U.S demand for industrial gases to rise
The petroleum and natural gas industries will consume the most industrial gases.
By Jim Carbone -- Purchasing, 4/14/2009 1:39:00 PM
A new report forecasts that demand for industrial gases will grow 4.9% per year to 7.5 million metric tons valued at $23.5 billion in 2013.
Driving that increase in demand will be development of new products and technologies that require industrial gases and a high degree of stability in markets such as food, according to a new report by researcher The Freedonia Group in Cleveland.
Hydrogen is the most-consumed industrial gas in the U.S. followed by nitrogen and oxygen. The three gases combine for 95% of industrial gas demand by volume.
The petroleum and natural gas industry will continue to consume the most industrial gases in the U.S., accounting for 65% of total gas demand by volume and 60% by value in 2008.
Demand for industrial gas in the petroleum and natural gas production segment will grow 4.3% annually through 2013, due to the increased use of nitrogen and carbon dioxide for enhanced oil recovery projects.
Demand for hydrogen in the petroleum refining industry represents the largest growth opportunity for industrial gas suppliers in the U.S. Refiners are required to produce cleaner-burning fuels from increasingly impure crude oil, a process requiring massive amounts of hydrogen.
Captive hydrogen production accounted for 77% of refiners’ needs in 2008, but future increases in hydrogen demand will come primarily from merchant suppliers. The chemical and metal processing industries account for most oxygen demand and are both significant consumers of nitrogen as well.
The food and beverage processing industries consume the most carbon dioxide. Argon, helium and acetylene are low-volume, high-value gases, demand for which is dominated by the metal processing and chemical processing industries. The electronics, food and beverage processing, and healthcare industries combined consumed 6% of total gas volume in 2008. Though relatively small, the healthcare market will experience the most rapid growth of these three markets—the result of growing oxygen demand for respiratory therapies.
Also see: Slowing economy fails to halt industrial gas price hikes
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