Published Date : Mar 11, 2016
Over the past few years, the natural gas storage market around the globe has gained much momentum. The growing demand for natural gas, the time consuming and expensive nature of their exploration, production, and transportation have resulted in the rising need to develop effective storage solutions. The market is also fueled by the growing concerns over energy security, which in turn have led to the rising demand for natural gas storage.
North America Dominates Global Natural Gas Storage Market
North America and Europe are the dominant markets for natural gas storage and together account for a share of 90 per cent in the global market. The Asia Pacific natural gas storage market is presently in a stage of nascence but is anticipated to expand at the highest CAGR over the next few years owing to a rise in the construction of natural gas storage units in China.
Gazprom Armenia’s US$94 Mn Plan for Natural Gas Storage
Gazprom Russia’s Armenian subsidiary Gazprom Armenia recently announced a US$94.1 mn investment program for the period 2016 to 2018, wherein the firm plans on investing US$23.5 mn this year, another US$27.8 mn in the coming year, and US$42.7 mn in 2018. Over the course of two years, the company plans on setting up two new reservoirs. During the period of 2016 to 2018, the company will also invest US$22.3 mn in the Abovyan underground gas storage facility in Armenia.
Developments such as these are sure to help the natural gas storage market thrive in the coming years. However, the hurdle of high initial investment is a major roadblock for players in the global market.
Consolidated Nature of Vendor Landscape
TransCanada Corp., Foster Wheeler, Gazprom, GDF Suez, Chiyoda Corp., Cardinal Gas Storage Partners, Engie, Samsung SDI, Technip, Enbridge Gas Distribution Inc., Spectra Energy Corp., Niska Gas Storage Partners, E.ON, WorleyParsons, Saipem SpA, Centrica Storage Ltd., and NAFTA are some of the leading players in a highly consolidated natural gas storage market.