WORLD NEWS
HYDROCARBON
ENGINEERING
12
DIARY DATES
15 - 17 March
StocExpo
Antwerp Expo
Germany
Tel: +44 (0)20 8843 8807
Email:
11 - 15 April
LNG 18
Perth Convention and Exhibition Centre
Australia
Tel: +61 2 9265 0700
Email:
12 - 13 April
Tank World Expo
Dubai World Trade Centre
United Arab Emirates
Tel: +44 (0)20 8843 8801
Email:
20 - 22 April
NISTM 18
th
Annual International Aboveground
Storage Tank Conference & Trade Show
Rosen Shingle Creek Hotel
Orlando, Florida
Tel: 1-800-827-3515
Email:
23 - 25 May
ILTA 36
th
Annual International Operating
Conference & Trade Show
George R. Brown Convention Center
Houston, Texas
Tel: (703) 875-2011
Email:
27 - 28 September
Tank Storage Asia
Marina Bay Sands
Singapore
Tel: +44 (0)20 8843 8801
Email:
16 - 17 November
Tank Storage Germany
Hamburg Messe
Germany
Tel: +44 (0)20 8843 8801
Email:
Transparency Market Research |
Gas storage market
T
he global natural gas storage market
stood at 392 831.22 million m
3
in
2014 and is likely to reach
548 798.39 million m
3
by 2023,
expanding at a CAGR of 3.7% between
2015 and 2023, according to the
'Natural Gas Storage Market' report
from Transparency Market Research.
The market was dominated by Europe
in 2014, and factors such as increasing
natural gas demand, growing energy
security concerns, and favourable
government regulations and incentives
are anticipated to boost natural gas
storage in the near future. However,
higher capital and installation costs have
impacted on growth.
North America was the second
largest market globally in terms of
storage volume of natural gas in 2014,
with underground storage facilities
accounting for a major share. Increasing
production of natural gas, owing to
shale gas and hydraulic fracturing
technologies, has boosted the
construction of natural gas storage
facilities.
Storage capacity in the Asia Pacific
region is increasing due to rising
awareness about the benefits of natural
gas storage and energy security. China is
expected to be the leading player in the
natural gas storage market in the
Asia Pacific in the near future.
API |
Industry best practices
T
he Pipeline and Hazardous Materials
Safety Administration (PHMSA) has
released a natural gas storage safety
advisory, modelled after the industry's
best practices.
The standards address the proper
storage of natural gas underground.
Recommended Practice 1171 focuses
on safe practices for designing, storing
and operating natural gas in
depleted oil and gas reservoirs.
Recommended Practice 1170 specifically
outlines how to safely design, store,
and operate natural gas in salt caverns.
The two standards discuss proper
construction methods, materials, and
maintenance practices for ensuring safe
operations.
“The RPs are the result of the best
minds in industry working with
regulators to ensure Americans
continue to safely get the reliable fuels
they need to run their daily lives. The
American people expect government
and industry to work together towards
common goals. It is these types of
actions, not regulatory overreach,
that serve the best interest of safety
and economic growth,” said API
Midstream Group Director Robin Rorick.
Douglas-Westwood |
Floating storage opportunities
A
ccording to the International Energy
Agency (IEA), global oil stocks
increased by 1 billion bbls in 2015, and a
further increase of 285 million bbls is
expected over the course of this year.
In the case where onshore storage
gets filled, the excess barrels will need to
be stored in the form of floating storage,
which is a more expensive option.
Despite the high cost, this would not be
without precedent: in 2009, trading
companies stored circa 120 million bbls
offshore in 64 tankers. In order to make
this type of storage economical, the
market would need to be in a state of
'super-contango' – a situation in which
the front few crude spreads are wide
enough to cover the costs of storage in
tankers. This implies that prices may need
to remain lower for longer than
previously anticipated. Current market
trends suggest that widespread filling of
offshore storage is likely before
significant erosion of supply takes place
and the market eventually starts to
rebalance.
