Natural Gas Liquid Market Analysis

Natural Gas Liquid Market Analysis

The ethane natural gas liquid market will onlook growth on account of its increasing use across petrochemical industry, development of large-scale ethylene crackers and growing investments toward the downstream industries. In addition, the growing use as a feedstock to produce ethylene, which is a major constituent in manufacturing resins, plastics and various other industrial products will further boost the industry growth.

The butane natural gas liquid market is projected to grow at a rate of over 8% by 2025. High replacement potential, reduced carbon footprint and its wide applications across numerous sectors are the underline parameters that will increase the product penetration. Butane is offered to its customers in the form of synthetic rubber for tires and liquified petroleum gas (LPG). Henceforth, increasing demand for LPG on account of its adoption as domestic fuel particularly in the region of Asia Pacific and Africa will positively impact the business outlook.

Petrochemical feedstock in 2018, accounted for over 50% across the global natural gas liquid market share. Increasing investments toward development of industrial sector along with growing demand for polyethylene, synthetic rubber and polypropylene for manufacturing tires, plastics and various other products will fuel the industry growth. In addition, intensifying focus on environmental protection along with the continuous evaluation of alternative fuel development technologies will stimulate the industry growth

The space heating segment will onlook growth on account of the growing population, rapid development of Tier II & III cities and increasing awareness toward sustainable building solutions. In addition, shifting trend toward the clean energy sources coupled with the growing demand for effective and energy efficient systems will fuel the global market growth.
 

The U.S. market is anticipated to exceed an annual consumption of 3 million barrels per day by 2025. Rapid development of shale gas industry, low prices of natural gas liquids and declining reliance on foreign countries for energy import have substantially widened the consumption of NGLs. Furthermore, supply cost efficiencies, currency exchange rate fluctuations, and monetization of product will positively impact the industry growth.
 

Increasing focus toward national energy security & self-sufficiency, expanding utilization of NGL in the energy mix will stimulate the natural gas liquid market across the Middle East & Africa region. The countries are prioritizing unconventional reserves to enhance the domestic gas liquid capacity on account of increasing power demands, the emergence of new industrial cities, and comparatively low prices.