Global underground gas storage capacity rose 11bn cm in 2016

As of end-2016, there were 672 underground gas storage (UGS) facilities in operation in the world, representing a working gas capacity of 424bn cm, or 12% of 2016 world gas consumption, according to the latest figures from Cedigaz. The number of storage facilities was slightly lower than the 680 recorded in 2015, mainly due to closure/mothballing of UGS in the US and Europe. However, the global working capacity slightly increased, up by 11 bn cm, driven by expansions in the Commonwealth of Independent States (CIS), the Middle East and China. 

Meanwhile, storage capacity continued its decline in Europe. Working gas capacity decreased by 5.8bn cm due to the closure of storage facilities in Germany, Ireland and the UK. The temporary closure of the Rough depleted field was confirmed as a permanent one in June 2017 sharply reducing UK storage capacity, especially its seasonal storage capacity. Global peak deliverability rates slightly decreased to 7,126mn cm/d as of end 2016, down 2.6% from 2015. The decline is linked with the closure of European UGS.

Top Ten league

As of end 2016, the US was by far the most important country in terms of installed working capacity, with almost 134bn cm out of a global volume of 424bn cm. Together with Russia and Ukraine, with respectively 76bn cm and 32bn cm of working capacity, Canada and Germany (26bn cm and 24bn cm respectively), these five countries concentrate 69% of the worldwide capacities. 

Major changes have occurred since 2010, with The Netherlands, China and Austria entering the Top Ten league. The Netherlands joined the listing in 2015, following expansion of storage sites associated with the Groningen field and the commissioning of a large seasonal field (Bergermeer). China also entered the league in 2015 as several new storage facilities were commissioned in 2014 and 2015, following the policy adopted in 2012 favouring the development of storage. Austria is also among the Top Ten storage-holders thanks to the completion of the Haidach expansion and the commissioning of the 7Fields UGS in 2013. Italy, with 17bn cm of working capacity, remains in the sixth place, while France was outpaced by China in 2016. In terms of deliverability, the US and Russia remain the leading countries with withdrawal capacities of respectively 3,331mn and 784mn cm/d. Germany ranks third with 642mn cm/d. 

The capacity currently under construction is limited. At worldwide level, there are 48 storage projects under construction, adding 25bn cm of working capacity. This includes only 15 new storage sites (12bn cm) and 33 expansions (13bn cm). Again, this is lower than last year’s Cedigaz report (58 projects adding 36bn cm of working capacity) and previous ones. This is partly due to the commissioning of storage facilities in 2016, but also to cancellations of projects. Most of the projects under construction will be completed by 2020/2025. All regions, except Central and South America, participate in the additions to storage capacity currently under construction. It is worth noting that Europe ranks first, but capacity under construction is concentrated in Italy, where the storage regulation is much more favourable than in other European countries. The CIS ranks second with expansions and new facilities built in Russia. The Middle East and Asia-Oceania account for 23% and 18% of the world additions. The shift of storage investment to new emerging and growing gas consuming countries started at the beginning of the 2010s and is expected to dominate the next 20 years. The additions to withdrawal capacity are dominated by Europe, reflecting the focus towards highly flexible storage in the region.