Natural Gas Liquids (NGLs) Market Size to grow by USD 19.62 billion between 2024-2028
According to a research report “ Natural Gas Liquids (NGLs) Market” by Application (Industrial, Residential, Commercial) Product (Propane, Butane, Pentane, Ethane) Geography (North America, Middle East and Africa, Europe, APAC, South America)- Global Forecast to 2028 published by Technavio, the market size is estimated to grow by USD 19.62 billion, at a CAGR of 6.47% during the forecast period. In response to the escalating global energy demand and the imperative to reduce carbon emissions, there is a burgeoning business interest in the utilization of Natural Gas Liquids (NGLs), specifically natural gas and its constituents, as cleaner-burning alternatives to coal and oil. The increasing demand for NGLs is driven by industrial and commercial sectors, with significant growth in the petrochemical industry. NGLs serve as essential feedstocks in this sector, contributing to the production of plastics, chemicals, and other products. As environmental concerns mount and the demand for cleaner energy sources intensifies, the use of NGLs for power generation, heating, and industrial processes is poised to expand..
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By Application, the Industrial segment is projected to dominate the market size in 2024
Natural Gas Liquids (NGLs), specifically ethane and propane, hold significant importance in the petrochemical sector as they function as indispensable feedstocks. These components contribute substantially to the production of essential chemicals and plastics, such as ethylene, propylene, and butadiene. These chemicals serve as the foundation for a multitude of products, encompassing plastics and synthetic rubber, detergents, and solvents. Moreover, propane and butane are extensively utilized as heating fuels for both residential and industrial applications. In addition, they are employed as fuel for vehicles in regions where natural gas is inaccessible and as liquefied petroleum gas (LPG) for cooking and heating purposes. NGLs play a pivotal role in refining procedures, underscoring their significance in the energy and chemical industries.
By Product, Propane segment is expected to hold the largest market size for the year 2024
Natural Gas Liquids (NGLs), with propane being a significant component, offer versatile solutions for various industries and applications. Propane's clean-burning and efficient properties make it an ideal fuel source for heating homes, particularly in regions devoid of natural gas access. It powers furnaces, space heaters, water heaters, and is commonly used in outdoor grills, stoves, and ovens for precise temperature control and quick heating. In agriculture, propane is employed for crop drying, pest control, and powering irrigation pumps. Moreover, it serves as a reliable power source for forklifts in warehouses and distribution centers.
North America is forecasted to hold the largest market size by region in 2024
The Natural Gas Liquids (NGL) market in North America is poised for substantial expansion during the forecast period. NGLs serve as vital feedstocks for the petrochemical industry, enabling the production of a diverse array of chemicals and plastics. The burgeoning petrochemical sector, fueled by industries such as automotive, construction, and packaging, is driving the demand for NGLs. The emergence of shale gas and oil production, particularly in the US, has resulted in a significant increase in natural gas production, leading to higher NGL yields due to their rich content in shale reservoirs. Moreover, the development of Liquefied Natural Gas (LNG) export facilities in North America has boosted NGL demand, as they are frequently separated from natural gas prior to liquefaction and can be exported as a lucrative product.
The Natural Gas Liquids (NGLs) Market growth and forecasting report also includes detailed analyses of the competitive landscape of the market growth and forecasting and information about 20 market companies, including:
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Research Analysis Overview
Natural Gas Liquids (NGLs) are a valuable byproduct of the natural gas industry, consisting mainly of ethane, propane, butane, pentanes plus, and other heavier hydrocarbons. The emerging economies of Asia and other regions are driving the demand for NGLs due to industrialization and urbanization. The industrial segment, particularly heavy industries, is a significant consumer of NGLs for energy recovery and as feedstocks in the production of chemicals such as ethylene, plastics, and hydrogen. The Ethane segment is of particular interest due to its high demand in the production of ethylene, a key building block for the petrochemical industry. The oil sands and shale formations are significant sources of liquids-rich resources, with NGLs often extracted as a byproduct of crude oil production. The drilling of new wells and the expansion of gas processing plants are incentivized by the increasing demand and rising crude oil prices. NGLs have various applications, including as vehicle fuel (autogas), transportation infrastructure (propane), and feedstocks for petrochemical plants. The chemical composition of NGLs varies, with Pentanes plus, ethane, propane, butane, and isobutane being the most common components. Hydrogen, carbon monoxide, and other trace gases may also be present. The NGL content of natural gas can range from 2% to over 15%, depending on the source. The use of NGLs as a fuel in combustion engines and as a feedstock for the production of hydrogen, ethylene, and other chemicals is an important consideration for reducing carbon emissions and promoting a more sustainable energy future. The future of the NGL market is bright, with continued growth expected in emerging economies and the increasing demand for cleaner, more efficient energy sources.
Market Research Overview
Natural Gas Liquids (NGLs), also known as cryogases, are hydrocarbons that are liquefied at low temperatures. These include ethane, propane, butane, pentanes plus, and natural gasoline. The leading companies in the NGL market include ExxonMobil, Shell, Chevron, and ConocoPhillips. CXOs in the energy sector have perspectives that the recent discoveries of liquids-rich resources will boost the NGL market. Consumers and producers of NGLs are diverse, ranging from heavy industries and transportation infrastructure to petrochemical plants and energy recovery. The ethane segment is particularly important for the production of ethylene, a key chemical feedstock in the petrochemical industry. NGLs are extracted from natural gas through a process called natural gas processing. This involves drilling wells, extracting the raw gas, and separating the NGLs through fractionation. The NGL market analysis shows that demand is driven by the need for refinery feedstock, petrochemical manufacturing, and vehicle fuel. The emergence of emerging economies and industrialization and urbanization in developing countries are expected to increase the demand for NGLs. However, the NGL market is influenced by various factors such as crude oil prices, incentives for NGL production, and the availability of transportation infrastructure. The NGL market is characterized by the production of LPG (propane and butane), ethane supply, and the distribution and storage of NGLs. The supply chain includes import and export terminals, aboveground and underground storage facilities, and transportation modes such as truck, rail, tanker transport, and gas pipelines. NGLs are used as fuel in combustion engines, as feedstocks in petrochemical manufacturing, and as raw materials in the production of plastics, hydrogen, and other hydrocarbons. The chemical composition of NGLs varies, with each component having unique properties and applications. The NGL market is expected to grow due to the increasing demand for refinery feedstock, petrochemicals, and vehicle fuel. The production capacity of NGLs is expected to increase, with new fractionation plants and gas processing plants coming online. The NGL infrastructure is also expected to expand, with new storage facilities and transportation modes being developed to meet the growing demand. In conclusion, the NGL market is an essential part of the petroleum industry, with diverse applications and a significant impact on the energy sector. The market is influenced by various factors, including crude oil prices, incentives for production, and the availability of transportation infrastructure. The demand for NGLs is expected to grow due to the increasing need for refinery feedstock, petrochemicals, and vehicle fuel. The production capacity and infrastructure are also expected to expand to meet the growing demand.
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