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Gathering Pipeline Market size is projected to witness a major upsurge over 2022-2028, as a result of the escalating consumption of energy and the subsequent requirement of oil and gas gathering pipelines construction. In addition, the remarkable increase in offshore drilling activities and the increase in per-capita power consumption in developing economies will also amplify industry expansion over the forthcoming years. Gathering pipelines refer to lines used to transport oil and natural gas from the production facility to a central collection point. These pipelines, which generally operate at relatively low pressure and flow, are used to collect unprocessed gas from the production sites to transport to the gas treatment plants and other facilities.
Significant increase in oil and gas drilling activities and the emergence of natural gas as the fuel of choice are among the major trends fostering the gathering pipeline market growth through 2022-2028. As per the U.S. Energy Information Administration’s statistics, natural gas fuels 38% of the electric power sector in America, which could proliferate the upgradation and development of more natural gas gathering pipelines. However, the declining crude oil production has consequently resulted in its higher prices which, in turn, may hamper the market dynamics over the years ahead.
Onshore will emerge as a prominent application segment for the gathering pipeline market by 2028. This can be credited to the rising awareness about the benefits of onshore over offshore operations, including low exposure to varying weather conditions. According to statistics from Tuboscope MSI's Pipe Protection Technologies, nearly 28% of the oil will be produced offshore, while the remaining 72% will still be produced through onshore operations by 2025. Factors such as these could assert a positive influence on the demand for gathering pipeline systems for the transmission of oil and gas generated through onshore activities.
From a regional perspective, the Asia Pacific gathering pipeline market is poised to depict a high growth rate through 2028, driven by the growing investment interest towards oil and gas infrastructures. The government of India, for example, announced plans to invest over $100 billion to develop oil and gas infrastructure in the next 5 years. Also, in April 2021, PipeChina, formally known as China Oil and Gas Pipeline Network, began the construction of the $1.3 billion trunk line for natural gas in north China, which could contribute to the regional industry share in the upcoming years.
Key gathering pipeline industry players include GAIL (Government of India, Ministry of Petroleum and Natural Gas), Engas, National Oilwell Varco (NOV), Welspun, DCP Midstream, Chelpipe, Saipem (Eni), MRC Global, General Electric, Technip, Redexis, Snam Rete, CRC-Evans Pipeline, APA Group, Gazprom, Enbridge, and Europipe, among others. These firms are implementing varied strategies like new product launches, mergers, acquisitions, and business expansions to bolster their footprint across the global market. For instance, in December 2021, Gazprom unveiled plans to spend $305 million to finance the Nord Stream 2 gas pipeline in 2022, with an objective to address the surging European gas prices.
Economic disruptions and containment measures related to the novel coronavirus outbreak have resulted in a significant drop in global production and demand for oil. As per the IEA (International Energy Agency)’s data, the oil demand was declined by 30% in April 2020 as compared to a year earlier. These aforementioned factors may have asserted a negative influence on the adoption of gathering oil pipelines and hampered the gathering pipeline industry outlook in recent months. However, the commendable increase in the consumption of natural gas in developing countries could help the industry regain momentum over the foreseeable future.