PUBLISHER: UnivDatos Market Insights Pvt Ltd | PRODUCT CODE: 1122959
PUBLISHER: UnivDatos Market Insights Pvt Ltd | PRODUCT CODE: 1122959
Natural gas liquids (NGLs) are by-products/derivatives of natural gas and utilized in the petrochemical business as a secondary fuel as well as used in power generation, refrigerants, industrial heating & cooling and transportation fuels with 30% to 50% lower carbon di-oxide emission than other alternative options. Natural gas liquidss (NGLs) are combination of hydrocarbons that incorporates ethane, propane, butane, isobutane, and natural gas. NGLs are separated from each other by the number of carbon particles in their molecular chain. They have a wide assortment of uses from fuels (e.g., propane, butane) to petrochemical feedstocks for making items like plastic and composts. NGLs are extracted as result in the production of natural gas and oil. When extracted from a well, natural gas is blended in with different hydrocarbons - a large number of them NGLs - and different pollutants.
The natural gas liquids market is expected to witness a CAGR of around 6% during the forecast period (2021-2027). The natural gas liquids market is expected to witness a CAGR of around 6% during the forecast period (2021-2027). The growing demand for natural gas leading to a rise in natural gas consumption around the world is expected to drive the natural gas liquid market globally. For instance, as per the IEA, the worldwide natural gas demand in OECD countries was 1,738 billion cubic meters in 2017 which increased to 1,850 billion cubic meters in 2019. This rising demand can be attributed to the use of natural gas liquid in the refinery for the feeding purpose of the naphtha cracker leads. Further, the blending of the NGL in the refined product and use in space heating as well as for cooking purposes also shows overall positive demand for the NGL.
Exxon Mobil Corporation, Rosneft, SM Energy, Equinor ASA, Royal Dutch Shell Plc, Chevron Corporation, ConocoPhillips Company, Lukoil, Saudi Arabian Oil Co., and Linn Energy LLC are some of the key players in the market. Several M&As along with partnerships have been undertaken by these players to facilitate customers with hi-tech and innovative products.
Based on the product, the natural gas liquid is segmented into ethane, propane, butane, pentane, and others. Amongst them, the ethane segment dominated the market in 2020 and is expected to continue the higher growth compared to the other products owing to the rapid growth in the transportation sector and the use of ethane as a transportation fuel. According to a leading consulting firm, the use of ethane for the steam cracker was 3.2 million barrels per day for the year 2018 and is expected to register a growth of 4.1 million barrels per day by the year 2023 and 4.5 million barrels per day by the year 2028.
Based on application, the market is categorized into the industrial, commercial, and residential segments. It has been observed that the industrial segment ruled the worldwide natural gas liquids market in 2020 and is projected to grow substantially during the forecast period. This is due to the increasing urbanization and rapid industrialization. In addition, the rising demand for energy in emerging economies and particularly for shipping merchandise will further positively impact the growth of the segment.
The U.S. oil & natural gas industries have gone through a "renaissance" of production. Mechanical upgrades in pressure-driven cracking and flat drilling have opened huge oil and natural gas assets from tight arrangements, like shale. The United States is one of the larger producers of NGLs across the globe, representing more than 33% of worldwide production. Homegrown NGL production has dramatically increased in a long time since 2008, arriving at 1,381 million barrels in 2017. Furthermore, ethane and propane are the two most predominant NGLs, and together they represent over 70% of all homegrown production. Subsequently, 37% of U.S. NGL production was exported in 2017. Additionally, the implementation of the decarbonization policies in the region would lead to the NGL demand in the future. For instance, California is supposed to supply 60% of its electricity with renewables and low-carbon generation resources.
The natural gas liquids market can further be customized as per the requirement or any other market segment. Besides this, UMI understands that you may have your own business needs, hence feel free to connect with us to get a report that completely suits your requirements.