Strategic importance of underground gas storage underscored by Al-Loughani, according to report
Jamal Al-Loughani, Secretary-General of the Arab Energy Organization, has highlighted the strategic importance of underground natural gas storage in Arab states. With abundant resources available and suitable geology for such infrastructure, these facilities can provide numerous benefits for energy security, renewable energy integration, and energy system sustainability.
The global operating capacity of underground gas storage facilities has reached an impressive 15.44 trillion cubic feet by the end of 2023, marking a 38% increase from 2000. Existing pipelines in Arab states support the development of this infrastructure, and investment incentives are recommended to further advance projects.
Underground storage facilities, such as salt caverns and depleted reservoirs, allow significant volumes of natural gas to be stored and withdrawn as needed. This flexibility reduces reliance on imports, mitigates geopolitical risks, and ensures consistent gas availability during peak demand or emergency conditions. For instance, the expansion of facilities like the Pine Prairie Energy Center strengthens resilience by enhancing supply flexibility and price stability.
Moreover, underground natural gas storage supports the integration of variable renewable energy sources, such as wind and solar, by providing a reliable fuel backup during low renewable output periods. This flexibility helps balance the grid without overcurtailment of renewable generation. Underground caverns can also store low-carbon gases, such as hydrogen produced from renewable electricity via electrolysis, thus enabling renewable energy surplus to be converted and stored chemically for later use. Salt caverns are ideal for safely storing these gases due to their geologic properties.
By facilitating the transition to lower-carbon fuels and more flexible energy operations, underground storage supports sustainability goals. The storage of hydrogen and compressed air in salt caverns enables cleaner energy storage technologies, contributing to net zero ambitions. Additionally, reducing curtailment of renewables and backing up their variability with stored natural gas reduces reliance on higher-carbon energy sources. Projects integrating low-carbon gas storage with renewables have projected significant reductions in carbon emissions compared to unabated gas power, thus supporting clean power targets and longer-term decarbonization pathways.
Regulatory development, risk mitigation, international partnerships, and cross-country knowledge sharing are crucial for advancing underground gas storage projects. A new study by the Arab Energy Organization, titled "Underground Gas Storage and its Role in Achieving Energy Security", has been released, providing valuable insights into this strategic priority.
In summary, underground natural gas storage enhances energy security by securing supply flexibility and price stability, aids renewable integration through balancing variable generation, and advances energy sustainability by enabling storage and use of low-carbon gases and supporting clean energy systems. As the energy landscape evolves, the role of underground gas storage in the energy transition and sustainability of Arab states becomes increasingly significant.
Investment in underground natural gas storage projects, such as salt caverns and depleted reservoirs, can further advance in Arab states due to their ability to store and withdraw significant volumes of natural gas as needed. This storage can provide numerous benefits for the finance industry, including improved energy security, renewable energy integration, and energy system sustainability, as highlighted by Jamal Al-Loughani, Secretary-General of the Arab Energy Organization.
The strategic priority of underground gas storage in Arab states also has implications for the oil-and-gas sector, as this storage can support the transition to lower-carbon fuels through the safe storage of hydrogen and other low-carbon gases. This transition can contribute to net zero ambitions and clean power targets, reducing reliance on higher-carbon energy sources and supporting longer-term decarbonization pathways.
