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Natural Gas Liquids (NGLs) Market

Published Date : Jul 2024 | Forecast Year : 2019

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Natural Gas Liquids (NGLs) Market Size, Share, Industry Trends Segmentation Analysis, By Type (Ethane, Propane, Butane, Isobutane, Natural Gasoline), By Application (Petrochemical Feedstock, Residential Heating, Industrial Fuel, Motor Fuel, Others) Growth, Demand, Regional Outlook, and Forecast 2024- 2032

Report ID: AG1012

Published : Jul 2024

Pages : 128

Category : Energy & Power

Format : Natural Gas Liquids (NGLs) Market

REPORT ATTRIBUTEDETAILS
MARKET SIZE (2032)USD 35 Billion
MARKET SIZE (2023)USD 21 Billion
CAGR (2023-2029)6%
HISTORIC YEAR2019
BASE YEAR2023
FORECAST YEAR2032
BY TYPEEthane
Propane
Butane
Isobutane
Natural Gasoline
BY APPLICATIONPetrochemical Feedstock
Residential Heating
Industrial Fuel
Motor Fuel
Others
GEOGRAPHIC ANALYSISNorth America, Europe, Asia Pacific, Latin America, and Middle East & Africa
KEY PLAYERSExxonMobil Corporation, Royal Dutch Shell plc, BP plc, Chevron Corporation, ConocoPhillips, Total S.A., Enterprise Products Partners L.P., Occidental Petroleum Corporation, Williams Companies, Inc., Targa Resources Corp., ONEOK, Inc., Phillips 66, Enbridge Inc., Cheniere Energy, Inc., Energy Transfer LP, Kinder Morgan, Inc., Pembina Pipeline Corporation, MPLX LP, Plains All American Pipeline, L.P., DCP Midstream, LP.

Introduction

The market for natural gas liquids (NGLs) plays a crucial role in the global energy sector, comprising a range of hydrocarbon products obtained from natural gas processing and crude oil refining. NGLs, such as ethane, propane, butane, isobutane, and natural gasoline, are vital raw materials for petrochemical manufacturing, residential heating, fuel, and blending agents in gasoline. The market is primarily fueled by the diverse applications of NGLs in various industries and their contribution to bolstering energy security and economic development.

Global Market Overview

The worldwide NGLs market is witnessing substantial growth, driven by escalating energy requirements, the expanding petrochemical sector, and advancements in natural gas extraction technologies like hydraulic fracturing and horizontal drilling. North America, especially the United States, leads the market due to its extensive shale gas reserves and well-established NGLs infrastructure. Other key regions include the Middle East, with its abundant natural gas reserves, and Asia-Pacific, propelled by increasing industrialization and energy consumption. The market is characterized by fluctuating prices influenced by crude oil prices, supply-demand dynamics, and geopolitical factors.

Natural Gas Liquid (NGL) Market Size was valued at USD 21 Billion in 2023. The Natural Gas Liquid (NGL) Market industry is projected to grow from USD 21.9 Billion in 2024 to USD 35 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 6% during the forecast period (2024 - 2032).

Natural Gas Liquids (NGLs) Market

Size, by Product, - (USD Billion)

Ethane

Propane

Butane

Isobutane

Other Products

18 16 14 12 10 8 6 4 2 0

The Market will Grow

At the CAGR of:

6%

The Forecast Market

Size for in USD:

$35 BillionB

b0d51e3055fd6f23ff6a384a6e091406.svg

Key Players

ExxonMobil Corporation

Royal Dutch Shell plc

BP plc

Chevron Corporation

ConocoPhillips

Total S.A.

Enterprise Products Partners L.P.

Occidental Petroleum Corporation

Williams Companies, Inc.

Targa Resources Corp.

ONEOK, Inc.

Phillips 66

Enbridge Inc.

Cheniere Energy, Inc.

Energy Transfer LP

Kinder Morgan, Inc.

Pembina Pipeline Corporation

MPLX LP

Plains All American Pipeline, L.P.

DCP Midstream, LP

Market Segmentation

By Product Type

Ethane

Propane

Butane

Isobutane

Natural Gasoline

By Source

Natural Gas Processing

Crude Oil Refining

By Application

Petrochemical Feedstock

Residential Heating

Industrial Fuel

Motor Fuel

Others

By End-User

Petrochemical Industry

Residential Sector

Industrial Sector

Transportation Sector

Commercial Sector

By Region

North America

Europe

Asia-Pacific

Latin America

Middle East & Africa

Market Dynamics

Trends

The NGLs market is experiencing a shift towards increased investment in infrastructure development, such as pipelines, storage facilities, and export terminals, to improve the efficiency of the supply chain and meet the growing global demand. Moreover, there is a rising emphasis on incorporating advanced technologies for the efficient extraction, processing, and transportation of NGLs.

Restraints

Market expansion is hindered by price volatility caused by fluctuations in crude oil prices, geopolitical tensions, and supply-demand imbalances. Environmental concerns and regulatory restrictions related to natural gas extraction and processing also present obstacles for market growth.

Opportunities

Emerging markets, particularly in Asia-Pacific and Latin America, provide significant growth opportunities driven by rapid industrialization, urbanization, and increasing energy consumption. Technological advancements in extraction and processing, as well as the development of new applications for NGLs, offer avenues for market expansion.

Challenges

The NGLs market encounters challenges associated with infrastructure bottlenecks, especially in developing regions, and the necessity for substantial capital investment in extraction, processing, and transportation facilities. Additionally, competition from alternative energy sources and the need to comply with stringent environmental regulations contribute to operational complexities.

Natural Gas Liquids (NGLs) Market

Share, by end user, (USD Billion)

Analytica Global 21 Billion%

Petrochemical Feedstock

Residential Heating

Industrial Fuel

Motor Fuel

Other End-Users

b0d51e3055fd6f23ff6a384a6e091406.svg

35 Billion

Total Market Size

USD (Billion),

6%

CAGR

-

Value Chain

The dynamics of the NGLs market value chain involve various stages, such as extraction, processing, transportation, storage, and distribution. Natural gas is extracted and processed to separate NGLs, which are then transported, stored, and distributed to end-users, including petrochemical plants, residential consumers, and industrial sectors.

Supply Chain

The supply chain includes raw material suppliers, processing plants, logistics providers, storage facilities, and end-users. Effective supply chain management ensures timely procurement, efficient processing, reliable transportation, and consistent supply of NGLs to meet market demand. Collaboration among stakeholders is crucial to address challenges, optimize operations, and enhance market reach.

Porter's Five Forces Analysis

Threat of New Entrants:

The threat of new entrants is moderate due to high capital investment requirements, technological expertise, and established infrastructure by key players.

Bargaining Power of Suppliers

Suppliers of raw natural gas have moderate bargaining power, influenced by the availability of resources and market demand. However, diversified sourcing options mitigate dependency.

Bargaining Power of Buyers

Buyers, particularly large industrial consumers and petrochemical companies, have significant bargaining power due to the competitive nature of the market and the availability of multiple suppliers.

Threat of Substitute Products

The threat of substitutes is moderate to high, with alternative energy sources such as renewables and advancements in energy storage technologies posing competition to NGLs.

Industry Rivalry

Industry rivalry is high, driven by the presence of numerous global and regional players competing on pricing, product quality, and technological advancements.

Natural Gas Liquids (NGLs) Market

Size, by Product, - (USD Billion)

NORTH AMERICA $ 24

The Market will Grow

At the CAGR of:

6%

The Forecast Market

Size for in USD:

$35 BillionB

b0d51e3055fd6f23ff6a384a6e091406.svg

Recent Development

In March 2023, Saudi Aramco announced record profits of $161 billion as gasoline prices skyrocketed following the Corona-virus pandemic. The figures outperformed ExxonMobil and Shell, which announced profits of $55.7 billion and $39.9 billion, respectively.

Recent developments in the NGLs market include the expansion of pipeline and export terminal capacities to accommodate increasing production and global demand. Key players are investing in advanced extraction and processing technologies to enhance efficiency and reduce environmental impact. Strategic partnerships and acquisitions are also shaping the competitive landscape, enabling companies to strengthen their market positions and expand their geographical reach.

Conclusion

The natural gas liquids market is set for continuous expansion, fueled by rising energy needs, technological progress, and wider usage in different sectors. Despite obstacles like fluctuating prices, regulatory restrictions, and infrastructure constraints, the market offers substantial growth potential through opportunities in new markets and advancements in extraction and processing. To stay competitive and capitalize on growth opportunities in the changing energy sector, major players need to prioritize improving operational efficiency, sustainability, and forming strategic partnerships.

FAQs

What are natural gas liquids (NGLs)?

Ans: NGLs are hydrocarbon products derived from natural gas processing and crude oil refining, including ethane, propane, butane, isobutane, and natural gasoline.

What are the primary uses of NGLs?

Ans: NGLs are used as petrochemical feedstocks, residential heating fuels, industrial fuels, motor fuels, and blending components in gasoline.

Which regions dominate the NGL market?

Ans: North America, particularly the United States, dominates the market, followed by the Middle East and Asia-Pacific, driven by abundant natural gas resources and extensive infrastructure.

What factors are driving the growth of the NGL market?

Ans: Factors driving market growth include increasing energy demand, expanding petrochemical industry, advancements in extraction technologies, and rising industrialization.

What challenges does the NGL market face?

Ans: Challenges include price volatility, environmental concerns, regulatory restrictions, infrastructure limitations, and competition from alternative energy sources.

How do fluctuations in crude oil prices affect the NGL market?

Ans: Fluctuations in crude oil prices impact the pricing, supply-demand dynamics, and investment decisions in the NGL market, influencing profitability and market stability.

What are the opportunities for the NGL market in emerging regions?

Ans: Opportunities lie in rapid industrialization, urbanization, increasing energy consumption, and infrastructure development in regions like Asia-Pacific and Latin America.

How is technology shaping the NGL market?

Ans: Technological advancements in extraction and processing, such as hydraulic fracturing, horizontal drilling, and cryogenic processing, are enhancing efficiency, reducing environmental impact, and driving market growth.

Natural Gas Liquids (NGLs) Market TO (USD BN)

Natural Gas Liquids (NGLs) Market

CAGR OF

6%

Natural Gas Liquids (NGLs) Market

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Analytica Global 35 Billion%

Natural Gas Liquids (NGLs) Market - Global Outlook & Forecast 2024-2029

Analytica Global
Analytica Global
Analytica Global
Analytica Global
Analytica Global
Analytica Global
Analytica Global
Analytica Global
Analytica Global
Analytica Global
Analytica Global
Analytica Global

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