Ecuador Oil and Gas Downstream Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Ecuador Oil and Gas Downstream Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Ecuador oil & gas downstream market is expected to grow at a CAGR of more than 1 % during the forecast period. Increasing demand for refined petroleum products coupled with the rise in population, urbanization, and industrialization in Ecuador, is expected to drive the oil & gas downstream market during the forecast period. However, the growing share of fuel-efficient vehicles and the increasing penetration of electric vehicles coupled with high volatility of crude oil prices are expected to hinder the market growth during the forecast period.

Key Highlights

• Ecuador’s refining sector is expected to have significant growth in the market during the forecast period, on account of increasing demand for refined products from end-suers.
• With the increasing demand for petroleum products, the country is planning to increase its market share by creating an impact for its oil and oil-based products. The country is also planning on the expansion of its downstream markets, such as oil refining and others. This, in turn, is expected to create a significant opportunity for the payers involved in the market in the near future.

Key Market TrendsRefining sector is Expected to Witness a Significant Growth

• Ecuador had a refining capacity of about 175 thousand barrels per day (b/d) of oil in 2018. Ecuador’s energy mix is dominated by oil. The oil sector accounts for more than half of the country's export earnings in Ecuador, the United States is one of Ecuador's largest crude oil importer.
• As of 2018, Ecuador had 2.8 thousand billion barrels of proved oil reserves. Most of Ecuador’s oil reserves are in the Oriente Basin located in the Amazon.
• With increasing investments and high competition, the refining throughput of Ecuador has increased at a rate of 2.1% in 2018, reaching 159 thousand barrels per day. Also, Ecuador is seeking private companies interested in building a new refinery.
• State-owned PetroEcuador has to decommission its aging 110,000 b/d Esmeraldas refinery in 2019 due to pollution and open an international tender to build a new one for $6bn.
• Hence, increased production is expected to proliferate the growth of the Ecuador oil and gas refining market during the forecast period.

Growing Fleet of EVs is Likely to Hinder the Market

• Technology change and environmental concerns to encourage EV adoption are the most uncertain factors affecting the growth of the market. Government policies incentivizing or mandating EVs or other alternatives are likely to reduce oil demand.
• Ecuador opens its largest electric charging station for electric cars, taxis, and buses, which is built by China's BYD in 2019.
• Various policies and incentives, lower vehicle prices, increased driving range, and faster charging times and zero-emission that are paving the way for a cleaner future are expected to boost up EV market.
• The above factors are expected to hinder the growth of conventional IC engine-based vehicles market and this, in turn, is expected to have a direct impact on petroleum products such as diesel, and petrol.

Competitive Landscape

The Ecuador oil and gas downstream market is moderately consolidated. Some of the key players in this market include EP Petroecuador, Petroamazonas EP, Eni SpA, Total S.A., and Royal Dutch Shell Plc.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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