Natural Gas Liquid Market: Introduction
In terms of volume, the global natural gas liquid market is estimated to reach 19,529 Thousand B/D by 2027 and is anticipated to expand at a CAGR of ~6% during the forecast period. The natural gas liquid production in North America is projected to increase at a substantial pace during the forecast period, owing to significant demand for imports and exports and increased production of natural gas liquids led by substantial increase in urbanization in the region.
Key Drivers of Natural Gas Liquid Market
Increasing use of natural gas liquids (NGLs) in petrochemical applications is expected to drive the global natural gas liquid market during the forecast period. Ethane holds the maximum share of NGL field production. It is used almost exclusively to produce ethylene, which is then turned into plastics. It is also a key feedstock employed in the production of petrochemical products. On the contrast, a majority of propane is used for heating purpose, although a substantial amount is used as a petrochemical feedstock. Also, pentane is used as a blowing agent for polystyrene foam. A blend of propane and butane, sometimes referred to as auto gas, is a popular fuel in some parts of Europe, Turkey, and Australia. Thus, increasing use of natural gas liquids (NGLs) in petrochemical applications is anticipated to boost the global natural gas liquid market during the forecast period.
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Rising utilization of unconventional gas resources is anticipated to drive the global natural gas liquid market during the forecast period. Spending on oil and gas exploration rose by 20% in 2018. About 140 discoveries were made in the year itself. According to the World Energy Council, the U.S. has 1,161 trillion cubic feet of technically recoverable unconventional gas. China has 1,115 trillion cubic feet of unconventional gas. The U.S. was the leading country in terms of production of unconventional gas in 2018. Its annual production of unconventional gas stood at 22 trillion cubic feet in the year. China’s production output stood at 10 trillion cubic feet in 2018. Thus, with increase in utilization of unconventional gas resources, the global natural gas liquid market is anticipated to expand significantly during the forecast period.
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North America Offers Lucrative Opportunities to Natural Gas Liquid Market
North America led the global natural gas liquid market in 2018, owing to significant demand for imports and exports and increased production of natural gas liquids in the region. Furthermore, rising demand for natural gas led by increase in urbanization is also likely to propel the market for natural gas liquid in North America during the forecast period.
Major Developments in Natural Gas Liquid Market
In 2019, Gazprom, a Russia-based company, discovered two large natural gas reserves called Dinkov and Nyarmeyskoye in the Kara Sea off the northwestern part of West Siberia’s Yamal Peninsula. Both of these discoveries together hold nearly 1.5 billion barrels of oil from recoverable gas resources. ExxonMobil has also discovered new recoverable resources in the Mediterranean Sea. The gas discovery by Glaucus off Cyprus is estimated to hold 700 million barrels of oil in recoverable resources. In February 2019, in South Africa’s deep-water horizon, a large gas condensate was discovered in Total SA’s Brulpadda wildcat well in the Lower Cretaceous Post-rift Paddavissie Fairway, which is estimated to hold 1 billion barrels of oil.
Competition Landscape of Natural Gas Liquid Market
The global natural gas liquid market is highly fragmented. Various large-sized, international players as well as local players held a significant share of the global market in 2018. Key players operating in the global natural gas liquid market are BP Plc., Exxon Mobil Corporation, Royal Dutch Shell Plc., Range Resources Corporation, SM Energy, Equinor ASA, Silver BoW resources, Linn Energy LLC, Range Resources Corporation, ConocoPhillips Company, and Chesapeake Energy Corporation.