Formate brines are the aqueous solutions of the alkali metal salts of formic acid. These salts are readily soluble in water, yielding high-density brines, and are known as high-temperature fluids. They are solutions of sodium, potassium, and cesium-based formations in the water. Various types of formats have different degrees of solubility in water. They are getting more attention for their application in oil & gas exploration and deicing of fluids. Apart from the oil and gas industry, demand for formate brines is also increasing from chemicals, pharmaceuticals, food and beverage, and leather industries worldwide. Companies are concentrating on improving their production capacities due to the high demand from various applications.
For instance, The ADDCON formate production facilities in Norway and Germany have 800,000 bbl/annum of formate brine and 10,000 MT/annum of formate powder.
The formate brines market is segmented into types and applications.
By type, Potassium formate holds a major market share with 47.87% in 2018 and is expected to continue the same in the forecast period.
Potassium formate is used in drilling fluids and is more popular due to its compatibility and favorable properties. Traditional salts are being replaced in various applications, including drilling fluid applications.
Potassium Formate is a useful chemical compound in potassium metal production and the oil and gas industry, often in aqueous solution to yield a high-density, environmentally-friendly brine used as a heat transfer fluid.
By application, the Oil and Gas segment holds a major market share with 71.96% in the year 2018 and is expected to continue the same in the forecast period; Formate brines are the main ingredients of drilling and completion fluids used for reservoir sections in high-pressure, high-temperature (HPHT) drill in the oil and gas industry long. The drilling and completion fluids used in conventional drilling are unsuitable for HPHT drilling.
The geography part is segmented into North America, Europe, Asia Pacific, South America, and Middle East & Africa.
The North American Formate brines Market is valued at USD 456.76 million in 2019 and is estimated to grow at a CAGR of 5.17% in 2027.
North America is the favorable market for formate brines due to the shale oil and gas prospects in the region; moreover, shale production surging will likely aid in global drilling activity in 202l.
While drilling in Canada is expected to remain normal this year as the oil industry is implementing a production cut mandated by Alberta's province to cope with the current supply and demand situation.
Deicing is one of the prominent applications of formate brines; formate brines are non-salt, environmentally friendly alternatives to chloride salt-based deicers. Owing to these environmentally friendly properties of formate brines. Moving forward, North America will likely witness substantial demand for formate brines for deicing application.
In 2018, cesium resources were listed by the US Department of the Interior as a list of 32 critical minerals that are critical to the US economy and national security.
Market Dynamics
Drivers
- Wide range of useful characteristics of formate brines in various applications.
- Stringent government regulations.
Restraints
- High prices of raw materials.
Geographical Analysis
The European Formate brines Market is valued at USD 223.28 million in 2019 and is estimated to grow at a CAGR of 5.75% by 2027.
In European countries such as Germany, Spain, Austria, Switzerland, Italy, France, de-icing agents are important for the winter maintenance of roads, aircraft, and runway deicing. These de-icing applications can prevent, and respectively eliminate, slippery conditions and improve and indeed provide safer road conditions during wintertime.
Due to European countries' adverse weather conditions, de-icing agents like formate brines will likely witness consistent demand in the region.
Companies in Europe are extending their new plants. For instance, in May 2019, Swedish specialty chemicals company Perstorp announced its decision to construct a new plant at its Perstorp site, Sweden, to increase Pergrip Run NF's capacity, the company’s sodium formate de-icer product for airport runways.
In Food and beverages industry, heat transfer fluids are designed to provide precise temperature control. The food and beverages industry in Europe is one of the major manufacturing industries in this region; Simultaneously, the EU is the largest exporter of food and drink products in the world. Hence this industry will act as a growth engine for the formate brines in Europe.
While the oil and gas industry in Europe is optimistic about its 2019 outlook, recovering oil prices has boosted companies’ profits and a rebound in European projects from 2018 lows. Compared to the rig count of 2018 levels, In 2019, the overall rig count in the region has showcased 147% growth. This positive environment in the European oil and gas industry drives the consumption of formate brines
About Us:
DataM Intelligence was incorporated in the early weeks of 2017 as a Market Research and Consulting firm with just two people on board. Within a span of less than a year, we have secured more than 100 unique customers from established organizations all over the world.
For more information:
Sai Kiran
Sales Manager at DataM Intelligence
Email: [email protected]
Tel: +1 877 441 4866
Website: www.datamintelligence.com
