Liquefied Petroleum Gas Storage Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Application (Residential, Commercial, Industrial, Automotive), By Storage Type (Above-Ground, Underground, Cylinder), By End-User Industry (Oil & Gas, Chemicals, Mining, Healthcare), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 86.13 Billion
CAGR (2026-2031)	2.39%
Fastest Growing Segment	Underground
Largest Market	Asia Pacific
Market Size (2031)	USD 99.24 Billion

Market Overview

The Global Liquefied Petroleum Gas Storage Market will grow from USD 86.13 Billion in 2025 to USD 99.24 Billion by 2031 at a 2.39% CAGR. Liquefied Petroleum Gas storage comprises the specialized containment infrastructure, such as pressurized vessels, refrigerated tanks, and underground salt caverns, designed to stockpile propane and butane for subsequent distribution and consumption. The market is fundamentally driven by the escalating demand for cleaner cooking fuels in developing regions and the strategic imperative for nations to maintain robust energy buffer stocks to ensure supply security. According to the World Liquid Gas Association, in 2024, global LPG supply rose by approximately 3.1% to reach 370 million tonnes, creating a parallel necessity for expanded storage infrastructure to manage this increasing volume efficiently.

Despite these positive drivers, the sector encounters a significant impediment regarding the substantial capital expenditure required to establish and maintain high-safety storage facilities. The prohibitive costs associated with regulatory compliance, land acquisition, and advanced safety systems often delay infrastructure projects, particularly in cost-sensitive emerging markets, thereby challenging the overall rate of market expansion.

Key Market Drivers

Government initiatives promoting clean cooking fuel adoption act as a primary catalyst for the market, particularly in developing nations where policy mandates aim to replace biomass with cleaner alternatives. Programs offering subsidies for connection costs and cylinder refills are directly necessitating the construction of extensive import terminals, bottling plants, and last-mile distribution centers to handle the surge in residential throughput. This trend is exemplified by India's aggressive push for saturation; according to the Press Information Bureau, December 2024, the total number of beneficiaries under the Pradhan Mantri Ujjwala Yojana reached 10.33 crore as of November 2024, creating a sustained requirement for decentralized storage networks across rural regions to ensure uninterrupted supply.

Simultaneously, the expansion of shale gas exploration and production activities, particularly in North America, has created a structural surplus of Natural Gas Liquids (NGLs), fundamentally altering global storage logistics. The surge in hydraulic fracturing has elevated propane and butane output, compelling producers to invest heavily in export-oriented storage facilities and refrigerated cargo containment to manage excess volumes destined for international markets. According to the U.S. Energy Information Administration, March 2025, U.S. propane exports averaged a record 1.8 million barrels per day in 2024, a volume that demands robust port-side tankage to ensure supply chain fluidity. Furthermore, the downstream absorption of this supply remains strong, as according to Argus Media, September 2025, the World Liquid Gas Association reported that global LPG demand exceeded 366 million tonnes in 2024, underscoring the critical need for storage infrastructure to balance this growing trade flow.

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Key Market Challenges

The prohibitive capital expenditure required for infrastructure development stands as a significant barrier to the Global Liquefied Petroleum Gas Storage Market. Establishing pressurized vessels and underground caverns entails substantial upfront costs, driven by the need for advanced safety protocols and regulatory compliance. In cost-sensitive markets, these expenses often outweigh projected short-term returns, causing hesitation among potential investors. This financial burden delays the commissioning of essential projects, specifically in developing nations where access to low-interest capital is limited, thereby stifling the market's geographic expansion.

The magnitude of the investment required is highlighted by recent industrial developments that demand extensive containment capabilities. According to the World Liquid Gas Association, in 2024, China commissioned approximately 4.1 million tonnes per year of new propane dehydrogenation production capacity. Developing the specialized storage infrastructure to support such massive industrial additions demands financial resources that smaller market participants typically lack. This disparity indicates that high capital requirements are effectively consolidating market growth within a few wealthy economies while preventing broader infrastructure proliferation, ultimately restricting the overall pace of global market development.

Key Market Trends

The increasing adoption of underground salt cavern storage facilities is fundamentally reshaping the market by providing massive, secure containment capabilities that surface-based tanks cannot match. This trend is driven by the strategic need for nations to establish long-term energy buffers against geopolitical supply shocks and price volatility, moving beyond mere operational stockpiling. Unlike pressurized vessels, these geological formations allow for the injection of vast quantities of butane and propane at high rates, ensuring rapid deliverability during peak demand crises. This strategic shift is evident in recent infrastructure developments; according to The New Indian Express, June 2025, in the 'India's largest LPG storage cavern near Mangaluru now ready' report, Hindustan Petroleum Corporation Limited completed the country's largest underground LPG storage cavern with a capacity of 80,000 metric tonnes to strengthen national energy security.

Simultaneously, the rising utilization of composite materials for lightweight storage cylinders is transforming last-mile distribution logistics and safety standards. Manufacturers are replacing traditional heavy steel units with advanced fiberglass and polymer composites that are non-explosive, translucent, and significantly lighter, thereby reducing transportation fuel costs and improving handling efficiency for end-users. This material transition is gaining commercial traction as major energy distributors prioritize safety and operational optimization in their supply chains. A clear instance of this industrial pivot occurred when, according to the Business Standard, July 2025, in the 'Supreme Inds bags supply order worth Rs 54-cr from BPCL' article, Supreme Industries secured a contract worth Rs 54 crore from Bharat Petroleum Corporation to supply 200,000 composite LPG cylinders, underscoring the growing commercial viability of this technology.

Segmental Insights

The Underground segment is currently the fastest-growing category within the Global Liquefied Petroleum Gas Storage Market, primarily driven by the critical demand for large-scale strategic reserves to ensure energy security. Governments and major energy corporations are increasingly utilizing subsurface caverns and salt domes to buffer against supply chain volatility and meet seasonal peaks. This storage method offers enhanced safety compared to surface infrastructure by substantially minimizing risks associated with fire, explosions, and external physical damage. Furthermore, stringent compliance requirements from regulatory bodies regarding operational safety and land optimization are compelling stakeholders to invest in these secure, high-capacity solutions.

Regional Insights

Asia Pacific commands the Global Liquefied Petroleum Gas Storage Market driven by substantial demand from the residential and industrial sectors. The region's dominance is largely attributed to government initiatives promoting clean cooking fuels to replace traditional biomass. For instance, infrastructure expansion guidelines established by the Petroleum and Natural Gas Regulatory Board in India have accelerated the development of storage facilities to support national distribution networks. Additionally, the growing reliance on liquefied petroleum gas as a primary feedstock for the petrochemical industry in China necessitates extensive storage capacities, reinforcing the region's leading market position.

Recent Developments

• In November 2025, AD Ports Group signed strategic agreements with Nimex Terminals to develop new terminal hubs for liquefied petroleum gas and liquefied natural gas at Khalifa Port in the UAE. Under the collaboration, Nimex Terminals committed to investing approximately AED 2.6 billion to construct the superstructure, including advanced storage tanks and regasification facilities. AD Ports Group agreed to invest AED 1.3 billion to provide the necessary marine infrastructure, such as deepened channels and quay walls. The project was intended to establish the port as a primary hub for handling clean energy and to serve the rising industrial demand in the region.
• In February 2025, ONEOK, Inc. and MPLX LP formed a joint venture to construct a major liquefied petroleum gas export terminal in Texas City, located on the U.S. Gulf Coast. The companies agreed to develop a facility with a nameplate capacity of 400,000 barrels per day, which would feature two ship loading docks and extensive refrigerated storage tanks. The partners also planned to build a new pipeline connecting ONEOK’s existing storage assets in Mont Belvieu to the new export hub. This infrastructure project was targeted for completion in 2028 and aimed to support the continued growth in global demand for North American natural gas liquids.
• In April 2024, Petregaz India, a subsidiary of the Petredec Group, commissioned a new state-of-the-art LPG import and storage terminal within the Adani Krishnapatnam Private Port in Andhra Pradesh. The facility, which was established with an investment of Rs 600 crore, was designed with an annual handling capacity of over 1.5 million metric tonnes to serve the region's growing energy needs. Key infrastructure at the site included two large refrigerated storage tanks, a modern jetty capable of berthing all types of LPG vessels, and sixteen truck loading bays. The Chief Executive Officer of Petregaz India stated that the terminal would optimize logistics for marketers and strengthen the domestic distribution landscape.
• In April 2024, Flogas Britain officially inaugurated a new LPG terminal at the Teesside Gas Processing Plant, following a strategic partnership with North Sea Midstream Partners and Exolum. This facility was developed to enhance the security of energy supply for off-grid homes and commercial operations across Northern England, Scotland, and Wales by providing up to 90,000 tonnes of LPG annually. The project involved fractionating gas extracted from the North Sea and storing it in five 125-tonne bullets owned by Exolum. The Chief Operating Officer of Flogas emphasized that this infrastructure would significantly reduce the nation's reliance on imported fuel and bolster domestic energy resilience.

Key Market Players

• 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

By Application	By Storage Type	By End-User Industry	By Region
Residential Commercial Industrial Automotive	Above-Ground Underground Cylinder	Oil & Gas Chemicals Mining Healthcare	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Liquefied Petroleum Gas Storage Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Liquefied Petroleum Gas Storage Market, By Application:

• Residential
• Commercial
• Industrial
• Automotive

• Liquefied Petroleum Gas Storage Market, By Storage Type:

• Above-Ground
• Underground
• Cylinder

• Liquefied Petroleum Gas Storage Market, By End-User Industry:

• Oil & Gas
• Chemicals
• Mining
• Healthcare

• Liquefied Petroleum Gas Storage Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE