Natural gas storage tanks are specially designed storage tanks which are used to store natural gas. They are also used for providing delivery capacity to pipeline at peak periods, when the pipeline deliverability gets lowered due to surge in the demand for natural gas worldwide.
Natural gas storage tanks have the ability to store natural gas at very low temperatures of up to −165°C.
Most types of natural gas storage tanks are built and designed to the standards ascribed in the American Petroleum Institute API-650 and API-650 specifications. These API standards prescribe requirements in terms of tank design, fabrication, welding, inspection, and erection.
Key Drivers of Global Natural Gas Storage Tanks Market
Producers and marketers use storage tanks to store gas in case gas prices go high in future. They sell the stored gas when its prices reach high levels and make better profits. Thus, owing to fluctuations in prices of natural gas, the global natural gas storage tanks market is expected to expand significantly during the forecast period.
One of the key driving factors for the global natural gas storage tanks market is the need for meeting regulatory obligations imposed by governments across the world on domestic natural gas supply, as gas storage ensures the reliability of supply to consumers at the lowest cost to some extent
Demand for natural gas has been fluctuating rapidly over the last few years and it is expected to increase significantly, as natural gas would continue to be a key fuel used in the electric power sector as well as the industrial sector. This, in turn, is projected to be a major driving factor for the global natural gas storage tanks market during the forecast period.
For instance, according to a report published by International Energy Outlook, the consumption of natural gas in the industrial sector has increased by an average of 1.7% per year, whereas natural gas consumption in the electric power sector has also increased by an average of 2.2% per year
Natural Gas Storage Tanks Market: Regional Outlook
Based on region, the global natural gas storage tanks market can be classified into North America, Asia Pacific, Europe, Latin America, and Middle East & Africa
North America is likely to hold a leading share of the global natural gas storage tanks market during the forecast period, as underground gas storage tank facilities have been developed significantly over the recent years
Asia Pacific is expected to a rapidly expanding market for natural gas storage tanks during the forecast period, as China has witnessed spectacular rise in its gas demand over the last few years. Also, implementation of the coal-to-gas policy have exposed the lack of investments in the market in China. This has driven the demand for natural gas storage tanks in the country.
Restraints of Global Natural Gas Storage Tanks Market
Growing concerns about CO2 and greenhouse gas (GHG) emissions across the world have shifted the investment toward the renewable energy sector. This technological shift is hindering the natural gas consumption and it is also expected to restrain the global natural gas storage tanks market during the forecast period.
Moreover, advances in the battery storage technology as well as the electric vehicle technology have resulted in slowdown of the oil & gas industry. This, in turn, is estimated to hamper the global natural gas storage tanks market during the forecast period.
In September 2019, Canada’s Natural Gas Innovation Fund (NGIF), in partnership with the project co-funders and supporters including Natural Resources Canada (NRCan), Ford Motor Company, and Linamar Corporation, invested US$ 500,000 in the testing and development of Westport Fuel Systems, a high-performance compressed natural gas (CNG) storage system
In 2018, International Conference on Concrete Engineering and Technology published a technical paper to propose a new construction method for rapid construction of LNG storage tanks by applying a precast concrete (PC) method. This, in turn, would help in lowering the cost incurred for construction of the outer tank of an LNG storage system.
Key Players Operating in Global Market
Some of the major companies operating in the global natural gas storage tanks market are:
