Low dosage Hydrate Inhibitors Market

Low Dosage Hydrate Inhibitors Market Outlook – 2022-2029

[243 pages Report] Sales in the global low dosage hydrate inhibitors market are slated to top US$ 75.3 Mn in 2022. Expanding at a healthy 8.1% CAGR, the market size is projected to total US$ 120.3 Mn by 2029.

The ability of low dosage hydrate inhibitors to reduce transportation and handling costs through decreased delivery frequency and chemical consumption is anticipated to propel the sales in the market.

These inhibitors can lower the maintenance of delivery systems and pumps, reduce the safety and environmental risks owing to lesser toxicity, and eliminate the need for methyl alcohol in downstream and topside operations.

Further, increasing exploration and production of crude oil is estimated to boost the growth in the market as low dosage hydrate inhibitors are extensively used in extraction processes to lower the formation of hydrate in the systems. It further aids in reducing the costs of refining and drilling systems used in the crude oil extraction sector.

2014-2021 Low Dosage Hydrate Inhibitors Market Outlook in Comparison to 2022-2029 Growth Forecast

The low dosage hydrate inhibitors market is expected to grow at a robust 8.1% CAGR between 2022 and 2029, up from 8.2% CAGR recorded during 2014-2021, predicts Future Market Insights (FMI).

Earlier, thermodynamic hydrate inhibitors (THIs) were used by the oil and gas industry due to their ability to shift the hydrate-equilibrium curve towards lower temperatures and higher pressures. These inhibitors were able to change the activity of water molecules to accelerate the shift.

However, a new group of chemicals called low dosage hydrate inhibitors was developed later and they differed from THIs. Instead of shifting the hydrate curve, the new group interfered with the process of hydrate formation with the help of numerous mechanisms. In addition to this, as the dosage requirement of these inhibitors was lower than that of THIs, these gained high popularity among customers.

Moreover, low dosage hydrate inhibitors can extend the operating life of gas systems, and because of this advantage, their demand is likely to surge among crude oil product manufacturers worldwide. Apart from that, increasing adoption of these inhibitors to introduce combination products is set to drive sales in the forthcoming years.

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How will the Urgent Need for Sustainability Influence Sales of Low Dosage Hydrate Inhibitors?

Increasing demand for energy sources is projected to accelerate the need for gas and crude oil extraction worldwide. Rapid industrialization and the ongoing advancements in the fields of oil and gas generation and extraction are also expected to complement the growth of the market.  

According to the Energy Information Administration (EIA), in 2019, the total consumption of refined petroleum products was 100,228 millions of barrels per day (Mb/d) globally. This number is anticipated to surge in the forthcoming years, which is likely to push the demand for hydrate inhibitors.

On top of that, the usage of low dosage hydrate inhibitors in various systems help in lowering the environmental carbon footprint. Thus, governments of many countries are expected to implement stringent norms revolving around the usage of eco-friendly inhibitors, thereby fueling the growth.

Also, manufacturers present in the market are exploring novel applications of these inhibitors. To do so, they are investing in product innovations to meet the unmet sustainability needs.

Country-wise Insights

Which Factors are Driving the U.K. Low Dosage Hydrate Inhibitors Market?

“High Adoption of Anti-agglomerant Hydrate Inhibitors in Offshore Operations to Boost Growth”

Increasing number of offshore oil and gas operations is likely to propel the growth in the U.K. Europe low dosage hydrate inhibitors market is expected to account for 30.2% of the total market share in 2022, finds FMI.

Moreover, surging adoption of anti-agglomerant hydrate inhibitors in offshore operations is projected to boost the market in the U.K. Increasing need for generator maintenance, especially in the gas and crude oil extraction industries is likely to boost the market.

According to CEIC Data, in December 2020, crude oil production was reported at 930.536 barrels/day in the U.K., while in December 2019, it was 1,007.195 barrels/day. This trend is expected to continue throughout the forecast period, thereby augmenting the growth in the U.K. market.

What is the China Low Dosage Hydrate Inhibitors Market Outlook?

“Key Players are Preferring Hydrate Inhibitors for Drilling Exploration Wells”

Rising production of natural gas in offshore areas is anticipated to fuel the growth in China during the forecast period. East Asia low dosage hydrate inhibitors market is set to account for approximately 18.4% of the total market share in 2022, predicts FMI.

In January 2022, for instance, China National Offshore Oil Corporation (CNOOC) announced its plan to accelerate its oil and gas production in 2022 by 10%, compared to 2021’s goal. The company is aiming to drill 360 exploration wells and initiate 13 projects this year. Such innovative steps taken by key players in the country are expected to support the market.

Furthermore, China became the world’s largest Liquefied Natural Gas (LNG) importer in the first 10 months of 2021. Between January and October, the country’s LNG imports stood at 10.3 Bcf/d, which exhibited a 24% surge, as compared to the same period in 2020. The demand for LNG is anticipated to rise in this country, which, in turn, is likely to bolster the sales of low dosage hydrate inhibitors over the assessment period.

Why is the Canada Low Dosage Hydrate Inhibitors Market Exhibiting High Demand?

“Researchers are Focusing on Finding Green Hydrate Inhibitors to Comply with Norms”

Increasing focus on environmental compliances in the oil & gas sector is set to bolster the demand for biodegradable materials in Canada. As per FMI, North America low dosage hydrate inhibitors market is anticipated to account for 16.0% of share in 2022.

In addition to that, thermodynamic hydrate inhibitors are being substituted with green alternatives as these require high dosage rates. Many educational institutions in Canada are also conducting extensive research and development activities to come up with eco-friendly alternatives.

As per a study published in the National Center for Biotechnology Information (NCBI), researchers at the Queen's University found that antifreeze proteins have the ability to transform the structure II tetrahydrofuran hydrate crystal morphologies.

They are superior hydrate inhibitors than the kinetic inhibitor called poly-N-vinylpyrrolidone. Also, these proteins can be used to create biologically based hydrate inhibitors in future. Backed by these factors, demand is expected to gain momentum in Canada over the forecast period.

Category-wise Insights

Which is the Most Preferred Product Type?

“Ability to Reduce Capital and Transportation Costs is Driving Demand for AA Inhibitors”

By product type, the anti-agglomerate (AA) inhibitors segment is expected to dominate the low dosage hydrate inhibitors market in the forthcoming years. Growth is attributable to their high compatibility, relatively lower transportation costs, and reduced capital costs.

Besides this, they provide superior performance in terms of maximum achievable sub-cooling, as compared to kinetic hydrate inhibitors (KHIs), as AA inhibitors do not have any limit to the maximum allowable shut-in time.

On top of that, AA inhibitors are specially designed to keep hydrates dispersed in condensate or oil and thus the hydrates separate very slowly from the hydrocarbon liquid. Also, in the presence of a liquid hydrocarbon phase acting as the hydrate crystals carrier, these inhibitors deliver optimal performance, which is expected to boost sales.

Which is the Leading Terrain Type?

“Oil and Gas Industry is Utilizing Inhibitors in Offshore Operations to Reduce Capital Expenses”

Based on terrain type, the offshore segment is projected to remain at the forefront in the low dosage hydrate inhibitors market in terms of share. These inhibitors can reduce the capital expenses in the offshore oil and gas industry by lowering the injection-rate and chemical-storage requirements.

Further, these often eliminate the need for regeneration as the chemicals are not easily recoverable. This plays a significant role in offshore operations where desk space and payload are critical. They also help in boosting the production rates whenever the flow line or inhibitor-injection capacity is limited. The beneficial properties of low dosage hydrate inhibitors are anticipated to bolster their demand in the offshore terrain. 

Competition Landscape

Leading players operating in the low dosage hydrate inhibitors market are focusing partnerships with oil and gas companies to conduct exhaustive research and development activities. They are doing so to come up with state-of-the-art solutions that would be able to serve numerous purposes at once. Some of the other players are engaging in acquisitions, collaborations, joint ventures, and capacity expansions to gain a strong foothold in this market. For instance:

• In November 2019, the Journal of Petroleum Exploration and Production Technology published a study on the assessment of hydrates inhibition using monoethylene glycol and low dosage hydrate inhibitors in deep-water production systems. The results showed that low dosage hydrate inhibitors were more cost-effective in controlling the temperature condition. These also led to a potential saving of $500/day after deployment.
• In November 2019, Clariant, a multinational specialty chemicals company based in Switzerland, developed a High Throughput Experimentation (HTE) platform for augmenting new product development. The platform combines intelligent analytics and automation to automate all aspects of development, such as synthesis, test planning, results analysis, formulation, and application testing. It was used to develop the first product in a line of next-generation AA-low dosage hydrate inhibitors.

Scope of Report

Low Dosage Hydrate Inhibitors Market by Category

Product Type:

• Anti-agglomerate (AA) Inhibitors
• Kinetic Hydrate Inhibitors (KHIs)

Terrain Type:

• Onshore
• Offshore

Region:

• North America
• Latin America
• Europe
• Oceania
• East Asia
• South Asia
• Middle East & Africa (MEA)