Malaysia Oil and Gas Pipeline Market Size

Malaysia Oil and Gas Pipeline Market Analysis

The Malaysian oil and gas pipeline market is expected to register a CAGR of more than 1.5% from 2022 to 2027. The COVID-19 outbreak in 2020 negatively impacted Malaysia's oil and gas pipeline market as the government imposed a Movement Control Order (MCO) to stop the spread of the virus. Additionally, the pandemic has caused disruption in oil and gas operations in the country. Factors such as the increasing demand for oil and gas, an increase in offshore oil and gas discovery activities, and the rising investment in the industry are expected to increase the need for the Malaysian oil and gas pipeline market during the forecast period. However, the declining oil and gas production levels and a lack of policies on oil stockpiles are expected to hamper the growth of the oil & gas pipeline industry during the forecast period.

• The natural gas pipeline segment is expected to witness significant development during the forecast period owing to the increasing growth and support in the natural gas sector.
• The Association of South East Asian Nations (ASEAN) has been promoting the development of a Trans-ASEAN Gas Pipeline system (TAGP), which aims to link ASEAN's major natural gas production and consumption centres through a network of natural gas pipelines. Such large-scale prospects are expected to drive the pipeline industry to grow more and present a vital opportunity for the market players in the future.
• Gas & oil production in Malaysia has been declining gradually over the years, which has become a cause of concern for the companies in the industry regarding the future growth prospects. Therefore, falling production is expected to act as a restraint for the market.