Middle East and Africa Proppants Market - Segmented by Technology, by Application, and Geography - Growth, Trends and Forecasts (2018 - 2023)
The Middle-east and Africa proppants market is expected to register a CAGR of 11.52% by volume during the forecast period, 2018-2023. The market demand for proppants is likely to be driven by the growing industrialization and increased need of energy, which has led to improvements in hydraulic fracturing technologies, followed by commercial extraction of unconventional gases, which has further resulted in significant growth in the demand for proppants. Proppants play an integral role in the fracking process
INCREASING USAGE OF FRAC SAND
Frac sands are mixed with water and different chemicals to fracture shale formations to unleash oil & natural gas reserves. Companies like US Silica (a leading producer of silica sands and Frac sands) have produced an even more premium quality frac sand that is coated with an oily resin, which allows crude oil to slip past more easily. The manufacturing of higher quality frac sands is further expected to increase the demand for frac sands. Furthermore, in response to the upcoming demand of frac sands, largest providers of fracking services like Halliburton, has more than doubled its fleet of ralicars, to about 3,500 as of June 2015, and increased the capacity of its sand terminals where sand is reloaded from trains to trucks. The trend of further optimization techniques in fracking is increasing demand for frac sand in per well.
Frac Sand to Dominate the Market
In 2017, Frac sand is estimated to account over 80% of the total proppants usage in MEA, owing to its efficiency, low cost and easily availability. Frac sand proppants are the most widely used category of proppants for hydraulic fracturing in North America. Frac Sand proppants are made out of highly pure and durable sand with round grains. They are majorly made out of sandstone or bauxite. Their size ranges from about 0.1 millimeter in diameter to 2 millimeter in diameter, depending on the requirement of the fracking job
Saudi Arabia to Lead the Market
Saudi Arabia is estimated to have over 1,000 tcf (trillion cubic feet) of non-conventional hydrocarbons, consisting of shale gas, tight gas, and ultra-sour gas, of which, only recoverable shale gas resources amount to 645 tcf. Amid the soaring domestic gas consumption and competition between various industries to source gas feedstock required to fuel the plants, Saudi Arabia launched an ambitious plan to tap unconventional gas reserves of natural gas trapped in shale and tight sands. As a part of an ambitious domestic gas production plan seeking to double gas output over the next decade, to 23 billion standard cubic feet per day (scf/d), gas sourced from shale formations is an important contributor to meet the energy demands of the country. Until 2016, Saudi Aramco had to import ceramic proppants to hold open the fractures created. However, in 2017, the company initiated the utilization of proppant mixture, which contains 70% sand (with 95% quartz content) and 30% ceramic proppant, which was manufactured locally, outperformed ceramic proppant using a similar design.
In addition, Delmon has commenced the local production of Frac sand and proppant, as a product for the fracking of shale gas, and has created a special place in its product portfolio.
Notable Developments in the market