Offshore Pipeline Infrastructure Market size will experience rapid expansion over the forecast period 2021-2027. Ongoing investments in replacement of aging oil and gas infrastructure is driving the demand for reliable pipeline networks to facilitate efficient, streamlined, and economical transportation of fuels. With critical technological breakthroughs and declining costs, oil and gas companies are focusing on expanding their portfolio of sustainable deep water and ultradeep water developments.
An offshore pipeline infrastructure is an extensive network of thousands of miles of pipelines that accelerates the process of natural gas and oil transportation. It also serves as a safe and effective solution for the transportation of numerous other hydrocarbon products. Offshore pipelines are a suitable solution for transportation and are widely preferred over ships as the risk of spillages is less. Moreover, these networks are unaffected by cyclones, tides, and other factors. Growing offshore exploration and production activities will certainly foster offshore pipeline infrastructure industry expansion.
The market share from oil segment is expected to record robust gains by the end of 2027. Offshore oil exploration and production activities worldwide are gaining momentum. To meet the increasing demand, cooperation on deep water oil and exploration needs to be improved to minimize costs against the backdrop of declining oil prices, a team of Chinese oil and gas experts noted at the China Energy Week 2020 conference. Additionally, increasing shale oil production in the U.S. will positively impact the segment growth.
Offshore pipeline infrastructure market share from the gas segment will expand substantially in the future. According to the U.S. Department of Energy, natural gas fuels over one-third of United States’ primary energy. It is also the primary heating fuel for more than half of U.S. households. The increasing natural gas demand will certainly augment the need for reliable and efficient piping infrastructure for transportation of LNG, providing manufacturers with promising opportunities.
In terms of geography, North America offshore pipeline infrastructure market size will grow at a steady CAGR up to 2027. The region is continuously investing in new technology to boost offshore exploration outcomes. Exploration and production activities in North America are anticipated to run at full capacity during the forecast period, positively impacting the regional outlook.
CRC Evans Pipeline, Enbridge, APA Group, General Electric, Saipem (Eni), MRC Global, National Oilwell Varco, Welspun, Engas, Chelpipe, DCP Midstream, Technip, Redexis, Snam Rete, Gazprom, GAIL, and Europipe are among the top players in the offshore pipeline infrastructure market.
In May 2021, Saipem had bagged a 280-million-euro contract from GAZ-SYSTEM S.A. for the installation of a natural gas pipeline between Poland and Denmark in the Baltic Sea. The company had received another contract worth USD 1 billion from Qatargas in March 2021 for the North Field Production Sustainability Pipelines Project located offshore in the north-eastern coast of the Qatar Peninsula.
The oil & gas sector has taken one of the worst hits due to the COVID-19 pandemic. Pipeline installation projects in many countries experienced delays due to lockdown restrictions imposed by respective governments. Decreased gas demand due to the decline in power consumption and travel and tourism has impacted gas consumption in numerous regions.
However, to meet the future demand, pipeline capacities are being expanded and new pipeline projects are being commissioned globally. Increasing offshore activities including deep water and ultradeep water production and development will bolster offshore pipeline infrastructure market outlook over 2021-2027.