Global Gas Storage Capacity Rose in 2016: Cedigaz
Paris-based research institute Cedigaz has said that global underground gas storage (UGS) capacity increased by 11bn m3 in 2016. That's despite a wave of closures and mothballings in Europe and the US; last month the UK's large facility at Rough announced its closure, citing poor returns.
As of end-2016, there were 672 UGS facilities in operation in the world, representing a working gas capacity of 424bn m3, or 12% of 2016 world gas consumption. The number of storage facilities decreased (from 680 UGS in 2015), mainly due to closure/mothballing in both the US and Europe.
However, the global working capacity slightly increased, driven by expansions in the former Soviet countries (FSU), the Middle East and China. Europe's storage capacity continued to decline, with working gas capacity decreasing by 5.8bn m3 due to the closure of UGS in Germany, Ireland and the UK. Rough in the UK's temporary closure was confirmed as a permanent one this June, sharply reducing UK capacity, especially its seasonal capacity.
North America has 454 active UGS storages (with 38% of the world's working gas capacity) while Europe has 143, the FSU 48, Asia-Pacific 23, the Middle East 3 and Argentina one. Cedigaz found that Chinese UGS capacity -- which reached 7.4bn m3 working gas capacity in November 2016 -- was significantly lagging behind the country's growth in gas consumption.
Worldwide peak deliverability rates slightly decreased to 7.126bn m3/d at end 2016, down 2.6% from 2015, largely due to closures of European UGS.
Cedigaz estimates that €100bn to €170bn of investment worldwide in UGS will be needed to increase global UGS capacity in line with its forecast rise from 413bn m3 in 2015 to between 547bn m3 and 640bn m3 in 2035 in gas demand. Price details for the full report are available from info@cedigaz.org
Mark Smedley