Global Oil and Gas Pipeline Operator Market 2023-2030

Global Oil and Gas Pipeline Operator Market 2023-2030

Global Oil and Gas Pipeline Operator Market Size, Share & Trends Analysis Report by Type (Gas Pipe and Oil Pipe) and by Application (Domestic Pipeline Operator and Cross-border Pipeline Operator) Forecast Period (2023-2030)

The global oil and gas pipeline operator market is projected to grow at a considerable CAGR of 6.5% during the forecast period. The growth of the market is attributed to factors such as increasing energy demand, expansion of oil and gas exploration activities, and the need for efficient transportation infrastructure. For instance, in February 2023, Luberef, a subsidiary of Saudi Aramco, expanded its base oil plant in Yanbu' al Bahr, Saudi Arabia, which will increase capacity by 230,000 metric tons per year. The project will also upgrade the facility, enabling it to make API Group III base stocks. Additionally, government initiatives promoting energy infrastructure development and cross-border collaborations in the oil and gas sector are expected to fuel the demand for pipeline operators. For instance, in February 2021, Saudi Arabia implemented energy efficiency initiatives that align with its Vision 2030 goals and the United Nations' Sustainable Development Goals (SDGs). These initiatives reflect the country's commitment to developing a diversified and sustainable economy. Recognizing the importance of sustainable and efficient planning, especially in the face of rapid societal growth and infrastructure development, the Saudi government has introduced various policies and guidelines. These measures aim to promote energy efficiency across all sectors and contribute to the country's long-term sustainability objectives.

Segmental Outlook

The global oil and gas pipeline operator market is segmented based on type and application. Based on type, the market is bifurcated into gas pipe and oil pipe. Based on application, the market is further divided into domestic pipeline operator and cross-border pipeline operator. Among the application segment, the domestic pipeline operator sub-segment is expected to dominate the market over the forecast period, which is attributed to the increasing demand for safe and reliable transportation of oil and gas within a country's borders.

The Gas Pipe Sub-Segment is Anticipated to Witness Significant Growth in the Global Oil and Gas Pipeline Operator Market

The gas pipe segment is anticipated to witness significant growth, driven by the growing demand for crude gas transportation and the expansion of gas production activities. Owing to this, various countries have released projects aimed at enhancing gas pipeline infrastructure. For instance, in July 2021, Pakistan and Russia signed an agreement for the construction of a gas pipeline stretching from Port Qasim in Karachi to Lahore, which is estimated to be around 1,100 km long and cost between $2.5-3 billion. The pipeline is also known as the Pakistan Stream Gas Pipeline (PSGP) or the North-South gas pipeline. The project is contracted by the Pakistani government to be built by Gazprom, a Russian gas company. The pipeline's designed annual capacity stands at 12.4 billion cubic meters (bcm), with the possibility to be increased to 16 bcm. The pipeline size was agreed at a 56-inch diameter to cater for the next 30-40 years of energy needs in the country that will ensure 700-800 million cubic feet per day (mmfcd) of free gas flow which can go up to 2,000mmcfd with compressors.

Regional Outlook

The global oil and gas pipeline operator market is further segmented based on geography, including North America (the US and Canada), Europe (Italy, Spain, Germany, France, and others), Asia-Pacific (India, China, Japan, South Korea, and others), and the Rest of the World (the Middle East & Africa and Latin America). The market can be analyzed at the regional or country level as per requirement. Among these, the Asia-Pacific region is projected to experience considerable growth, driven by the increasing energy demand and investments in pipeline infrastructure development.

Global Oil and Gas Pipeline Operator Market Growth by Region 2023-2030

Source: OMR Analysis

North America is Expected to Hold a Significant Share of the Global Oil and Gas Pipeline Operator Market

North America is expected to hold a significant share of the global oil and gas pipeline operator market during the forecast period. The region's market growth is primarily driven by factors such as the expansion of oil and gas production, and the presence of major pipeline operators such as Kinder Morgan, Williams Companies, Inc., Phillips 66, and others. These market players play a significant role in driving market growth by employing various strategies such as expanding infrastructure, forging partnerships, fostering collaborations, and advancing pipeline operations through technological innovations. For instance, in April 2022, Kinder Morgan financed the expansion of the natural gas Permian Highway Pipeline, jointly owned with Kinetik Holdings and Exxon Mobil, increasing its capacity by 550 million cubic feet per day (CFD). The expansion aims to address transportation constraints in the Permian Basin and is set to become operational in November 2023. The company is also considering the Gulf Coast Express (GCX) expansion for transporting natural gas to the South Texas coast.

Market Players Outlook

The major companies serving the global oil and gas pipeline operator market include Pao TMK, Tenaris S.A., Mott MacDonald, Nippon Steel Group, EITEP GmbH, and others. These market players contribute significantly to market growth through various strategies, including infrastructure expansions, partnerships, collaborations, and technological advancements in pipeline operations. The competitive landscape is characterized by the presence of both regional and multinational pipeline operators, each focusing on ensuring efficient and safe transportation of oil and gas. For instance, in September 2022, the Science Based Targets Initiative (SBTi) partnered with Mott MacDonald to progress the oil and gas sector Project. The project aims to develop guidelines to help oil and gas companies set science-based targets to reduce their greenhouse gas emissions.

The Report Covers

Market value data analysis of 2022 and forecast to 2030.

Annualized market revenues ($ million) for each market segment.

Country-wise analysis of major geographical regions.

Key companies operating in the global oil and gas pipeline operator market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.

Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.

Analysis of market-entry and market expansion strategies.

Competitive strategies by identifying ‘who-stands-where’ in the market.