Natural Gas Liquid Market

• Growing government backing for NGL usage drives market growth.

Market CAGR for natural gas liquid (NGL) is being driven by the rising government backing for NGL usage. The Mexican Energy Regulatory Commision granted Walmart a 30-year commision to provide propane to customers in six Mexican state towns. Through an extended petrochemicals diversification programme, the government of Alberta, Canada, has made efforts to increase ethane supplies through a combination of loan guarantees, royalty credits, and grants. These efforts, when combined with a partial upgrade programme, are likely to attract more than USD 10 billion in private investment.

Furthermore, in September 2019, the Saudi government launched additional measures to reduce subsidies for needs such as water and energy. As a result, the cost of ethane increased by 2.33 times the cost of subsidies. However, this had little effect on demand for product cuts, and the hikes were well received. During the forecast period, such factors will drive market expansion.

Additionally, with rising living standards and environmental concerns, the use of NGLs products is increasing. NGLs such as propane and butane are commonly utilised as a fuel in furnaces for heating and cooking, as well as an energy source for heating systems, washing dryers, grills, and portable stoves. The increased consumption of such goods for cooking, heating, and burning is likely to boost the natural gas liquid industry.

Despite relative stability between 2019 and 2020, CO2 emissions increased by 1.5% in 2020. According to the IEA, the transportation sector accounted for around eight gigatonnes of CO2 in 2019, accounting for roughly one-quarter of overall emissions. As a result, NGLs have seen widespread use as a source of energy in a variety of industries. According to Technavio, worldwide autogas consumption would climb from 27.01 million tonnes in 2020 to 29.79 million tonnes by 2032. Furthermore, LPG is widely used in the residential sector as well as for recreation in recreational vehicles, boats, and caravans.

For instance, in May 2019, India's Pradhan Mantri Ujjwala Yojana was launched to provide new and free LPG connections to women from extremely impoverished homes. Thus, driving the Natural Gas Liquid (NGL) Market revenue.

Infrastructure development plays a pivotal role in the Global Natural Gas Liquid (NGL) Market Industry, as enhanced transportation and processing facilities facilitate the efficient movement of NGL products. Investments in pipelines, storage facilities, and processing plants are crucial for meeting the growing demand. For instance, the expansion of the U.S. pipeline network has significantly increased the availability of NGLs for domestic and international markets. This infrastructure enhancement not only supports the current demand but also positions the industry for future growth, as it enables the seamless integration of NGLs into the global energy supply chain.

The growing global energy demand is a fundamental driver of the Global Natural Gas Liquid (NGL) Market Industry. As populations expand and economies develop, the need for energy sources continues to rise. NGLs, being versatile energy carriers, are increasingly utilized in power generation, heating, and transportation. This trend is particularly pronounced in regions with rapid urbanization and industrial growth. The increasing reliance on natural gas as a cleaner alternative to coal further propels the demand for NGLs. Consequently, the market is poised for substantial growth, supported by the ongoing transition towards more sustainable energy sources.

The Global Natural Gas Liquid (NGL) Market Industry experiences a surge in demand for petrochemicals, driven by their extensive applications in various sectors such as plastics, fertilizers, and pharmaceuticals. As industries expand, the need for ethane, propane, and butane, which are key components of NGL, rises. This trend is particularly evident in emerging economies where industrialization is accelerating. The market is projected to reach 23.4 USD Billion in 2024, reflecting a robust growth trajectory. By 2035, the market could potentially expand to 43.0 USD Billion, indicating a compound annual growth rate (CAGR) of 5.7% from 2025 to 2035.

Regulatory support and favorable policy frameworks significantly influence the Global Natural Gas Liquid (NGL) Market Industry. Governments worldwide are increasingly recognizing the importance of NGLs in achieving energy security and reducing carbon emissions. Policies promoting the use of cleaner fuels and incentivizing NGL production and consumption are becoming more prevalent. For example, the implementation of tax incentives for NGL producers in various regions encourages investment in this sector. Such supportive measures not only enhance market stability but also stimulate innovation and technological advancements, further driving the growth of the NGL market.

Technological advancements in extraction and processing techniques are transforming the Global Natural Gas Liquid (NGL) Market Industry. Innovations such as improved fractionation processes and enhanced recovery methods increase the efficiency of NGL production. These advancements not only reduce operational costs but also minimize environmental impacts, aligning with global sustainability goals. For instance, the adoption of advanced separation technologies has enabled producers to maximize yield from natural gas, thereby increasing the availability of NGLs. As technology continues to evolve, it is likely to play a crucial role in shaping the future landscape of the NGL market.

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. Over the anticipated period, the North American region is expected to lead the market, because to the rapid expansion of the shale gas sector, low natural gas liquids costs, and reduced reliance on other nations for energy imports. Aside from that, supply cost savings, currency exchange rate adjustments, and product monetization will all contribute to market growth in the region.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: Natural Gas Liquid (Ngl) Market Share By Region 2022 (USD Billion)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Europe Natural Gas Liquid (NGL) Market accounts for the second-largest market share due to the rising population is a major factor influencing the region's power generation market. Further, the German Natural Gas Liquid (NGL) Market held the largest market share, and the UK Natural Gas Liquid (NGL) Market was the fastest growing market in the European region

The Asia-Pacific Natural Gas Liquid (NGL) Market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to growing population, as well as advancements in new technologies and goods, are expected to make this region a suitable location for the development of liquified gas in the next years. Moreover, China’s Natural Gas Liquid (NGL) Market held the largest market share, and the Indian Natural Gas Liquid (NGL) Market was the fastest growing market in the Asia-Pacific region.

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Natural Gas Liquid (NGL) Market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Natural Gas Liquid (NGL) Industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the Natural Gas Liquid (NGL) industry to benefit clients and increase the market sector. In recent years, the Natural Gas Liquid (NGL) industry has offered some of the most significant advantages to medicine. Major players in the Natural Gas Liquid (NGL) Market, including Exxon Mobil Corporation, Lukoil Occidental Petroleum Corporation, Range Resources Corporation, Saudi Arabian Oil Co., and Shell Plc. and others, are attempting to increase market demand by investing in research and development operations.

Oneok, Inc. is a Tulsa, Oklahoma-based American diversified firm principally focused on the natural gas industry. The corporation is a member of the Fortune 500 and the S&P 500. [6] Oneok was created in 1906 as Oklahoma Natural Gas Company, but in December 1980 it changed its name to Oneok. As a result of the 2005 acquisition of Koch Industries' natural gas assets, it also possesses significant natural gas liquids (NGL) infrastructure. Oneok's Energy Services division is largely responsible for marketing natural gas and related services across the United States.

Energy Services, which earns more than 84 percent of its revenue through physical marketing, increased its operating income by $26.5 million. In April 2019, ONEOK, Inc. announced intentions to build a 75-mile-long natural gas liquids (NGL) pipeline that will connect the northern segment of the Bakken NGL Pipeline to a third-party natural gas processing plant in eastern Williams County, North Dakota. The investment will be in the neighbourhood of $100 million.

Kinder Morgan, Inc. is one of North America's leading energy infrastructure firms. The corporation specialises in the ownership and management of oil and gas pipelines and terminals. Kinder Morgan owns or operates roughly 83,000 miles (134,000 km) of pipelines and 143 terminals. Natural gas, liquefied natural gas, ethanol, biodiesel, hydrogen, refined petroleum products, crude oil, carbon dioxide, and other commodities are transported by the company's pipelines. At their terminals, Kinder Morgan also stores or handles a number of products and resources such as gasoline, jet fuel, ethanol, coal, petroleum coke, and steel.

In April 2019, Kinder Morgan, the lead developer for the Gulf Coast Express Pipeline and the Permian Highway Pipeline, confirmed its plans for a third project after reaching the halfway point in the construction of two projects that will transport natural gas from West Texas' Permian Basin and southeastern New Mexico to Corpus Christi and Houston, respectively.