Renewables
Global underground gas storage market projected to expand by 2035
According to an IndexBox report, the global underground gas storage market is forecast to grow at a compound annual growth rate of 2.8% through 2035, supported by rising LNG imports and renewable integration.
Key points
- Global working gas capacity is set to expand, reaching a market index of 132 by 2035 with a 2025 baseline of 100.
- Asia-Pacific is expected to experience the fastest regional growth driven by new LNG terminals and strategic storage initiatives.
- Strategic reserves and peak shaving remain critical segments as governments and utilities prioritize energy security.
Market outlook and drivers
According to an IndexBox report, the global underground gas storage sector is navigating a period of strategic reassessment as energy systems focus on flexibility and supply resilience. The industry is projected to expand at a compound annual growth rate of 2.8% from 2026 to 2035, bringing the market index to 132 relative to a 2025 baseline of 100.
Market expansion is underpinned by volatile liquefied natural gas trade flows and the rising penetration of intermittent renewable energy sources. While North American and European markets remain relatively mature, new infrastructure investments and demand growth are shifting towards the Asia-Pacific region and other import-reliant territories.
Segment dynamics
Storage applications are categorized into strategic reserves, peak shaving, trading and arbitrage, pipeline system balancing, and seasonal supply cushions. Strategic reserves are largely dictated by government policies intended to protect against supply disruptions and geopolitical events. Regulatory mandates, such as the European Union requirement for 90 percent storage filling levels prior to winter, continue to drive non-cyclical demand for storage operators.
Meanwhile, peak shaving and pipeline balancing facilities maintain steady demand, particularly in regions managing short-term load variations and grid pressures. Trading and arbitrage segments benefit from price differentials across global gas hubs, supported by the ongoing globalization of LNG trade.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Renewables are the fastest-growing part of the world’s energy system. The COP28 goal is to triple capacity by 2030, and solar mini-grids are the fastest route to power for millions of people without electricity.
27.8% of electricity in the world was renewable in 2021Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
