Asia-Pacific Syngas Market Size & Share Analysis - Growth Trends and Forecast (2026 - 2031)

Asia-Pacific Syngas Market Trends and Insights

Ammonia Application Segment to Dominate the Market

• Syngas is a byproduct of the industrial synthesis of ammonia and fertilizer. Throughout this process, methane (from natural gas) reacts with water to produce carbon monoxide, and hydrogen (from natural gas) reacts with water to produce carbon monoxide and hydrogen. The gasification process is used to transform any carbon-containing substance into longer hydrocarbon chains.
• Through the Haber-Bosch process, syngas can be turned into ammonia, which is a standard part of fertilizers. During this process, nitrogen from the air is mixed with hydrogen from the syngas to make ammonia, which can then be used to make different kinds of fertilizers.
• Using syngas as a source of raw materials to make fertilizer has a number of advantages. For example, syngas can be made from a number of different materials, which gives companies more options and makes them less reliant on a single raw material. Also, making syngas from biomass by gasifying it can help cut down on greenhouse gas emissions compared to making fertilizer from fossil fuels.
• China accounts for approximately 7% of the overall agricultural acreage globally, thus feeding 22% of the world’s population. The country is the largest producer of various crops, including rice, cotton, potatoes, and others. Hence, the demand for ammonia, which is used as a fertilizer, is rapidly increasing owing to the large-scale agricultural activities in the country.
• China is the largest producer and consumer of ammonia in the world. According to the US Geological Survey (USGS), the country produced 42 million metric tons in 2022. The demand for ammonia in the country is rising due to increasing applications in the agriculture industry, such as fertilizers, textiles, pharmaceuticals, and mining.
• Similarly, in India, the demand for ammonia is increasing in the agriculture, textile, and chemical industries. Thus, various companies are increasing their ammonia production capacity in the country. For instance, in May 2023, Deepak Fertilisers and Petrochemicals Corporation (DFPC) announced that it would be commissioning a new USD 522.5 Million ammonia plant and start production by the start of the second half of this year. The company is adding a capacity of 5,00,000 million tonnes per annum (MTPA) at Taloja in Maharashtra, which would take the total ammonia capacity to 6,28,700 MTPA.
• Thus, the increasing demand for ammonia is expected to drive the Asia-Pacific syngas market during the forecast period.

China to Dominate the Asia-Pacific Market

• In the Asia-Pacific region, China is the largest economy in terms of GDP. China is one of the fastest emerging economies and has become one of the biggest production houses in the world today. The country's manufacturing sector is one of the significant contributors to the country's economy.
• In China, the demand for syngas is increasing from power generation, chemicals and fertilizers, liquid fuels, and gaseous fuel applications. Thus, various companies are increasing the production capacity of syngas in the country, thereby driving the market.
• In China, Air Products was awarded a long-term onsite contract to supply syngas to Jiutai New Material Co. Ltd for its high-value mono-ethylene glycol project in Hohhot, China. The facility is designed to produce over 500,000 Nm3/hr of syngas, comprised of five gasifiers, two approximately 100,000 Nm3/hr air separation units (ASU) with syngas purification and processing, and associated infrastructure and utilities.
• China is a significant producer and exporter of fertilizers, particularly ammonia-based fertilizers. The country is home to several significant chemical businesses that specialize in fertilizer manufacture, and its ammonia-based fertilizers are in high demand both domestically and internationally.
• In the chemical industry, syngas is used to make chemicals and fuels. To make syngas, coal, petroleum coke, and biomass are turned into gas. In the chemical business, syngas is used to make methanol, ammonia, and hydrogen. Through the "gas-to-liquids" (GTL) process, carbon monoxide and hydrogen react to turn syngas into methanol. Methanol can be used to make formaldehyde, acetic acid, and other things.
• Syngas is both a fuel and a raw material. It can be used to heat boilers and heat exchangers in chemical plants and for other high-temperature industrial uses. According to the BASF chemical outlook report, the chemical production capacity in China will increase by 7.7% in 2022 as compared to the growth rate of 6.6% during the previous year. Thus the growth in the chemical industry is expected to drive the demand for syngas in the country.
• Increasing power generation in the country is boosting the demand for syngas. According to the China Electricity Council (CEC), in 2022, the power generation capacity in the country is registered at 2559.4 gigawatts, as compared to 2376.1 gigawatts of power generation capacity in the previous year. Thus, the increasing power generation capacity is expected to drive the demand for sungas in the country.
• Thus, the growth in chemical, fertilizer, and power generation industries is expected to drive the Asia-Pacific syngas market during the forecast period.

Value Chain Analysis

The Asia-Pacific syngas value chain starts with feedstock supply (coal, natural gas, pet coke, biomass) sourced from domestic mining and import channels, followed by midstream technology selection and plant buildout (gasifiers, reformers, air separation units, syngas cleanup and compression). Engineering, procurement and construction capability, plus access to critical equipment such as ASUs and gasifiers, influences project schedules and costs. In China, coal-to-gas and coal-to-chemicals projects typically specify integrated packages for air separation and downstream processing within industrial parks.

Downstream, syngas is largely consumed captive or under long-term onsite supply arrangements by ammonia and fertilizer producers, methanol and derivatives makers, coal-to-olefins or coal-to-chemicals complexes, and select power and fuel applications. Industrial gas majors and local suppliers participate through onsite generation and pipeline networks around large customers, while safety and operating standards are reinforced through regional industry bodies such as the Asia Industrial Gases Association (AIGA). Policy-led programs also influence the chain, including India’s National Coal Gasification Mission focus on enabling coal gasification routes for fertilizers, which supports integration between coal supply, gasification units, and fertilizer offtake.

Market Opportunities and Future Outlook

Integrated coal gasification-to-chemicals complexes continue to create room for syngas production tied to captive downstream demand, which can reduce logistics exposure and improve offtake certainty. In India, government and project activity around coal gasification provides a clearer line of sight to future syngas demand centers. In May 2026, the Union Cabinet cleared an INR 37,500 crore scheme to promote surface coal and lignite gasification, targeting conversion of 75 million tonnes of coal. In April 2026, Bharat Coal Gasification and Chemicals Limited (BCGCL) and Mahanadi Coalfields Limited (MCL) signed a land agreement for an indigenous coal-to-ammonium nitrate project in Odisha, reported at INR 25,000 crore. Together, these initiatives support syngas-linked chains such as ammonia and ammonium nitrate for fertilizers and industrial explosives, consistent with the report’s chemicals and ammonia application base.

Low-carbon syngas and hydrogen pathways also broaden the opportunity set, particularly where projects incorporate carbon capture or biogenic and renewable inputs alongside conventional feedstocks. Singapore’s refining and petrochemical hub is pursuing decarbonization options for hydrogen production, highlighted by Air Liquide’s November 2025 MoU with Aster Chemicals and Energy to collaborate on an auto-thermal reformer unit with integrated carbon capture. In China, continued buildout of large coal-to-gas and coal-to-chemicals assets, including projects in Xinjiang and other resource-rich provinces, reinforces demand for large onsite syngas systems and supporting units such as ASUs and purification, while raising the bar for standards-led safe operations and reliable industrial-park utilities across the region.