The increase in investments, contracts, and collaboration between the companies is raising the demand for the global oil and gas EPC market. The increased spending on energy and power across the world is another factor likely to drive the Oil and Gas EPC Market. Rising investments in energy efficiency projects backed by governments may also stimulate growth in the market. The penetration of renewable sources increased, fueling energy demand and is expected to drive the Oil and Gas EPC Market. The National Petroleum Council estimates that the worldwide energy investment will be $20 trillion during the next 25 years.
In August 2018, Petrofac was awarded a contract worth around USD 370 million by Basra Oil Company (BOC) to expand the Central Processing Facility (CPF). The deal is for 34-month; the lump-sum engineering, procurement, and construction (EPC) project scope includes two oil processing trains, able to process 200 kbps. In April 2018, Saudi Aramco had joined a group of three Indian companies to develop USD 44 billion in refineries and petrochemical complexes in India with ADNOC. In 2018, McDermott International, Inc. announced the completion of a combination with Chicago Bridge & Iron Company N.V. to integrate the providing technology, construction, and engineering solutions, especially for the energy sector.
Investments from E&P players in building oil and gas plants are rising across the globe.
For instance, In August 2018, Petrofac won a USD 600 million contract to provide engineering, procurement, and construction (EPC) services to Sonatrach’s Tinhert field development project in Algeria. The EPC contract is valid for 36 months.
They plan to invest USD 250 million to increase production at the There gas field to 20 million cubic meters (mcm) per day by 2020.
JGC Corporation announced that LNG Canada took its final investment decision (FID) for a large-scale LNG plant in Kitimat, British Columbia, Canada.
The joint venture of JGC and Fluor Corporation performs the plant's engineering, procurement, and construction (EPC). JGC will book its US$ 5.6 billion shares of the approximate US$ 14 billion contract value in the third quarter of fiscal 2018.
KBJ, a joint venture partnership of Kiewit Energy Group Inc., Black & Veatch Construction, Inc., and JGC US Projects, LLC, has been selected by Jordan Cove LNG to engineer and construct an LNG export terminal in Coos Bay, Oregon.
Saudi Arabia has been shifting its investments. For instance, Saudi Aramco, a Saudi Arabian national petroleum and natural gas company, has agreed to acquire a 20% stake in Reliance Industries' refining and petrochemicals business, valued at $75 billion.
While on September 5, 2019, Saudi Aramco signed a Memorandum of Understanding(MoU) with China’s Zhejiang Free Trade Zone; this MoU facilitates Saudi Aramco’s planned acquisition of a 9% stake in the Zhejiang integrated refinery and petrochemical complex.
It will also include a long-term crude oil supply agreement and the ability to utilize Zhejiang Petrochemical’s large crude oil storage facility.
Saudi Aramco announced a mega preliminary agreement in May 2019 to buy 5 million tons of liquefied natural gas per year from a Port Arthur, Texas export project under development.
Also, Saudi Arabia focuses on reducing the volatility in crude oil prices by bringing coordination between the Organization of Petroleum Exporting Countries (OPEC) and Non-OPEC producers, including Russia, thereby limiting crude oil production, to stabilize crude oil prices.
Engineering, Procurement, and Construction (EPC) was the dominant form of overseas investment for Chinese companies until 2018.
India will attract about USD 25 billion of investments in oil and gas exploration and production by 2022.
India is the third-largest consumer of oil globally, and the country’s total consumption of oil and oil equivalent was 257.8 MMT in 2016. The government plans to take India’s production to more than 100 MMT of oil and oil equivalent by 2022.
India will see a massive investment of USD 118 billion in oil and gas exploration and set up natural gas infrastructure in the next few years as the country prepares to meet the needs of a fast-growing economy.
USD 58 billion will be invested by 2023 in oil and gas exploration and production, while another USD 60 billion will be put into creating natural gas infrastructure such as pipelines, import terminals, and city gas distribution networks in 2024.
Kuwait has $62bn worth of oil and gas projects currently under construction, out of a total of $140.9bn. Oil and gas were followed by urban buildings, with projects worth $48.1bn under construction and infrastructure, with $30bn.
About Us:
DataM Intelligence was incorporated in the early weeks of 2017 as a Market Research and Consulting firm with just two people on board. Within less than a year, we have secured more than 100 unique customers from established organizations all over the world.
For more information:
Sai Kiran
Sales Manager at DataM Intelligence
Email: [email protected]
Tel: +1 877 441 4866
Website: www.datamintelligence.com
