The industrial gas industry is a growing
industry. With the growth of demand for various industrial gases for various
purposes in industrial, medical, commercial and residential applications, it
is evident that the growth of this industry is vital for the growth of the
economy. Virtually all the major markets in the world in varying degrees
rely on industrial gases to produce their final products or services. These
markets from agriculture, oil and gas, mining to motor vehicles, food and
chemical products etc., account for more than $9 trillion of total global
GDP. In other words, more than 50% of the entire global economy is served in
one way or the other by industrial gases.
The Gases
- Nitrogen
- Oxygen
- Hydrogen
- Argon
- Carbon Dioxide
- Helium
- Acetylene
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- Nitrous Oxide
- Medical Gases
- Rare Gases (xenon, krypton, neon)
- Specialty Gases
- Liquefied Petroleum Gas (LPG)
- Compressed natural gases (CNG)
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Structure of The Industry
The industrial gas industry produces and distributes a variety of gases.
Production of various gases is of varied types. For example:
- Production can be done through the on-purpose production of
gases. This implies production of carbon dioxide and hydrogen from
fuel, fractionation of air, production of nitrous oxide etc.
- Production can be done by recovery of pure gas from various
by-product gas streams. This implies the production of gases like
helium, carbon dioxide, argon.
- Production can be done in a manufacture or supplier's own plant.
This involves air gas production units using cryogenic or non cryogenic
technology, or synthesis gas production units.Production can be done in
customers' plants-directly on the customer's premises, or on-site.
- Production can be done in customers' plants-directly on the
customer's premises, or on-site.
Depending on the requirement of the customers, there are three broad
categories of the Industrial gas Industry:
- The first is the tonnage or supply scheme, where the market
mainly comprises bulk-volume users. These users receive gases through
the direct pipelines from an on-site production plant
- The second is the bulk liquid market where the customers
usually have varying demands or function several facilities in varied
locations.
- Cylinder gas deliveries is the third category where gas
supply and distribution consists of gas shipments in trucks and trailers
and limited to costly gases and mixtures.
The industrial gases are distributed to end use industries in different
supply modes like as follows:
- On-site supply schemes
- Bulk liquid tankers
- Pipeline systems
- High pressure tube-trailers
- Compressed gas in high pressure cylinders
- Small liquid cylinders
Right from the the production to distribution of gases to the
technology used in applications of the gases, there is a big industry
involved to support the growth of the entire industrial gas industry.
- Distribution Equipment required in gas plants includes flow
meters, storage tanks, pumps, liquid tankers, iso-containers, high
pressure cylinders, liquid cylinders, regulators and valves.
- Production Equipment required in gas plants includes air
separation units , heat exchangers, cold boxes, cryogenic pumps, turbo
expanders, molecular sieves.
- Applications and Equipment can include cryogenic freezing
tunnels, oxy-fuel burners, atmospheric control equipment , pulp
bleaching processes, waste-water treatment plants, etc.
End-Use Markets
The major markets served by industrial gas industry are as follows:
- Iron & steel
- Refining
- Petrochemicals
- Chemicals
- Electronics
- Glass
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- Food processing
- Pulp & paper
- Metal fabrication
- Space
- Medical
- Domestic consumption
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World Dry Natural Gas Production (Trillion Cubic Feet)
| Countries |
2000 |
2003 |
2005 |
| United States |
19.182 |
19.099 |
18.074 |
| United Kingdom |
3.826 |
3.632 |
3.099 |
| Russia |
20.631 |
21.768 |
22.623 |
| Middle East |
7.570 |
9.184 |
11.205 |
| Asia & Oceania |
9.486 |
11.387 |
12.991 |
| World Total |
88.300 |
95.388 |
101.528 |
Overview
The US industrial gas industry is a $8.4 billion industry. It is estimated
that the US industrial gas demand will grow 3.6 percent annually through
2010. The major markets remain in the key petroleum and natural gas market.
Faster growth is also seen but in small quantities in electronics and health
care sectors. Hydrogen has continued to grow as the most valuable market
while argon will be the fastest growing gas. It is estimated that the global
gases business reached US$41 billion in 2003. This value was calculated on
the basis of the value of gas sales and services supplied to the end-use
industries. If equipment sales were also taken into account, the industrial
gases business would increase to over US$55 billion in US in the same year.
Europe's gas industry is also a booming industry. It is estimated that the
EU's gas dependence should reach about 60% in 2010, and 70% in 2020. The
major producer of gases in EU is the UK. The UK market for industrial gases
is segmented by rare gases, hydrogen, argon, oxygen, carbon dioxide,
nitrogen, nitrogen oxides and inorganics.
All aspects of the Indian gas industry are government-controlled and the
industry is largely in the hands of publicly-owned companies. However, today
with increased foreign investments, many companies are coming up with the
production of industrial gases. Alternatives are explored to reduce
regulation and adopt a more market-responsive pricing atmosphere that will
promote private sector investment and more widespread use of natural gas. At
present there are 250 plus gas companies in India. The Indian gas industry
is growing at an average rate of 12 per cent per annum during the last
couple of years, with the industrial oxygen growing consistently at 15-17
per cent per annum. Natural gas comprises 9 % of India's primary energy
consumption and it will be 14% of energy mix by 2010. Demand for natural gas
is also likely to increase at an average annual growth rate of 7.3%.
China's energy needs are growing in a very rapid speed. It has been
predicted that by 2030 natural gas will surpass oil to become the world's
number one energy resource.
According to a study in 2003, the global industrial gas industry is a
$36.137 billion industry. According to the same study, with the average
annual growth rate of 7.5%, this industry will be worth $51.879 billion in
2008. Global industrial gas demand will grow 5.7 percent annually through
2009 based on high growth in the developing markets of Asia, especially
India and China.
Trends
The following chart presents world industrial gas demand by end-use market
segment from the year 2000 to 2008 in $ Billions:
Gas Industry
Overview
