Italy will drive the majority of the growth in the underground gas storage industry in Europe between 2018 and 2022, contributing more underground gas storage capacity than any other country, with a capital expenditure (capex) totaling to US$3.7 bn, according to GlobalData a leading data and analytics company.
The company’s report: 'Underground Gas Storage Industry Outlook in Europe to 2022 – Capacity and Capital Expenditure Forecasts with Details of All Operating and Planned Storage Sites Terminals' reveals that Europe’s underground gas storage capacity is expected to add 47 planned and announced underground gas storage sites, with a total working gas capacity of 666.5 billion cubic feet (bcf) by 2022.
Soorya Tejomoortula, Oil & Gas Analyst at GlobalData, comments: “Italy is developing 16 planned and announced underground gas storage sites to meet its season variations in demand. The country plans to replace coal with natural gas for power generation by 2025, which will further drive natural gas demand in the country. Capital expenditure (capex) totals US$3.7 bn over the next four years.”
GlobalData identifies the UK as the second highest in Europe in terms of underground gas storage capacity additions. The country is expected to add about 127 bcf by 2022. The country has planned investment of US$3.8 bn to be spent on nine upcoming sites during the 2018 – 2022 period.
In terms of storage capacity, among the upcoming underground gas storage sites, Cornegliano in Italy will lead with 83 bcf in 2022.
In terms of new build capex spending during the forecast period, Gateway site in the UK will lead with US$942 mil Preesall site in the UK and Cugno Le Macine I site in Italy will follow with US$842 mil and US$685 mil, respectively.
