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Underground Gas Storage: Pillar of Global Energy Security

Highlights from the CEDIGAZ Global Underground Gas Storage 2024 survey

Posted in CEDIGAZ Insights, Underground Gas Storage on

In an era marked by fluctuating energy markets and geopolitical tensions, the importance of underground gas storage (UGS) has never been more pronounced. As the backbone of global gas security, UGS facilities play a critical role in balancing supply and demand, mitigating price volatility, and ensuring a stable energy supply during peak consumption periods. The recent global gas crisis has thrust UGS into the spotlight, prompting accelerated growth and renewed investment in this vital infrastructure.

Accelerated Growth of Underground Gas Storage

By the end of 2023, the global working gas capacity of UGS reached 437 billion cubic meters (bcm), a 2% year-on-year increase—the largest since 2015. This surge is primarily due to significant capacity expansions in China, with additional contributions from Europe, Kazakhstan, and Canada. The number of operational UGS facilities globally stood at 681, with China commissioning five new facilities and Saudi Arabia adding its first. The global peak withdrawal rate also increased by 1.6% to 7,516 million cubic meters per day (mcm/d).

Evolution of Global Working Gas Capacity (2023-2024)

Source: CEDIGAZ – Country indicators database, UGS database

‘Fireside Chats’ series from the 2024 Cedigaz Seminar

Interview with Andrea Qualiano - Head of Green Gas Supply & Gas Supply Portfolio Decarbonization at Edison

Posted in CEDIGAZ Seminar on

At the 2024 Cedigaz seminar, one of the key messages from gas suppliers is the need for a regulation that is more supportive of natural gas. Why is this so important now?

From the point of view of a midstream company, it is very important to have a clear, stable legislative and regulatory framework when it comes to investments that aim to bring affordable energy to end-users. We need to have stability in the long run otherwise some projects can be undermined by sudden regulatory changes.

Indeed, regulation is a key variable to be factored in when drafting or outlining long-term scenarios as it typically supports or undermines the financing of a project.

‘Fireside Chats’ series from the 2024 Cedigaz Seminar

Interview with Maria Sicilia, Chairwoman of the EHB

Posted in CEDIGAZ Seminar, Non classé on
Maria Sicilia, Chairwoman of the EHB
Maria Sicilia, Chairwoman of the EHB

The European Hydrogen Backbone (EHB) initiative brings together 33 energy infrastructure operators in the EU to create an adequate pipeline infrastructure and help develop a competitive low-carbon hydrogen market. How would you describe the progress made since its vision was published in 2020?

There is real progress from the side of the gas industry. TSOs have been pushing for more than 40 concrete projects to qualify as PCIs (Projects of Common Interest). This is not the result of modelling analysis or scenarios, but of on-the-ground vendors’ quotes and pre-feasibility studies. Some of these projects have already taken FID in the Netherlands and in France and the other projects are making the necessary progress.