The regional gas business was worth US$ 520 million in 2004 and is forecast to grow at between 10-11 per cent per year over the next five years. So what is behind this growth and who are the players that are benefiting?
The South Asian market accounts for only one percent of the total global gases business and therefore is very small compared to established markets in North America, Japan and Western Europe. However, over the past decade there has been some significant changes in the supply of gases, particularly in India, which dominates the region, both in the value of the business and the tonnage of gases produced.
BOC has been and remains the major supplier of gases in the region as a whole and the companys success has been based on the entry into these markets in the first half of the 20th Century. While the company has lost its No.1 status in India, it remains the main supplier in Pakistan and Bangladesh. The company continues to operate and develop its business in these countries and has installed new gas production equipment in all countries within the region in the past five years.
Other major companies that are developing business opportunities in the region, particularly in India, include Praxair, Air Products and Air Liquide. Both Linde and Air Liquide have established engineering divisions in the country as well “ to build ASUs for the local market. While the major companies dominate the news and the business, there are a large number of small to medium sized companies that operate in the South Asian region, apart from Sri Lanka. In India alone there are more than 250 gas companies registered in the country, many operating their own small plants for cylinder filling. We have provided below an overview of the structure of supply and what has been happening in the past 18 months.
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