Global Butane Market 2017-2021
Butane is a hydrocarbon belonging to the alkane family, which has two structural isomers: n-butane (normal butane) or isobutene. It is characterized as a colorless, flammable, and easily liquefiable gas. One of the common sources for butane extraction is gas processing plants that are mostly located close to natural gas or crude oil reservoirs. Basically, butane is produced as a byproduct of crude oil production and refining.
Technavio’s analysts forecast the global butane market to grow at a CAGR of 7.60% during the period 2017-2021.
Covered in this report
The report covers the present scenario and the growth prospects of the global butane market for 2017-2021. The report presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Butane Market 2017-2021
Technavio recognizes the following companies as the key players in the global butane market: BP, Chevron Phillips Chemical, ConocoPhillips, ExxonMobil, and Total.
Other Prominent Vendors in the market are: Air Liquide, China Petroleum & Chemical Corporation, DEVON ENERGY CORPORATION, Linde, and Shell.
Commenting on the report, an analyst from Technavio’s team said: “One trend in the market is increasing number of strategic alliances. In January 2017, Butagaz and Global Bioenergies announced the signing of an exclusive partnership for France to incorporate bio-isobutene into butane and propane. Butagaz is a leading French brand and a subsidiary of the Irish DCC Group. It is one of the leading distributors in the French propane and butane markets.”
According to the report, one driver in the market is advantages of LPG as auto fuel over conventional fuels. Vehicular emission is one of the major sources of air pollution specifically in the urban areas. To reduce pollution, many governments encourage the use of cleaner and environment-friendly alternative fuels such as LPG. LPG is cleaner than petrol and diesel as it contains comparatively simple hydrocarbon compounds. In addition, LPG does not contain lead or any other additives and has very little sulfur content. The emissions from LPG-driven vehicles contain lower levels of hydrocarbon compounds, nitrogen oxides, air toxics, sulfur oxides, and particulates than that of petrol and diesel based vehicles.
Further, the report states that one challenge in the market is fluctuation in raw material prices. The butane market is exposed to fluctuations pertaining to raw material and energy prices. In past few years, the crude oil and natural gas market was comparatively stable in terms of supply and demand. In the middle of 2014, crude oil prices declined rapidly when Organization of the Petroleum Exporting Countries (OPEC) announced no reduction in production to match crude oil supply-demand across the world. However, raw material price fluctuation, especially for crude oil-based feedstock, till date hinders the global butane market growth.
BP, Chevron Phillips Chemical, ConocoPhillips, ExxonMobil, Total, Air Liquide, China Petroleum & Chemical Corporation, DEVON ENERGY CORPORATION, Linde, and Shell.
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