Underground gas storage (UGS) will take on greater strategic importance as the global energy transition accelerates, according to the International Gas Union (IGU). In its 2025 report Underground Gas Storage: A Critical Pillar for Energy Security, the organisation said rising electrification, the expanding share of variable renewable generation and the gradual introduction of hydrogen and other low-carbon gases would increase reliance on storage to support system stability. 

Gas storage should be viewed as a cornerstone of energy security rather than simply a tool for market optimisation, the IGU said. As energy systems become more interconnected, storage capacity plays a vital role in protecting economies from supply interruptions, price shocks and the variability associated with wind and solar power. 

Although not the sole mechanism for ensuring security of supply, UGS remains the most dependable option, the IGU said, as it can deliver large volumes of gas from facilities located close to major consumption centres. Storage assets also enable rapid response during emergencies, helping to ensure physical availability of gas while dampening price volatility during periods of market stress. 

The report said the «insurance value» of storage was clearly illustrated by Europe’s experience during the sharp run-up in LNG prices between 2020 and 2022. In 2020-21, when European storage sites were f illed to roughly 92% of capacity, high inventory levels helped shield the region from surging LNG prices in Asia. By contrast, the following year saw storage levels peak at only around 75%, leaving Europe far more exposed to global price swings. This vulnerability prompted the European Union to introduce mandatory minimum storage filling targets in 2022, although some of those requirements have since been relaxed. 

Regional trends 

Worldwide, working gas storage capacity has climbed to 424 bcm, an increase of about 10 bcm since 2022, spread across nearly 700 facilities. These sites together offer a maximum withdrawal capacity of 7,371 mcm per day. Depleted gas fields account for close to three quarters of global capacity, followed by aquifers at 11%, salt caverns at 9% and oilfields at 6%. The US remains the largest storage holder with 138 bcm, followed by Russia, Ukraine, Canada and Germany, which collectively make up more than half of global capacity. 

Europe, the world’s second-largest storage market with 142 bcm of capacity, recorded a modest net increase compared with the 2020-22 period, as expansions at some sites outweighed closures elsewhere. However, the IGU said the region’s storage sector is «at a crossroads,» with its long-term role still evolving. While Europe is the only region expected to see sustained declines in gas demand in the coming decades, much of its existing infrastructure, including storage facilities, could be repurposed to handle hydrogen and biomethane. 

Asia was the sole region to post strong growth in storage capacity, largely driven by China’s ongoing shift away from coal toward natural gas. China has added around 6 bcm of capacity since 2022, lifting it to sixth place globally. The IGU said storage development across Asia is likely to continue, but warned that construction is still failing to keep pace with the region’s rapidly growing gas consumption. Turkey and Japan also reported new additions as part of efforts to reinforce domestic supply security. 

In North America, growth remained broadly stable. In Russia and other CIS countries, storage assets remain largely state-controlled, serving seasonal balancing needs and export management. Argentina’s Pillar ESGN project was the only new storage facility commissioned globally in 2022.