Gas Processing Market

Gas Processing Market  Size 2023-2028

The gas processing market size was about USD 198.65 Billion in 2022 and is expected to raise at a CAGR of 6.3% to develop to around USD 214 Billion by 2028.

Increased demand for natural gas is driving the industry. The abundance, versatility, and clean-up characteristics of natural gas drive its requirement. As a result of the enhanced use of natural gas in transport, the demand for natural gas has risen. In addition, natural gas supply for power generation is another variable increasing the development of the industry in emerging nations. This increased demand for natural gas will contribute to the development during the forecast period of the world gas handling industry.

What is a Gas Processing?

Gas processing is utilized to divide hydrocarbons and get rid of impurities from unrefined natural gas obtained from oil and gas wells to offer value-added products like dry gas and NGL. 

Gas Processing Market Drivers & Restraints

Some factors which are driving the global gas processing market are fast expansion in natural gas production, rising initiatives for the adoption of NGL, and increasing call for natural gas. Pressure-assisted stripping (PAS) technology further fuels the efficiency of gas purification procedures by lowering the requirement for heat generation by more than 25%. In the same manner, dynamic compressor model technology assists in reducing operational costs by improving the understanding of the instabilities and operational failures of compressors during the acid-cleaning operation. These innovations in gas processing technology are seen as critical gas processing market trends that will have a positive effect on the expansion of the market.

The production of natural gas is escalating owing to the escalated investments in upstream oil and gas and E&P activities to improve the production of natural gas. According to the IEA, global upstream oil and gas investments rose by 6% in 2019 over that in 20178. The adoption of natural gas is growing as they produce lower greenhouse gas emissions as compared to other fossil fuels throughout combustion. The US and China are the most significant contributors to global natural gas production due to the escalated shale oil and gas drilling activities in the US, and CBM and shale gas drilling activities in China. Therefore, the rising natural gas production due to higher investments and upstream oil and gas activities is driving the call for gas processing that in turn, driving the expansion of the market. 

The abundance, versatility, and lower carbon dioxide emissions of natural gas have fuelled its popularity in end users. The call for natural gas is exceptionally high in the APAC region, where the employment of natural gas has escalated notably in fertilizer plants, power generation units, transportation, petrochemicals, and residential and commercial segments. As natural gas is a clean and environment-friendly fuel, it is highly employed as a fuel in the transportation and power generation segment, mainly in growing countries like China and India. The rising call for natural gas will create a requirement for gas processing for separating impurities like hydrogen sulfide, carbon dioxide, nitrogen, and water vapor from unrefined natural gas. 

Environmental dangers related to hydraulic fracturing is the key restraining factor hampering the expansion of the global gas processing market.

Opportunities in the Gas Processing Market

The increasing call for natural gas will be a significant factor boosting the expansion of the gas processing market at a CAGR of over 4% throughout the forecast period. This rising call for natural gas and innovations in gas processing technology are some of the factors estimated to drive market expansion in the future. The market report offers a complete analysis of the market by product (dry gas and NGL) and geography (APAC, Europe, MEA, North America, and Latin America). The global gas processing market is showcasing the advancement of many innovative technologies that will improve the technical and economic feasibility of gas processing operations. By reducing energy consumption, these technologies will assist gas processing firms to make major cost savings. For example, immobilized amine technology assists in decreasing the energy and size of the gas processing reactor in the absence of an aqueous solvent by improving gas processing. It also reduces energy consumption during water evaporation. 

Challenges in the Gas Processing Market

Strict environmental rules relating to hydraulic fracturing issued by governments and agencies to safeguard public interests are estimated to hinder the global gas processing market expansion in future. 

GAS PROCESSING MARKET REPORT COVERAGE:

Gas Processing Market Segmentation

On the basis of the Product:

The market is separated into Dry gas, and NGL Content Management. In terms of the most significant market share in the Gas Processing market, North America is one of the significant areas of the globe. In North America, this demand for this industry is boosting both in terms of oil and natural gas. In the predicted years, Europe is anticipated to develop as the main competitor. In the next few years, the APAC region is expected to achieve the highest CAGR. 

On the basis of Region:

• North America 
• Europe 
• Asia Pacific
• Latin America
• Middle east and Africa 

The North America gas processing market accounted for the largest share in the global business in 2019. Even though the market's expansion in North America will be slower than the development of the market in MEA, the region will account for the most significant gas processing market share throughout the forecast period. The US is a substantial market for gas processing in the area. The rising oil and gas E&P activities will boost the call for gas processing in North America. The discovery of many oil and gas reserves in North America has fueled oil and gas E&P activities and consequently escalated oil and gas production. The increasing call for natural gas is one of the critical reasons for the expansion of the gas processing market. Escalated investments in upstream oil and gas E&P activities have resulted in a significant increase in the production of natural gas. Furthermore, the adoption of natural gas is rising highly as it produces lower greenhouse gas emissions as compared to other fossil fuels. The US and China are the biggest contributors to global natural gas production due to the rise in shale oil and gas drilling activities in the US and shale gas drilling activities in China.

Recent Developments 

• PGNiG has declared that it is the only user of a small-scale LNG reloading station in Lithuania. As of 1 April 2020, Polskie Górnictwo Naftowe i Gazownictwo (PGNiG) is the sole user of the small LNG reloading station in Klaipeda, Lithuania that gives the firm access to the Baltic Sea markets and lets it optimize the logistics of LNG supplies to consumers in north-eastern Poland.

• TransCanada Corp. finished the transaction to acquire all pending shares of Columbia Pipeline Group Inc. for an aggregate purchase cost of around USD 13 B, including the assumption of approximately USD 2.8 B of debt.  

Gas Processing Market key players:

• Gazprom (Russia)

• Exxon Mobil (US)

• China National Petroleum (China)

• Royal Dutch Shell (U.K)

• BP (U.K.)

• Chevron (US)

• Total (France)

• Statoil (Itlay)

• ConocoPhillips (U.S)

• Eni (U.S.)