Natural Gas Liquid Market Report

Market Insights

The natural gas liquid market is estimated to grow from USD 8.3 billion in 2022 to USD 12.73 billion by 2028 at a CAGR of 7.20% during the forecast period.

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What is a natural gas liquid?

Natural Gas Liquids (NGLs) are hydrocarbons that are separated from natural gas during processing. NGLs include a variety of liquid hydrocarbons, such as ethane, propane, butane, and pentane. These liquids are typically found in underground reservoirs along with natural gas and are extracted along with the gas through drilling. 

The composition of NGLs can vary depending on the location where they are extracted, but they generally consist of light hydrocarbons that have a lower boiling point than crude oil. Ethane, propane, butane, and pentane are the most common NGLs, with each having different uses and properties.

Market Drivers

The natural gas liquid market is driven by a host of factors, some of which are noted below:

• The petrochemical industry is a major consumer of NGLs, as these hydrocarbons are used as feedstocks to produce a wide range of chemicals and plastics. With the growing demand for petrochemicals, particularly in emerging economies such as China and India.
• Increasing demand for energy, the development of new technologies for extracting and refining NGLs, and the growing use of NGLs as feedstocks for petrochemical manufacturing.
• With the increase in urbanization and industrialization, there is typically an increase in energy demand for power generation, transportation, and heating. NGLs, which are produced from natural gas processing, have become a vital source of energy for these sectors due to their lower emissions profile and versatility.
• With the increasing use of plastics in various industries, there has been a rise in demand for NGLs such as ethane and propane.
• In recent years, there has been a growing emphasis on the transition to cleaner and renewable energy sources, driven by concerns over climate change and the desire to reduce reliance on fossil fuels. This shift in focus has led to increased scrutiny of the NGL industry and its impact on the environment.
• During the winter months, the demand for space heating increases as households and businesses seek to maintain comfortable temperatures indoors. As a result, the demand for NGLs typically increases as well.

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Segment Analysis

Product Trends

The market is segmented as ethane, propane, butane, and pentane plus. Ethane is estimated to account for the lion’s share of the market during the forecast period. Its growing use in the petrochemical industry, development of large-scale ethylene crackers as a feedstock to produce ethylene, and growing investments in downstream industries are expected to drive the growth of the segment in the coming years.

Butane, on the other hand, is expected to register significant growth in the market over the forecast period. Factors such as its high replacement potential, wide applications across various sectors, reduced carbon footprints, and growing LPG demand are expected to fuel the segment's growth over the forecast period.

Application Trends

The market is bifurcated into petrochemical feedstock, space heating, blendstock, and others. Petrochemical feedstock held a market share of more than 45% in 2022 & is estimated to be the largest share of the market during the forecast period. Increasing focus on environmental protection, coupled with continuous evaluation of alternative fuel adoption is likely to boost the overall industry growth in the coming years.

Furthermore, increasing investments toward developing the industrial sector, as well as growing demand for synthetic rubber, polyethylene, and polypropylene for the manufacture of plastics, tires, and other products, is expected to drive the natural gas liquid market growth over the forecast period.

Also, the market for space heating is expected to grow at a significant rate. Growing focus on clean energy sources, as well as rising demand for effective and energy-efficient systems, is expected to fuel the market growth. The growing population and increasing awareness of sustainable building solutions are likely to accelerate the growth of the market in the years to come.

Regional Analysis

North America is estimated to be the leading region in the market during the forecast period with the U.S. being the growth engine of the region. Major factors such as the rapid development of the shale gas industry, decreasing reliance on foreign countries for energy imports, and low prices of natural gas liquids are expected to drive regional market growth during the forecast period.

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Furthermore, fluctuations in currency exchange rates, supply cost efficiencies, and product monetization all contribute to an optimistic outlook for industry growth over the forecast period.

Segmentation

This report studies the market covering a period of 12 years of trend and forecast. The report provides detailed insights into the market dynamics to enable informed business decision-making and growth strategy formulation based on the opportunities present in the market.

The market is segmented into the following categories. 

By Product Type

• Ethane
• Propane
• Butane
• Pentane Plus

By Application Type

• Petrochemical Feedstock
• Space Heating
• Blendstock
• Others

By Regional

• North America (Country Analysis: The USA, Canada, and Mexico)
• Europe (Country Analysis: Germany, France, The UK, Russia, and the Rest of Europe)
• Asia-Pacific (Country Analysis: China, India, Australia, South Korea, and Rest of Asia-Pacific
• Rest of the World (Country Analysis: Saudi Arabia, Brazil, and Others)

Key Players

The following are some of the key players in the natural gas liquid market:

• Canadian Natural Resources
• Chevron Corporation  
• Eni S.p.A.
• Exxon Mobil Corporation
• Gazprom
• Petrobras
• Range Resources Corporation
• Riveria Resources, Inc.
• Rosneft
• Royal Dutch Shell PLC.

Research Methodology

This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.

More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles have been leveraged to gather the data.

We conducted more than 10 detailed primary interviews with the market players across the value chain in all four regions and with industry experts to obtain both qualitative and quantitative insights.

Report Features

This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into the market dynamics and will enable strategic decision-making for the existing market players as well as those willing to enter the market.
What Deliverables Will You Get in this Report?

Customization Options

Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to three players)
• SWOT analysis of key players (up to three players)

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Product portfolio, geographical reach, regional presence, and strategic alliances

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