Natural Gas Liquid (NGL) Market – Global Industry Size, Share, Trends, Opportunity, and Forecast Segmented by Product (Ethane, Propane, Isobutene, Natural Gasoline), By Application (Industrial, Residential, Commercial), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 24.21 Billion
CAGR (2026-2031)	6.99%
Fastest Growing Segment	Ethane
Largest Market	North America
Market Size (2031)	USD 36.31 Billion

Market Overview

The Global Natural Gas Liquid (NGL) Market will grow from USD 24.21 Billion in 2025 to USD 36.31 Billion by 2031 at a 6.99% CAGR. Natural Gas Liquids comprise valuable hydrocarbons such as ethane, propane, butane, and pentanes that are separated from raw natural gas streams during processing or derived from crude oil refining. The market expansion is primarily supported by the rising global demand for petrochemical feedstocks used to manufacture plastics and chemicals, alongside the sustained requirement for heating and cooking fuels in residential and commercial sectors. These fundamental drivers are distinct from transient market trends and establish the critical role of these resources in the industrial value chain and global energy landscape.

Nevertheless, the industry faces significant challenges related to infrastructure sufficiency and price volatility which can hinder supply chain efficiency and investment planning. According to the Organization of the Petroleum Exporting Countries, in 2024, the production of natural gas liquids and non-conventional liquids by its members was forecast to average 5.5 million barrels per day. This substantial volume highlights the necessity for robust logistical networks, as infrastructure bottlenecks remain a primary obstacle that could impede the continued growth of the global market.

Key Market Drivers

The Rising Demand for Petrochemical Feedstocks is a primary force propelling the Global Natural Gas Liquid (NGL) Market, as these hydrocarbons are essential inputs for the manufacturing of plastics and industrial chemicals. Ethane and propane, in particular, serve as critical feedstocks for steam crackers to produce ethylene and propylene, supporting a vast array of downstream applications from packaging to automotive components. This consumption trend is largely driven by industrial growth in emerging economies, where the requirement for synthetic materials continues to surge. According to the International Energy Agency, June 2024, in the 'Oil 2024' report, the global consumption of naphtha, liquefied petroleum gas, and ethane is forecast to climb by 3.7 million barrels per day between 2023 and 2030, underscoring the sector's deepening reliance on these resources for feedstock supply.

Simultaneously, the Expansion of Unconventional Shale Gas Production has fundamentally altered the supply dynamics of the market by unlocking vast reserves of NGL-rich raw gas. Advanced extraction techniques in major basins, particularly within North America, have led to a significant surplus of "wet" gas that requires separation and fractionation, thereby boosting the availability of NGLs for domestic use and export. According to the U.S. Energy Information Administration, November 2024, in the 'Short-Term Energy Outlook', natural gas production in the prolific Permian region is forecast to increase by 6% in 2025, driven largely by associated gas output. This production boom necessitates robust logistical networks; for instance, according to Enterprise Products Partners, in 2024, total NGL pipeline transportation volumes reached 4.2 million barrels per day during the third quarter, representing a 6% increase compared to the previous year.

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Key Market Challenges

Infrastructure sufficiency stands as a critical barrier impeding the efficient expansion of the global sector. As the extraction of hydrocarbons accelerates to meet rising petrochemical and heating demands, the physical capacity to transport, fractionate, and export these resources frequently lags behind upstream output. Inadequate pipeline networks and limited fractionation capacity create severe logistical pinch points, effectively stranding resources at their point of origin or forcing producers to sell at distressed prices. This disconnect between supply capability and logistical readiness creates market inefficiencies that discourage capital investment and disrupt the reliable flow of feedstocks to international industrial consumers.

The urgency of this issue is underscored by recent production metrics which indicate that supply volumes are testing the limits of current midstream systems. According to the American Petroleum Institute, in April 2024, U.S. production of natural gas liquids reached 6.7 million barrels per day. This substantial volume places immense strain on existing storage and export infrastructure, demonstrating how rapid production growth can outpace the development of essential processing facilities. Consequently, these infrastructure constraints directly hamper the market's ability to capitalize on available resources, restricting overall growth potential despite robust global demand.

Key Market Trends

The Acceleration of Renewable Bio-LPG and Biopropane Production is reshaping the market by establishing a sustainable alternative to fossil-derived hydrocarbons. As global regulations mandate carbon intensity reductions, producers are scaling technologies to convert organic waste and renewable feedstocks into drop-in replacements for residential and industrial heating fuels. This transition is gaining significant industrial momentum as it allows the sector to align with decarbonization goals without requiring extensive modifications to existing distribution networks. According to the World Liquid Gas Association, December 2024, in the 'Annual Report 2024', global renewable liquid gas production capacity increased by almost 20% in 2023, highlighting the sector's aggressive pivot towards low-carbon energy solutions to ensure long-term viability.

The Strategic Expansion of US-to-Asia NGL Export Infrastructure is simultaneously emerging to bridge the gap between North American supply surpluses and Asian demand centers. Midstream operators are prioritizing capital investments in marine terminal capacity and fractionation facilities to facilitate the reliable transpacific flow of ethane and liquefied petroleum gas, directly addressing logistical bottlenecks. This focus allows producers to monetize the abundant output from prolific basins by securing access to high-growth international markets. According to Enterprise Products Partners, February 2025, in the 'Fourth Quarter 2024 Earnings Announcement', the company reported record marine terminal volumes of 2.2 million barrels per day for the full year 2024, a 6% increase over the prior year, underscoring the critical role of enhanced export capabilities.

Segmental Insights

The Ethane segment is identified as the fastest-growing category within the global natural gas liquid market, driven primarily by its extensive utilization as a feedstock for petrochemical production. Increasing demand for ethylene, a key component in manufacturing polyethylene and diverse plastic products, directly stimulates ethane consumption. Manufacturers increasingly favor ethane over alternative feedstocks like naphtha due to its cost efficiency and superior ethylene yields, particularly in regions expanding their steam cracking infrastructure. Consequently, the sustained global requirement for packaging and industrial plastic materials continues to accelerate the adoption of ethane.

Regional Insights

North America maintains a dominant position in the global Natural Gas Liquid market, primarily driven by substantial production increases from unconventional shale reserves in the United States. The region benefits from established extraction techniques and a robust midstream infrastructure network that facilitates the efficient separation and transport of ethane, propane, and butane. According to the U.S. Energy Information Administration, continuous developments in major supply hubs, such as the Permian Basin, have significantly elevated regional output. Consequently, the availability of abundant raw materials supports the expanding local petrochemical industry and establishes the region as a key global exporter.

Recent Developments

• In November 2025, Enterprise Products Partners announced the execution of an agreement with ExxonMobil, under which ExxonMobil acquired a 40 percent undivided joint interest in the Bahia natural gas liquids (NGL) pipeline. The 550-mile pipeline was developed to transport NGLs from the Delaware and Midland basins to fractionation hubs in Texas and was scheduled to commence commercial service immediately following the announcement. The companies outlined plans to expand the system's capacity to one million barrels per day and to construct a substantial extension connecting to additional processing facilities, thereby ensuring robust takeaway capacity for growing production in the region.
• In February 2025, MPLX LP announced a strategic partnership with ONEOK, Inc. to develop a new liquefied petroleum gas (LPG) export terminal on the United States Gulf Coast. The joint venture planned to construct a facility capable of exporting 400,000 barrels per day, supported by a new dedicated pipeline to transport NGL products to the terminal. This collaboration was established to combine the midstream capabilities of both companies and effectively manage the increasing production from the Permian Basin. The partners targeted a completion date in 2028, anticipating that the project would significantly strengthen the connection between North American NGL supplies and international demand centers.
• In January 2025, ADNOC Gas selected contractors to participate in a design competition for a new natural gas liquids (NGL) fractionation train at the Ruwais industrial complex in Abu Dhabi. The project, identified as the fifth NGL train at the facility, was designed to possess a processing capacity of approximately 22,000 tonnes per day. This development formed part of the company's broader capital expenditure strategy intended to expand its processing infrastructure and maximize the value captured from domestic gas resources. The initiative aimed to support the growing industrial demand for feedstock and enhance the company's position in the global export market.
• In December 2024, ONEOK, Inc. announced the completion of its MB-6 natural gas liquids (NGL) fractionator situated in Mont Belvieu, Texas. This infrastructure project added 125,000 barrels per day of fractionation capacity to the company’s existing operations, which increased its total daily capacity to more than one million barrels. Concurrently, the company finalized the full looping of the West Texas NGL Pipeline system, expanding its transportation capacity to 515,000 barrels per day. These strategic enhancements were implemented to minimize reliance on third-party fractionation services and to accommodate the rising demand for NGL market services within the company's integrated asset network.

Key Market Players

• BP International Limited
• Chevron Corporation
• ConocoPhillips Company
• Devon Energy Corporation
• Exxon Mobil Corporation
• PJSC LUKOIL
• Occidental Petroleum Corporation
• Range Resources Corporation
• Saudi Arabian Oil Company
• Shell International B.V.
• Linn Energy, Inc.
• Equinor ASA

By Application	By Region
Industrial Residential Commercial	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Natural Gas Liquid (NGL) Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Natural Gas Liquid (NGL) Market, By Application:

• Industrial
• Residential
• Commercial

• Natural Gas Liquid (NGL) Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE