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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

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.

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Hydrate Inhibitors Market Report Coverage

Report Coverage Details
Base Year: 2021 Market Size in 2021: US$ 211.68 Mn
Historical Data for: 2017-2020 Estimated Year: 2022
Forecast Period 2022 to 2030 CAGR: 6.26 % Forecast Period: 2022-2030
Geographies covered:
  • By Region: North America, Latin America, Europe, Asia Pacific, and Middle East & Africa
Segments covered:
  • By Inhibitor Type: Thermodynamic Inhibitors, Low Dosage Hydrate Inhibitors (LDHI’s), and Hybrid 
Companies covered:

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. 

Growth Drivers:
  • Increasing demand for low-dosage hydrate inhibitors in the oil & gas industry 
Restraints & Challenges:
  • Environmental issues associated with the use of Anti-agglomerate 

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

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.

Hydrate inhibitors are used to prevent or reduce gas hydrate formation. Gas hydrates are formed in offshore production systems under low temperature and high-pressure conditions. These hydrates block pipelines, drill strings, and BOPs by forming plugs, and cause flow assurance issues. Hydrate inhibitors are used, where mechanical methods such as insulated flow lines and active heating are not feasible options. However, political instability and the low price of oil are the major factors negatively affecting growth of the global hydrate inhibitors market.

Market Dynamics

Increasing demand for natural gas and oil is expected to boost the global hydrate inhibitors market growth. Global energy demand is increasing rapidly. Moreover, world natural gas consumption is expected to increase by 43% from 2021 to 2030, according to the International Energy Outlook 2017, as natural gas continues to be the fuel for electric power generation and application in industrial sectors. Electric power and industrial sector use around 75% of the natural gas of the projected increase in total consumption between 2021 and 2030.

Among regions, North America held a major market share of 58% in 2021. Middle East and Africa held significant market share in the global hydrate inhibitors market. Europe is a lucrative market for hydrate inhibitors with significant demand due to high offshore oil production from the region in 2021, and it is expected to increase during the forecast period. For instance, according to the EU, 567 million barrels of offshore oil had been produced in the U.K.

Key features of the study:

  • This report provides an in-depth analysis of the hydrate inhibitors market and provides market size (US$ Million) and Compound Annual Growth Rate (CAGR %) for the forecast period (2022 – 2030), considering 2021 as the base year
  • It elucidates potential revenue opportunities across different segments and explains an attractive investment proposition matrix for this market
  • This study also provides key insights about market drivers, restraints, opportunities, new product launches or approval, regional outlook, and competitive strategy adopted by the leading players
  • It profiles leading players in the global hydrate inhibitors market based on the following parameters – company overview, financial performance, product portfolio, geographical presence, distribution strategies, key developments and strategies, and plans
  • Key companies covered as a part of this study 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
  • Insights from this report would allow marketers and the management authorities of the companies to make an informed decision regarding their future product launch, technology up-gradation, market expansion, and marketing tactics
  • The global hydrate inhibitors market report caters to various stakeholders in this industry including investors, suppliers, hydrate inhibitors manufacturers, distributors, new entrants, and financial analysts
  • Stakeholders would have ease in decision-making through various strategy matrices used in analyzing the hydrate inhibitors market

Detailed Segmentation:

  • Global Hydrate Inhibitors Market, By Inhibitor Type:
    • Thermodynamic Inhibitors
      • Methanol
      • Mono Ethylene Glycol (MEG)
    • Low Dosage Hydrate Inhibitors (LDHI’s)
      • Anti-Agglomeration Inhibitors/Surfactants
      • Quaternary Ammonium Compounds
      • Amides
      • Bio-surfactants
      • Kinetic Inhibitors
      • Polyvinylcaprolactam
      • Polyvinylpyrrolidone
      • Polyethyloxazoline
      • N-methyl-N-vinylacetamide
      • Tetra pentyl ammonium bromide
      • Butoxy-ethanol
      • Emulsifiers
    • Hybrid
  • Global Hydrate Inhibitors Market, By Geography:
    • North America
      • U.S.
      • Canada
    • Europe
      • U.K.
      • Germany
      • France
      • Italy
      • Spain
      • Russia
      • Rest of Europe
    • Asia Pacific
      • India
      • Japan
      • ASEAN
      • Australia
      • South Korea
      • Rest of Asia Pacific
    • Latin America
      • Brazil
      • Argentina
      • Mexico
      • Rest of Latin America
    • Middle East
      • GCC
      • Israel
      • Rest of Middle East
    • Africa
      • North Africa
      • Central Africa
      • South Africa
  • Company Profiles
    • Halliburton*
      • Company Overview
      • Product Portfolio
      • Financial Performance
      • Key Strategies
      • Recent Developments
      • Future Plans
    • 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
    • Schlumberger Limited

Frequently Asked Questions

Global hydrate inhibitors market was valued at around US$ 211.68 Mn in 2021.
The 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).
Low-dose hydrate inhibitors, substantially reduce chemical consumption, are environmentally friendly and they are suitable for challenging production conditions such as deep-water pipelines and subsea tiebacks.
Political instability and the low price of oil are some of the major factors that are expected to hamper the growth of the market over the forecast period
Major players operating in the 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
The market is estimated to grow at around 6.26 % CAGR in the forecast period (2022-2030).

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