China has emerged as the leader in underground gas storage expansion, significantly increasing its capacity since 2022, according to a new report from the International Gas Union (IGU). As of 2025, there are a total of 699 underground natural gas storage facilities globally, with an aggregate working gas volume of 424 billion cubic metres (bcm). This represents an increase of 10 bcm from the previous year.
The report highlights that China added 6 bcm to its storage capacity, elevating the nation to sixth place worldwide. The top five countries with the largest gas storage capacities remain the United States, Russia, Ukraine, Canada, and Germany. China’s rapid growth in this sector contrasts sharply with stagnation or only modest growth observed in developed markets, according to the IGU.
This expansion is critical for China, the world’s second-largest economy and a major consumer of natural gas. The enhanced underground gas storage capacity will help mitigate the country’s vulnerability to the volatile spot liquefied natural gas (LNG) market. By increasing its storage capabilities, China can reduce reliance on LNG imports, providing a more stable energy supply.
In a notable move earlier this year, PetroChina agreed to acquire three natural gas storage facilities from its state-owned parent company, CNPC. This acquisition, which includes the Xinjiang, Xiangguosi, and Liaohe gas storage sites, allows PetroChina to strengthen its control over the entire gas supply chain. This strategic move aligns with Beijing’s push to integrate natural gas as a key resource for energy security and a lower-emission alternative.
Natural gas consumption in China remains stable, even as the rise of electric vehicles impacts traditional road fuel sales. CNPC anticipates increased demand for natural gas through the latter half of the decade, further underscoring the importance of expanded storage capabilities.
In addition to these developments, China recently announced that its first underground salt cavern gas storage facility became operational following a significant expansion. This facility is expected to enhance the nation’s ability to manage peak demand effectively and ensure energy security, as reported by state media.
The rapid growth of China’s underground gas storage capacity signifies its commitment to securing a stable energy future, positioning the country to better navigate the complexities of global energy markets.
