Natural Gas Liquid Market is expected to expand a CAGR of 6% by 2027

Posted by mandar on March 25th, 2021

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.

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.