China drives global underground gas storage growth, International Gas Union says

In a report published on Monday, the International Gas Union said that China would lead global underground storage expansion by 2025. It will add 6 billion cubic meters (bcm), or working gas volume, to increase its total capacity to 19,8 bcm.

The world's underground gas storage capacity has increased by 10 billion cubic meters since 2022. China, which contributed the largest increase, is now in sixth position, behind United States, who have 138 bcm. Next are Russia, Ukraine and Canada, followed by Germany.

The working gas volume is the amount of gas that can actively be injected and withdrawn into storage facilities in order to meet demand. This does not include the base gas needed to maintain reservoir pressure.

IGU's report stated that while storage capacity in North America, Europe, and Australia saw only slight increases, Asia, mainly due to China's strategic shift from coal, has seen a robust growth in storage.

The report said that "while this expansion is expected in the future, the infrastructure development still lags behind the pace of growing gas consumption in the region."

The industry group said that China and Turkey were developing storages rapidly, while Japan had increased capacity on one site and re-opened another.

IGU stated that regional differences in the development of underground gas storage reflect the maturity and evolution of gas infrastructure. This is shaped largely by changing gas demand.

The report said that the number of underground gas storage facilities in operation worldwide will reach 699 by 2025. Most of these are located in natural gas fields which have been depleted. (Reporting and editing by Emily Chow)

(source: Reuters)