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Middle East Oil & Gas Storage Terminal Market Size, Share & COVID-19 Impact Analysis, By Type (Strategic Reserve, Commercial Reserve), By Tank Type (Fixed Roof, Floating Roof, Bullet Tank, Spherical Tank), By Product (Diesel, Petrol, Aviation Fuel, Crude Oil, Kerosene, Gas, Others), and Regional Forecasts, 2022-2029

Region : Middle East | Format: PDF | Report ID: FBI107134



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The Middle East oil & gas storage terminal market size was USD 2.90 billion in 2021. The market is projected to grow from USD 3.27 billion in 2022 to USD 5.51 billion by 2029, exhibiting a CAGR of 7.7% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, experiencing lower-than-anticipated demand across the Middle East compared to pre-pandemic levels. Based on our analysis, the market exhibited a growth of 37.8% in 2020 as compared to 2019.

Storage terminals are the most fundamental parts of the global oil and gas production network and are at the heart of the oil and gas trade between nations. Many countries rely heavily on imports and supply excess oil stored in their terminals. Oil & gas are stored for commercial and strategic reserve purposes. There are different storage tanks used to store oil & gas. A floating attic and a fixed attic are the types that are mostly used.

Oil terminals are located near refineries or nearshore where tankers can load/unload cargo. Some terminals are connected with pipelines to deliver and receive the product. Terminals can also be approached by rail, barge, and road tanker. Sometimes, oil terminals are also found near cities where road tankers transport products to gas stations and other direct users.


Middle East Oil & Gas Storage Terminal Market Growth Impacted Due to Enforcement of Measures to Curb the Spread of Coronavirus

With increasing concerns about COVID-19, many industries worldwide, including automotive and aerospace, are experiencing negative business impacts. Oil and gas activities are essential to many Middle Eastern governments and have largely been exempted from the lockdown measures. However, the spread of COVID-19 posed a significant threat to this industry in the Middle East. The drastic measures taken to contain the spread of the virus challenged working conditions for many of the sector's key processes. Workers must maintain social distancing while working in confined spaces. Also, restrictions such as travel bans that reduce companies' workforce availability create uncertainty in calming down a historically volatile industry.

The price of oil was dropping due to failed agreements on production cuts. The demand for refined products and chemicals was slowed due to travel restrictions and industrial slow-downs. For the first time in history, oil breached the USD 0 mark in April 2020. According to the EIA, the Middle East petroleum and liquid fuel consumption averaged 94.4 billion barrels per day in 2020, a decline of 5.6 billion b/d from the same period in 2019.


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Increasing Expenditure to Build SPR and Rise in Oil Trade between Countries to Drive Market Growth

The need for strategic petroleum reserves has led many countries to prioritize expanding their storage volume to meet oil importunity in the event of an import shortage or crisis. For instance, every country in the European Union must have a strategic oil reserve equivalent to 90 days of average domestic consumption. Following the impact of COVID-19 pandemic, various countries have planned to invest to increase the storage volume for oil. The investment was carried out to overcome any form of fuel/oil shortfall due to any emergency and reduce the dependency on fuel imports.

Also, oil trade between countries is expected to increase in the forecast period. An increase in demand for oil from existing import-dependent countries will require the government to invest more in storage terminals in the coming years.

The increase in demand for various fuels and storage tanks has elevated the need for the construction of oil terminals.


Increase in Demand for Crude Oil and Petroleum Products to Drive the Need for Storage Terminal

The essential factor that drives the market for oil storage terminal is the increase in global demand for various petroleum products, thereby leading oil producers to enhance their production capacity. This has resulted in increasing utilization of refineries and demand for the establishment of storage terminals. In addition, the demand for crude oil by-products such as diesel, LNG, aviation fuel, and gasoline has grown exponentially with a global increase in personal travel and air travel.

Furthermore, automotive sales have increased exponentially owing to urbanization. In addition, the industries that use crude oil products have seen an increase in consumption. The chemical industry generally requires special light distillates ranging from refineries to various chemicals. Depending on the needs of the end product, a certain type of storage tank is built by different industries. Therefore, the expansion of the chemical industry will add to the storage terminals growth.

Growing Energy Demand Coupled with Increasing Population to Aid Market Growth

Another factor driving the growth of the oil & gas storage terminal is the increasing demand for energy owing to rising population and rapid urbanization. Considering the Department of Economic and Social Affairs report, the world's population is anticipated to be around 9.8 billion in 2050 and 11.2 billion in 2100. This will surely drive countries' construction of oil storage terminals to suffice the country's demand for oil or generate revenue by commercial use of the same.

The Middle East region has had a significant rise in population and an increase in the number of storage terminals in past years. According to BP, the Middle East accounts for 31% of oil production, 18% of gas production, 48% of proved oil reserves, and 40% of proved gas reserves. Furthermore, electricity generation increased by 0.6% in 2020, much lower than the 10-year average of +4.5%. Iran (+3.8%) and Israel (+2.4%) saw the largest growth rates. Besides, oil remains a key component of energy consumption with a 43% share, but demand fell sharply in 2020 (-8.0%). Additionally, natural gas countered the trend of decreasing energy consumption, increasing by 1.2% in 2020.

The introduction of advanced tank types in storage tanks, such as floating storage tanks, which come with operational advantages, has been adopted by many companies, thereby driving investment in the oil & gas storage terminal industry. Some key market players in energy forecast that the demand for electricity in the Middle East will triple by 2050, accelerating the growth of fossil fuels. For buildings, electrification will continue, and natural gas will be displaced by electricity in households, including cooking, so that by 2050, 70% of buildings' energy use will be covered by electricity.


Increase in Adoption of Renewables Energy as an Alternative to Hinder Market Growth

The key constraints affecting the demand for oil & gas storage terminals is the increase in usage of renewable energy-based sources for various industries.

The deployment of renewable energy is rising. For instance, Egypt is focusing on getting approximately 42% of its electricity from renewable sources by the year 2025. Subsequently, Iran planned 5 GW by 2020. Saudi Arabia, which accounts for the largest oil reserves in the region, has distinguished renewable energy as a strategic priority. Saudi Arabia has invested in 9.5 GW solar and wind power in 2023 with a goal to generate 30% of electricity from renewable sources by 2030.

The catalysts for this have been increasing concerns about rising temperatures and CO2 emission, which is shutting down various industries, and make use of fossil-based fuels for their activities and applications.

Another factor inhibiting growth is the high cost that is required to build and maintain the terminal over its lifetime. In addition, the oil spills and stringent government regulation measures are threatening the market expansion of oil & gas storage terminals.


By Type Analysis

Commercial Reserves Hold a Dominant Market Share Owing to Maximum Oil & Gas Stored

Based on type, the market is segmented into commercial reserve and strategic reserve. Over the forecast period, the commercial reserve segmental share is expected to record considerable growth. The region is the largest oil producer and satisfies the oil demand for various countries, which depends on their oil imports. Countries across the Middle East are interdependent for sufficing their oil demand. Therefore, the commercialization of oil and its products is the only way to help revenue generation and form a basis for other deals between countries. Commercial storage tanks are very important for every nation and occupy a major share of the oil storage terminal market.

Out of the stored part, the maximum is stored as a commercial reserve; therefore, commercial reserves dominate the market in the region.

By Tank Type Analysis

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Floating Roof Tank Type Segment Holds Considerable Share Due to Minimum Evaporative Losses and Corrosion

Based on tank type, the market is subdivided into floating roofs, fixed roofs, bullet tanks, and spherical tanks.

The floating roofs segment dominated the market in 2021. The segmental growth is accredited to the systematic structure of the floating roof, which helps minimize evaporative loss and corrosion. Furthermore, increasing demand for intermediate and low flash point hydrocarbon storage is expected to drive the growth of the segment.

The fixed roofs segment is expected to grow significantly over the forthcoming years. Factors such as increase in penetration of the fixed roof tank due to high level of containment minimizes the risks of a fire event. In addition, falling installation cost for fixed roof structures is expected to boost segment growth.

Oil storage terminal based on spherical tank is the fastest-growing segment in the market. Kugeltanks have a technological advantage over other types of tanks as they provide bulkhead support, a channel that protects against accidental truck drive away. In addition, spherical tanks have pressure relief valves designed to relieve excess pressure and prevent the tank from exploding if excess pressure builds up.

By Product Analysis

Gas Dominates the Market Due to its Huge Requirement Across Foreign Countries

The market is segregated into diesel, aviation fuel, petrol, kerosene, gas, crude oil, and others based on product. Gas dominates the Middle East oil & gas storage terminal market share due to its huge requirement across foreign countries, especially European nations.

Diesel is expected to hold the second largest market share as it is widely used in the automotive sector, marine fuels, and manufacturing aviation fuel. Majority of heavy-load vehicles today are still running on diesel. The market for aviation fuel is likely to experience sizable growth as air traffic and air passengers in the country have increased rapidly in the coming years.

Increase in oil production across the Middle East further encourages suppliers to upgrade their inventory infrastructure for storing a huge quantity of oil. Such factors, in turn, will increase revenue from the regional oil storage terminals. In addition, the growing need for large backup oil storage facilities due to changing seasonal oil demand is likely to favor market growth.


Qatar is the largest market for oil & gas storage terminals among all the countries across the Middle East. In 2020, the country exported USD 18.8 billion of natural gas and became the second largest exporter globally. The U.K. is the most prominent customer of gas for Qatar.

Kuwait Liquids Storage Terminal and Mina Al-Ahmadi LNG Terminal are the two most prominent storage terminals for Kuwait. Both terminals have a combined capacity of over 142 million barrels, making the country's second-largest market for oil & gas storage terminals.

Iran is the highest natural gas producer in the Middle East and became the third-largest producer in 2021. The country produced over 239 billion cubic meters of natural gas in 2021. Geneva Liquids Storage Terminal, Torbat Liquids Storage Terminal, and Qeshm are the three major terminals for the country.

Saudi Arabia and the UAE are the top two countries among the 10 oil producers in the world. They are members of the Gas Exporting Countries Forum (GECF) and the Organization of the Petroleum Exporting Countries (OPEC). The countries’ storage terminals are primarily dominated by crude oil for export, whereas gas is for domestic use.


Key Participants Concentrate on Enhancing their Product Capacities to Strengthen Industry Position

The market is partially fragmented, with many players providing a well-cementing solution to the oil & gas upstream sector. Leading manufacturers already dominate high-demanding regions with a maximum need for shut compensators.

Major players operating in the oil & gas storage terminal market are Royal Vopak, VTTI, Fujairah Oil Terminal FZC (FOT), Brooge Energy Limited, and Oman Tank Terminal Company LLC. Furthermore, the competition among top players in the market is very high as they aim to capture maximum market share. The leading players focus on developing various types of oil & gas storage terminals to cater to the upcoming offshore oil & gas demand.

List of Key Companies Profiled:

  • Brooge Energy Limited (UAE)

  • VTTI (Saudi Arabia)

  • Fujairah National Group (UAE)

  • Royal Vopak (Netherlands)

  • General Petroleum (UAE)


  • ROYAL HASKONINGDHV (Netherlands)

  • Oman Tank Terminal Company LLC (Oman)

  • Bilfinger Tebodin B.V. (Netherlands)

  • Oiltanking GmbH (Oman)

  • Kuwait National Petroleum Company (Kuwait)

  • Dubai Supply Authority (UAE)

  • Abu Dhabi National Oil Company (UAE)

  • Mitsubishi Corporation (Japan)

  • Qatargas Operating Company Limited (Qatar)


  • July 2021 - Vopak partnered with Aegis in India to grow together in the chemical and LPG storage and handling business. Aegis Vopak Terminals Ltd, the new joint venture, would operate an eight-terminal network with an overall capacity of 960,000 cbm.

  • May 2022 - VTTI and EIT InnoEnergy intended to fully develop a wide reaching new energy protrude in Europe. Both the companies along with European Green Hydrogen Acceleration Center (EGHAC) jointly developed a broad hydrogen production and import facility in Europe's key ports. The companies have shared the ambition to hold-up Europe’s Green Deal & REPowerEU initiative, which set the EU's strategy of hydrogen for hydrogen production and imports.

  • September 2022 - Brooge Energy Ltd. announced that it engaged ThyssenKrupp Uhde to conduct a technical assessment of its proposed green ammonia and green hydrogen plant. The target of the study is to furnish cost estimates for operating and capital costs, an EPC schedule, selected layout, and process documents.

  • March 2021 - Oman Tank Terminal Company, also known as OTTCO, announced plans to build a storage infrastructure at the Duqm Port with a planned capacity of up to 300,000 cbm. The announcement was made during authoring of these two agreements between OTTCO & Port of Duqm Company (PODC) in regards to the sub-use agreement & berth operation license agreement.

  • June 2022 - Bilfinger Tebodin provides basic engineering for an underground storage of hydrogen. Gasunie, the company's long-term client, has planned to build a hydrogen facility known as HyStock at Zuidwending, Netherlands. The company aims to counter-balance imbalances in the supply of hydrogen.


An Infographic Representation of Middle East Oil & Gas Storage Terminal Market

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The Middle East oil & gas storage terminal market report presents a comprehensive industry assessment by offering valuable insights, facts, industry-related information, and historical data. Several methodologies and approaches are adopted to make meaningful assumptions and views to formulate the market. Some of the aspects of the report comprise the steps taken by leading industry participants for consolidating their industry position.




Study Period


Base Year


Estimated Year


Forecast Period


Historical Period



Value (USD Billion)


By Type, Tank Type, Product, and Country



By Type

  • Strategic Reserve

  • Commercial Reserve

By Tank Type

  • Fixed Roof

  • Floating Roof

  • Bullet Tank

  • Spherical Tank

By Product

  • Diesel

  • Petrol

  • Aviation Fuel

  • Crude Oil

  • Kerosene

  • Gas

  • Others

By Country

  • UAE

  • Saudi Arabia

  • Oman

  • Kuwait

  • Qatar

  • Egypt

  • Israel

  • Iran

  • Rest of the Middle East

Frequently Asked Questions

Fortune Business Insights states that the Middle East market was worth USD 2.90 billion in 2021.

Qatar market size stood at USD 0.84 billion in 2021.

Based on product, gas storage holds the dominating share in the Middle East market.

The Middle East market is expected to reach USD 5.51 billion by 2029.

One of the key market drivers is the increasing oil and petroleum demand along with petroleum products.

The top players in the market are Royal Vopak, VTTI, Fujairah Oil Terminal FZC (FOT), Brooge Energy Limited, and Oman Tank Terminal Company LLC.

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  • Feb, 2023
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