Oil & Gas Pipeline Market Size, Share, and Industry Analysis, By Location of Deployment (Onshore and Offshore), By Type (Crude Oil Pipeline and Gas Pipeline), By Stream (Upstream, Midstream, and Downstream) and Regional Forecast, 2025-2032

Oil and gas pipelines are significant in the energy industry, enabling the transportation of hydrocarbons from production sites to refineries, processing plants, and ultimately to end-users. Here are the primary uses and functions of these pipelines. Pipelines are one of the most efficient and cost-effective means of transporting large volumes of oil and gas over long distances. Modern pipelines are designed with advanced materials and technologies to reduce the risk of leaks and spills. While not free from environmental concerns, pipelines typically have a smaller carbon footprint compared to alternative transportation methods such as trucking and shipping.

• In 2022 and 2023, global oil consumption rose by more than two mb/d as economies continued their recoveries from the COVID-19 shock and saw spikes in personal mobility, along with exceptional releases of pent-up demand for travel and tourism. Oil remains vital to the global economy, and across some of its critical applications, alternatives still cannot easily be substituted. In the decade up to 2023, almost two-thirds of all oil demand growth came from China. Over this period, the nation's GDP grew at an annual average rate of 6%.

The oil and gas pipeline market is hindered by unstable infrastructure in some countries, which restricts the production process of oil and gas pipelines. In addition, the cost of raw materials vital for the construction of oil and gas pipelines is relatively high. The material required is expensive, affects the final product and limits market growth.

There was a negative impact on the oil & gas pipeline market due to the COVID-19 pandemic. Lockdown regulations and restrictions on domestic and international transportation and trade disrupted supply chains for the stakeholders operating in the current market for oil & gas pipelines. Furthermore, several construction projects were delayed due to a labor shortage and growing economic uncertainty. The pandemic led to the postponement of investments or the start of new projects by about six months or a year.

KEY INSIGHTS

The report includes the following key findings:

• Recent Advancements in the Oil & Gas Pipeline Market
• Key industry trends
• The Regulatory Landscape in the Oil & Gas Pipeline Market
• Impact of COVID-19 on the market

SEGMENTATION

ANALYSIS BY LOCATION OF DEPLOYMENT

Based on the location of deployment, the market is bifurcated into both onshore and offshore. The onshore oil & gas pipelines are essential for efficient and effective transportation of hydrocarbons. These pipelines are used to transport crude oil from production facilities to refineries to be processed into various petroleum products. Like oil, natural gas gathering lines collect the gas from numerous wells and transport it to larger pipelines or processing facilities. Offshore oil and gas pipelines are essential to the subsea transportation system in transporting and delivering coal products from resource locations to end users and markets. Offshore pipelines transport oil extracted from underwater reservoirs to onshore refineries, where it is refined into various petroleum products. Offshore pipelines and components enable subsea transportation of recovered oil and gas for offloading or storage.

ANALYSIS BY TYPE

Based on type, the market is segmented into crude oil pipeline and gas pipeline. Crude oil pipelines are significant for providing an efficient and reliable way to transport oil from production facilities to refineries and other processing facilities. Oil pipelines transport oil from onshore and offshore production facilities to refineries, where it is refined into numerous petroleum products such as gasoline, diesel fuel, jet fuel, and heating oil. Gas pipelines are used mainly in the gas industry to perform some functions essential to the use of natural gas. To provide a continuous and efficient method to transport large quantities of nature from production facilities to end users, supporting a wide range of industrial, commercial and residential applications.

ANALYSIS BY STREAM

Based on the stream segment, the market is segmented into upstream, midstream and downstream. The upstream segment searches for oil and gas reserves, drills and operates wells, and brings hydrocarbons to the surface. The midstream segment connects upstream and downstream, gathering, transporting, storing and distributing oil, natural gas and other energy products. Midstream includes all the infrastructure needed to move these resources, such as pipelines, trucks, railroads and ships. The downstream segment refines, processes and refines petroleum and natural gas and distributes energy to consumers and end users through gasoline, kerosene, jet fuel, fuel oil, lubricants, liquefied natural gas and hundreds of petrochemical products. Midstream companies are investing in technological advances that significantly increase pipeline safety by monitoring operational conditions and product flows.

REGIONAL ANALYSIS

The global oil & gas pipeline market has been categorized into regions: North America, Latin America, Asia Pacific, Europe, and the Middle East & Africa.

Asia Pacific is considered to be the dominant region of the market, as leading countries in Asia Pacific are growing as Crude oil processing, or refinery runs, in China averaged 14.8 MM bpd in 2023, an all-time high. The record processing came as the economy and refinery capacity grew in China following the country's COVID-19 pandemic responses in 2022. China has increased refinery capacity more than any other country in recent years, partially to meet the country's transportation fuel needs but also to produce feedstocks for its petrochemical industry. China's growing petrochemical sector has made the country one of the world's largest petrochemical producers. As a result, China's petrochemical manufacturers need the increased naphtha and LPG produced from China's refineries, even as China continues to import the two feedstocks.

Moreover, the market in North America is expected to dominate the market share during the forecast period. As U.S. LNG exports continue to lead growth in the U.S. natural gas trade, three LNG export projects currently under construction will start operations and ramp up to total production by the end of 2025.

Europe is expected to flourish in the oil & gas pipeline market as there are 433 oil and gas projects planned to commence operations in Europe between 2022 and 2026. Nearly 55% of the forecast oil and gas projects are midstream projects. By contrast, the European oil and gas industry expects to have 72 petrochemicals and 18 refinery projects start operations in the period of consideration. The midstream sector is also expected to be the leading sector among the oil and gas projects planned in North America during the same period.

Latin America and the Middle East & Africa are expected to increase the market growth of the oil and gas pipeline market. The Middle East and Africa region is an essential player in the global oil and gas industry, housing some of the world's largest onshore and offshore fields. MEA's oil and gas giants, such as Abu Dhabi National Oil Company (ADNOC), Saudi Aramco, Kuwait Petroleum Corporation, and QatarEnergy, are investing in technologies and cleaner fuel production to reduce greenhouse gas (GHG) emissions and align with sustainability goals, a trend expected to grow.

KEY PLAYERS COVERED

Key players in the oil & gas pipelines market are Mott Macdonald Group Ltd, Shengli Oil & Gas Pipe Holdings Limited, U.S. Steel Corporation, OMK Steel Ltd, ChelPipe Group, TechnipFMC PLC, Tenaris, Chevron Corporation, TMK Group, NIPPON STEEL ENGINEERING CO., LTD, and NOV Inc.

KEY INDUSTRY DEVELOPMENTS

• In December 2023, Data from the Global Gas Infrastructure Tracker showed that there are approximately 69,700 kilometers of gas transmission pipelines under construction worldwide at a cost of USD 193.9 billion. Considering the number of announced projects, a total of 228,700 km of gas transmission pipelines are under development globally, with a total cost of USD 723 billion.
• In May 2023, Kinetik Holdings Inc. declared the completion of its previously announced sale and direct transfer of its 16% equity interest in the Gulf Coast Express pipeline to an affiliate of ArcLight Capital Partners LLC for USD 510 million in upfront cash and an additional USD 30 million deferred cash payment due upon a final investment decision on a capacity expansion project.