US Liquid Carbon Dioxide Prices Seeks a Better Market Towards the End of 2024

The Liquid Carbon Dioxide price dynamics in the US market remained positive in most of the time period in the last eight months of 2024 on the wake of increased demand outlook from the food and beverages sectors further accompanied by the increased production cost of Liquid Carbon Dioxide in the North American market.

Recently, Messer Americas has revealed plans to invest over $9 million in upgrading its Liquid Carbon Dioxide plant, in partnership with LSB Industries, a key player in the industrial and agricultural chemicals sector. This upgrade forms part of a broader, long-term renewal of the Liquid Carbon Dioxide purchase and sales agreement between the two U.S.-based companies, with the enhancements set to be carried out at LSB’s Cherokee, Alabama facility. Apart from Liquid Carbon Dioxide, Messer provides one of the most extensive product ranges in the industry and continuously innovates and enhances gas application technologies through its cutting-edge competence centre.

The efficiency improvements as part of the plant modernization will increase the supply of molecules within our network while also cutting Liquid Carbon Dioxide emissions at the facility, aligning with our sustainability objectives.

Meanwhile, Hurricane Francine has caused significant disruptions to oil production in the Gulf of Mexico, halting 42% of regional output and triggering price fluctuations. Despite initial declines, Brent crude and WTI posted weekly gains of 1.7% and 2%, respectively, driven by short-term supply cuts. However, weak global oil demand, highlighted by slowing economic data from China and the U.S., has limited the potential for a sustained price rebound.

The Liquid Carbon Dioxide market experts, manufacturers and suppliers are looking forward to more incline in the price graph of Liquid Carbon Dioxide as the natural gas price is likely to increase in the market with the decline in the temperature consequently increasing the natural gas and energy prices in the regional market. In 2024, the U.S. natural gas market experienced high inventory levels and suppressed prices. Following a mild winter, gas inventories remained roughly 10% above the historical average, which tempered price gains despite strong consumption driven by hot summer conditions. The Energy Information Administration (EIA) projects further growth, forecasting average production to rise to 105 Bcf/d in 2025.

As festive season is already on the threshold, the demand and the production of carbonated drinks is anticipated to increase proportionally raising the demand of Liquid Carbon Dioxide by the end of the year. As a ripple effect, Liquid Carbon Dioxide is also expected to witness an incline in the prices with slight price variations in the mid of Q4 2024.