Asia Pacific Tight Gas Market

Asia Pacific Tight Gas Market Size (2022 - 2027):

The Asia Pacific Tight Gas Market size is growing at a CAGR of 5.21% during the forecast period and generated USD XX billion in 2021 and is expected to reach a value of XX billion by 2027.

Tight gas describes natural gas reservoirs made from rocks with such limited porosity that significant hydraulic fracturing is necessary to extract the well economically. The subsurface formation is exceptionally tight because these resources are enclosed in tough, impermeable rock. Low-permeability reservoirs that primarily generate dry natural gas are known as "tight gas" in general usage. Sandstone makes up a large portion of the low-permeability reservoirs created in the past, but low-permeability carbonates, shales, and coal seams are also used to produce large amounts of gas. It is difficult to get at the gas trapped inside a tight gas formation, unlike a typical natural gas deposit. However, natural gas production would be unprofitable without some type of aid since gas would enter the well at an incredibly sluggish rate. After drilling a well to a tight gas deposit, artificial stimulation can encourage tight gas flow out of the rock. One common technique for getting at the gas is hydraulic fracturing, which involves filling the well with high-pressure fracking chemicals to fracture the formation's rocks. Gas can move more freely as a result of the increased permeability. Creating pathways for the gas to follow, acidizing the well, or filling it with acids to dissolve the limestone and silt allows the gas to flow more freely. In addition, the tight gas wells' liquefaction may aid the extraction process. The reservoirs in most tight gas deposits also contain some water, which can gather and make extraction challenging. Removing the gas is easier after it has been deliquefied by pumping water from the reservoir.

Market Drivers and Restraints:

Tight gas deposits are low-permeability sandstone reservoirs that must be fractured and produced using cutting-edge technologies. The two main factors that will propel the growth of the tight gas market are the increase in spending brought on by the expansion of the oil and gas industry and the development of the hydraulic fracturing extraction procedure. The tight gas market growth will also be accelerated by the lower extraction, processing, and commercialization costs linked to this gas type. The major drawback of this extraction of tight gas is the environmental issues involving shale gas extraction, and tight gas extraction are comparable. This is mostly because of worries about the fracking process. First, a lot of water is needed for the drilling and fracturing of these wells. In some regions, significant water use for shale gas extraction might reduce water supplies for other applications or impact aquatic environments.

Additionally, drilling and fracturing generate a lot of wastewater, some of which can be contaminated. As a result, the water must be treated before being disposed of or used again. The proper handling and disposal of wastewater is a complicated matter. Concerns about acidification's effects on the environment are also prevalent. Because hydrofluoric acid is such a toxic material, using it to release tight gas from these reservoirs may be problematic. A spill or leak might endanger workers and contaminate groundwater used for domestic purposes. The world's unconventional gas resources are being developed due to the undeniable widening gap between supply and demand and the advancement of technology. The low permeability gas reservoirs sometimes referred to as tight gas reservoirs, are one of these unconventional gas resources that have recently caught the interest of researchers. During the projection period, tight gas demand is anticipated to grow significantly due to rising energy demand and depleting conventional gas supplies. Many nations are decarbonizing their energy mix by switching to renewable energy with low carbon dioxide emissions. Natural gas and bio-methane are two fuels that could replace fossil fuels to lessen the impact of transportation on the environment. Some of the limits on the Asian Pacific tight gas market are access to drilling places, environmental concerns, and workforce shortages.

ASIA PACIFIC TIGHT GAS MARKET REPORT COVERAGE:

Market Segmentation:

Asia Pacific Tight Gas Market - By Application:

• Residential Commercial
• Industrial
• Power Generation
• Transportation

In the following five years, the industrial sector is anticipated to dominate the tight gas market shares. This expansion can be credited to the use of many tight gas value-added products needed in the industrial sector. For making chemicals, fertilizers, and several other goods, it serves as a feedstock. This development has created numerous opportunities for tight gas-rich nations to increase their industrial output by utilizing this plentiful resource over the coming years. Due to the widespread use of tight gas for domestic needs, the residential sector enjoyed a substantial market share. Tight gas is mostly used in homes for space heating and water heating. The power generation segment is anticipated to experience rapid volume growth with a CAGR of 5.3% throughout the forecast period. As power plants in many nations switch from coal to gas, this trend is anticipated to grow. It is anticipated that tight gas will increase in popularity across a number of nations due to its lower carbon emissions compared to the combustion of other fossil fuels and tight gas. The potential of the transportation fuel to lower harmful exhaust emissions of pollutants and deliver cleaner combustion compared to other fuel sources is expected to help it achieve substantial traction. The expansion is anticipated to be fuelled by the rising demand for affordable, clean transportation fuel in developing nations like China and India.

Asia Pacific Tight Gas Market - By Country:

• China
• India
• Japan
• South Korea
• Malaysia
• Thailand
• Australia
• New Zealand
• Philippines
• Indonesia
• Vietnam
• Singapore
• Rest of APAC

China aspires to increase domestic natural gas production and meet the rising global need for energy security. It is anticipated that China will gain a significant tight gas market share throughout the projected period. In China, the mountainous region is home to most tight gas plants. Such a geographic area raises the drilling costs, preventing the market from expanding. The Chinese government has developed new incentives for its natural gas development subsidy program. After this year's 56% collapse in oil prices as a global pandemic devastated economic activity, China's state-owned energy businesses are following others globally in cutting spending. The nation's three major oil and gas producers prioritize domestic gas production even as they expect double-digit spending cuts, partly because the tight gas market is comparatively protected from sudden changes in oil prices thanks to government subsidies. Following India, as contributes second largest consumer of tight gas, the Indian economy is now thought to be on a sustainable growth path, which will cause the nation's energy consumption to rise in the future. A change in India's primary energy balance due to replacing natural gas with oil is anticipated to help offset this increase in consumption. India's energy mix is predicted to include 21% more natural gas in 2025 than in 2010, at 10%.

Asia Pacific Tight Gas Market Key Players:

1. Chevron Corporation
2. Chesapeake
3. ConocoPhillips Company
4. Equinor ASA
5. Exxon Mobil Corporation
6. PetroChina Company Limited
7. Repsol
8. Royal Dutch Shell PLC
9. Southwestern Energy Company
10. Sinopec Oilfield Service Corporation
11. Marathon Oil
12. Pioneer Natural Resources
13. Devon Energy
14. EOG Resources