Gas Treatment Market - Forecast(2023 - 2028)

Gas Treatment Market Overview

Gas Treatment Market is forecast to reach US$3.8 billion by 2026, after growing at a CAGR of 5.8% during 2021-2026. Gas treatment improves the quality of gas by adding cleaning agents. These cleaning agents are highly powerful that help in fighting the accumulation of harmful carbon, gum, and varnish deposits in the fuel system. Gas treatments are used in the removal of acid gases such as Hydrogen Sulfide and carbon dioxide gases, in gas plants, and refineries. Gas treatment technologies are used in traditional applications such as syngas and ammonia gas plants, sales gas, and liquefied petroleum gas facilities. Additionally, natural gas is used to generate electricity and produce useful thermal output. Hence, according to the U.S. Energy Information Administration, natural gas accounted for 40% of total U.S. electricity generation by all sectors in 2020. Thus, the growing consumption of natural gases for electricity generation is estimated to influence gas treatment for better quality which, in turn, is estimated to contribute to the market growth.

Impact of COVID – 19

Due to the COVID-19 pandemic, the requirement of gas treatment technology has been negatively affected. The Oil & Gas sectors are one of the major industries that have got a hit because of the COVID-19 pandemic. Due to lockdown, the production of gas was stopped in 2020. According to the US Energy Information Administration (EIA), Natural gas production from in the U.S. regions fallen by 316 MMcf/d from March to April 2021. Hence, the hindrance in gas production may hamper the requirement of gas treatment.

Report Coverage

The report “Gas Treatment Market– Forecast (2021-2026)”, by IndustryARC, covers an in-depth analysis of the following segments of the Gas Treatment Industry.

By Type: Amines {Primary Amines (Monoethanolamine (MEA/MEOA), Diglycolamine, Others), Secondary Amines (Amino-Di-Ethylene-Glycol, Diethanolamine (DEA/DEOA), Diisopropanolamine (DIPA/DIPOA), Others), Tertiary Amines (Methyldiethanolamine (MDEA/MDEOA), Triethylamine, Others) and Non-Amines (N-Formyl Morpholine (NFM), N-Acetyl Morpholine (NAM), Others)
By Application: Acid Gas Removal (Carbon Dioxide and Hydrogen Sulfide), Dehydration, and Others
By End-Use Industry: Oil & Gas, Refineries, Power Plant, Metal & Mining, and Others
By Geography: North America (USA, Canada, and Mexico), Europe (UK, Germany, Italy, France, Spain, Netherlands, Russia, Belgium, and Rest of Europe), Asia Pacific (China, Japan, India, South Korea, Australia & New Zealand, Indonesia, Taiwan, Malaysia, and Rest of Asia Pacific), South America (Brazil, Argentina, Colombia, Chile, and Rest of South America), and RoW (Middle East and Africa)

Key Takeaways

• The Asia Pacific dominates the market of gas treatment due to increasing demand for gas treatment from the oil and gas industry which attracts investment from manufacturers in emerging and developing countries such as India, China, Japan, and Others.
• According to the Oil & Natural Gas Corporation (ONGC), in India, crude oil production was 1788.92 TMT in 2020 which is 1.24% higher than in 2019. Therefore, according to India Brand Equity Foundation (IBEF), oil production is expected to rise 36 billion cubic meters (bcm) in 2021.
• Additionally, increasing the adoption of amines in industrial plants and oil refineries to remove sour gases from liquid hydrocarbons such as liquefied petroleum gas is estimated to grow the gas treatment technology.

Figure: Asia Pacific Gas Treatment Market, 2021-2026 (US$ Billion)

Gas Treatment Market Segment Analysis – By Type

Amines held the largest share of the global gas treatment market in 2020. Amines react with carbon dioxide in flue gas treatment which leads to the emission of compounds such as ammonia. Amines are used to remove hydrogen sulfide and carbon dioxide from gases. Thus, it is used in petrochemical plants, natural gas processing plants, and other refineries. Additionally, amines are bifurcated in primary amines (such as monoethanolamine), secondary amines (such as diethanolamine), and territory amines (such as methyldiethanolamine ) which provide a solution to absorb unwanted acid gases. Hence, amines are converting the sour gas into sweetened gas which is increasing consumption of amines for gas treatment.

Gas Treatment Market Segment Analysis – By Application

Acid gas removal dominated the global market for gas treatment in 2020 due to improving quality through the removal of unwanted gas components. Gas treatment technology is used in the removal of hydrogen sulfide and carbon dioxide gases from the natural gas stream and crude oil refining process additionally gas treatment technology necessary for gas removal from other energy sources which deems it safe. Thus, the growing adoption for acid gas removal is increasing awareness of natural gas as a cleaner source for electricity generation in various countries such as China, India, Malaysia, and Indonesia. Hence, the growing awareness regarding acidic gas removal application is estimated to grow the demand for gas treatment.

Gas Treatment Market Segment Analysis – By End-Use Industry

Oil and gas dominated the global market of gas treatment in 2020 and is growing at a CAGR of 4.5% during 2021-2026. Gas treatments are used in natural gas plants or refineries for oil & gas processing. This treatment technology is also used for removing acidic gas and liquified petroleum gas. Thus, with the help of natural gas processing, the manufacturers are generating electricity and increasing oil extraction which is estimated to grow the gas treatment technology. According to U.S. Energy Information Administration, electric power generated with natural gas is expected to average 36% in 2021 and 35% in 2022. Apart from this, the growing collaboration in the oil and gas sector is also required gas treatment. In September 2019, Equinor in According to U.S. Energy Information Administration (EIA), crude oil production is expected to rise on average 11.1 million b/d in 2021 and 12.0 million b/d in 2022. Hence, residential, commercial, and industrial natural gas consumption is expected to reach 13.1 Bcf/d, 9.3 Bcf/d, and 23.8 Bcf/d respectively in 2021 in collaboration with Ineos E&P and Faroe Petroleum made an oil & gas discovery with upper drilling containing the volume of 2 million to 12 million barrels of oil equivalent of gas. This collaboration also came with a lower drilling volume of 1 million to 48 million barrels of recoverable oil equivalent in the Norwegian Sea. Hence, increasing the oil and gas industry is estimated to grow the demand for gas treatment.

Gas Treatment Market Segment Analysis – By Geography

Asia Pacific dominated the global gas treatment in 2020 with a share of 38%, due to the increasing oil and gas industry and government initiatives in Asian countries such as India, China, Japan, and others which is estimated to grow the demand for gas treatment. Gas treatment is required in oil and gas processing to improve the quality of gas. Thus, the government takes initiatives for the growth of the oil and gas sector. The Indian government plans to invest in 2021 about Rs. 7.5 trillion (US$ 102.49 billion) on oil and gas infrastructure in the next five years. Additionally, the Ministry of Petroleum and Natural Gas released a draft LNG policy. This policy aims to increase the country's LNG re-gasification capacity from 42.5 million tonnes per annum to 70 mtpa by 2030 and 100 mtpa by 2040. Additionally, according to the U.S. Energy Information Administration (EIA), China’s natural gas consumption rose by 10.8 in 2019 Tcf from 9.9 Tcf in 2018 as China generates power of more than 5% in 2019 as compared to 6,712 TWh electricity in 2018. Thus, the government of China is anticipated to boost a maximum of 14% share of natural gas as part of total energy consumption by 2030. Thus, the increasing oil & gas industry with government initiatives is estimated to boost the gas treatment market size.

Gas Treatment Market Drivers

Increasing Oil and Gas Industry with Attractive Investment in North America

The growth in the oil and gas industry is estimated to create an opportunity for market growth. Gas treatment is used for the quality improvement of liquified petroleum gas. Thus, increasing investment by the major companies in North America is estimated to grow the market size. According to the Canadian Association of Petroleum Producers (CAPP), in Canada, oil and gas companies will invest C$27.3 billion in 2021. Additionally, Capital investment in Alberta’s oil sands is expected to increase from $6.7 billion in 2020 to $7.3 billion in 2021. Furthermore, the investments in oil sands operations and conventional oil & gas production are expected to rise nearly from US$19 billion (C$24 billion) in 2020 to US$21 billion (C$27 billion) in 2021. Hence, such investment is estimated to grow the demand for gas treatment.

Growing Power Generation by Renewable Source is Estimated to need Gas Treatment

According to U.S. Energy Information Administration (EIA), natural gas production will rise to 384.9 billion cubic meters (bcm), which represents nearly half of all USA natural gas production. Therefore, the electric power sector accounted for about 38% of total U.S. natural gas consumption. Furthermore, according to the India Brand Equity Foundation (IBEF), power generation from renewable energy sources in India reached 127.01 billion units in FY20. Thus, the Indian government plans to generate a renewable energy capacity of 523 GW by 2030. Apart from this, India is estimated to invest worth US$500 billion in renewable energy sources by 2028. Thus, increasing the power generation scenario is estimated to need the gas treatment.

Gas Treatment Market Challenges

Gas Treatment Technology Poses a Health Risk During Gas Production

Gas treatment improves the quality of gas and is used to remove sour gases from liquefied petroleum gas. But during production, the natural gas emits carbon dioxide and contains a high concentration of Hydrogen Sulfide which is harmful to health. Carbon dioxide (concentration 40000ppm to 100000ppm) causes headaches, dizziness, tremors, and more. Also, its high exposure (concentration >100000 ppm) can cause convulsions, coma, and other health effects. Furthermore, Hydrogen Sulfide is a highly flammable and toxic chemical that irritates the eyes, nose, and throat. Hence, due to various health effects, the processing may be decreased which may hamper the requirement of gas treatment.

Gas Treatment Market Landscape

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the gas treatment market. Major players in the Gas Treatment Market include:

• BASF
• Huntsman
• Ecolab Inc.
• Dow Chemical Company
• Eunisell Chemicals
• Triton, DeltaLangh
• Algoma Central Corporation
• Fuji Electric
• Marine Exhaust Technology
• Yara
• SAACKE
• DowDuPont, and among others.

Technological/Collaboration/Launches

• In September 2019, BASF SE developed a new process for the treatment of natural gas for pipeline transportation. This process recovers valuable helium, liquid hydrocarbons, and purified CO2.
• In February 2019, BASF and Linde collaborated on natural gas processing technology. This collaboration expands their global leadership position in the natural gas application.

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