global-hydrogen-hub global-hydrogen-hub global-hydrogen-hub
European Gas Hub Logo
No Result
View All Result
  • Premium Content
  • Blog
  • Events
  • Industry Links
    • Industry Association
    • Research Institute / Think Tank
    • Regulatory Body
    • Government Body
    • Consultant
    • Gas Prices
  • Videos
  • Other Hubs
    • GLOBAL LNG HUB
    • GLOBAL MARITIME HUB
    • THE COAL HUB
    • GLOBAL HYDROGEN HUB
    • CRITICAL MINERALS HUB
  • FREE TRIAL
  • My account
  • Login
Cart / €0.00

No products in the cart.

  • Premium Content
  • Blog
  • Events
  • Industry Links
    • Industry Association
    • Research Institute / Think Tank
    • Regulatory Body
    • Government Body
    • Consultant
    • Gas Prices
  • Videos
  • Other Hubs
    • GLOBAL LNG HUB
    • GLOBAL MARITIME HUB
    • THE COAL HUB
    • GLOBAL HYDROGEN HUB
    • CRITICAL MINERALS HUB
  • FREE TRIAL
  • My account
  • Login
European-Gas-Hub-Logo
No Result
View All Result
Home Infrastructure

Underground Gas Storage in the World – 2023 Status

CEDIGAZ 2023 status report on Underground Gas Storage (UGS) worldwide highlights significant developments and shifts in the global gas market.

Editor by Editor
1 year ago
Reading Time: 3 mins read
Global-underground-gas- storage-at-the-end -of-2022-by-region
Share on FacebookShare on TwitterShare on Linkedin

2022 witnessed a notable increase in UGS capacity, largely driven by the global gas crisis which emphasized the importance of storage for supply security.

RELATED POSTS

gas-demand

What’s behind the slow down in European gas demand?

1 month ago
European-gas-storage

European gas storage refill season begins

2 months ago
PSV-prices

Ahead of summer 2025, Italian gas storage ia about to face another test

2 months ago

By the end of 2022, the working gas capacity reached 429 billion cubic meters, a 1.3% rise from the previous year, with significant contributions from China and Europe. The peak withdrawal rate also rose by 1.7%.

The storage market remains concentrated, but China’s UGS sees an accelerating growth

The storage market is largely concentrated in a few countries, with the United States, Russia, Ukraine, Canada, and Germany holding 68% of global capacities. However, there’s a growing focus on expanding storage in rapidly developing markets like China and the Middle East.

Depleted fields dominate storage, accounting for 81% of global working gas volumes, while salt caverns, which represents just 8% of global capacity, play a critical role in deliverability, making up for 26% of the global withdrawal rate.

The pipeline of UGS projects has expanded by 20% in 2022 compared to the previous year, indicating a growing recognition of UGS’s role in ensuring security of natural gas supply, balancing markets, and mitigating price volatility.

Currently, 76 storage projects are under construction worldwide, adding 55 billion cubic meters of capacity. Additionally, there are 99 projects in planning stages, promising further growth.

Global underground gas storage at the end of 2022 – by region

Global-underground-gas- storage-at-the-end -of-2022-by-region

The energy crisis, triggered by geopolitical shifts, prompted heightened focus on natural gas security and stability in policies worldwide, including Japan’s proposal for IEA-led international cooperation and Europe’s strategic RePowerEU plan to reduce reliance on Russian fuels.

The global energy crisis, notably triggered by Russia’s invasion of Ukraine, has brought profound changes in the gas market.

The rebalancing of the European market relied heavily on increased LNG exports, particularly from the US, and a reduction in Asian imports, mainly by China.

This shift has led to a more flexible and price-sensitive global LNG trade, but the strong competition between European and Asian LNG buyers and the tense geopolitical context led to unprecedented price levels and volatility.

Policy-wise, governments globally are intensifying their focus on natural gas supply security and market stability. This includes stricter storage regulations and strategic LNG reserves.

To enhance security, stability and sustainability of LNG supply, Japan has proposed to create a new framework for international cooperation among LNG producing and consuming nations led by the IEA. (for more on this, read our recent article entitled ‘From Crisis to Cooperation: Japan’s IEA-Led LNG Stability Framework Initiative’).

Historically high stock levels in major markets ahead of winter 2023/24 indicate a more robust position than in the previous year, although potential supply/demand disruptions remain a concern.

Evolution of EU stock levels (1 Oct. 2020-1 Nov. 2023)

Evolution-of-EU-stock- levels In Europe, the RePowerEU plan, launched in response to Russia’s invasion of Ukraine, includes measures to reduce dependency on Russian fossil fuels and enhance energy security.  As part of this initiative, a new EU regulation mandates that gas storage facilities be filled to at least 80% of their capacity by 1 November 2022, with the requirement increasing to 90% in the following years. In 2022, these storage levels were exceeded, reaching 95% fullness by 1 November.

This trend continued into 2023, with storage levels nearing full capacity by the same date.

Developments in Ukraine, US, China, and the Middle East

Other regions like Ukraine, the US, China, and the Middle East are also seeing significant developments in UGS. Ukraine’s capacity is being used as a “storage bank” by European traders, while the US is managing to increase LNG exports along with stock levels. China’s accelerated storage build-out has nearly doubled its capacity in five years. In the Middle East, countries are expanding storage to meet rising demand in various sectors.

By Sylvie Cornot-Gandolphe, CEDIGAZ


RELATED POSTS

gas-demand

What’s behind the slow down in European gas demand?

1 month ago
European-gas-storage

European gas storage refill season begins

2 months ago
PSV-prices

Ahead of summer 2025, Italian gas storage ia about to face another test

2 months ago
Tags: Cedigazundergrond gas storage
Editor

Editor

Related Posts

gas-demand
Infrastructure

What’s behind the slow down in European gas demand?

1 month ago
European-gas-storage
Gas Prices

European gas storage refill season begins

2 months ago
PSV-prices
Gas Prices

Ahead of summer 2025, Italian gas storage ia about to face another test

2 months ago
Ukraine-gas
Gas Prices

Ukraine gas storage down at record low levels

2 months ago
gas-flexibility
Gas Prices

The value of gas supply flexibility in an increasingly complex and weather-dependent electricity system

3 months ago
Gas-storage
Gas Prices

European gas storage draws surge by nearly 50% yoy

3 months ago
No Result
View All Result

Trending Posts

natural-gas-markets

The growing complexity of natural gas markets

4 weeks ago
European-gas-storage

European gas storage injection surge since end of April

2 weeks ago
LNG-exports

Russia aiming to increase LNG exports by 100bcm by 2030

4 weeks ago
Load More

Recent Post

German-intraday-power-spreads

German intraday power spreads averaged at €125/MWh since the start of the year

5 days ago
European-gas-storage

European gas storage injection surge since end of April

2 weeks ago
power-outage

Spain’s unprecedented power outage demonstrates energy system fragility

3 weeks ago
Load More
Logo

European Gas Hub is an online platform for sharing analysis and information about European natural gas markets more info

Categories

  • European Gas Prices
  • Energy Policy
  • European Gas Infastructure
  • European Gas Storage
  • Coal Market
  • Supply & Demand
  • Gas Supply & Demand
  • LNG
  • European Power Generation
  • Other

Recent Posts

German intraday power spreads averaged at €125/MWh since the start of the year

European gas storage injection surge since end of April

Spain’s unprecedented power outage demonstrates energy system fragility

Energise your Tuesday!

Sign up to receive our weekly newsletter with new European gas market reports, presentations & analysis. Every Tuesday.

Your subscription could not be saved. Please try again.
Your subscription has been successful.

By signing up, I agree to our TOS and Privacy Policy.

© 2020 EuropeanGasHub | All Rights Reserved

No Result
View All Result
  • Premium Content
  • Blog
  • Events
  • Industry Links
    • Industry Association
    • Research Institute / Think Tank
    • Regulatory Body
    • Government Body
    • Consultant
    • Gas Prices
  • Videos
  • Other Hubs
    • GLOBAL LNG HUB
    • GLOBAL MARITIME HUB
    • THE COAL HUB
    • GLOBAL HYDROGEN HUB
    • CRITICAL MINERALS HUB
  • FREE TRIAL
  • My account
  • Login

© 2020 EuropeanGasHub | All Rights Reserved

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.