Increased Demand for Greener Fuel to Enhance Growth of Natural Gas Liquids Market
Thriving boom around clean and green fuel is predominantly underpinning the growth of natural gas liquids market. CO2 emissions from economic activities such as manufacturing and transportation have grown to be a major worldwide concern. According to the International Energy Agency, CO2 emissions climbed by 40% from 2018 to 2020. Furthermore, despite relative stability between 2018 and 2020, CO2 emissions increased by 1.5% in 2020. According to the International Energy Agency, the transportation industry emitted over eight gigatons of CO2 in 2020, accounting for almost one-quarter of total emissions. This represents a 71% increase since 1990. Similarly, emissions from the household sector are significant due to the combustion of fossil fuels, the usage of GHG-emitting products, and poor waste management. According to the EIA, the residential sector accounted for 19% of total GHG emissions in the United States in 2020.
Ethane, propane, butane, isobutane, and pentane are all NGLs. There are many uses for NGLs, spanning nearly all sectors (industrial, residential, commercial, transportation) of the economy. NGLs are used as inputs for petrochemical plants, burned for space heat and cooking, and blended into vehicle fuel. Higher crude oil prices have contributed to increased NGL prices and, in turn, provided incentives to drill in liquid-rich resources with significant NGL content. This will remain a crucial influencer, and a key performance indicator for natural gas liquids market.
As a result, LPG-powered vehicles are provided federal incentives in countries like the United States. As a result, the use of propane is predicted to increase, propelling the worldwide natural gas liquids market forward. LPG has 0.84 times the carbon intensity of heating oil and 0.65 times the carbon intensity of coal. As a result, LPG is widely utilised in the home sector for heating and cooking, as well as backup generators and recreational vehicles, boats, and caravans.
Increased Demand for Natural LPG from Residential Places to Drive Growth of Natural Gas Liquids
The residential is expected to be the fastest-growing segment of the natural gas liquids market over the forecast period. The use of NGLs products is increasing in response to rising living standards and environmental concerns. NGLs like propane and butane are widely utilised as heating and cooking fuel, as well as an energy source for heating systems, washing dryers, grills, and portable stoves. The natural gas liquid market is predicted to benefit from an increase in demand for such goods for cooking, heating, and burning. Its expanding use in the petrochemical industry, the construction of large-scale ethylene crackers, and growing investments in downstream industries, the ethane natural gas liquid market is expected to grow. Furthermore, the industry's expansion will be aided by its increasing use as a feedstock to produce ethylene, which is a key component in the production of resins, plastics, and a variety of other industrial products.
Increased Demand for Natural Gas to Drive Growth of North American Natural Gas Liquids Market
North America is poised to remain a promising region in global natural gas liquids market in the coming years. Because of a substantial overall increase in NGL output levels, the North American natural gas liquid market is predicted to grow rapidly during the projection period (from refineries and gas plants combined). Natural gas liquids output from gas plants in the United States has expanded because to the rapid expansion of natural gas supply from non-traditional sources such as tight, shale, and coal-bed methane deposits. Annual consumption in the United States is predicted to exceed 3 million barrels per day by 2025. The rapid rise of the shale gas industry, low natural gas liquids prices and a reduction in reliance on other countries for energy imports have all contributed to a major increase in NGL utilisation. Furthermore, natural gas liquid market growth is likely to be influenced positively by supply cost savings, currency exchange rate volatility, and product monetisation.
The rapid development of the shale gas industry, low natural gas liquids pricing, and decreasing reliance on other countries for energy imports have significantly increased NGL usage. In addition, supply cost efficiency, foreign exchange rate volatility, and product monetisation will all contribute to the industry's growth. The natural gas liquid market in this region will be stimulated by a growing focus on national energy security and self-sufficiency, as well as boosting the use of NGL in the energy mix. Because of rising power demands, the rise of new industrial towns, and comparatively low prices, governments are prioritising unconventional deposits to increase domestic gas-liquid capacity. Nevertheless, current elevated levels of domestic oil and gas development have pushed NGL production to an all-time high, leading to concerns over processing and distribution constraints in the coming years.
Global Natural Gas Liquids Market: Competitive Landscape
In May 2022 Shell Australia Pty Ltd (Shell Australia) and its joint venture partner, SGH Energy, have approved the development of the Crux natural gas field off the coast of Western Australia with a Final Investment Decision (FID). Crux will supply the current Prelude floating LNG (FLNG) project with additional natural gas. On the other hand, in March 2021, POSCO International Corporation (POSCO International), a subsidiary of POSCO Holdings, Inc., South Korea's largest steelmaker and owner of South Korea's first private LNG terminal, has engaged into an LNG Sales and Purchase Agreement (SPA) with Cheniere Marketing, LLC (Cheniere Marketing).
A few of the players in global natural gas liquids market include BP P.L.C., POSCO International Corporation ConocoPhillips Company, Devon Energy Corporation, Chevron Corporation, Exxon Mobil Corporation, Lukoil, Range Resources Corporation, Occidental Petroleum Corporation, Saudi Arabian Oil Co., and Shell Plc.
Global Natural Gas Liquids Market is Segmented as Below:
Key Elements Included In The Study: Global Natural Gas Liquids Market
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