09 Jan 2019
Posted in Oil & Gas
Russia will drive underground gas storage industry growth in Former Soviet Union, says GlobalData
Russia is expected to be the major contributor to the growth of the underground working gas storage capacity in the Former Soviet Union (FSU) between 2018 and 2022, accounting for around 92% of the total region’s growth, according to GlobalData, a leading data and analytics company.
The company’s report: ‘Underground Gas Storage Industry Outlook in Former Soviet Union to 2022 – Capacity and Capital Expenditure Forecasts with Details of All Operating and Planned Storage Sites’ reveals that the FSU is expected to have 13 planned underground gas storage sites with a total working gas capacity of 956 billion cubic feet (bcf) by 2022. The region’s share in the global planned working gas capacity will be 33% in 2022.
Russia is expected to add around 877 bcf of underground gas storage capacity during the forecast period from nine planned and announced underground gas storage sites. Capital expenditure (capex) for these sites totals US$2.4bn over the next four years.
Soorya Tejomoortula, Oil & Gas Analyst at GlobalData, comments: “Gazprom is developing nine upcoming underground gas storage sites in Russia to ensure uninterrupted gas supply during peak winter season, as well as to ensure reliable supply of gas during repair and maintenance of gas pipelines.”
GlobalData identifies Kazakhstan as the second largest country in terms of underground gas storage capacity additions in the region. The country is expected to add about 49 bcf of underground gas storage capacity by 2022. The country plans to spend around US$345m on an upcoming site, during the outlook period.
In terms of storage capacity, among the upcoming underground gas storage sites, Bednodemyanovskoye II, Stepnovskoe II and Kanchurinsko-Musinsky Complex II sites in Russia will lead with 245 bcf, 199 bcf and 167 bcf , respectively during the forecast period.
In terms of new build capex spending during the forecast period, Bednodemyanovskoye II in Russia will lead with US$604m. Kanchurinsko-Musinsky Complex II site in Russia and Bazoi II site in Kazakhstan will follow with US$411m and US$345m, respectively.