The working gas capacity in the global underground gas storage industry is expected to grow by 16.2% with 2.9 trillion cubic feet (tcf) of capacity estimated to be added by 2020, according to a report by GlobalData.
Titled ‘Global Capacity and Capital Expenditure Outlook for Underground Gas Storage – Russia to Drive Global Capacity Growth’, the report states that the Middle East region will witness the highest growth in total working gas storage capacity additions. With a projected growth of 49.7% the region will be followed by Europe (25.2%) and the Former Soviet Union (FSU) (24%).
Capex spending on underground storage sites will be the highest in Europe by 2020 with an estimated spending of $28.5 billion, representing 39% of the total global capex spending. The other top regions in this segment will be the FSU and the Middle East with 29.4% and 26.8% of the capex spending respectively.
In the FSU, Russia will lead in the addition of underground gas storages with 26.9% of the total capital expenditure being spent on new underground gas storages. The country is expected to increase its working gas capacity to 1.1tcf by 2020, with an investment of $19.7 billion.
The UK and Italy will add the most underground gas storages in Europe and are expected to increase their working gas capacity to 625.4 billion cubic feet (bcf) by 2020. The two countries are projected to spend approximately $28.2 billion towards this.
The report further mentions that Iran and Turkey will lead the Middle East region in addition of underground gas storages by increasing their working gas capacity to 406.6bcf with an investment of $26.8 billion.
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By GlobalDataA total capex of roughly $73 billion is forecasted to be invested in the construction of new underground gas storage sites by 2020.
The growth in the working gas capacity will be headed by Gazprom and Bendis Enerji Üretim with an estimated capex spending of $21.8 billion and $10.9 billion respectively on the construction of new gas storage sites.
