Middle East and Africa (MEA) Compressed Natural Gas (CNG) Market Analysis – 2018-2027
Compressed natural gas (CNG) is a form of natural gas with a high-octane rating and is stored under high pressure. It is energy-efficient, odorless, and non-corrosive in nature, and contains Methane as one of its major components. CNG is widely used as an alternative fuel for conventional solutions. The market for Middle East and Africa (MEA) compressed natural gas (CNG) is projected to grow with a CAGR of 12.0% over the forecast period, i.e. 2018-2027. This can be attributed to the increasing adoption of natural gas for use in several applications, growing demand for alternative energy sources along with the region’s focus towards the diversification of its power supply and become less reliant on oil, as well as be less susceptible to the volatility of oil products in the market. Moreover, presence of large natural gas reserves in nations such as Iran and Qatar, along with increasing focus towards the production and trade of natural gas are some of the factors anticipated to promote the growth of the market.
The market is segmented by source into associated, non-associated and unconventional gas, out of which, non-associated segment is predicted to hold a significantly larger market share of around 56.7% in the year 2027 and attain a CAGR of 11.7% during the forecast period. The growth of the segment can be attributed to the presence of crucial non-associated gas fields in the region including places such as Karan, Arabiyah and Hasbah, along with the low cost of extraction of gas which is raising the interests amongst oil drillers to extract gas from these reserves.
Some of the key industry leaders in the Middle East and Africa (MEA) compressed natural gas (CNG) market are National Iranian Gas Company, Emirates National Oil Company (ENOC), Qatar Fuel Company Q.P.S.C. (WOQOD), Abu Dhabi National Oil Company and Badeal.