Dublin, Jan. 26, 2026 (GLOBE NEWSWIRE) — The “Liquefied Petroleum Gas Storage Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031” has been added to ResearchAndMarkets.com’s offering.
The Global Liquefied Petroleum Gas Storage Market is projected to expand from USD 86.13 Billion in 2025 to USD 99.24 Billion by 2031, reflecting a compound annual growth rate of 2.39%. This sector encompasses specialized containment infrastructure, including pressurized vessels, refrigerated tanks, and underground salt caverns, which are engineered to stockpile butane and propane for future distribution. The market’s trajectory is primarily influenced by the rising consumption of cleaner cooking fuels in developing areas and the strategic necessity for nations to hold substantial energy reserves for supply security. Data from the World Liquid Gas Association indicates that global LPG supply increased by roughly 3.1% in 2024 to hit 370 million tonnes, a volume that necessitates a parallel expansion in storage capabilities to manage throughput efficiently.
Despite these growth indicators, the industry faces a major hurdle regarding the immense capital expenditure needed to build and sustain high-safety storage sites. The steep costs tied to acquiring land, adhering to regulations, and implementing advanced safety measures frequently postpone infrastructure initiatives, especially in price-sensitive emerging economies. Consequently, these financial barriers impede the overall rate of market development.
Market Drivers: Government mandates encouraging the shift to clean cooking fuels serve as a major market propellant, especially in developing countries aiming to substitute biomass with cleaner options. Subsidy programs covering cylinder refills and connection fees are directly driving the need for extensive import terminals, bottling facilities, and last-mile distribution hubs to accommodate increased residential usage. This momentum is illustrated by India’s vigorous saturation efforts; according to the Press Information Bureau in December 2024, the Pradhan Mantri Ujjwala Yojana scheme supported 10.33 crore beneficiaries by November 2024, creating an ongoing demand for decentralized storage networks in rural areas to guarantee consistent supply.
Concurrently, the growth of shale gas production, primarily in North America, has generated a structural excess of Natural Gas Liquids, significantly reshaping global storage logistics. The rise in hydraulic fracturing has boosted propane and butane production, forcing producers to commit substantial investment toward export-focused storage and refrigerated cargo solutions to handle surpluses bound for international trade. As per the U.S. Energy Information Administration in March 2025, U.S. propane exports reached a record average of 1.8 million barrels per day in 2024, necessitating strong port-side tankage infrastructure. Additionally, downstream demand remains robust; Argus Media noted in September 2025 that the World Liquid Gas Association reported global LPG demand surpassing 366 million tonnes in 2024, highlighting the essential need for storage to balance these expanding trade flows.
Market Challenges: The significant capital expenditure needed for infrastructure development represents a major obstacle for the Global Liquefied Petroleum Gas Storage Market. Constructing underground caverns and pressurized vessels involves high initial costs due to strict regulatory compliance and the necessity for advanced safety protocols. In markets sensitive to price, these expenses frequently exceed anticipated short-term profits, leading to reluctance among potential investors. This financial strain postpones the launch of critical projects, particularly in developing countries where low-interest financing is scarce, thereby hindering the market’s geographical reach.
The scale of necessary investment is underscored by recent industrial advancements requiring massive containment capacities. According to the World Liquid Gas Association, China commissioned roughly 4.1 million tonnes per year of new propane dehydrogenation production capacity in 2024. Building the specialized infrastructure to support such large-scale industrial growth requires financial assets that smaller market players typically do not possess. This gap suggests that high capital demands are effectively concentrating market growth within a handful of affluent economies while impeding broader infrastructure development, which ultimately limits the global market’s overall expansion pace.
Market Trends: The growing use of underground salt cavern storage is transforming the market by offering massive and secure containment options that surface tanks cannot rival. This shift is motivated by the strategic necessity for nations to build long-term energy reserves to withstand price volatility and geopolitical supply interruptions, extending beyond simple operational stockpiling. Unlike pressurized vessels, these geological structures permit the rapid injection of large volumes of propane and butane, ensuring quick deliverability during peak demand periods. This strategic evolution is visible in recent projects; the New Indian Express reported in June 2025 that Hindustan Petroleum Corporation Limited finalized India’s largest underground LPG storage cavern near Mangaluru, boasting a capacity of 80,000 metric tonnes to bolster national energy security.
At the same time, the increasing application of composite materials for lightweight storage cylinders is revolutionizing safety standards and last-mile distribution logistics. Manufacturers are substituting heavy traditional steel units with advanced polymer and fiberglass composites that are translucent, non-explosive, and considerably lighter, which lowers fuel transportation costs and enhances handling efficiency for consumers. This transition in materials is gaining commercial momentum as major energy distributors focus on operational optimization and safety. For example, the Business Standard reported in July 2025 that Supreme Industries won a contract worth Rs 54 crore from Bharat Petroleum Corporation to provide 200,000 composite LPG cylinders, highlighting the rising commercial feasibility of this technology.
Key Players Profiled in the Liquefied Petroleum Gas Storage Market:
- Saudi Arabian Oil Co.
- Exxon Mobil Corporation
- Shell PLC
- TotalEnergies SE
- BP PLC
- Chevron Corporation
- China Petroleum Corporation
- Indian Oil Corporation Ltd.
- Gazprom International Limited
- ENI S.p.A
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 180 |
| Forecast Period | 2025 – 2031 |
| Estimated Market Value (USD) in 2025 | $86.13 Billion |
| Forecasted Market Value (USD) by 2031 | $99.24 Billion |
| Compound Annual Growth Rate | 2.3% |
| Regions Covered | Global |
For more information about this report visit https://www.researchandmarkets.com/r/30osu5
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- Liquefied Petroleum Gas Storage Market
