Cedigaz: Rise in global UGS capacity to be robust to 2020

Paris-based gas association Cedigaz, in its 2010 survey of global underground gas storage (UGS) capacity, noted that the number of UGS facilities has jumped to 642 from 610, with a working capacity of 333 billion cu m (bcm) in January from 319 bcm in 2006, when the previous survey was published.

Doris Leblond
OGJ Correspondent

PARIS, Apr. 13 -- Paris-based gas association Cedigaz, in its 2010 survey of global underground gas storage (UGS) capacity, noted that the number of UGS facilities has jumped to 642 from 610, with a working capacity of 333 billion cu m (bcm) in January from 319 bcm in 2006, when the previous survey was published.

By 2020, Cedigaz said, according to the projects identified, more than 760 UGS sites could be active worldwide with a total working capacity of 465 bcm.

Cedigaz pointed to several trends that could explain the rapid global UGS development. These include:

• The strong dynamics of the European UGS market, where 127 projects could add 75 bcm of working capacity by 2020 to the current 85.6 bcm level.

• The continuing development of UGS in the US being driven by market-based rates and rapid permitting processes.

• Low gas prices, which are pushing players to inject gas in order to take advantage of future price increases.

Countries with little or no UGS facilities currently are expected to develop their own in the near future, Cedigaz noted. This will happen in Asia and Oceania, the Commonwealth of Independent States, eastern Europe, as well as Iran. In these areas, UGS facilities will mainly be designed to balance seasonal demand and meet winter demand peaks.

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