A Review of the Nigerian Energy Industry

U.S. will drive underground gas storage industry growth in North America

14 January 2019, Sweetcrude, Lagos — The US will drive growth in the underground gas storage industry in North America between 2018 and 2022, contributing more working gas storage capacity than any other country in the region,

This was disclosed by GlobalData, a leading data, and analytics company, titled ‘Underground Gas Storage Industry Outlook in North America to 2022 – Capacity and Capital Expenditure Forecasts Which Details all Operating and Planned Storage Sites Terminals’.

The company’s report reveals that 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 US is expected to add around 216.5 bcf of underground gas storage capacity during the forecast period from 17 planned and announced underground gas storage sites. Capital expenditure (capex) totals US$1.2bn over the next four years.

Soorya Tejomoortula, Oil & Gas Analyst at GlobalData, comments: “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.”

GlobalData identifies Canada as the second highest in North America in terms of underground gas storage capacity additions.

The country is expected to add around 15 bcf by 2022 and has planned investment of US$337m to be spent on two upcoming sites during the forecast period.

The report also states that in terms of storage capacity among the upcoming underground gas storage sites, MoBay Storage Hub and Magnum Gas Storage in the US will lead with 50 bcf and 42 bcf respectively, in 2022.

In terms of new build capex spending during the forecast period, Magnum Gas Storage will lead with US$350m. MoBay Storage Hub and Chestnut Ridge follow with US$239m and US$175m, respectively.

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