CEDIGAZ Insights - Page 10

Underground Gas Storage in the World – Part 2: Storage projects

Posted in CEDIGAZ Insights, Underground Gas Storage on

Highlights from the latest update of Cedigaz’ Worldwide UGS Database.

Only 25 bcm of working capacity is under construction

The capacity currently under construction is limited. At worldwide level, there are 48 storage projects[1] under construction adding 25 bcm of working capacity. This includes only 15 new storage sites (12 bcm) and 33 expansions (13 bcm). Again, this is lower than last year’s report (58 projects adding 36 bcm of working capacity) and previous ones. This is partly due to the commissioning of storage facilities in 2016, but also to cancellations of projects. Most of the projects under construction will be completed by 2020/25. All regions, but Central and South America, participate in the additions to storage capacity currently under construction. It is worth noting that Europe ranks first, but capacity under construction is concentrated in Italy, where the storage regulation is much more favorable than in other European countries. The CIS ranks second with expansions and new facilities built in Russia. The Middle East and Asia-Oceania account for 23% and 18% of the world additions. The shift of storage investment to new emerging and growing gas consuming countries started at the beginning of the 2010s and is expected to dominate the next 20 years. The additions to withdrawal capacity are dominated by Europe reflecting the focus towards highly flexible storage in the region.

Underground Gas Storage in the World – Part 1: Current capacity

Posted in CEDIGAZ Insights, Underground Gas Storage on

Highlights from the latest update of Cedigaz’ Worldwide UGS Database.

No significant changes compared with 2015, except in Europe

As of end 2016, there were 672 underground gas storage (UGS) facilities[1] in operation in the world, representing a working gas capacity of 424 billion cubic meters (bcm), or 12% of 2016 world gas consumption. The number of storage facilities has decreased (680 UGS in 2015), mainly due to closure/mothballing of UGS in the United States and Europe. However, the global working capacity has slightly increased (+11 bcm) driven by expansions in the Commonwealth of Independent States (CIS), the Middle East and China. In Europe, storage capacity has continued its decline. Working gas capacity decreased by 5.8 bcm due to the closure of storage facilities in Germany, Ireland and the UK. The temporary closure of the Rough depleted field was confirmed as a permanent one in June 2017. This sharply reduces the UK storage capacity, and especially its seasonal storage capacity.

Does LNG have a long-term future in the United Arab Emirates?

Posted in CEDIGAZ Insights, Country Report, LNG Markets on

UAE production vs consumptionThe United Arab Emirates (UAE) is one of the world’s longest-established LNG exporters. But despite holding the world’s sixth largest gas reserves, LNG imports into the federation increased at an impressive rate since 2010, when the Jebel Ali floating terminal in Dubai started up. With gas representing more than 90% of the power fuel mix, LNG purchases have been key to fill a widening supply deficit in order to match rapidly growing gas-to-power demand. Today, LNG remains at the heart of the UAE’s strategy to meet rising energy consumption and support economic and industrial expansion in times of reduced oil income and budgetary constraints. Cedigaz’s latest report examines the risks and opportunities inherent to this strategy and asks whether it is viable in the medium to longer term.