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

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

The Oman oil and gas pipeline market is expected to register a CAGR of more than 6.5% during the forecast period. Covid-19 has adversely impacted oil & gas investment all across the globe. The overall demand for oil & gas has decreased, which also affected Oman's oil & gas industry. Furthermore, the fluctuation in prices of oil & gas has negatively impacted the oil & gas industry investment in the last two years in Oman. Due to rapid industrialization and urbanization, the demand for oil & gas products from developing countries such as China, India, Singapore, and the Philippines is rising. Moreover, Oman and India are working on developing a deepwater pipeline project to cater to India's growing power demand. However, a significant increase in renewable energy resources investment is expected to hinder the growth of the oil and gas pipeline market in the forecast period.

Key Highlights

• The gas pipeline line segment is expected to dominate the market during the forecast period. In the last few years, there has been a rise in awareness about carbon and greenhouse emissions, resulting in higher demand for natural gas, LPG, LNG, and other gasses in Oman and other countries. Thus, companies are investing more in the exploration and production of natural gas, which is expected to boost the oil and gas pipeline market in Oman in the forecast period.
• The Oman government is planning to increase oil & gas production in the country. For instance, Oman has identified a new oil field estimated to have 5 billion barrels of oil reserves. Therefore, the increasing number of oil & gas projects is expected to boost the Omani oil and gas pipeline market during the forecast period.
• Off late, the FDI in the oil and gas industry in Oman has witnessed a significant rise. For instance, China is expected to invest more than USD 10 billion in the oil & gas industry in Oman in the coming few years. Thus a significant rise in investment in the oil and gas industry provides a great opportunity in the oil and gas pipeline market.

Key Market TrendsThe Gas Pipeline Segment to Dominate the Market

• In Oman, natural gas production has increased from 25 billion cubic meters in 2010 to 36.9 billion cubic meters in 2020. Furthermore, natural gas consumption also increased significantly over the last decade. In 2010 the natural gas consumption was 16.4 billion cubic meters, and in 2020 it was around 25.9 billion cubic meters.
• This increased focus on natural gas production and consumption is due to higher demand for natural gas from various end-users such as residential, commercial, and industrial. This trend is expected to continue in the coming years and is anticipated to boost investment in the gas pipeline infrastructure.
• Increased awareness about the negative effects of carbon and greenhouse gas emissions on the environment as well as humans is also propelling the investment in natural gas infrastructure in Oman.
• Oil & gas companies are more focused on the exploration of natural gas in Oman. For instance, in 2010, Oman had natural gas reserves of around 0.5 trillion cubic meters, and in 2020 the natural gas reserves were 0.7 trillion cubic meters, which is approximately 40% higher than in 2010.
• Thus rising investment in natural gas infrastructure coupled with higher demand from the end-users is expected to drive the gas pipeline segment in the Oman oil and gas pipeline market in the near future.

Government's Favorable Policies to Promote Oil and Gas Industry

• Oman is one of the leading oil and natural gas producers in the Middle East outside the OPEC. The oil and gas industry is a critical part of its economic performance. In 2020, the oil and gas sector accounted for 26.2% of G.D.P. Furthermore, oil and gas exports represent about 60% of Oman's merchandise exports. Moreover, Oman's government derives around 70% of its annual budget from oil and gas industry revenues in the form of taxation, and the government also has joint ownership of some of the oil and gas fields which are located in the country.
• Thus the government of Oman is focusing on the development of the oil and gas industry in the country. The state-owned Petroleum Development Oman (P.D.O.) owns most of the country's oil reserves.
• In 2019, Oman created a state energy company named OQ. The company integrates various government-owned upstream, midstream, and downstream oil and gas entities. The companies that merged include the Oman Oil Company S.A.O.C. (O.O.C.), Oman Oil Refineries & Petroleum Industries Company (Orpic), Oman Oil Company Exploration & Production (O.O.C.E.P.), Oman Gas Company (O.G.C.), Duqm Refinery & Petrochemical Industries (D.R.P.I.C.), Salalah Methanol (S.M.C.), Oman Trading International (O.T.I.), Oxo intermediates and derivatives producer OXEA, and Salalah Liquefied Petroleum Gas. Furthermore, this group owns four producing blocks, one non-producing block, and five exploration blocks in onshore and offshore fields.
• Moreover, in December 2020, the government created Energy Development Oman to represent the government's stake in P.D.O. and raise financing for oil and gas projects for future development. Furthermore, the government is also aiming to expand its downstream oil capabilities, such as refining and petrochemicals.
• The government also introduce new laws to improve the business environment and investment climate and boost foreign direct investment in the country, particularly in the oil and gas industry. A few of the laws are as follows:-
• Foreign Capital Investment Law (Sultani Decree - 50/2019) (F.C.I.L.)
• Privatisation Law (Sultani Decree - 51/2019)
• Public Private Partnership Law (Sultani Decree - 52/2019)
• Bankruptcy Law (Sultani Decree - 53/2019)
• Due to these activities and reforms by the government, the oil and gas industry is expected to witness higher demand in the near future, which, the intern, would lead to leading the oil and gas pipeline market in the forecast period.

Competitive Landscape

Oman oil and gas pipeline market s moderately fragmented. Some of the key players in the market include Pipelife Nederland B.V, PSC Teknologis, AVEVA Group plc, Mott MacDonald, and TMK Group.

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• The market estimate (ME) sheet in Excel format
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