Natural Gas Liquid Market: Current Analysis and Forecast (2021-2027)

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Natural gas liquids (NGLs) are by-products/derivatives of natural gas and utilized in the petrochemical business as a secondary fuel as well as used in power generation, refrigerants, industrial heating & cooling and transportation fuels with 30% to 50% lower carbon di-oxide emission than other alternative options. Natural gas liquidss (NGLs) are combination of hydrocarbons that incorporates ethane, propane, butane, isobutane, and natural gas. NGLs are separated from each other by the number of carbon particles in their molecular chain. They have a wide assortment of uses from fuels (e.g., propane, butane) to petrochemical feedstocks for making items like plastic and composts. NGLs are extracted as result in the production of natural gas and oil. When extracted from a well, natural gas is blended in with different hydrocarbons — a large number of them NGLs — and different pollutants.

The natural gas liquids market is expected to witness a CAGR of around 6% during the forecast period (2021–2027). The natural gas liquids market is expected to witness a CAGR of around 6% during the forecast period (2021–2027). The growing demand for natural gas leading to a rise in natural gas consumption around the world is expected to drive the natural gas liquid market globally. For instance, as per the IEA, the worldwide natural gas demand in OECD countries was 1,738 billion cubic meters in 2017 which increased to 1,850 billion cubic meters in 2019. This rising demand can be attributed to the use of natural gas liquid in the refinery for the feeding purpose of the naphtha cracker leads. Further, the blending of the NGL in the refined product and use in space heating as well as for cooking purposes also shows overall positive demand for the NGL.

Exxon Mobil Corporation, Rosneft, SM Energy, Equinor ASA, Royal Dutch Shell Plc, Chevron Corporation, ConocoPhillips Company, Lukoil, Saudi Arabian Oil Co., and Linn Energy LLC are some of the key players in the market. Several M&As along with partnerships have been undertaken by these players to facilitate customers with hi-tech and innovative products.

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Insights Presented in the Report

“Amongst Product, ethane category to hold a significant share in the market”

Based on the product, the natural gas liquid is segmented into ethane, propane, butane, pentane, and others. Amongst them, the ethane segment dominated the market in 2020 and is expected to continue the higher growth compared to the other products owing to the rapid growth in the transportation sector and the use of ethane as a transportation fuel. According to a leading consulting firm, the use of ethane for the steam cracker was 3.2 million barrels per day for the year 2018 and is expected to register a growth of 4.1 million barrels per day by the year 2023 and 4.5 million barrels per day by the year 2028.

“Amongst Applications, the industrial category is accounted for a significant market share in 2020”

Based on application, the market is categorized into the industrial, commercial, and residential segments. It has been observed that the industrial segment ruled the worldwide natural gas liquids market in 2020 and is projected to grow substantially during the forecast period. This is due to the increasing urbanization and rapid industrialization. In addition, the rising demand for energy in emerging economies and particularly for shipping merchandise will further positively impact the growth of the segment.

“North America to witness significant growth during the forecast period”

The U.S. oil & natural gas industries have gone through a “renaissance” of production. Mechanical upgrades in pressure-driven cracking and flat drilling have opened huge oil and natural gas assets from tight arrangements, like shale. The United States is one of the larger producers of NGLs across the globe, representing more than 33% of worldwide production. Homegrown NGL production has dramatically increased in a long time since 2008, arriving at 1,381 million barrels in 2017. Furthermore, ethane and propane are the two most predominant NGLs, and together they represent over 70% of all homegrown production. Subsequently, 37% of U.S. NGL production was exported in 2017. Additionally, the implementation of the decarbonization policies in the region would lead to the NGL demand in the future. For instance, California is supposed to supply 60% of its electricity with renewables and low-carbon generation resources.

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Reasons to buy this report:

• The study includes market sizing and forecasting analysis validated by authenticated key industry experts.
• The report presents a quick review of overall industry performance at one glance.
• The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolio, expansion strategies, and recent developments.
• Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry.
• The study comprehensively covers the market across different segments.
• Deep dive regional level analysis of the industry.

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Research Methodology

Research Methodology for the Natural gas liquidss Market Analysis (2021-2027)

Analyzing the historical market, estimation of the current market, and forecasting the future market of the natural gas liquidss market were the three major steps undertaken to create and analyze the adoption of natural gas liquids in major regions globally. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were also conducted, with industry experts across the value chain of the natural gas liquids market. Post assumption and validation of market numbers through primary interviews, we employed a top-down/bottom-up approach to forecasting the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments of the industry pertains to. Detailed methodology is explained below:

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Analysis of Historical Market Size

Step 1: In-Depth Study of Secondary Sources:

Detail secondary study was conducted to obtain the historical market size of the natural gas liquids market through company internal sources such as annual reports & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.

Step 2: Market Segmentation:

After obtaining the historical market size of the natural gas liquids market, we conducted a detailed secondary analysis to gather historical market insights and share for different segments & sub-segments for major regions. Major segments included in the report as product and application. Further country-level analyses were conducted to evaluate the overall adoption of testing models in that region.

Step 3: Factor Analysis:

After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size of the natural gas liquids market. Further, we conducted factor analysis using dependent and independent variables such as various products and application of natural gas liquids equipment. A thorough analysis was conducted for demand and supply-side scenarios considering top partnerships, mergers and acquisitions, business expansion, and product launches in the natural gas liquids market sector across the globe.

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Current Market Size Estimate & Forecast

Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the global natural gas liquids market, and market shares of the segments. All the required percentage shares split, and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.

Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e., top-down/bottom-up approach was applied to arrive at the market forecast about 2027 for different segments and sub-segments across the major markets globally. The research methodology adopted to estimate the market size encompasses:

• The industry’s market size, in terms of revenue (USD) and the adoption rate of natural gas liquids market across the major markets domestically
• All percentage shares, splits, and breakdowns of market segments and sub-segments
• Key players in the natural gas liquids market in terms of solutions offered. Also, the growth strategies adopted by these players to compete in the fast-growing market

Market Size and Share Validation

Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, and Regional Head, Country Head, etc.) across major regions. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.

Split of Primary Participants in Different Regions

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Market Engineering

Data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers of each segment and sub-segment of the natural gas liquids market. Data was split into several segments & sub-segments post studying various parameters and trends in the areas of product and application in the natural gas liquids market.

The main objective of the natural gas liquids market study

The current & future market trends of the natural gas liquids market were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments from the qualitative and quantitative analysis performed in the study. Current and future market trends were determined the overall attractiveness of the market at a regional level, providing a platform for the industrial participant to exploit the untapped market to benefit as a first-mover advantage. Other quantitative goals of the studies include:

• Analyze the current and forecast market size of the natural gas liquids market in terms of value (USD). Also, analyze the current and forecast market size of different segments and sub-segments
• Segments in the study include areas of product and application.
• Define and analysis of the regulatory framework for the natural gas liquids market industry.
• Analyze the value chain involved with the presence of various intermediaries, along with analyzing customer and competitor behaviors of the industry.
• Analyze the current and forecast market size of the natural gas liquids market for the major region.
• Major countries of regions studied in the report include Asia Pacific, Europe, North America, and Middle East & Africa.
• Company profiles of the natural gas liquids market and the growth strategies adopted by the market players to sustain in the fast-growing market
• Deep dive regional level analysis of the industry

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