Natural Gas Storage Tanks Market

Natural Gas Storage Tanks Market Size (2024-2029):

The Global Natural Gas Storage Tanks Market was valued at USD 21.27 billion in 2023 and is predicted to reach USD 27.18 billion in 2029, at a CAGR of 5.02% over a foreseen period of 2024-2029.

Natural gas storage plays a critical role in managing supply reliability to meet consumer calls. The use of natural gas for power generation, space heating, and transportation is escalating, resulting in the strong adoption of natural gas storage. In addition, the positive impact of natural gas on air quality and low carbon dioxide emissions are also driving its call around the world. Natural gas storage tanks are specially designed storage tanks employed to store natural gas. They are also employed to provide pipeline delivery capacity during peak periods when pipeline delivery capacity is reduced due to escalating calls for natural gas around the world. Natural gas storage tanks have the ability to store natural gas at very low temperatures down to −165 ° C. Most types of natural gas storage tanks market are built and designed in accordance with the standards assigned in the Specifications API-650 and API-650 from the American Petroleum Institute. These API standards prescribe requirements for the design, manufacture, welding, inspection, and assembly of tanks.

Market Trends:

The global natural gas industry is predicted to continue to grow at a high rate in 2021 and is predicted to reach new heights in international consumption and trade. Natural gas storage has been in strong call thanks to an abundant supply, supporting the competitiveness of gas. The worldwide natural gas trade is facilitated by factors such as market deregulation, the creation of shopping centers, and the expansion of financial derivatives. In 2021, natural gas continued to be profitable, contributing to worldwide energy security and reducing air pollution and emissions.

Market Drivers:

Producers and traders use storage tanks to store gas in case gas prices rise in the future. They sell the stored gas when its prices reach high levels and they make better profits. Thus, due to fluctuations in natural gas prices, the worldwide market for natural gas storage tanks market is predicted to experience significant expansion during the foreseen period. One of the key drivers in the worldwide market for natural gas storage tanks is the need to comply with the regulatory obligations imposed by governments around the world on the domestic supply of natural gas, as gas storage guarantees reliability. of gas. Supply to consumers at the lowest cost up to a point. Natural gas has maintained the dominant position in the worldwide use and consumption of primary energy. Abundant natural gas resources and robust production are predicted to contribute to natural gas's strong competitive position among other resources. Worldwide consumption of natural gas for industrial use is predicted to increase by an average of xx% per year.

Market Restraints:

Growing concern about CO2 and greenhouse gas (GHG) emissions around the world has shifted investment into the renewable energy sector. This technological change is hampering natural gas consumption and is also predicted to restrict the worldwide market for natural gas storage tanks market during the foreseen period.

Market Opportunities:

The call for natural gas has fluctuated rapidly in recent years and is predicted to increase significantly, as natural gas remains a key fuel employed in the electric power sector, as well as in the industrial sector. This, in turn, is predicted to be a determining factor for the worldwide market for natural gas storage tanks during the foreseen period. Natural gas consumption in the electric power sector is predicted to increase by xx% / year, from 2022 - 2027. Furthermore, the industrial and electric sectors together are predicted to account for more than 73% of the total increase in world natural gas consumption. Additionally, government regulations favoring low-carbon fuels over fossil fuels and technological advancements associated with a growing awareness of natural gas as a clean fuel are among the main drivers of expansion in the worldwide market for natural gas storage tanks market.

Market Challenges:

Advances in battery storage technology, as well as in electric vehicle technology, have caused a recession in the oil and gas industry. This, in turn, is estimated to hamper the worldwide market for natural gas storage tanks market during the foreseen period.

NATURAL GAS STORAGE TANKS MARKET REPORT COVERAGE:

Market Segmentation:

Natural Gas Storage Tanks Market - By Type:

• Above Ground
• Under Ground

Underground natural gas storage is predicted to account for an xx% share of the worldwide market for natural gas storage tanks. The underground storage of natural gas has become an essential part of the energy supply of European and North American countries. Continued and stable production in the face of volatile consumption and call is predicted to drive market expansion. The underground storage (UGS) segment has the largest market share due to its many advantages over above-ground storage and low infrastructure and operating cost. The underground consumption of natural gas is characterized mainly by seasonal fluctuations to reduce load peaks and ensure the flexibility and reliability of gas supplies, and special compensation facilities.

Natural Gas Storage Tanks Market - By Storage Type:

• Depleted Gas Reservoir
• Salt Cavern
• Aquifer Reservoir

The depleted reservoir segment took the dominant position in 2021. It is one of the oldest and most important forms of gas storage. The depleted reservoirs have already employed all of their recoverable natural gas. The depleted tank is mainly employed for gas storage as they have an existing infrastructure for gas storage.

Market Regional Analysis:

• North America 
• Europe 
• Asia Pacific
• Latin America 
• Middle East & Africa 

North America is likely to have a leading share of the worldwide natural gas storage tank market during the foreseen period, as underground gas storage facilities have grown significantly in recent years. Asia-Pacific is predicted to become a rapidly expanding market for natural gas storage tanks market during the foreseen period, as China has seen a dramatic increase in gas call in recent years. Furthermore, the implementation of the coal-to-gas policy revealed the lack of investment in the Chinese market. This has driven the call for natural gas storage tanks in the country. North America accounted for the main market share of over 40% in 2021.

It is predicted to maintain its leadership position due to increased exploration and production activity in the region, coupled with growing seasonal calls. of natural gas. Asia-Pacific is predicted to record the fastest CAGR between 2021 and 2026 due to escalating call from end-use industries. China and India are among the largest markets in this region due to the rapid expansion of end applications in these countries. Many economies with lower local natural gas producers use natural gas storage to meet the call. These countries include Korea, Taipei, Indonesia, and Malaysia. All of these factors are predicted to drive market expansion in the Asia-Pacific region.

Impact of Covid-19 on the Worldwide Natural Gas Storage Tanks Market:

The natural gas call is less sensitive to COVID-19 in the short term than oil, due to its limited exposure to the transportation sector. Although the call for natural gas in the electricity sector is affected, the loss of commercial and industrial electricity call is partly transferred to residential uses. However, the call for natural gas could decline further as the year progresses due to lower call in the energy and industrial sectors. The future call will depend on how industrial uses of natural gas are affected, the short-term and long-term effects of investment reductions in the natural gas sector, and the extent to which government policies aim to boost gas transitions. Clean air and energy will encourage fuel switching and boost funds for energy system integration. This can be done through the technologies provided by natural gas, green gas, hydrogen, and carbon dioxide solutions. Any results for these criteria will depend on the duration of the COVID-19 pandemic, the speed of the economic recovery, and how well the government's stimulus plans incorporate clean air and political goals for energy transitions.

Market Key Players:

Some of the major companies operating in the global Natural Gas Storage Tanks Market are

1. McDermott
2. Fisher Tank Company
3. Paul Mueller Company
4. Chart Industries
5. Highland Tank & Manufacturing Company, Inc.
6. VINCI Construction Grands Projects
7. Cryolor
8. Corban Energy Group
9. United Industries Group, Inc.
10. Samuel, Son & Co.
11. BNH Gas Tanks
12. CST Industries
13. Mitsubishi Heavy Industries, Ltd
14. Waterford Tank and Fabrication, Faubion Tank

Market Recent Developments:

• China launches small-scale LNG exports to Cambodia. For close to twenty years, China has employed LNG containers to supply end-users outside the pipeline system, offer emergency spike reduction, and very recently import small volumes from the international industry.
• A new refrigerated storage tank now in service at an ethylene export terminal on the US Gulf of Mexico coast, jointly owned by Enterprise Products Partners and UK liquefied gas carrier Navigator, will allow the facility to load bigger ships. quickly and reach a capacity of 1 million tons per year.