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Natural Gas Liquid Processing in the US Industry Data and Analysis
Natural gas liquid (NGL) production proportionally grows with natural gas extraction. The popularity of advanced extraction techniques like hydraulic fracturing has bolstered shale gas production, giving processors a steady revenue flow. The pandemic weakened industrial production and residential and commercial construction, leading to an oversupply of NGLs and causing prices to plummet. This quickly reversed as the economy reopened and natural gas prices surged, spiking production. This growth lasted until 2022, when prices eventually settled down as supply shortages slowly began to wane. Even so, industry-wide revenue swelled at a CAGR of 7.6% through 2025, reaching $99.5 billion, including a modest 17.0% uptick in 2025 alone. Profitability also swelled as processors passed on price hikes to consumers.
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What's included in this industry analysis
IBISWorld's research coverage on the Natural Gas Liquid Processing industry in the United States includes market sizing, forecasting, data and analysis from 2015-2030. The most recent publication was released September 2025.
About this industry
What's this industry report about?
The Natural Gas Liquid Processing industry in the United States operates under the NAICS industry code OD5404. This industry separates out natural gas liquids (NGLs) from natural gas. Natural gas arrives at processing facilities in a gaseous state, and processors clean the natural gas and extract liquid hydrocarbons including ethane, propane, butane, isobutane and natural gasoline. These liquids have various uses including home heating fuel, inputs in plastic products and heating or blowing fuel in industrial production. The production of NGLs from oil refining is not included in this industry. Related terms covered in the Natural Gas Liquid Processing industry in the United States include natural gas liquids (ngls), fractionation, wet gas, dry gas, hydrocarbon and pentane plus.
What's included in this industry?
Products and services covered in Natural Gas Liquid Processing industry in the United States include Pentane plus and natural gasoline, Ethane and Propane.
What companies are included in this industry?
Companies covered in the Natural Gas Liquid Processing industry in the United States include Targa Resources Corp.
Performance
What's included in the Performance chapter?
The Performance chapter covers detailed analysis, datasets, detailed current performance, sources of volatility and an outlook with forecasts for the Natural Gas Liquid Processing industry in the United States.
Questions answered in this chapter include what's driving current industry performance, what influences industry volatility, how do successful businesses overcome volatility, what's driving the industry outlook. This analysis is supported with data and statistics on industry revenues, costs, profits, businesses and employees.
Products & Markets
What's included in the Products and Markets chapter?
The Products and Markets chapter covers detailed product and service segmentation, analysis of major markets and international trade data for the for the Natural Gas Liquid Processing industry in the United States.
Questions answered in this chapter include how are the industry's products and services performing, what are innovations in industry products and services, what products or services do successful businesses offer and what's influencing demand from the industry's markets. This includes data and statistics on industry revenues by product and service segmentation and major markets.
Geographic Breakdown
What's included in the Geographic Breakdown chapter?
The Geographic Breakdown chapter covers detailed analysis and datasets on regional performance of the Natural Gas Liquid Processing industry in the United States.
Questions answered in this chapter include where are industry businesses located and how do businesses use location to their advantage. This includes data and statistics on industry revenues by location.
Competitive Forces
What's included in the Competitive Forces chapter?
The Competitive Forces chapter covers the concentration, barriers to entry and supplier and buyer profiles in the Natural Gas Liquid Processing industry in the United States. This includes data and statistics on industry market share concentration, barriers to entry, substitute products and buyer & supplier power.
Questions answered in this chapter include what impacts the industry's market share concentration, how do successful businesses handle concentration, what challenges do potential industry entrants face, how can potential entrants overcome barriers to entry, what are substitutes for industry services, how do successful businesses compete with substitutes and what power do buyers and suppliers have over the industry and how do successful businesses manage buyer & supplier power.
Companies
What's included in the Companies chapter?
The Companies chapter covers Key Takeaways, Market Share and Companies in the Natural Gas Liquid Processing industry in the United States. This includes data and analysis on companies operating in the industry that hold a market share greater than 5%.
Questions answered in this chapter include what companies have a meaningful market share and how each company is performing.
External Environment
What's included in the External Environment chapter?
The External Environment chapter covers Key Takeaways, External Drivers, Regulation & Policy and Assistance in the Natural Gas Liquid Processing industry in the United States. This includes data and statistics on factors impacting industry revenue such as economic indicators, regulation, policy and assistance programs.
Questions answered in this chapter include what demographic and macroeconomic factors impact the industry, what regulations impact the industry, what assistance is available to this industry.
Financial Benchmarks
What's included in the Financial Benchmarks chapter?
The Financial Benchmarks chapter covers Key Takeaways, Cost Structure, Financial Ratios, Valuation Multiples and Key Ratios in the Natural Gas Liquid Processing industry in the United States. This includes financial data and statistics on industry performance including key cost inputs, profitability, key financial ratios and enterprise value multiples.
Questions answered in this chapter include what trends impact industry costs and how financial ratios have changed overtime.
Industry Data
What's included in the Industry Data chapter?
The Industry Data chapter includes 10 years of historical data with 5 years of forecast data covering statistics like revenue, industry value add, establishments, enterprises, employment and wages in the Natural Gas Liquid Processing industry in the United States.
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Frequently Asked Questions
What is the market size of the Natural Gas Liquid Processing industry in the United States in 2026?
The market size of the Natural Gas Liquid Processing industry in the United States is $99.5bn in 2026.
How many businesses are there in the Natural Gas Liquid Processing industry in the United States in 2025?
There are 157 businesses in the Natural Gas Liquid Processing industry in the United States, which has grown at a CAGR of 2.3 % between 2020 and 2025.
How may import tariffs affect the Natural Gas Liquid Processing industry in the United States?
The Natural Gas Liquid Processing industry in the United States is likely to be impacted by import tariffs with imports accounting for a moderate share of industry revenue.
How may export tariffs affect the Natural Gas Liquid Processing industry in the United States?
The Natural Gas Liquid Processing industry in the United States is likely to be significantly impacted by export tariffs with exports accounting for a high share of industry revenue.
Has the Natural Gas Liquid Processing industry in the United States grown or declined over the past 5 years?
The market size of the Natural Gas Liquid Processing industry in the United States has been growing at a CAGR of 7.6 % between 2020 and 2025.
What is the forecast growth of the Natural Gas Liquid Processing industry in the United States over the next 5 years?
Over the next five years, the Natural Gas Liquid Processing industry in the United States is expected to grow.
What are the biggest companies in the Natural Gas Liquid Processing industry in the United States?
The biggest company operating in the Natural Gas Liquid Processing industry in the United States is Targa Resources Corp.
What does the Natural Gas Liquid Processing industry in the United States include?
Separating out pentane plus and natural gasoline during natural gas processing and Separating out ethane during natural gas processing are part of the Natural Gas Liquid Processing industry in the United States.
Which companies have the highest market share in the Natural Gas Liquid Processing industry in the United States?
The company holding the most market share in the Natural Gas Liquid Processing industry in the United States is Targa Resources Corp..
How competitive is the Natural Gas Liquid Processing industry in the United States?
The level of competition is moderate and steady in the Natural Gas Liquid Processing industry in the United States.
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