Gas Pipeline Infrastructure Market Size By Application (Onshore, Offshore), Operation (Transmission, Distribution), Industry Analysis Report, Regional Outlook (U.S., Canada, Mexico, UK, Germany, Italy, Hungary, France, Turkey, Russia, China, Australia, India, Indonesia, Iran, Algeria, Egypt, Brazil, Argentina), Price Trends, Competitive Market Share & Forecast, 2017 – 2024
Published Date: August 2017 | 245 Pages | Report ID: GMI2062 | Report Format:
Global Gas Pipeline Infrastructure Market size for 2016 was valued over USD 1 trillion and the cumulative installation is set to surpass 8 million kilometers by 2024.
U.S. Gas Pipeline Infrastructure Market, By Operation, 2016 & 2024 (‘000 Kilometers)
Paradigm shift from crude oil towards natural gas across the end users will propel the global gas pipeline infrastructure market size. High efficiency and less carbon footprint are some of the key parameters of natural gas which will boost the product penetration across electricity generating stations. In 2017, the U.S. Energy Information Administration (EIA) reported that natural gas accounted for over 33% of the total electricity generation at utility scale facilities in 2016.
Increasing discoveries of the unconventional reserves including shale coupled with vast untapped potential of existing reservoirs will complement the gas pipeline infrastructure market share. Developing economies are focusing towards the expansion of E&P activities in shale resources to balance the energy intake. In 2016, China Geological Survey (CGS) reported the discovery of 13.54 trillion cubic meters of shale reserves in Guizhou province.
Exponential upsurge in the energy demand owing to robust industrialization and urbanization will further augment the gas pipeline infrastructure market growth. Growing need to develop the existing pipeline network to suffice the rising demand will positively impact the industry outlook. In 2017, the UK Department of Business, Energy & Industrial Strategy published that the annual natural gas consumption exceeded 46.32 bcm in 2016.
Gas Pipeline Infrastructure Market, By Application
Onshore in 2016 accounted for over two third of the global gas pipeline infrastructure market share. Increasing emphasis to enlarge the land conduits along with renovation of existing network will further propel the industry growth. In 2017, an Australian energy infrastructure company Jemena was selected by the Northern Territory Government to construct and operate a 622-km pipeline stretch worth around USD 634 million. The issued project has an objective to initiate the flow by late 2018.
Offshore gas pipeline infrastructure market is set to grow over 1.5% by 2024. Growing investments to maximize production from subsea reserves coupled with rising need to pursue extensive international import and export will boost the business size. In 2017, the Russian O&G major, Gazprom initiated the construction of the TurkStream offshore channel. The project primarily connects Turkey and Russia and consists of two parallel pipelines stretching 930 kilometers to receive Russian exports.
Gas Pipeline Infrastructure Market, By Operation
Growing need to bolster the interstates and international trade along with reduction in reliance on existing outdated lines will drive the transmission gas pipeline infrastructure market. In 2016, the GRTgaz and Fluxys Belgium introduced a new transmission network in Pitgam to create an integrated gas grid. The facilities are dedicated to transfer up to an additional capacity of 8 bcm per year between French and Belgian stations.
Rising energy demand coupled with growing consumer awareness will stimulate the distribution gas pipeline infrastructure market. The regional governments are focusing to back up the expansion of existing pipeline networks. In 2016, the government of India announced to fund 40% of the total project cost estimated at above USD 2 billion. The development is maintained by the national major, GAIL (India) limited and will be concentrated to connect five new states to the national gas grid.
Gas Pipeline Infrastructure Market, By Region
The U.S. gas pipeline infrastructure market is projected to exceed 2.5 million kilometers by 2024. Refurbishment of long standing conduit systems along with increase in gas connected users will augment the business landscape. In 2016, the EIA reported that national pipeline exports to Mexico has increased substantially over few years. It also projected that the cross-border transport capacity which stands at 7.3 bcf per day will double within 3 years.
For Europe, UK gas pipeline infrastructure market was valued over USD 50 billion in 2016. Gradual decommissioning of current transport routes along with high investments to replace it with new efficient conduits will boost the industry size. In 2016, the UK Infrastructure and Projects Authority planned to invest over USD 7.6 billion across about 13 gas transmission and distribution projects across the country.
China gas pipeline infrastructure market will witness robust growth owing to indispensable need to develop the distribution grid to suffice increasing energy demand. The national five-year plans are obliged to offer significant budget allocation to the expansion of the dedicated systems. In 2017, the National Energy Administration and National Development and Reform Commission collectively announced an expansion plan stating that all cities with population above 500,000 will have access to natural gas by 2025.
Iran accounted for over 40% of the Middle East and Africa gas pipeline infrastructure market share. Uplifting of international sanctions along with simultaneous increase in E&P operations in newly discovered fields will further propel the industry size. In 2017, the Iranian President announced to initiate five out of the total 24 phases of South Pars field. He added that the production from the field had doubled over last four years and the country is projected to out produce Qatar and lead the global gas export trade.
Competitive Market Share
Gas pipeline infrastructure market participants include Enbridge, Europipe, Gazprom, APA Group, CRC Evans Pipeline, General Electric, Snam Rete, Redexis, Saipem, Technip, MRC Global, Chelpipe, DCP Midstream, Engas, GAIL, National Oilwell Varco, Perusahaan Gas Negara and Welspun.
Major players are progressively adopting different strategies including joint ventures and mergers & acquisitions to enhance their global penetration. In November 2016, Saipem entered into a long-term Engineering, Procurement, Installation, Construction (EPIC) agreement offered by Saudi Aramco until 2021. The contract includes the company to design, install and laying of pipelines, umbilicals and subsea cables along with other O&G activities with an aim to establish the Saipem’s footprint in the Middle East region.
Gas Pipeline Infrastructure Industry Background
Pipeline infrastructure generally consists of spherical tubes or conduits and plays a substantial role in gathering, processing, storage, transportation and distribution of hydrocarbons. Small gathering lines are managed to lead from each well to processing facilities from a typical production site. At the processing facilities, the contaminants are removed from the gas before transporting it to the refineries through conduit systems.
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