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Hydrate Inhibitors Market Overview
Hydrate Inhibitors Market size is estimated to reach US$320.9 million by 2027, after
growing at a CAGR of 6.5% from 2022-2027. Hydrate inhibitors are chemical
substances which are used to control hydrate formation during natural gas
production process at oil & gas refineries. The hydrate inhibitors consist
of two main types namely thermodynamics inhibitors which includes methanol,
ethylene glycol and monoethylene glycol, while other is low dosage inhibitors. Hence,
hydrate inhibitors are considered for application like gas gathering system and
pipeline system. Factors like, increase in global trade of liquified natural
gas, high demand of natural gas in power sector, and increase in steel
production output and high consumption of liquified petroleum gas in households
are driving the growth of hydrate inhibitors market. However, certain hydrate
inhibitors like methanol are hazardous in nature and can cause problems to
blurred vision, neurological damage and permanent motor dysfunction in humans.
Hence, such negative impact of methanol can restrict its usage as hydrate
inhibitors, which can hamper the growth of hydrate inhibitors industry.
COVID-19 Impact
The necessary measures such as lockdown
implemented by the countries across the world, negatively impacted the
productivity of oil & gas refineries. The lack of availability of labors
led to decrease in the production output of natural gas, while the demand for
natural gas in commercial and industrial sectors also declined. For instance,
as per, US Energy Information Administration, in 2020, natural gas consumption
decreased by 11% in commercial sectors of US, while industrial sector demand decreased
by 3% amid a weakening economy in 2020. The industrial and commercial sectors consumed less natural gas
largely because of COVID-19 related closures and reduced usage of facilities. Moreover, according to Eurostat, in 2020, gross inland
consumption of natural gas in the Europe decreased by 2.7 % compared with
2019, while natural gas production decreased by 22.1%. Hydrate inhibitors such
as methanol & ethylene glycol are mainly
used during natural gas production to avoid hydrate formation. Hence, such
decrease in consumption and production of natural gas negatively impacted the
usage of hydrate inhibitors in oil & gas refineries. This declined the
growth of hydrate inhibitors industry.
Report Coverage
The report: “Hydrate Inhibitors Market
Report – Forecast (2022 – 2027)”, by IndustryARC, covers an in-depth
analysis of the following segments of the Hydrate Inhibitors Industry.
By Product Type – Thermodynamic
Inhibitors (Methanol, Ethylene Glycol, and Monoethylene Glycol), Low-Dosage
Inhibitor (Anti-Agglomerate Inhibitors, and Kinetic Hydrate Inhibitors)
By Raw Material – Alcohol, Glycol, Ionic
Salt, and Others.
By Operations – Onshore, and
Offshore.
By Application – Gas Gathering
System, Pipeline System, Corrosion Protector, and Others.
By Geography - North America (USA, Canada, Mexico), Europe
(UK, Germany, France, Italy, Netherland, Spain, Russia, Belgium, Rest of
Europe), Asia-Pacific (China, India, Japan, South Korea, Australia, and New
Zealand, Indonesia, Taiwan, Malaysia, Rest of APAC), South America (Brazil,
Argentina, Colombia, Chile, Rest of South America), Rest of the World (Middle
East, Africa)
Key Takeaways
- North America dominates the hydrate inhibitors industry as the region consists of major economies like US and Canada which are one of the largest producers of natural gas.
- Low dose hydrate inhibitor, substantially reduce chemical consumption, are environmentally friendly and they are suitable for challenging production conditions such as deep-water pipelines and subsea tie backs.
- Growing demand of natural gas for applications like to heat buildings, to operate refrigeration & cooling equipment, to cook and to provide outdoor lighting, will increase production output of natural gas, resulting in more usage of hydrate inhibitors.
Figure: North America Hydrate Inhibitors Market Revenue, 2021-2027 (US$ Million)
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Hydrate Inhibitors Market Segment Analysis – By Product Type
Thermodynamics
inhibitors held a significant share hydrate inhibitors market in 2021, with a
share of over 36.5%. Thermodynamic inhibitors like methanol and ethylene glycol
are commonly used hydrate inhibitors as they are non-corrosive, non-reactive
with any constituent of gas and can lower the freezing point of water-based
liquid and increase its boiling point. The increase in production output of
natural gas on account of economy development and growing demand from end
users, has positively impacted the usage of hydrate inhibitors. For instance, according
to US Energy Information Administration, in December 2021, dry natural gas
production was 3,012 billion cubic feet or 97.2 billion cubic feet per day, which was
5.4% higher than December 2020. Also, according to World Energy & Climate
Statistics, in 2020, gas production increased in the Middle East by 1.2%, in
Australia by 7.9% and China by 9.8%. Such increase in the production level of
natural gas will lead to more usage of thermodynamic inhibitors like methanol
and ethylene glycol to control hydration during production process. This will
positively impact the growth of hydrate inhibitors industry.
Hydrate Inhibitors Market Segment Analysis – By Raw Material Type
Glycol
held a significant share in hydrate inhibitors market in 2021, with a share of
over 27%. The
glycol present in the gas stream prevents hydrate forming conditions
by absorbing the free water in the system. Hence, glycols like ethylene
glycol are most commonly used hydrate inhibitors due to their rich chemical
properties. The growing consumption of natural gas has led to increase in its
production output. For instance, according to International Energy
Administration, in 2021, gas consumption in Europe increased by 5.5%, where gas
demand in South America increased by 7.5%. Such increase, in consumption and
demand of natural gas will increase its production level, resulting in more
usage of glycols inhibitors during natural gas processing. This will boost the
growth of hydrate inhibitors industry.
Hydrate Inhibitors Market Segment Analysis – By Geography
North America held the largest share in hydrate inhibitors
market in 2021, with a share of approximately 45%. The region has major
economies like United States and Canada which are one of the major producers of
natural gases like methane which is considered as important source of energy in
these countries. The increasing in demand for clean source of fuel has led to
increase in production consumption of natural gas. For instance, according to
US Energy Information Administration, in October 2021, the dry natural gas
production increased by 2%. Also, according to International Energy Agency, in
first eight months of 2021, industrial gas consumption in US increased by 1.8%
whereas other sectors like gas network & energy sector showed increase of
1.4%. Further, natural gas consumption in Canada increased by 4% in first ten
months of 2021, and pipeline exports to the US increased by an estimated 17%. Natural
gas is used as a clean energy source for multiple domestic and industrial
purposes. The increase in production and consumption of natural gas will lead
to more usage of hydrate inhibitors like methanol and ethylene glycol during
natural gas production process. This will positively impact the growth of
hydrate inhibitors industry.
Hydrate Inhibitors Market Driver
Increase in trade of Liquified Natural Gas
Liquid natural gas(LNG) is a natural gas in liquid form
which is made by purifying natural gas and super-cooling it to -260°F. Such gas is used
in variety of ways like its residential uses
include cooking, heating homes, while commercial uses include generating
electricity, fueling commercial vehicle and manufacturing products like
fertilizers, paints. LNG on account of being cheaper and clean fuel source has
led to increase it demand globally, which has led to increase in its global
trade. For instance, according to International Energy agency, global LNG trade expanded by 6% in
2021, a sharp acceleration from the 2020, with Asia Pacific region registering
an 8% y-o-y increase. Moreover, LNG imports into Central and South America
soared by 69%, supported by Brazil’s severe drought curtailing hydropower
generation. The increase in
global trade of LNG will increase demand of natural gas for its production,
thereby having a positive impact on the usage of hydrate inhibitors like methanol, monoethylene glycol, and ethylene
glycol
in natural gas processing. This will boost growth of hydrate inhibitors
industry.
Increase in Steel Production Output
Natural gas has a major use in steel making process as it
is used in furnace to produce heat for melting pig iron into steel. Hence, various
processes like ore processing, sinter & blast
furnace processes and roll steel production cannot be performed without
natural gas. The increase in production output of steel on account of high
demand from end user industries like construction and automotive has positively
impacted the demand for natural gas in metallurgy sector. For instance, according to National Bureau of
Statistics, China’s steel output increased by 5.2% to a record 1.053 billion
tons on account of high demand from the construction and manufacturing sectors. Also, as per the data of the government of
India, crude steel production stood at 77.74 million tons for January-August
2021, showing a 25.6% increase for the same period in 2020. Such increase in production output of steel will
increase demand of naturel gas for fuel, resulting an increase in natural gas
production output to meet metallurgy demand. This will positively impact the
usage of hydrate inhibitors like methanol & monoethylene glycol during
natural gas processing, which will boost the growth of hydrate inhibitor
industry.
Hydrate Inhibitors Market Challenges
Negative impact of Inhibitors
Exposure to
certain hydrate inhibitors like methanol can result in blurred vision, headache, dizziness, and
nausea. Moreover, methanol may affect animals, birds
and fish, leading to their death and its Exposure can also cause low
growth rate in plants. Hence, such negative impact of environment and human
health can restrict the usage of such hydrate inhibitors in oil & gas
refineries for natural gas production. This can have negative impact on the
growth of hydrate inhibitors industry.
Hydrate Inhibitors Industry Outlook
The
companies to develop a strong regional presence and strengthen their market
position, continuously engage in mergers and acquisitions. In the hydrate
inhibitors market industry, the hydrate inhibitors top 10 companies are:
- Ecolab Inc.
- Evonik Industries AG
- Baker Hughes
- Huntsman International LLC
- Finoric LLC
- Ashland Global Specialty Chemicals Inc.
- Clariant AG
- Schlumberger Limited
- Gazprom Neftekhim Salavat
- Innospec Inc.
Recent Developments
- In 2022, WBI Energy Inc. inaugurated North Bakken pipeline expansion project that has capacity to transport 250 million cubic feet of natural gas per day from Bakken production area in North Dakota, with the potential to be increased up to 625 million cubic feet per day.
- In 2021, Kinder Morgan Inc. acquired Kinetrex Energy for US$310 million. The acquisition includes two small-scale, domestic LNG production and fueling facilities, a 50% interest in a landfill-based renewable natural gas (RNG) facility in Indiana.
- In 2020, Chevron acquired Nobel Energy an independent oil & natural gas production company which has large natural gas business built in Eastern Mediterranean, and such acquisition will increase Chevron natural gas production capacity.
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