Underground gas storage now a strategic necessity, says Al-Loughani

Jamal Al-Loughani, Secretary-General of the Arab Energy Organization, said underground natural gas storage has become a strategic priority, offering economic, environmental, and operational advantages while ensuring high flexibility in meeting seasonal energy demand.

Speaking to the Kuwait News Agency on the release of the organization’s new study, “Underground Gas Storage and its Role in Achieving Energy Security”, Al-Loughani explained that gas can be injected into geological formations — such as depleted gas fields, salt caverns, or deep aquifers — during periods of low demand and withdrawn later when consumption rises.

He noted that underground storage is no longer just a tool for balancing seasonal demand, but also supports the integration of renewable energy, contributes to energy system sustainability, and plays a key role in the energy transition.

The growing global demand for natural gas has increased investments in such facilities, with global operating capacity reaching 15.44 trillion cubic feet by the end of 2023, up 38% from 2000.

For Arab countries, Al-Loughani stressed that investing in underground gas storage ensures supply security, guards against disruptions, and enables the expansion of gas use in the regional energy mix.

He also emphasized its role in establishing a strategic reserve to handle external crises and in integrating future hydrogen projects.

Arab states possess ideal conditions for such infrastructure, including suitable geology, abundant resources, existing pipelines, and a strategic geographic position.

Al-Loughani recommended measures to advance these projects, including geological surveys, regulatory development, investment incentives, risk mitigation, international partnerships, and cross-country knowledge sharing.

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