The global crude oil and natural gas consumption registered a growth rate of 1.6% and 1.5% respectively. The demand for crude oil, natural gas, and refined products is expected to increase in the coming years, due to the increasing population. Governments in different countries are increasing their pipeline networks across the nation, to supply crude oil, natural gas, and refined products to end consumers. More than 40,000 miles of pipeline network was under construction in 2017, across the globe. As a result, the pipeline network to supply the products is expected to increase, thus boosting the pipeline fabrication and construction market.
Growing Natural Gas Consumption Driving the Market
Natural gas is a clean fuel and several large and small oil & gas consuming nations have registered a robust growth rate in natural gas consumption compared to crude oil, over the past few years. Large economies, such as France, Germany, the United Kingdom, Israel, Egypt, China, and India, have recorded CAGR of over 7.0% in 2016, for gas consumption. The high growth rate in natural gas consumption is in response to concerns regarding the environmental risks caused by carbon emission and nuclear power plants. The trend is expected to continue over the forecast period and drive the demand for pipeline fabrication and construction, for the transportation of natural gas.
Asia-Pacific - One of the Largest Markets
In 2016, Asia-Pacific accounted for around 34% and 20% of crude oil and natural gas consumption respectively and is the largest segment of the oil & gas pipeline fabrication and construction market. In Asia-Pacific, India and China are expected to lead the market, as both the countries are planning to expand their pipeline networks, to meet the increasing demand for oil and gas. As of June 2017, China had 112,000 km of oil & gas pipeline and is expected to reach 240,000 km by 2025. Further, in India, the gas pipeline infrastructure was around 16,470 km long, as of September 2017. India is the fourth largest importer of LNG and domestic LNG demand is expected to touch 90 billion cubic meters (bcm) from 21.3 bcm in 2017-2018 (April-November). In January 2018, the government has announced that five public sector undertakings (PSUs) would form a special purpose vehicle (SPV) to create a mega natural gas pipeline network in the Northeastern part of the country. As a result, the increasing demand for energy is expected to drive the demand for oil & gas pipeline, thus boosting the demand for its fabrication and construction.
Increasing Natural Gas Pipeline Infrastructure Development to Boost the US Segment
The United States is one of the largest consumers of crude oil and natural gas, accounting for around 20% of the global consumption. The country is planning to increase the share of natural gas in its energy mix. Several large inter-state natural gas pipeline networks have come online during the past few years. In 2016, the Federal Energy Regulatory Commission (FERC) recorded around 17.6 billion cubic feet per day (bcf/d) of new natural gas pipeline capacity. Till March 2017, more than 7.0 bcf/d was certified by FERC. The increasing oil & gas pipeline capacity in the United States is expected to boost the market.
Key Developments in the Market
- February 2018: L&T Hydrocarbon Engineering Limited (LTHE), a subsidiary of Larsen & Toubro, has signed an EPC contract with Al Dhafra Petroleum Operations Company Limited, UAE, in a deal worth over INR 2,200 billion. The scope of the contract includes EPC of flowlines, gathering facilities, and pipelines, to transfer crude oil and natural gas.
Major Players: Snelson Companies Inc., Bechtel Corporation, Pumpco Inc., Barnard, Tenaris, Sunland Construction Inc., Shengli Oil & Gas Pipe Holdings Limited, Gateway Pipeline LLC, Ledcor Group, and Larsen & Toubro Limited, among others.
Reasons to Purchase This Report
- Current and future oil and gas pipeline fabrication and construction market outlook in the developed and emerging markets.
- Analyzing various perspectives of the market, with the help of Porter’s five forces analysis.
- The regions that are expected to witness the fastest growth during the forecast period.
- Identify the latest developments and strategies employed by the major market players.
- 3 months analyst support along with the Market Estimate sheet (in excel).
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1. Executive Summary
2. Research Methodology
3. Market Overview
3.2 Market Size and Demand Forecast until 2023
3.3 Recent Trends and Developments
4. Market Dynamics
5. Value Chain Analysis
6. Industry Attractiveness - Porter’s Five Forces Analysis
6.1 Bargaining Power of Suppliers
6.2 Bargaining Power of Consumers
6.3 Threat of New Entrants
6.4 Threat of Substitutes
6.5 Intensity of Competitive Rivalry
7. Regional Market Analysis (Overview, Market Size, and Demand Forecast until 2023)
7.1 North America
7.1.1 United States
7.2.5 Rest of Europe
7.3 South America
7.3.4 Rest of South America
7.4 Middle East & Africa
7.4.1 Saudi Arabia
7.4.5 Rest of Middle East & Africa
7.5.5 Rest of Asia-Pacific
8. Key Company Analysis* (Overview, Products & Services, Financials**, Recent Developments, and Analyst View)
8.1 Snelson Companies Inc.
8.2 Bechtel Corporation
8.3 Pumpco Inc.
8.6 Sunland Construction Inc.
8.7 Shengli Oil & Gas Pipe Holdings Limited
8.8 Gateway Pipeline LLC
8.9 Ledcor Group
8.10 Larsen & Toubro Limited
9. Competitive Landscape
9.1 Mergers & Acquisitions
9.2 Joint Ventures, Collaborations, and Agreements
9.3 Strategies Adopted by Leading Players
10.1 Contact Us
*List not Exhaustive
**Subject to availability on the public domain