Leading data and analytics company, GlobalData, expects the US to drive major growth in the North American underground gas storage industry between 2018 and 2022, contributing more working gas storage capacity than any other country in the region.
According to GlobalData’s report, ‘Underground Gas Storage Industry Outlook in North America to 2022’ North America’s underground gas storage capacity is expected to add 20 planned and announced underground gas storage sites with a total working gas capacity of 241.5 billion cubic feet (bcf) by 2022.
The firm further expects the US to add approximately 216.5 bcf of underground gas storage capacity during the forecast period from 17 planned and announced underground gas storage sites. This capital expenditure (capex) will total US$1.2 billion over the next four years.
GlobalData Oil and Gas Analyst, Soorya Tejomoortula, explains that the ever-growing demand for natural gas in the US is driving the growth of the underground gas storage industry in the country.
“The proposed natural gas-fired power plants and the LNG liquefaction terminals are also aiding the underground gas storage industry growth,” says Tejomoortula.
Canada sits closely behind North America in terms of underground gas storage capacity additions and is expected to add around 15 bcf by 2022.
In terms of storage capacity among the upcoming underground gas storage sites, the report states that MoBay Storage Hub and Magnum Gas Storage in the US will lead with 50 bcf and 42 bcf in 2022.
Lastly, GlobalData expects Magnum Gas Storage will lead the new build capex spending during the forecast period with US$350 million, followed by MoBay Storage Hub and Chestnut Ridge with US$239m and US$175m, respectively.
More information on the report ‘Underground Gas Storage Industry Outlook in North America to 2022 – Capacity and Capital Expenditure Forecasts with Details of All Operating and Planned Storage Sites Terminals’ can be found here.