Natural Gas Liquids Market
Report ID: SQMIG10G2059
Report ID: SQMIG10G2059
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Report ID:
SQMIG10G2059 |
Region:
Global |
Published Date: December, 2025
Pages:
185
|Tables:
95
|Figures:
69
Global Natural Gas Liquids Market size was valued at USD 15.1 billion in 2024 and is poised to grow from USD 15.92 billion in 2025 to USD 24.24 billion by 2033, growing at a CAGR of 5.4% during the forecast period (2026-2033).
As feedstock in the petrochemical industry, the NGL plant also serves many other industrial and commercial applications, including heating and transportation. This is one of the factors contributing to the global natural gas liquids market growth.
Rapid growth in shale gas output, especially in North America, has greatly increased the volume of NGLs. These have now become a significant component of the energy mix worldwide and, coupled with a growing demand for petrochemical products such as plastics, chemicals, and more, increase the specification for NGLs such as ethane, propane, and butane, important feedstock for producing these products.
In addition, increasingly, NGLs are being used in place of fossil fuels by many governments and corporations throughout the world. This is due to their cleaner and more efficient qualities. Demand for NGLs is increasing due to stringent environmental regulations aimed at reducing carbon emissions and maximizing the use of renewable energy resources.
How Do Cryogenic and Modular Liquefaction Techniques Improve NGL Recovery Efficiency?
A noteworthy innovation is Coldstream Energy's MaCH₄ NGL Recovery Solution, which launched in February 2025. It captures natural gas liquids at compressor stations using a patented pressure-swing adsorption (PSA) concept resulting in a "cryogenic-like" process. The system recovers about 60% of C₂ hydrocarbons and 95% of C₃+ heavy hydrocarbons on-site. The system further lowers VOC emissions without the use of cryogenic towers and residual lines, avoid engine derating (up to 9%), and produces lean fuel gas suitable for direct delivery into pipelines. Its modular, skid-mounted design makes it easier and cheaper to use, especially for upstream and midstream operations that are interested in a cost-reducing solution that has less potential for CO2 emissions than acrid cryogenic plants.
Market snapshot - 2026-2033
Global Market Size
USD 14.56 Billion
Largest Segment
Industrial
Fastest Growth
Commercial
Growth Rate
5.8% CAGR
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Global Natural Gas Liquids Market is segmented by Product Type, Application, End User, Value Chain Function and region. Based on Product Type, the market is segmented into Ethane, Propane, Butane (Normal & Isobutane), Natural Gasoline and Pentanes Plus. Based on Application, the market is segmented into Petrochemical Feedstock, Fuel, Industrial Use, Residential & Commercial and Others. Based on End User, the market is segmented into Petrochemical Industry, Energy & Power Generation, Residential & Commercial Consumers, Transportation Sector and Industrial Operations. Based on Value Chain Function, the market is segmented into Production & Extraction, Fractionation & Processing, Transportation & Storage, Distribution and Retail Sales. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
As per the 2024 natural gas liquids market analysis, the industrial segment accounted for the largest share of the market at over 47.0% of total revenue. NGLs play a significant role as feedstock in the petrochemical industry, making them critical in the production of plastics, synthetic rubber, solvents, and a variety of chemical products. Ethane, propane, and butane are the key components of NGLs and serve as valuable feedstocks for the manufacture of ethylene and propylene, which are utilized in a large number of industrial products.
In the natural gas liquids (NGL) industry, the residential and commercial category is expected to increase faster than the consumer side, e.g., hotels, restaurants, and office and commercial buildings, are increasingly demanding heating, cooking and energy efficiency, which will continue to drive adoption. Additionally, a growing number of cities and infrastructure in developing countries are increasing the uptake of commercial LPG and propane within their markets. This market segment is likely to be a significant contributor to overall growth in the medium to long term.
As per the 2024 natural gas liquids market forecast, the ethane segment has grown to be the largest segment of the market by sales in 2024 at more than 37.0%. This segment is the largest because it is a very important feedstock in the petrochemical industry. Ethylene, which is produced from ethane, is a very important feedstock. Ethylene is used to make plastics, synthetics fibers, and other chemical products. The petrochemical industry is experiencing very rapid growth in regions such as North America, the Middle East, and Asia Pacific, which has led to a sustained level of demand for ethane.
The propane segment is anticipated to have the highest natural gas liquids market share. In addition to the growing acceptance of propane as a clean fuel and alternative to auto-LPG, propane's application in homes, businesses, and kitchens are fueling demand. The development of propane distribution networks in emerging markets will be critical for future market growth, further bolstering the effectiveness of the propane development forecast.
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As per the natural gas liquids market regional analysis, Asia-Pacific held robust demand for petrochemical feedstocks, constituting more than half of the global NGL sales. Rapid growth in industrialization and population increases demand for LPG via residential and commercial interventions. With new crackers being conceived for realization in China and India, propane and ethane import requirements are growing. Further encouragement has been rendered by the government toward reducing coal reliance. Amid increased infrastructure expenditures, Asia-Pacific is the largest consumer and fastest-growing market for NGLs.
Expansion of the petrochemical industry in China makes this country a world leader in terms of NGL consumption. Almost 40% more propane was exported from the United States to China in 2024, indicating the demand for ethane and propane feedstocks there. Growing demand for ethylene and propylene is attributed to large-scale ethylene crackers. These materials are required for the manufacture of synthetic materials and plastics. Meanwhile, government policies to reduce coal dependence and encourage cleaner fuels bolster China's role in shaping global NGL consumption patterns.
The growing demand for LPG in India is, in fact, benefiting the NGL market. As of December 2024, over 103 million households have access to LPG under the government's Pradhan Mantri Ujjwala Yojana (PMUY), thereby significantly reducing their dependence on biomass fuels. Imports increased by more than 1000% this January compared to January last year, a clear indication that clean cooking is steadily rising. Petrochemical investments that serve the downstream industry as well as the consumption of ethane and propane make India one of the fastest-growing NGL markets in Asia-Pacific.
With large shale gas deposits and the capability to export, North America remains a predominant supplier of NGLs Around 1.8 million barrels of propane are exported daily on average from the United States in 2024. Canada, by exporting shale gas and oil sands, provides a contribution, while new export terminals for propane are assisting in the supply of propane into Asian markets. Given its extensive existing domestic petrochemical capacity and rapidly expanding export linkages, North America is set to continue leading the world in the production, separation, and transportation of NGLs.
Owing to shale gas expansion, the US has the largest production and marketing of NGLs worldwide. In 2024, total exports averaged 1.8 million barrels per day, mainly to important markets in Asia and Europe. These export opportunities can be increased by putting investments into Gulf Coast export terminals and fractionation plants. With the growing export expansion and the increasing demand for ethane from the US petrochemical industry, which benefits the home market, the US plays an important role in the global NGL trade.
The oil sands and shale reserves benefit Canada's NGL industry, which is chiefly composed of butane and propane. Trade outside of the United States is increasing due to the Ridley Island Propane Export Terminal and other developing export facilities that enable the direct shipment of goods to Asia. Canada's demand for the petrochemical industry has been stable domestically but has steered towards exporting as it increased demand for petrochemical materials from Asia. Through this change in direction, Canada became a major North American supplier in the developing global NGL market.
In Europe, the natural gas liquids sector is at the mercy of its energy diversification policies and the demand for petrochemical feedstocks. Europe's dependence on U.S. imports has increased since 2022. Shipments of propane and ethane help feed the chemicals and plastics industry in France, Germany, and the UK. With the tightening of carbon regulations in the market, people are using LPG more for transportation and heating. Europe's substantial energy demands are dependent on NGL flows into the international market that have only been made possible through import terminals.
Petrochemical and LPG use in homes and businesses support the UK NGL industry. The UK heavily depends on U.S. imports of propane and ethane by shrinking North Sea production. Import terminals like the INEOS ethane import terminal at Grangemouth are vital to the survival of the plastics industry. Moreover, there has been a shift to using LPG as a heating fuel as the UK tries to cut down on carbon. Demand therefore goes up in the residential and commercial sectors.
The NGL demand in France is driven mainly by petrochemicals and LPG use mainly for home or office heating. Supported by policies that promote the use of low-carbon fuels, propane has grown to be more preferred among options to coal and heating oil. The supply is always guaranteed as imports are coming from the Middle East and the United States. In petrochemical centers, such as Lavéra, ethylene is produced from ethane and propane feedstocks. This means France occupies a major demand center in Europe, while its industrial development is closely related to NGL imports.
Germany, with its large petrochemical and plastic industries, is one of the biggest NGL consumers in Europe. It imports propane and ethane, mainly from the United States, lacking domestic supply and transporting them to places such as the Rhine-Ruhr. The emission standards and conversion to greener sources of energy encourage LPG use for transport and heating. Notwithstanding the general attempts to minimize fossil fuel consumption, Germany will remain a leading contributor to the advancement of the NGL market in Europe, because of the great requirement of these products by the industry for propylene and ethylene.
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Petrochemical Industry is Gaining More Scrutiny
Move Toward Cleaner fuels
Price Fluctuations and Supply-side Dependence
Environmental Concerns and Legislative Pressure
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The relatively concentrated natural gas liquids market is dominated by large oil and gas companies, petrochemical firms, and midstream operators in controlling the supply and transportation. The U.S. shale sector is likely the biggest producer, and markets in Asia-Pacific and Europe are major demand sinks. Infrastructure investments, integrating petrochemicals, and market growth for exports are some major focus areas in this competitive landscape. Furthermore, the competition is also influenced by advancing technologies in liquefaction and fractionation. Increasingly, partnerships of producers and chemical industries are shaping the expansion plans of corporations worldwide.
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, the global natural gas liquids (NGL) market is slowly expanding due to the rising demand for petrochemicals and the transition to less carbon-intensive fuel sources. The key demand centers in the Asia-Pacific region will continue to be China and India, the two countries exhibiting the most rapid growth overall. Nonetheless, North America is expected to continue to be the world's leading supplier of NGL, as there is an increase in NGL export capacity and in shale production. Technological advancements in extraction and processing are pushing valuable efficiencies, despite fluctuating prices and emissions policy around carbon reduction. There will be significant competition, as midstream companies, petrochemical businesses and oil companies are expanding their capacity and building relationships. As the world energy balance continues to change, NGL is expected to play an important role.
| Report Metric | Details |
|---|---|
| Market size value in 2024 | USD 15.1 billion |
| Market size value in 2033 | USD 24.24 billion |
| Growth Rate | 5.4% |
| Base year | 2024 |
| Forecast period | 2026-2033 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
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| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
Methodology
For the Natural Gas Liquids Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Natural Gas Liquids Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
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With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Natural Gas Liquids Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
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Global Natural Gas Liquids (NGL) Market size was valued at USD 14.56 Billion in 2023 and is poised to grow from USD 15.4 Billion in 2024 to USD 24.15 Billion by 2032, growing at a CAGR of 5.8% during the forecast period (2025-2032).
The relatively concentrated natural gas liquids market is dominated by large oil and gas companies, petrochemical firms, and midstream operators in controlling the supply and transportation. The U.S. shale sector is likely the biggest producer, and markets in Asia-Pacific and Europe are major demand sinks. Infrastructure investments, integrating petrochemicals, and market growth for exports are some major focus areas in this competitive landscape. Furthermore, the competition is also influenced by advancing technologies in liquefaction and fractionation. Increasingly, partnerships of producers and chemical industries are shaping the expansion plans of corporations worldwide. 'ExxonMobil Corporation', 'Chevron Corporation', 'Shell plc', 'BP plc', 'TotalEnergies SE', 'ConocoPhillips', 'Equinor ASA', 'Saudi Aramco', 'QatarEnergy', 'ADNOC (Abu Dhabi National Oil Company)', 'Phillips 66', 'Enterprise Products Partners L.P.', 'Occidental Petroleum (Oxy)'
The usage of NGLs is expanding, especially that of ethane and propane, driven by the increasing demand for ethylene and propylene in chemicals, plastics, and synthetic textiles. NGLs have thus become essential feedstocks, especially with the fast expansion of petrochemical capacity in the Middle East and Asia-Pacific. For example, heavy Chinese and Indian investments in steam cracker projects are significantly changing the movement of ethane and propane into the region. This shows that the growth of the petrochemical industry will continue to exert much influence on the natural gas liquids market outlook.
Building of Infrastructure for International Trade and Exports: The natural gas liquids market is changing due to the rise in the U.S. as a prominent exporter, and the globalization of NGL trading. The construction of new fractionation plants and terminals, including Canada's Ridley Island Export Terminal, demonstrates the shift toward expanding the export system, increasing global linkages, and establishing international NGL trading as part of market expansion.
What Role Does Petrochemical Expansion Play in Asia-Pacific Growth?
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