HYDRATE INHIBITORS MARKET ANALYSIS

Hydrate inhibitors are chemical substances or devices that are designed to control the formation of hydrates during the process of natural gas production. Natural gas hydrates are ice-like solids that form when natural gas and free water are combined at low temperatures and high pressure. It is formed at a gas or an oil condensate well.

Hydrate inhibitors aid in reducing hydrate plugs and line blockages, which occur due to hydrate formation. Hydrate inhibitors are used where mechanical methods such as insulated flow lines and active heating are not feasible.

Global hydrate inhibitors market was valued at US$ 211.68 Mn in 2021 in terms of revenue, exhibiting a CAGR of 6.26 % during the forecast period (2022 to 2030).

Drivers

Increasing demand for low-dosage hydrate inhibitors in the oil & gas industry: The oil & gas industry is one of the major contributors to the growth of the global economy. Large oil and gas complexes have been built across the globe equipped with a large number of technologies for processes such as drilling, engineering, exploitation of oil and gas production, water, oil and gas fluids processing, and transportation. However, the combination of constituents of crude oil and natural gas can lead to calamitous consequences. For instance, combination of many additives of crude oil or natural gas with water leads to formation of hydrate, which can result in outbreaks or major accidents. Therefore, the prevention of hydrate precipitation at minimum operating costs is of paramount importance for the safety of the oil & gas fields.

 Figure 1. Global Hydrate Inhibitors Market Value Share (%), By Region, 2021

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Market Restraints

Environmental issues associated with the use of anti-agglomerate (AA) LDHI: Anti-agglomerated (AA) LDHI’s prevent hydrate agglomeration and blockage and formation of small hydrate particles, and are suitable for transient flow regimes and have the advantage of highest degree of subcooling. However, they need a condensate phase and may need downstream treatment. The AA LDHI chemistries negatively impacts downstream separation processes, which results in increasing production. This can create difficulties in maintaining compliance with the produced-water quality standard for discharge into the environment.

Market Trends

Hydrate inhibitors market is expected to grow rapidly in Asia Pacific during the forecast period (2021-2030). This is attributed to increasing demand of hydrate inhibitors from countries including China, Japan, South Korea, and India. Asia Pacific is heavily reliant on hydrocarbon imports from the Middle East and Africa. According to the Energy Information Administration, India is host to large gas reserves off its east coast. Moreover, China's exploitable shale gas reserves are estimated at 21.8 trillion cubic meters, with proven reserves at 544.1 billion cubic meters.

Figure 2. Global Hydrate Inhibitors Market value Share (%), By Inhibitor Type, 2021

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Recent Developments

• In 2022, WBI Energy Inc. inaugurated the North Bakken pipeline expansion project that can transport 250 million cubic feet of natural gas per day from the 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, and 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 that has a large natural gas business built in Eastern Mediterranean, and such acquisition will increase Chevron's natural gas production capacity

Competitive Section

Major players operating in the global hydrate inhibitors market include Halliburton, Ashland Global Specialty Chemicals Inc., Ecolab Inc., Baker Hughes Inc., Innospec Inc., JSC Gazprom Neftekhim Salavat, BASF SE, Evonik Industries AG, Clariant AG, GasHydrate LLC, and Schlumberger Limited.