BLOG

Top Four Trends in the Oil and Gas Storage Market

Dec 12, 2017

The oil and gas industry is worth billions of dollars, which has changed the fortune of many oil exporting nation. The logistics network of oil and gas is gigantic as crude oil has to be transported all over the world in vast quantities. Although transportation is an essential function within the logistics of this industry, the oil and gas storage part is often overlooked. Oil and gas storage facilities are used to store the extracted and refined petroleum products. Such products are either stored underground or in above-the-ground facilities in tanks, empty salt caverns, and floating vessels. Analysis from procurement experts at SpendEdge determines the category spend in the oil and gas storage market itself to be worth US$12.1 billion by 2021.

Request Free Sample

regTop Trends in Oil and Gas Storage Market

Rise in Vacant SPR Capacities

Due to the decline in oil prices a couple of years ago, some of the major importers of oil in the APAC region such as China and India have increased their strategic petroleum reserves (SPRs). For instance, the Government of India plans to add SPR capacity of 91 million barrels by 2020. Such a spectacular rise in SPR capacities will help them cope with demand-supply imbalances of petroleum in the future. Additionally, buyers can also utilize their excess capacity to store their petroleum cargoes at cost-effective rates.

Increased R&D Activities on SNG Technology

Synthetic natural gas (SNG) technology allows companies to store natural gas in the form of hydrates. Such hydrates can be compactly stored; thereby, leading to savings in energy and transportation costs. Currently, a team from CERT at NUS is working on this technology with funding from Lloyds Register Global Technology Center Singapore and the NRF. Apart from cost savings, it also enhances the safety while handling such gases.

Increasing Use of LNG as a Ship Fuel

Following the IMO ruling in 2016 to impose a new cap on limiting the sulfur content in marine fuel to 0.5% from the current 3.5%, shipping service providers are forced to turn to alternative fuel source with low sulfur content such as LNG. Many customers including IKEA are demanding that shipping service providers comply with the new IMO regulations. Such a switch will result in port authorities to invest in new LNG terminals. For instance, in 2016, the Northwest Seaport Alliance approved the setting up of an LNG terminal and liquefaction plant at the Port of Tacoma in the US.

Growing Investments by Institutional Investors

Storage tank terminals have been providing consistent returns over the past few years. Due to such lucrative returns, institutional investors such as banks are eager to increase their investments in oil and gas storage facilities. In 2017, Whitehelm Capital acquired 90% shares of the Netherland-based tank storage terminal, Vopak Terminal Eemshaven. Additionally, suppliers can also leverage investment from institutional investors to upgrade and set up new storage facilities.

Read more about the trends in the oil and gas storage market along with fuel storage tanks, gas storage tanks, oil containers, sourcing strategies, procurement challenges, and pricing models in SpendEdge’s upcoming report on the global oil and gas storage market.

CTA view full reportRelated Articles:

Getting Down To Business

We are offering Free Trials to all our customers or prospects who have been impacted positively or negatively by Covid-19 and are looking to connect with prospect buyers immediately.

Contact us

COVID-19

Featured

Overview

Buyers

Diagnostic Test Kit

Additional Resources
Contact

A LOOK INTO THE FUTURE OF THE FOOD AND BEVERAGE INDUSTRY AFTER THE COVID-19 PANDEMIC

Identifying the Top 100 Coronavirus (COVID-19) Test Kit Manufacturers Across Regions

Sourcing and Procurement Market Intelligence Services

Products and Tools

Featured

Services Overview

Category Market Intelligence

Supply Market Analysis

Low-Cost/Best-Cost Country Sourcing

Benchmarking

Spend Analysis

Cost Modeling and Should-Cost Analysis

Total Cost of Ownership (TCO) Analysis

Supplier Risk Analysis

Supply Chain Risk Assessment

Supplier Sustainability Assessment

Commodity Price Forecasting

Category Management

Supplier Negotiations

Contract Management

Procurement Store

Purchase Ready-to-use Reports

SEinsightsTM

Our Robust Procurement Platform

BizVibeTM

Suppliers and Buyers Marketplace

SUPPLY MARKET ANALYSIS FOR A METAL MANUFACTURING COMPANY HELPS ACHIEVE ANNUAL SAVINGS OF $15 MILLION

Industries

Industries Overview

Automotive and Tire

Banking, Financial Services and Insurance

Biotechnology, Pharmaceutical and Life Sciences

Chemicals

Energy

Food and Beverage

Industrial and Manufacturing

ICT, Media and Entertainment

Mining, Metals and Minerals

Retail and CPG

Transportation

INCREASING LOCAL PROCUREMENT BY 28% FOR A COMPANY IN THE METALS AND MINING INDUSTRY – A CASE STUDY BY SPENDEDGE

Resources

Featured

Resources Overview

COVID-19 Resources

Blogs

Case Studies

Whitepapers

Webinars

Press Releases and Media Mentions

5 KEY CORONAVIRUS RISK ASSESSMENT STRATEGIES TO OVERCOME HEALTHCARE SUPPLY CHAIN CHALLENGES

IDENTIFYING STRATEGIC PURCHASING PRACTICES FOR A COMPANY IN THE US FOOD SERVICE INDUSTRY | SPENDEDGE’S LATEST SUCCESS STORY

Clients

Featured

Clients Overview

Who We Serve

Case Studies

SUPPLY CHAIN MANAGEMENT HELPS AN IMPORT AND EXPORT INDUSTRY CLIENT ENHANCE SUPPLY CHAIN VISIBILITY

REALIZING SAVINGS OF $15 MILLION IN PACKAGING SPEND FOR AN FMCG CLIENT – PACKAGING SOURCING STRATEGY

About Us

News

About SpendEdge
Why SpendEdge?
Vision, Mission and Values
Clients
Social Impact
Global Offices

Press Releases and Media Mentions

Upcoming Events & Webinars