The Chadian oil and gas market is expected to register a CAGR of more than 0.54 % during the forecast period of 2020 – 2025. Factors, such as increasing investments and increasing production of gas in the country, are expected to boost the demand in the Chadian oil and gas market during the forecast period. However, issues, such as political instability and terrorism in the country, are impeding the growth of the oil and gas sector.
- The midstream sector in Chad is expected to witness significant growth in the forecast period. Investment in the midstream infrastructure is likely to boost the midstream sector, in the country, in the coming years.
- Investment is being made into the exploration and production of oil reserves in the country. The investment is expected to continue in the forecast period. It is likely to act as an opportunity for the midstream and downstream players in the country's oil and gas market.
- Decreasing oil production is expected to act as a restraint and impede the growth of the Chadian oil and gas market. Low proven reserves of oil are also expected to act as a hindrance for growth of the sector.
Key Market Trends
Midstream Sector to Witness Growth
- The pipelines are mostly clustered in the southern region of the country, with one of the pipelines connecting Cameroon with Chad. Few proposals are in the initial stage and may get approved during the forecast period.
- Niger-Chad oil pipeline is a proposed oil pipeline in Central Africa. It was expected to be fully completed by 2019, but due to economic viability issues, little progress has been made. The pipeline is expected to maintain a capacity of 60,000 barrels per day.
- The Chad-Cameroon oil pipeline is an oil pipeline in Central Africa that runs from Doba Basin, Chad, to Kribi, Cameroon. The pipeline has a length of 1,070 kilometers and has a capacity of 225,000 barrels per day.
- Hence, the midstream sector is expected to witness significant growth in the forecast period, due to the increasing investment in the midstream infrastructure.
Decreasing Oil Production to Restraint the Market
- There has been a decrease in the production of oil by 3.1%. Decreasing from 5.4 million metric ton of oil equivalent (Mtoe) in 2017 to 5.3 Mtoe in 2018. The increase in production is expected to boost the growth in the pipeline infrastructure.
- Chad has an oil refinery that has been constructed in collaboration with the China National Petroleum Corporation. The refinery capacity is approximately 20,000 barrels per day.
- In 2018, the proven oil reserves in the country were around 1.5 thousand million barrels. Oil accounts for 0.1% of the total proved reserves of natural gas in the world. Producing the reserves of oil, in the country, may lead to substantial growth in the sector.
- The Chadian oil and gas industry is expected to grow slightly in the forecast period, due to the decrease in oil production and increasing investment in the oil and gas sector.
The Chadian oil and gas market is moderately consolidated. Some of the major companies include China National Petroleum Corporation, Exxon Mobil Corporation, Total SA, Chevron Corporation, and Societé des Hydrocarbures du Tchad.
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