Navigate the complexities of the global liquefied petroleum gas (LPG) market with our comprehensive market report. Designed for competitive advantage, this targeted research provides key insights into the factors influencing this dynamic industry. It delivers value by identifying the potential opportunities and challenges for businesses in the LPG market.
The report delves into crucial facets including the increasing consumption of LPG driven by government initiatives for cleaner fuel; the hurdles presented by LPG storage and non-continuous supply; and the potential growth opportunities triggered by a burgeoning global population and a shift towards emission control. Additionally, discover why North America stands at the forefront of this market due to a rise in LPG usage. Furthermore, the report explores the dominance of LPG extracted from natural gas over its crude oil counterpart. From industry trends to competitor analysis, this report covers all the vital aspects of the LPG market, helping businesses to plan and strategize effectively.
COVID-19 negatively impacted the market in 2020. Presently the market has reached pre-pandemic levels.
- Over the long term, the increasing consumption of LPG on account of government initiatives to increase the usage of cleaner fuel projects is expected to drive the market.
- On the other hand, the problem in LPG storage and their non-continuous supply is expected to hinder the market's growth.
- Nevertheless, the increasing demand for LPG by the growing population and increasing focus on emission control is expected to create enormous opportunities for the liquefied petroleum gas market.
- North America dominates the market due to increased usage of LPG in recent years.
Liquefied Petroleum Gas Market Trends
LPG Extracted from Natural Gas Liquids to Dominate the Market
- Global LPG production from natural gas is much higher than from crude oil production. Natural gas extracted from the earth's crust contains a mixture of gases and liquids (propane and butane) that are extracted to produce LPG. The majority of the LPG produced globally is extracted from natural gas, while the rest is produced during crude oil processing in refineries.
- LPG extracted from natural gas is estimated to be the highest in North America, which contributes to the maximum percentage of LPG produced globally. According to the United Nations Data, in 2021, natural gas liquids from the United States accounted for around 151,604 metric tons, the world’s highest. It grew by 4.2% as compared to 2020. A similar trend is expected to be followed during the forecasted period.
- Moreover, the global production of natural gas liquids increased significantly. According to BP Statistical Review of World Energy 2022, in 2021, global natural gas liquids production was at 12047 thousand barrels per day, recording a growth rate of 2.2% compared to 2020 and an annual increase of 3.2% annually over the last decade.
- LPG produced from natural gas does not require any oil refinery; it just needs a gas separation facility that can extract the necessary gases to form the LPG. Thus, LPG extraction from natural gas is less expensive than LPG production from crude oil in refineries. LPG extracted can be distributed through tankers or pipelines.
North America to Dominate the Market
- North America is one of the most prominent markets for LPG production. North America had a significant share in global LPG production, with nearly 1,980,085 thousand barrels per day of natural gas liquid production in 2021. The United States and Canada are the key producers and exporters of the region.
- Out of the total NGL production in North America, most goes to LPG production. Moreover, the contribution of the United States, Canada, and Mexico to LPG production from the crude oil refineries makes North America one of the main LPG-producing regions.
- In September 2022, Enterprise Products Partners announced plans to extend its natural gas liquid (NGL) pipeline system in the Permian Basin and build two processing plants to accommodate the basin's continuous production expansion. The company intends to expand its Shin Oak NGL pipeline infrastructure by looping new pipelines and modifying current pump stations. This initial extension would increase capacity to 275,000 bpd, with completion planned in the first part of 2024.
- Apart from the United States, government initiatives in Canada to provide incentives, fuel subsidies, and distribution licenses to promote large consumption and usage of LPG fuels, especially in the transport and cooking sectors, are anticipated to accelerate the LPG market growth during the forecast period. The governments in the region are concentrating on using LPG to reduce the percentage of the death rate due to the harmful gases produced from the combustion of conventional fossil fuels like wood, cow dung, and coal. Such initiatives will likely increase the LPG market demand in the coming years.
Liquefied Petroleum Gas Market Competitor AnalysisThe liquefied petroleum gas market is moderately fragmented. The key players in the LPG market (in no particular order) include BP PLC, Exxon Mobil Corporation, Abu Dhabi National Oil Company (ADNOC), Indian Oil Corporation Ltd, and Sinopec Corp, among others.
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Table of Contents
1.2 Market Definition
1.3 Study Assumptions
4.2 Market Size and Demand Forecast, in USD billion, till 2028
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.6 Supply Chain Analysis
4.7 Porter's Five Forces Analysis
4.7.1 Bargaining Power of Suppliers
4.7.2 Bargaining Power of Consumers
4.7.3 Threat of New Entrants
4.7.4 Threat of Substitutes Products and Services
4.7.5 Intensity of Competitive Rivalry
5.1.1 Crude Oil
5.1.2 Natural Gas Liquids
5.2.2 Commercial & Industrial
5.2.4 Other Applications
5.3 Geography [Market Size and Demand Forecast till 2028 (for regions only)]
5.3.1 North America
22.214.171.124 United States
126.96.36.199 Rest of North America
188.8.131.52 United Kingdom
184.108.40.206 Rest of Europe
220.127.116.11 South Korea
18.104.22.168 Rest of Asia-Pacific
5.3.4 Middle East and Africa
22.214.171.124 Saudi Arabia
126.96.36.199 South Africa
188.8.131.52 Rest of Middle East and Africa
5.3.5 South America
184.108.40.206 Rest of South America
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 BP PLC
6.3.2 Exxon Mobil Corporation
6.3.4 Abu Dhabi National Oil Company (ADNOC)
6.3.6 Novatek PAO
6.3.7 Gazprom PJSC
6.3.8 China Petroleum & Chemical Corporation
6.3.9 Indian Oil Corporation Ltd
6.3.10 Reliance Gas
A selection of companies mentioned in this report includes:
- BP PLC
- Exxon Mobil Corporation
- Abu Dhabi National Oil Company (ADNOC)
- Novatek PAO
- Gazprom PJSC
- China Petroleum & Chemical Corporation
- Indian Oil Corporation Ltd
- Reliance Gas