Flare Gas Recovery System Global Market Report 2022: Stringent Environmental Regulatory Frameworks Bolster Growth

DUBLIN, April 10, 2023 /PRNewswire/ -- The "Flare Gas Recovery System Market, By Operating Pressure, By Technology, By Flow Rate, By Application, and By Region Forecast to 2030" report has been added to  ResearchAndMarkets.com's offering.

The market for flare gas recovery systems on a global scale was valued at USD 1.05 billion in 2021 and is projected to achieve a revenue compound annual growth rate (CAGR) of 5.3% during the forecast period.

One of the major drivers of market growth is the increasing demand for these systems to reduce emissions in both upstream and downstream engineering, as well as their growing application in power generation. Additionally, there is an increasing awareness of the adverse environmental impact of industrial production processes.

Petrochemical and refinery industries highly utilize flare gas recovery systems to continuously burn vent gases before they are safely discharged into the atmosphere, thereby reducing operating and maintenance costs of processing units through the optimization of steam and thermal radiation consumption.

According to the International Energy Agency (IEA), indirect greenhouse gas emissions from petroleum and oil & gas (O&G) operations represent around 5,200 million tons (Mt) of carbon dioxide equivalent (CO2-eq) or 15% of total energy sector greenhouse gas (GHG) emissions.

In order to protect the environment, the installation of flare gas recovery systems in fume ejector vents during operation has become mandatory. Leading companies are partnering with governments to establish flare recovery systems in downstream and upstream petrochemical operations. For example, the US-based industrial service company Baker Hughes collaborated with the Egyptian General Petroleum Corporation (EPGC) to support emissions recovery and reduction across Egypt's upstream and downstream oil and gas operations.

The increasing demand for flare gas recovery systems to eliminate methane intensity from the environment is driving market growth. Several leading petrochemical and O&G companies are installing and implementing these systems to adhere to Environment, Social and Governance (ESG) protocols.

Furthermore, many companies are introducing flare gas recovery systems to improve the accuracy and transparency of methane emissions reporting. The Abu Dhabi National Oil Company (ADNOC), a state-owned oil company in the United Arab Emirates (UAE), announced a target of controlling upstream methane intensity to 0.15% by 2025. ADNOC plans to achieve this target by continuing to reduce methane emissions through the use of flare gas recovery systems and conducting regular leak detection and repair programs. These initiatives are significantly accelerating market growth.

Rapid adoption of flare gas recovery system owing to stringent environmental regulatory frameworks

In the petrochemical and O&G production industry, it is mandatory to install flare gas recovery systems and manage flaring. The World Bank, through the Global Gas Flaring Reduction Partnership (GGFR), has issued several guidelines that outline new developments in flaring management, operational improvement, and eliminating flare gas from the environment with the help of new technology. This initiative will also provide opportunities for global petrochemical and O&G industries to explore new business approaches. In line with this, the United Nations (UN) has established 17 sustainable development goals (SDG) that address economic, social, and environmental challenges, including sustainability challenges in the O&G industry, to be achieved by 2030.

The increasing demand for the installation of flare gas recovery systems in refinery and processing plants is being driven by these factors. Moreover, many industries are incorporating flare gas recovery systems in electricity generation.

According to the International Petroleum Industry Environmental Conservation Association (IPIECA), around 142 billion cubic meters of gas was flared globally in 2020. This amount of flare gas could provide approximately 750 n kWh of electricity. Globally, O&G and chemical processing companies are looking for opportunities in power generation to increase operating revenue. These factors are expected to drive market revenue growth over the forecast period.

Fluctuating industrial component prices and availability of alternative technology

The pricing of heavy industrial technological products, such as flare gas recovery systems, is heavily influenced by the supply and demand of raw materials. The cost of transportation and installation also significantly impacts the pricing of such products. Furthermore, fluctuations in oil prices can have a major impact on global pricing within the maritime and transportation industries. In 2022, for example, trade and production disruptions due to war led to a USD 100 increase in crude oil prices, according to the World Bank. Additionally, temporary shutdowns of operations in several countries due to the COVID-19 pandemic, such as the recent shutdown of one of China's largest port and terminal operations in Ningbo-Zhoushan, have further impacted global pricing. Furthermore, many end-use industries are shifting towards reinjection in secondary oil recovery processes to reduce their carbon footprint, which could hinder the growth of the flare gas recovery systems market over the forecast period.

Key Takeaways
Operating Pressure Outlook

The global flare gas recovery system market has been segmented based on operating pressure, technology, and application. In terms of operating pressure, the market is divided into four categories: up to 5 bar, 5 to 10 bar, 10 to 20 bar, and 20 to 60 bar.

The up to 5 bar operating pressure system accounted for the largest revenue share in 2021. It is designed to efficiently transfer methane and LPG gases to storage barrels, with various analyzers to prevent direct fire. This system is being adopted by many chemical industries to control greenhouse emissions and save operational costs, with less maintenance required.

The 5 to 10 bar operating pressure system is engineered for oil refineries and high-end specialty chemical processing units, and ensures safe functioning of refineries and petrochemical unit production process. This segment accounted for a steady revenue share in 2021, with several companies designing new functionalities to transfer gas energy to electrical energy.

The 10 to 20 bar operating pressure system is highly adopted in large-scale petrochemical and O&G refineries. It helps to efficiently control input pressure of gas from flare vessel and compress it using liquid ring compressors, which is critical to safe functioning of refineries and petrochemical facilities. The recovered gases are highly used as refinery feedstock or re-injection, and this segment accounted for a moderate revenue share in 2021.

Technology Outlook

The flare gas recovery system market is also segmented based on technology, with compressor and ejector systems. The compressor-based segment accounted for a larger revenue share in 2021, as these systems are ideal for handling hydrogen to heavy hydrocarbon gases and are used in recirculation as well as auxiliary heat exchanger. Ejector-based systems accounted for a moderate revenue share in 2021, with the ability to efficiently compress flare gas in a single step and handle extremely high-pressure discharge.

Application Outlook

In terms of application, the O&G segment accounted for the largest revenue share in 2021, with flare gas recovery systems widely used in climate-compatible oil and gas production for safety and operation in crude oil refinery. These systems are also being adopted in O&G applications for reused gas in furnaces, turbines, and heat exchangers. The chemical plants segment accounted for a steady revenue share in 2021, with increasing demand for flare gas recovery systems in chemical processing companies to follow environmental standards and increase operation efficiency, particularly in the production of plastics, fertilizers, and other products.

Regional Outlook

The market for flare gas recovery systems in the Asia Pacific region is rapidly growing, driven by the government's promotion of industrialization and exports. This region is a major manufacturing and export hub for chemicals and petrochemicals, with several large downstream companies like Shell, Chevron, and ExxonMobil. Stringent environmental regulations have also led to increased demand for flare gas recovery systems in the region, with initiatives like the Petroleum Conservation Research Association in India auditing petrochemical companies to minimize the loss of flare gas.

The North American market for flare gas recovery systems is also steadily growing due to the U.S. Environmental Protection Agency's regulations and incentives to reduce methane emissions. Chemical companies in the U.S. are upgrading their technology and investing in flare gas recovery systems to reduce their carbon footprint. The European market for flare gas recovery systems is driven by increasing utilization in petrochemical processing and government funding to reduce gas flaring. Countries like Germany and Norway are investing in the World Bank Global Gas Flaring Reduction Partnership.

Key Topics Covered:

Chapter 1. Market Synopsis

Chapter 2. Executive Summary

Chapter 3. Indicative Metrics

Chapter 4. Flare Gas Recovery System Market Segmentation & Impact Analysis

Chapter 1. Flare Gas Recovery System Market By Operating Pressure Insights & Trends

Chapter 2. Flare Gas Recovery System Market By Technology Insights & Trends

Chapter 3. Flare Gas Recovery System Market By Flow Rate Insights & Trends

Chapter 4. Flare Gas Recovery System Market By Application Insights & Trends

Chapter 5. Flare Gas Recovery System Market Regional Outlook

Chapter 6. Competitive Landscape

Chapter 7. Company Profiles

Companies Mentioned

• Aerzener Maschinenfabrik GmbH
• Transvac Systems Limited
• Koch Industries Inc.
• Birwelco Ltd
• MAN Energy Solutions SE
• Zeeco
• INC.
• Mitsubishi Heavy Industries Compressor
• LTD.
• HeatMatrix Group B.V.
• Exodraft A/S
• Gardner Denver
• Baker Hughes Company

For more information about this report visit https://www.researchandmarkets.com/r/8ygnjt

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