According to a new report published by Allied Market Research, titled,"Methane Hydrate Extraction Market by Country: Opportunity Analysis and Industry Forecast, 2021 - 2025,"the methane hydrate extraction market is projected to reach 66,901.8 thousand cubic meters by 2025, growing at a CAGR of 6.3% from 2021 to 2025.
Methane hydrate is known as gas hydrate, methane clathrate, and fiery gas. It is found in the soft seabed of continental margins across the globe under the water depth of 300 to 3000 meter. The greatest deposits of methane hydrate are found below 500 meter near seabed. Methane hydrates are formed naturally, with the combination of water and methane gas at a high pressure and low temperature.
Methane hydrate is on the verge of getting commercialized and it is expected to get commercialized after 2020. It is considered as a future source of energy, therefore, countries such as China, India, Japan, and the U.S. focus on mining this product. As of now, China and Japan have successfully extracted methane hydrate due to significant investment in the extraction tests and consistent efforts to extract methane hydrate. Factors such as greater availability of methane hydrate and resulting efforts by various countries to extract methane gas, rise in investment to support methane hydrate tests, and high potential to extract natural gas from minimal methane hydrate ice cubes foster the growth of this market. On the other hand, life threatening risks associated with the extraction of methane hydrate are expected to restrain the overall market growth over the coming years. Several countries are addressing the energy potential associated with methane hydrate and are planning to conduct extraction test. Hence, growth in awareness regarding the benefits and potential of methane hydrate are expected to offer new growth opportunities during the forecast period.
Based on the country, methane hydrate extraction market is segmented into China, India, Japan, Russia, the U.S., and Canada. China is the pioneering country that successfully extracted the methane hydrate from seabed in South China Sea in 2017. The country has conducted second test in July 2017 and again extracted relatively greater amount of methane hydrate. This country has been working for more than 20 years to extract methane hydrate with the help of support from their government and succeeded in 2017 due to technological capabilities. As per the Ministry of Natural Resources of the People’s Republic of China, the country is developing specialty drilling vessel platform that undertakes smooth extraction operation of methane hydrates and thus helps in faster production.
Apart from China, Japan is the second country that registered successful extraction in 2017. The overall energy requirements in Japan are met by imports, hence, extraction of methane hydrate in this country is considered to be one of their biggest achievements, as they can meet their energy requirements, post commercialization. Earlier, Japan collaborated with Canada to conduct extraction test; however, in 2012, Canada has withdrawn its participation, owing to the risks involved. Further, Japan started their own extraction activities, and have succeeded in 2013. Strong technological status of Japan is expected to drive the growth of the methane hydrate extraction market over the coming years.
U.S. confirms the availability of methane hydrate in earlier 2019 and is planning to conduct extraction tests by 2020 with the vision to commercialize after 2020. As per USGS mineral estimates, the U.S. has methane hydrates reserves of more than 260 trillion cubic meter. Considering this, the U.S. is expected to exhibit highest CAGR of 7.4% during the forecast period, owing to robust R&D activities.
Key Findings of the Methane Hydrate Extraction Market:
- China dominated the methane hydrate extraction market in 2017 with the highest market share
- Canada is anticipated to dominate the methane hydrate extraction market by the end of 2025, owing to the higher availability of resources
- U.S. is anticipated to exhibit the highest CAGR of 7.4% during the forecast period due to robust technological capabilities
The key players profiled in this report include Anadarko Petroleum Corporation, Schlumberger, BP p.l.c., ConocoPhilips, EQUINOR ASA, PetroChina, JAPEX, INPEX, ONGC, and Indian Oil Corporation Ltd.