The Butane Market size was valued at USD 100.51 billion in 2020 and is expected to witness significant growth over the forecast period.
The increasing demand for LPG from residential and commercial sectors where it is mainly used as a domestic fuel is the major factor driving the butanes market. Butane used as petrochemical feedstock for producing ethylene and other derivatives is also driving the market for butanes owing to growing ethylene capacity in the Middle East).
Major Players in Butane market contains BP, Chevron Phillips Chemical, ConocoPhillips, ExxonMobil, Total, Air Liquid, China Petroleum & Chemical Corporation, Devon Energy Corporation, Linde, Shell, Praxair, Reliance Industries Limited, Cabot Oil & Gas Corporation and Maratho.
On 14th February, 2020, Petroleum Ministry of Egypt announced the signing of a US$ 2.5 Billion contract for the development of lower-quality heavy fuels hydrocracking complex in Assiut, the largest oil refining project to be implemented in the Upper Egypt. The complex in Assiut would have a production capacity of 2.8 million tons annually, and the facility would also produce butane and naphtha which would be used in the production of high-octane gasoline.
In January 2020, as part of India’s strategy of practicing, the Indian Oil Corporation Ltd (IOCL) announced its plans to help Ghana’s National Petroleum Authority (NPA) expand the country’s liquefied petroleum gas (LPG) network
May 2020- The cut in Saudi Arabia's June oil output, in line with moves by the OPEC+ coalition, has also reduced production of natural gas liquids, including propane and ethane, limiting feedstock supply to domestic petrochemical plants, traders said. Aramco's contract prices, which set the price of propane and butane lifted from the Saudi Arabian ports of Yanbu, Ras Tanura and Ju'aymah under term supply contracts, are closely watched by the market as they tend to set a base level for pricing most markets east of Suez.
Royal Dutch Shell plc. through its affiliate SWEPI LP (“Shell”), has reached an agreement with publicly listed U.S. energy company National Fuel Gas Company (NFG), and its subsidiaries, Seneca Resources Company, LLC, National Fuel Gas Midstream Company, LLC, and NFG Midstream Covington, LLC (together “National Fuel”), to sell its Appalachia shale gas position for $541 million, subject to closing adjustments. The transaction has an effective date of January 1, 2020.
Market Segmentation by Type includes Isobutane and N-butane. Segmentation by Application has LPG, Petrochemicals, Refineries and Others. By region it has included North America, Europe, Asia-Pacific and Row. North America, driven by Canada and the U.S. butane market size may expect USD 22 billion by 2022. Growing demand for shale gas in the U.S. is expected to boost natural gas liquids market demand, which in turn may drive regional industry growth. Growing petrochemical industry in the region coupled with rising adoption of LPG as an alternative to natural gas and crude oil are factors fuelling the market demand.