The global natural gas liquid market features a fairly fragmented landscape, notes Transparency Market Research (TMR). This is on account of the fact that none of the players in the global market have substantial stake. Top players vying for the top slot in the global natural gas liquid market are focusing on adopting a range of strategies. Several of them in order to gain prominent hold over the growth dynamics of the global natural gas liquid market have consistently aimed at slashing their operating costs and reducing the turnaround time, finds TMR.
Some of the key players in the global natural gas liquid market are Chesapeake Energy Corporation, Linn Energy, LLC, and Swift Energy Company.
The global natural gas liquid market stood at 7,982.63 kilo barrels/day in 2015 and is clocked to attain volumes of 14,806.59 kilo barrels/day by 2024 end. During 2016–2024, the market is forecast to register a CAGR of 7.16%.
Among the various types of natural gas liquid, ethane contributed the majority of share in the global market in 2014. The uptake of ethane in various end-use industries is propelled by its rising application in the petrochemicals industry worldwide.
Regionally, the Middle East market for natural gas liquid held the majority of share in the global market in 2015. This can be attributed to the swift pace of industrialization across the region. Meanwhile, North America is projected to rise at the most attractive CAGR during 2016–2024. This regional market has gathered considerable momentum from the rapid strides in the U.S. shale gas segment, thereby bolstering the production of natural gas.
Rapid Strides by Shale Gas contributing Attractive Revenues
The growth of the natural gas liquid market is propelled by its myriad application in end-use industries, most notably petrochemical. The rising demand for end-use products in various parts of the world is a key factor driving the market. Natural gas liquid such as butanes, propane, ethane, and isobutene have gained popularity as a petrochemical feedstock worldwide. In addition, the demand for natural gas liquid in plastics production and rubber production application is also rising.
Over the past several years, the global natural gas liquid market has benefitted substantially from a booming shale gas production in various parts of the world. The U.S. shale gas is a case in point, which has augmented the extraction rate of natural gas liquid. The global natural gas liquid market is also benefitting from a favorable dynamics between its extraction and the prices of crude oil. Players in different price environments are increasingly benefitting from them.
Recent Advancements in Storage and Handling to Fuel Natural Gas Liquid Market
However, the costs of crude oil has reduced significantly over the past few years. This has reduced the price of naptha, which has dampened the profitability of manufacturers in the global natural gas liquid market. Moreover, the huge cost incurred in handling, storage, and transportation of natural gas liquid has posed considerable setback to the market’s growth.
On the other hand, constant industry efforts to bring advancements in storage, handling and shipping technologies are expected to boost the profitability. Moreover, analysts speculate the price of crude oil to stabilize over the years. The trend is likely to open new avenues in the global natural gas liquid market.
The study presented here is based on a report by Transparency Market Research (TMR) titled “Natural Gas Liquid Market (Type – Ethane, Propane, Normal Butane, Isobutane, and Pentanes Plus) - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2016–2024.”
The global natural gas liquid market is segmented based on:
- Normal Butane
- Pentanes Plus
- North America
- Asia Pacific
- Rest of Asia Pacific
- Middle East
- Saudi Arabia
- Rest of Middle East
- Rest of Africa
- Latin America
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