Oil and Gas Pipeline Services Market Size, Share, Industry, Forecast and outlook (2024-2031)

Global Oil & Gas Pipeline Services Market is segmented By Type (Crude Oil Pipeline, Natural Gas Pipeline), By Service (Pre-commissioning and Commissioning Services, Maintenance Services, Inspection Services, Decommissioning Services), By Location of Deployment (Onshore, Offshore), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031

Oil & Gas Pipeline Services Market Size

The Global Oil & Gas Pipeline Services Market reached US$ YY million in 2022 and is projected to witness lucrative growth by reaching up to US$ YY million by 2031. The market is growing at a CAGR of 6.60% during the forecast period (2024-2031).

An oil & gas pipeline delivers oil or gas under high pressure. It’s made of concrete, steel, plastic and other materials to transport natural resources from the purification site to processing facilities before being delivered to end-use consumers. Pipeline systems connect different points to move resources across regions quickly and efficiently while providing safety measures against accidents or leaks during transit due to corrosion or other reasons.

Oil & Gas Pipeline Services Market Summary

For More Insights Request Free Sample

Oil & Gas Pipeline Services Market Trends

Crude oil pipelines provide a cost-effective solution

Crude oil pipelines also help to drive market growth by providing access to new markets for oil and gas producers. For instance, a crude oil pipeline connecting a production site in one region to a refinery or storage facility in another can open up new markets for the oil and gas produced at that site. Further, crude oil pipelines play a critical role in driving the market growth for oil and gas pipeline services by providing a cost-effective and efficient means of transporting crude oil, increasing the reliability of the oil and gas supply chain and providing access to new markets for oil and gas producers.

The high initial installation cost

Pipelines need intricate and expensive installation, making it challenging for businesses to justify the expense. Heavy machinery and specialized equipment, such as excavators, bulldozers, and cranes, are necessary to build pipelines but can be expensive to buy or hire. Furthermore, the task of building pipes calls for the labor of qualified engineers and maintenance workers, both of whom can be costly to engage. All of the costs incurred in building the pipes raise the price of the finished product, decreasing consumer demand. Hence, the expansion of the oil and gas pipeline services market may be severely constrained by high installation costs.

Oil & Gas Pipeline Services Market Segmentation Analysis

The global oil & gas pipeline services market is segmented on type, service, deployment and region.

The pre-commissioning segment covered a significant market share due to its use in operation for cleaning and testing

Pre-commissioning services are critical for the growth of the oil and gas pipeline industry. It helps to ensure that pipelines are constructed and operated safely, efficiently and in compliance with regulations. It helps to reduce costs, minimize the risk of accidents and increase the reliability of the pipeline. The respective fact attracts investment and increases the demand for oil and gas transportation services, which drives growth in the industry.

Source: DataM Intelligence Analysis (2023)

Oil & Gas Pipeline Services Market Geographical Share

Growing energy consumption and expanding oil and gas pipeline infrastructure

By 2050, the Asia-Pacific region's energy consumption is anticipated to rise by up to 48%. The International Energy Agency (IEA) estimates that China will provide 30% of the global increase in energy through 2025. In addition, China has imported more natural gas to keep up with its growing consumption. In order to accommodate the rising demand, India is also updating its gas pipeline infrastructure. The Indian government planned a pipeline project for the union territory of Jammu and Kashmir in the annual budget for 2021. In addition, the country plans to invest in constructing gas infrastructure, such as gas pipelines, CGD, and LNG regasification terminals. The goal is to boost the proportion of natural gas in the country's energy mix to 15%. As a result, the expansion of pipeline infrastructure and rising demand in the Asia-Pacific region are key contributors to the growth of the oil and gas industry.

Source: DataM Intelligence Analysis (2023)

Oil & Gas Pipeline Services Companies

The major global players include Tenaris, ArcelorMittal SA, Nippon Steel Corporation, ChelPipe Group, Chevron Corporation, Maharashtra Seamless Ltd, National Oilwell Varco, Subsea 7 S.A., TechnipFMC and Royal Dutch Shell P.L.C.

Key Developments

• On June 17, 2022, Tenaris inked an agreement for Argentina's Vaca Muerta shale formation with the state-run corporation Energia. The agreement is a "significant stride" in completing the 563 km gas pipeline project and would link Neuquen province with Salliquelo, a region west of Buenos Aires. Argentina believes the pipeline will help it recover from expensive LNG imports and compensate for its energy shortfall. The Vaca Muerta mega field's gas volume transfer is anticipated to increase by 25% due to the gas pipeline.
• On September 19, 2021, KEC International, a member of the RPG Group, agreed to buy Spur Infrastructure's whole stock for uS$ 0.79 million (INR 62 crore), subject to closing adjustments as per custom. The transaction is anticipated to be finished one month from the agreement date.
• Guyana plans to install a 220km undersea gas pipeline by October 20, 2021.
• The new pipeline will be able to carry roughly 50MMSCFD from the Liza Phase 1 and 2 projects, which ExxonMobil runs.

The global oil & gas pipeline services market report would provide approximately 61 tables, 57 figures and 187 Pages.