The global operating oil and gas pipeline length was estimated to be around 2079. 72 thousand km in 2020, which is expected to reach 2353. 86 thousand km by the end of 2026, registering a CAGR of 1. 9%. The oil and gas midstream was fairly unaffected by the COVID-19 pandemic since the constant usage of storage facilities for storing hydrocarbons, usage of pipelines for fuel transportation, and resilient demand for LNG in 2020 kept the demand for midstream services normalized.
New York, Sept. 06, 2021 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Oil and Gas Midstream Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)" - https://www.reportlinker.com/p06134963/?utm_source=GNW
Factors such as increasing production and consumption of natural gas and refined petroleum products are expected to boost the demand for pipeline services in the coming years and are likely to drive the oil & gas midstream market during the forecast period. However, environmental concerns regarding new pipeline and transportation infrastructure are likely to restrain the growth of the oil & gas midstream market in the coming years.
The transportation segment is likely to dominate the market during the forecast period, due to the increasing demand for refined products.
Increasing investment and development of small and complex offshore fields in different regions are expected to increase the demand for midstream services. Therefore, this is expected to provide a great opportunity for the midstream sector during the forecast period.
South America is expected to be the fastest growing market during the forecast period, mainly due to the growing demand for LNG in countries like Chile, Brazil and Argentina.
Key Market Trends
Transportation Sector to Dominate the Market
The oil and gas transportation industry is dominated by pipelines. The oil and gas supply in different regions is expected to exceed the existing transportation capacity, requiring expansions, as well as the construction of new pipelines.
Globally, the rising energy demand has resulted in the increase in new pipeline constructions and transportation facilities as the continuous need for energy demands new oil and gas infrastructure. This increasing energy demand has increased new terminals and pipeline construction, including oil and gas pipeline and transportation, especially in Asia-Pacific (APAC) and Africa.
Moreover, the largest market for the oil and gas midstream sector, North America had its pipeline infrastructure started developing over half a century ago. Hence, a lot of pipelines are old and demand expansion as per the forecasted demand rise for petroleum products and natural gas.
The new oil and gas exploration and production activities globally, along with an improved and efficient pipelines network for transportation, will significantly influence the market growth during the forecast period.
Hence, the transportation sector covers the major markets in the midstream sector. Hence, with the increasing transportation sector, the midstream sector is also expected to increase during the forecast period.
South America to be the Fastest Growing Market
South America is expected to be the fastest-growing market for the oil & gas midstream market during the forecast period.
South America is home to one of the largest offshore oil & gas markets across the globe with Brazil, Venezuela, Argentina, and Colombia being a few of the major countries in the region’s oil & gas industry.
Major pipeline projects in Brazil include capacity expansion pipelines and newly constructed pipelines, wherein capacity expansion pipeline includes the Bolivia-Brazil pipeline (GASBOL), which is anticipated to increase the pipeline capacity to an estimated 3.6 million cubic meters by 2022.
In 2020, the entire South and Central American region imported a total of 13.9 billion cubic meters of LNG, which is a 5.4% increase from 2019’s import, despite the COVID-19 pandemic. Major LNG importing countries of the region include Argentina, Brazil, and Chile.
Moreover, following the new gas law in Brazil, there are plans of at least 23 new LNG terminals in the country, of which two are in the construction phase, 10 in the licensing phase, and 11 in an initial study phase.
Hence, this is expected to increase the midstream market in the region during the forecast period.
The oil and gas midstream market is moderately fragmented. Some of key players in this market include APA Group. Chevron Corporation, BP PLC, Enbridge Pipelines Inc., and Royal Dutch Shell PLC, amongst others.
Reasons to Purchase this report:
The market estimate (ME) sheet in Excel format
3 months of analyst support
Read the full report: https://www.reportlinker.com/p06134963/?utm_source=GNW
ReportLinker is an award-winning market research solution. Reportlinker finds and organizes the latest industry data so you get all the market research you need - instantly, in one place.
CONTACT: Clare: firstname.lastname@example.org US: (339)-368-6001 Intl: +1 339-368-6001