The US will account for 95% of North America’s new-build underground gas storage capacity between now and 2023, according to GlobalData.
The market intelligence firm’s latest report suggests the continent is expected to add around 20 planned and announced underground gas storage sites over the next four years, making for a total working capacity of 237.5 billion cubic feet (bcf) by 2023.
America is expected to account for roughly 224.5 bcf of this total, with 18 planned and announced projects in the pipeline during the four-year period.
GlobalData oil and gas analyst Arpan Roychowdhury said: “The underground gas storage industry in the US is primarily driven by the growing production and consumption of natural gas.
“The booming shale gas production, coupled with increasing demand from its industrial and power generation sectors, is driving the underground gas storage industry growth in the country.”
Mexico behind US in underground gas storage capacity
GlobalData ranks Mexico as the second-largest contributor to new-build underground gas storage capacity between 2019 and 2023.
The country is projected to add 10 bcf of working gas capacity over the next four years, driven by its Burgos storage site in its northeastern reaches.
It claims Canada accounts for the remainder, with about 3 bcf of working gas capacity expected to come from its Warwick II storage site.
The data and analytics firm also predicts the US will account for more LNG growth than any other country in the world, with a projected addition of roughly 215 mtpa in upcoming liquefaction terminals, while Canada has about 34 mpta in the pipeline.
Ashwin Gupta, another oil and gas analyst at GlobalData, said: “The two North American countries, the US and Canada, will drive the global liquefaction capacity additions due to booming shale gas production.
“The US in particular is adding staggering liquefaction capacity additions, disrupting the global LNG supply chain.”
