase due to the growing demand of shale gas and hydraulic fracking. With mergers and acquisitions the leading players are planning to cover the untapped market by increasing their production and storage of natural gas.