Cylinders, Microbulk, or Bulk? How to Choose the Right Gas Storage Method

When it comes to storing and delivering industrial or specialty gases, the right gas storage system can improve safety, streamline production, and reduce long-term costs. But that system isn’t the same for every operation.

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At ILMO, we work closely with ops teams, engineers, and plant managers across Illinois to help them select the most efficient and cost-effective storage option based on how they use gas, not just how much.

In this article, we’ll walk you through the key differences between cylinders, microbulk, and bulk gas storage methods, and offer expert insights to help you decide which is best for your operation.

Pros and Cons of Storing Gas in Cylinders

Cylinders are the traditional go-to for lower-volume needs, variable demand, higher delivery pressure, or limited space. They’re a practical choice for shops and facilities that require flexibility and ease of access without the need for fixed infrastructure. For example, a welding shop that needs to move equipment around the floor frequently may find that cylinders provide the most efficiency.

Advantages of Cylinder Storage:

• Minimal setup, no specialized infrastructure required
• Easy to swap or move between locations
• Ideal for varied or infrequent usage

Disadvantages of Cylinder Storage:

• Frequent handling and change-outs may be required
• Safety risks of frequent cylinder handling
• Risk of downtime if cylinders run empty unexpectedly
• Manual inventory tracking and risk of cylinder loss

How can you tell if you’ve outgrown cylinder storage? When change-outs begin interrupting production, you’re seeking a lower cost per unit on gas product, or lost cylinders start adding up, it’s worth exploring other options. Safety is another great reason to explore microbulk or bulk storage—every cylinder change-out comes with risk, and these larger storage systems help eliminate it.

Advantages of Microbulk Gas Storage

Microbulk systems serve customers with steady, mid-range usage who want to reduce manual labor, improve gas tracking, and gain more control over their supply.

Where microbulk fits:

• You’re using enough gas that cylinders are a hassle
• You want fewer deliveries and improved uptime
• You don’t use enough product to justify a full bulk tank installation

Benefits of Microbulk Gas Storage:

• On-site fill canisters reduce change-outs and eliminate cylinder rental fees
• Safer environment for teams (no cylinder change-outs necessary)
• Better inventory tracking with optional telemetry
• Less residual gas waste and more precise usage data

Many customers are surprised to learn that microbulk is available at their scale. It’s a highly efficient solution that often delivers lower total cost of ownership compared to both cylinders and bulk—without requiring a significant footprint or infrastructure overhaul.

Pros and Cons of Bulk Gas Storage Systems

For large operations with continuous gas use, such as hospitals, food processors, or high-throughput manufacturing, bulk storage is a clear winner in value, efficiency, and convenience. These systems are engineered to handle large volumes with maximum automation and minimal touchpoints.

When bulk makes sense:

• Gas consumption is high and steady
• Uninterrupted supply is business-critical
• You want to eliminate handling altogether

Benefits of Bulk Storage:

• Achieves the lowest unit cost over time on your gas product
• Safer environment for teams (no cylinder change-outs necessary)
• Integrated delivery with scheduled fills
• Compatibility with automated systems and monitors

Possible Disadvantages of Bulk Storage :

• Requires specialized infrastructure, and oftentimes, longer installation lead times
• Longer contracts are usually required
• Risk of product waste with low or variable usage
• Less flexible if needs change
• Refill schedules may prioritize supplier logistics over yours

For high-volume gas users with continuous demand, nothing beats bulk gas storage in safety, efficiency, and value. But while bulk tanks make logistics easier for suppliers and look cost-effective on paper, they aren’t ideal for every customer’s needs. If your operation experiences fluctuating usage or requires infrequent product refills, you could be wasting enough product to cancel out the up-front cost-per-unit benefits. Our experts can help you make the right decision that gets you the most value for your money and keeps you up and running at all times with the proper gas supply.

Ultimately, we believe the system should match the operation, not the other way around. We’ve helped customers scale up to bulk when it made sense, and we’ve helped others downsize from oversized systems that weren’t delivering value.

Choosing the Right Fit: What to Consider

To determine the best storage system, we start by asking a few essential questions:

• What is your weekly/monthly gas usage?
• Is usage steady, seasonal, or highly variable?
• What are the operational risks of running out?
• Are cylinder fees, change-outs, or delivery schedules impacting productivity?
• Would real-time usage tracking or automated reordering improve your efficiency?
• What are your delivery pressure needs? 

With those answers, we can build a storage strategy tailored to your operation.

The company is the world’s best microbulk tank supplier. We are your one-stop shop for all needs. Our staff are highly-specialized and will help you find the product you need.

The ILMO Approach: Right Size, Right on Time.

Our goal is to improve your performance, reduce risk, and support your goals. Whether you’re using a few cylinders a week or considering a long-term move to bulk, our team will walk your site, understand your needs, and propose a system that’s built for the way you work.

First, let’s acknowledge that micro-bulk is an oxymoron. Little Big? Like other notable oxymorons—working vacation, jumbo shrimp, open secret, and my favorite, liquid gas—there’s a certain truth there.

In the world of gas supply, as you move past cylinder deliveries and before you get to the massive storage tanks of industrial gases, there’s a smaller large supply of gas available. Micro-bulk.

If you’re using a large number of cylinders per month, switching to a micro-bulk system can dramatically reduce the time and money you’re spending. Streamlining your system to one tank is also much safer and more stable.

How micro-bulk works
Micro-bulk storage tanks can be installed almost anywhere—inside or outside your facility. This avoids the extensive site prep and costs associated with bulk supply while making installation much faster. Piping is installed to deliver the gas from the micro-bulk tank to your welding line, brewing production area, laboratory or whatever application you need it for.

And here’s the really awesome part: there’s telemetry that automatically notifies your supplier when it’s time to dispatch a truck to refill your tank. No more running out of gas, no more time wasting cylinder change outs and no more production delays.

Why micro-bulk is cost-effective
• Reduced delivery charges
• No residual gas returned to the supplier
• More efficient accounting and ordering
• Minimal inventory maintenance
• Reduced downtime on cylinder change-outs
• Productive use of labor force
• Efficient use of production space
• Lower maintenance costs

How do I know if micro-bulk is right for me?
Do you find yourself asking these sorts of questions?
• Why are we ordering gas so often?
• Are we wasting gas?
• Why is our rental bill so confusing?

Honestly, just talk to your gas supplier. Here at Minneapolis Oxygen, our process begins with a review of your gas order history and a site survey to determine your specific application requirements. Not only will our technical experts recommend the best tank for your unique situation, but we’ll also design and install a supply system that efficiently gets the gas where you need it. That’s what we do.

Next time you’re frustrated with keeping track of all those cylinders, consider micro-bulk. With a compact, on-site refillable tank, a micro-bulk system can easily fit your facility—and your budget. And that’s awfully good (oxymoron intended!) business.

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