Gas to Liquids (GTL) Market

Gas to Liquids (GTL) Market Size (2024-2029):

The Global Gas to Liquids (GTL) Market was worth US$ 15.70 billion in 2023 and is anticipated to reach a valuation of US$ 22.40 billion by 2029 and is predicted to register a CAGR of 6.10% during 2024-2029.

Gas-to-Liquids (GTL) consists of converting natural gas into high-quality liquid fuels, which are traditionally obtained from crude oil. Today, the ever-increasing demand for energy and the growing world population has necessitated the development of alternative energy sources to alleviate the burden of conventional sources. With the increasing environmental considerations of conventional energy sources, clean energy sources are needed to reduce the carbon footprint. The conversion of natural gas to liquid fuels is a refinery process, in which gaseous hydrocarbons are converted into longer-chain hydrocarbons such as diesel fuel or gasoline. Methane-rich hydrocarbons are converted to synthetic fuels through the Fischer-Tropsch process, the syngas-to-gasoline process, and the methanol-to-gasoline process. Liquid diesel fuel is of superior quality to conventional refinery diesel produced from crude oil. The premium low-emission fuel can be used alone or mixed with conventional diesel.

MARKET DRIVERS

Around the world, the ever-increasing demand for energy, government policies supporting clean fuel production, and initiatives to convert natural gas waste into liquid fuels are the main factors driving the global gas-to-liquids market.

In recent years, several large companies have started the development of synthetic fuels using gas-liquid technology. According to the World Bank, nearly 150 billion cubic meters of freely available natural gas can be transformed into useful liquid fuels using gas-to-liquid technologies. From an environmental point of view, the GTL method produces much more environmentally friendly products. Diesel products produced with gas-liquid technology contain almost no sulfur and have a lower density, few aromatics, and a high cetane number. Growing concern over fossil fuel depletion, coupled with the need for alternative energy sources, is expected to drive growth in the gas-to-liquid market. The growing demand for FT routes to monetize natural gas reserves that are stranded and unavailable for use will also help the market grow. Additionally, methane-rich gases that are converted into clean synthetic fuels are expected to drive the growth of GTL technology. In addition, the other factors that may support the growth of the gas-to-liquid market include the increasing demand for clean energy sources, the increasing need for liquid fuels due to convenient storage and transportation conditions, strict government regulations to control the footprint of carbon to promote cleaner fuel sources, increased transport activities, urbanization, and rapid population growth. Additional factors that are driving market growth include higher industrial growth and increased use of fuel oil, especially in boilers, as well as other equipment to produce heat and power.

MARKET RESTRAINTS

The high cost involved in the development of gas-to-liquid conversion plants together with the size limitations of slurry and stationary reactors is the main limitation in this market.

MARKET OPPORTUNITIES

With the increasing consumption of natural gas, especially in countries such as India, Japan, and China, the introduction of small-sized microchannel reactors instead of conventional reactors may open opportunities for the gas-to-liquids market. The increasing consumption of natural gas, especially in China, Japan, and India, and the availability of microchannel reactors may open up opportunities for the GTL market.

MARKET CHALLENGES

The high capital investment costs associated with the refining process may discourage the growth of the GTL market during the forecast period.

IMPACT OF COVID-19 ON THE GAS TO LIQUIDS (GTL) MARKET:

Natural gas demand is less sensitive to COVID-19 in the short term than oil, due to its limited exposure to the transportation sector. Although the demand for natural gas in the electricity sector is affected, the loss of commercial and industrial electricity demand is partly transferred to residential uses. However, demand for natural gas could decline much more as the year progresses due to lower demand in the energy and industrial sectors. Future demand will depend on how industrial uses of natural gas are affected, the short-term and long-term effects of investment reductions in the natural gas sector, and the extent to which government policies aim to accelerate gas transitions. Clean air and energy will promote fuel switching and encourage investment in energy system integration. This can be done through the technologies offered by natural gas, green gas, hydrogen, and carbon dioxide solutions. Any outcome of these criteria will depend on the duration of the coronavirus pandemic, the speed of the economic recovery, and how the government's stimulus plans incorporate clean air and political goals for energy transitions.

REPORT COVERAGE:

SEGMENTAL ANALYSIS

Gas to Liquids (GTL) Market Analysis By Product:

Among these, GTL diesel will have the highest market share during the forecast period. GTL diesel is of higher quality compared to conventional refinery diesel obtained from crude oil.

Gas to Liquids (GTL) Market Analysis By Application:

Among these, fuel oil will dominate the market during the forecast period. Fuel oil is an advanced heavy fuel oil that is used in boilers and other equipment to generate heat and power in both manufacturing operations and processes. The particularity of fuel oils is to help improve the performance and reliability of the entire boiler system from the storage tank to the chimney.

GAS TO LIQUIDS (GTL) MARKET REGIONAL ANALYSIS

Most of the factories are currently located in Mozambique, Nigeria, Qatar, and South Africa, which generates a high consumption in MEA. Increased factory construction due to higher energy consumption in Malaysia, Singapore, Japan, China, and India is expected to drive demand in the APAC region. Therefore, the regional market is likely to emerge as the fastest-growing segment during the forecast period. Qatar will remain in the driver's seat during the forecast period. There are currently two GTL factories in Qatar. One is based in the industrial city of Ras Laffan and is a joint venture of Sasol of South Africa and Qatar Petroleum. The second plant is again located in the same city and is operated by Shell and Qatar Petroleum.

The gas-to-liquid market in South Africa will have the second-largest share during the forecast period. The GTL plant is based in Mossel Bay, South Africa, and is operated by PetroSA. This plant has the capacity to produce 45,000 barrels of liquids per day, which includes special products, kerosene, gasoline, and diesel. The Asia-Pacific region market is expected to represent the largest share in terms of revenue and is expected to maintain its dominance over the forecast period. This dominance is attributed to increased gas installations in liquid factories due to increased energy consumption, and initiatives taken by the government in developing countries like Indonesia, Malaysia, Singapore, Japan, China, and India. The Middle East and Africa represent a significant share of world market revenue and are expected to experience considerable growth in the next period. Most of GTL's factories are located in Qatar, Nigeria, South Africa, and Mozambique.

KEY PLAYERS IN THE GLOBAL GAS TO LIQUIDS (GTL) MARKET

Royal Dutch Shell (Netherlands), Chevron Corporation (US), Sasol Limited (South Africa), Petro SA (South Africa), Velocys PLC (US), ORYX GTL (Qatar), OLTIN YO’L GTL (Uzbekistan), Linc Energy (Australia), Compact GTL (UK), Primus Green Energy (US), Gas Techno (US), and NRG Energy (US), and Others.

DETAILED SEGMENTATION OF THE GAS TO LIQUIDS (GTL) MARKET

This research report on global gas to liquids market has been segmented and sub-segmented based on type, application, and region.

By Product:

• GTL Diesel
• GTL Naphtha

By Application:

• Fuel Oil
• Lubricating Oil
• Process Oil
• Others

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa