Storage tank costs: storing oil, energy, water and chemicals?

Storage Tank Costs: Storing Oil, Energy, Water, and Chemicals

Storage tank costs are outlined in this data file, averaging $100-300/m³ for systems with a capacity ranging from 10 to 10,000 m³. For corrosive chemicals, cryogenic storage, or extremely large/small facilities, costs are typically 2-10 times higher. Below are some key insights, with detailed data available in the Excel file.

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This data file includes 80 data points detailing the costs of storage tanks for water, oil products, chemicals, LNG, natural gas, and hydrogen, both in $/m³ and $/ton terms.

Significance: Storage tanks are crucial in downstream industries, material value chains, and emerging energy types like redox flow batteries or pumped hydro.

Industrial benefits: Increasingly volatile power prices may allow some industrial facilities to benefit through demand shifting—timing their electrical loads to periods when renewables are generating. This may require larger storage tanks for greater flexibility.

Global energy volatility: Growing volatility in the global energy system may offer midstream infrastructure owners opportunities for excess returns during periods of severe shortages.

Cost guidelines: Storage tank costs for fluid commodities average around $100-300/m³ of capacity at 10 to 10,000 m³, for simple, non-hazardous commodities like water and fuel.

Economies of scale: Tank costs generally decrease (in $/m³ terms) as capacities increase. Larger tanks benefit from economies of scale, although extremely large terminals may see cost increases.

Corrosive chemicals demand higher costs, typically 3-5 times more, due to the need for double tanks, stainless steel, or specialized linings. A fair estimate is around $1,000/ton.

Cryogenic liquids storage also sees a 3-5 times cost increase due to specialized nickel steel and insulation requirements.

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Small and large tanks cost 2-3 times more when dealing with sizes below 10 m³ (due to lack of economies of scale) or extremely large tanks around 100,000 m³ (which must often be built on-site rather than purchased as modular units).

LNG storage tanks are among the priciest due to their large size and cryogenic requirements. Higher investment in better-grade tanks can be worthwhile to minimize boil-off and improve energy efficiency.

Hydrogen storage facilities are likely to be more expensive than those for LNG. Small-scale cryogenic or ultra-compressed hydrogen storage is estimated at $8,000/m³. Please refer to our hydrogen storage model and broader hydrogen research.

Underground gas storage offers the lowest costs, with a median value of $0.4/m³, primarily due to scale. The average facility in our database can store over 1 bcm of gas.

Methodology: This data file primarily captures tank costs, excluding the costs of foundations, pumps, valves, and installation. However, distinctions can blur, especially for very large tanks.

Contextual data: Data points include supplier quotes, technical paper estimates, and disclosed project d