Global natural gas liquid market to reach $28.5 billion by 2030, report
The global Natural gas liquid market was valued at $16.9 billion in 2020, and is projected to reach $28.5 billion by 2030, growing at a Compound annual growth rate, CAGR, of 5.4% from 2020 to 2030. This is according to the latest report by Research and Markets.
Natural Gas Liquids (NGLs) are those hydrocarbons in natural gas that are separated from the gas as liquids through various processes and the products thus obtained are majorly ethane, propane, butanes, pentane and pentane plus. These products can be used for heat, in cooking, as an energy source, laundry dryers, portable stoves, and in motor vehicles.
In addition, Natural gas liquids are the heavier hydrocarbons separated from raw natural gas to maintain the dew point and heating value of the finished products. The natural gas liquids (NGL) yield a source of revenue and are often sold separately like lighter NGL fractions (ethane, propane and butane) as refinery feedstock and heavier HCs as gasoline-blends.
The key factors responsible for driving natural gas liquids markets are increasing demand in petrochemical plants; increasing demand in refineries, high demand from industrial and residential consumers. Some of the other factors responsible for driving this market are developments in natural gas business; increasing utilization of associated gas; traditional dry gas, is being replaced by wetter non-associated gas in some countries.
Restraining factors to this market are lack of infrastructure to handle NGLs, tough competition from other energy producing products such as methane gas, bio gas, and many more.
The rapid growth of NGL production has also outpaced the development of supporting infrastructure. NGLs are expensive to transport and handle-requiring high pressures and low temperatures to keep them in a liquid state for shipment.
A network of processing plants and distribution methods is necessary to move NGLs from well to market. Moreover, the surplus of NGLs brought upon by domestic production growth is increasing the need for infrastructure to aid in the exportation of NGLs internationally and the storage of NGLs domestically. The opportunity lies in developing the infrastructure for NGLs.