Market Size of Saudi Arabia Oil and Gas Midstream Industry
|Study Period||2019 - 2028|
|Base Year For Estimation||2022|
|Forecast Data Period||2023 - 2028|
|Historical Data Period||2018 - 2021|
|CAGR||< 5.51 %|
*Disclaimer: Major Players sorted in no particular order
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Saudi Arabia Oil & Gas Midstream Market Analysis
The Saudi Arabian oil and gas midstream market is expected to register a CAGR of around 5.51% during the forecast period of 2022-2027. The outbreak of COVID-19 in Q1 of 2020 had a significant impact on the Saudi Arabian oil and gas midstream market, with low demand for oil products in 2020. Lower crude oil prices and low demand created an unfavorable market for all the oil and gas producers in Egypt, resulting in low revenue during the year. For instance, state-owned oil and gas company Saudi Aramco reported a 44.4% plunge in net profit in 2020 as the COVID-19 pandemic curbed global demand. Factors such as increasing oil and gas production, the government's push to invest in the pipelines, and the growing oil and gas consumption are expected to boost the demand for the Saudi Arabian oil and gas midstream market during the forecast period. However, a policy to artificially reduce production to increase the price of oil has reduced the required capacity of the pipeline and thereby impeded market growth.
The pipeline sector is expected to witness growth due to the government's push in the oil and gas midstream sector. The Kingdom of Saudi Arabia and neighboring countries have proposed a few pipelines that are expected to cross the country over the forecast period.
In 2020, the Kingdom of Saudi Arabia announced plans to develop unconventional natural gas reserves in the eastern Jafurah field, which can create an opportunity for companies with expertise in unconventional resources and increase the capacity required for storage and pipelines.
Increasing gas production and further plans to increase the output are expected to drive the market. Infrastructure related to storage and pipeline is likely to increase as the country's oil and gas demand increases.