Market Trends of Chad Oil and Gas Industry
This section covers the major market trends shaping the Chad Oil & Gas Market according to our research experts:
Midstream Sector to Witness Growth
- Chad ranks as the 10th-largest oil reserve holder among African countries. Petroleum is Chad's primary source of public revenue, and around 90% of oil production is exported. Its oil production is dominated by the China National Petroleum Company in Chad (CNPCIC), the ExxonMobil-led Esso Exploration & Production Chad Inc.
- The pipelines are mostly clustered in the country's southern region, 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. However, 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 in Central Africa that runs from Doba Basin, Chad, to Kribi, Cameroon. The pipeline has a length of 1,070 km and a capacity of 225,000 barrels per day.
- In July 2022, the Perenco-owned company announced the delivery of its first oil to the Chad-Cameroon pipeline, signaling a new era of oil production and distribution in Africa. PetroChad Mangara announced the export of its first barrel of oil via the Chad-Cameroon pipeline, ushering in a new era of production and revenue generation for Chad.
- Hence, the midstream sector is expected to witness significant growth during the forecast period due to the rising investment in the midstream infrastructure.
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Decreasing Oil Production to Restrain the Market
- Chad has an oil refinery that was constructed in collaboration with the China National Petroleum Corporation, with a capacity of approximately 20,000 barrels per day.
- Glencore, a large upstream corporation in the country, lost its license for exploration in the country. The government and the corporation could not finalize a deal for a new license. The deal is less likely to be finalized in the near future as the corporation's finances have reduced.
- As of 2021, Chad held around 1.5 billion barrels of proven oil reserves. Oil accounts for 0.1% of the total proven reserves of natural gas in the world. Producing oil reserves in the country may lead to substantial growth in the sector.
- The Chadian oil and gas industry is expected to grow slightly during the forecast period due to the decreasing oil production and increasing investment in the oil and gas sector.
- Therefore, decreasing oil production is expected to restrain the market in the future.
