The market for oil and gas pipeline fabrication and construction market is expected to witness a CAGR of more than 3.5% during the forecast period (2020 - 2025). By 2030, owing to factors, such as environmental benefits and quest for energy security in regions, such as Asia-Pacific, the consumption of natural gas is expected to witness the fastest growth among all fuel types. The lower cost in comparison to other fossil fuels type is expected to also supplement the demand for natural gas during the forecast period. The natural gas pipeline network is expected to grow in parallel to the increase in natural gas demand, which, in turn, is expected to positively impact the global oil and gas pipeline fabrication and construction market in the coming years. However, delay in pipeline projects due to land and border disputes across several countries is likely to hinder the market growth during the forecast period.
- Pipeline expansion projects along-with new gas pipeline projects are expected to create tremendous business opportunities for the oil and gas pipeline fabrication and construction market in the coming years.
- North America is one of the major demand centers for oil and gas pipeline fabrication and construction market, with the United States being the major hotspot.
Key Market Trends
Pipeline Expansion Projects Along with New Gas Pipeline Projects are Expected to Create Tremendous Business Opportunities for Oil and Gas Pipeline Fabrication and Construction Market in the Coming Years
- Some of the countries, particularly in North America, have registered a significant increase in oil production. But the existing pipelines were not originally designed to handle the high flow rate.
- In North America, particularly in Canada and the United States, the permits to build entirely new pipelines are getting harder to attain, owing to increased regulations and environmental concerns related to oil pipelines. As a result, the operators are expanding the existing pipelines. For example, the line 3 expansion project, which passes through Canada and the United States is one of the largest pipeline expansion projects in the world.
- Majority of the new pipeline projects are for gas pipeline, owing to the increasing demand from the emerging countries, like India, China, and other Southeast Asian countries, which lack enough gas transportation infrastructure and also to meet the demand from western countries, like the United States, Canada, and Australia, which are aiming to increase the share of gas in their net energy consumption.
North America is one of the Major Demand Centres for the Oil and Gas Pipeline Fabrication and Construction Market
- The North American region is expected to dominate the oil and gas fabrication and construction market during the forecast period. Also, the huge number of planned pipeline projects, which is likely to commission during 2019 and 2024, is expected to augment the oil and gas pipeline fabrication and construction market during the forecast period in the region.
- The record increase in production of oil and gas in the United States has supplemented the demand for transportation of oil and gas, and in turn, demand for fabrication and construction services. Pipeline operators are adding pipelines, pumping and compression horsepower, reversing flow direction, and converting pipelines, in order to transport the increasing production.
- Furthermore, access to cheap and reliable energy is considered vital to the growth of the US economy. The petroleum production in the United States is projected to reach 18.6 million by 2040. Transporting these products in the most efficient and safest manner allows the production of domestic energy to flourish, while providing the US consumers access to affordable energy.
- Pipeline is the most commonly used method for transporting oil and gas in the country. About 70% of the domestically produced petroleum products is expected to be transported by pipeline. There are currently 2.4 million miles of natural gas pipelines and 190,000 miles of liquid petroleum pipelines throughout the United States.
- Overall, the region is poised to become one of the major demand centers for oil and gas pipeline fabrication and construction market in the near future.
The oil and gas pipeline fabrication and construction market is fragmented. The key companies include Snelson Companies Inc., Bechtel Corporation, Pumpco Inc., and Barnard Construction Company Inc.
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