Increasing the share of renewable energy sources (RESs) in the energy mix of countries is one of the main objectives of the energy transition in national economies, which must be established on circular economy principles. In the natural gas storage in geological structures (UGSs), natural gas is stored in a gas reservoir at high reservoir pressure. During a withdrawal cycle, the energy of the stored pressurised gas is irreversibly lost at the reduction station chokes. At the same time, there is a huge amount of produced reservoir water, which is waste and requires energy for underground disposal. The manuscript explores harnessing the exergy of the conventional UGS reduction process to generate electricity and produce hydrogen via electrolysis using reservoir-produced water. Such a model, which utilises sustainable energy sources within a circular economy framework, is the optimal approach to achieve a clean energy transition. Using an innovative integrated mathematical model based on real UGS production data, the study evaluated the application of a turboexpander (TE) for electricity generation and hydrogen production during a single gas withdrawal cycle. The simulation results showed potential to produce 70 tonnes of hydrogen per UGS withdrawal cycle utilising 700 m3 of produced field water. The analysis showed that hydrogen production was sensitive to gas flow changes through the pressure reduction station, underscoring the need for process optimisation to maximise hydrogen production. Furthermore, the paper considered the categorisation of this hydrogen as “green” as it was produced from the energy of pressurised gas, a carbon-free process.