United States Oil And Gas Midstream Market Size & Share Analysis - Growth Trends and Forecast (2025 - 2030)

United States Oil And Gas Midstream Market Trends and Insights

LNG-led Surge in Gulf Coast Export Capacity

Operational LNG capability is expected to increase to 21.2 Bcf/d by 2028, creating the single largest draw on pipeline throughput in the US oil and gas midstream market.^{[2]U.S. Energy Information Administration, “The eighth U.S. liquefied natural gas export terminal, Plaquemines LNG, ships first cargo,” eia.gov} Venture Global’s USD 28 billion Calcasieu Pass 2, featuring a 91-mile feeder line, demonstrates how each terminal triggers interstate pipeline builds and compression upgrades. Cheniere’s Corpus Christi Trains 8 & 9 add more than 3 Mtpa and require USD 50-100 million per interconnection for high-pressure tie-ins. Bidirectional design becomes standard, allowing lines to reverse during maintenance or hurricane disruptions, which adds cost but boosts resiliency. Concentrated Gulf activity tightens labor and specialty steel supply, elevating capital expenditures for smaller entrants.

Permian Crude & Associated-gas Production Growth

Permian output continues to outstrip takeaway, driving the need for new gathering, processing, and long-haul capacity across crude, gas, and NGL streams.^{[3]Oil & Gas Journal Staff, “ONEOK, MPLX form JV for LPG export terminal,” ogj.com} Phillips 66’s USD 300 million Iron Mesa plant, starting in 2027, captures gas once flared, while Tallgrass’s 2.4 Bcf/d connector to Rockies Express unlocks western markets. Integrated operators switch volumes among crude, gas, and NGL pipelines based on hub spreads, maximizing system cash flow in the US oil and gas midstream market. Flow-optimization software defers the installation of new trunklines until volumes prove to be durable. Producers favor shippers that can offer multi-commodity take-or-pay contracts, tilting negotiation leverage toward large incumbents.

AI-Driven Data-Center Power Demand Boosting Gas Throughput

High-density computing clusters are expected to reduce US gas consumption by 3.3 Bcf/d by 2030, with approximately 60% of the load relying on gas-fired generation.^{[4]Natural Gas Intelligence Staff, “US Data Center Power Demand Could Drive Natural Gas Consumption Up 3.3 Bcf/d by 2030,” naturalgasintel.com} Demand is steady year-round, encouraging firm transport contracts that raise base-load utilization. Kinder Morgan already ships 40% of the US's LNG feed gas, positioning its network to serve export plants and in-state data centers simultaneously. Redundant loops and fiber-optic monitoring become prerequisites as hyperscale clients demand “five-nines” reliability. A faster grid-decarbonization path could erode this gas demand, creating future-proofing challenges for the US oil and gas midstream market.

Rising Ethane Recovery for Petrochemical Feedstock

Ethane extraction margins outrun dry-gas transport tariffs, prompting midstream firms to expand deep-cut plants and fractionators. ONEOK and MPLX’s USD 1.4 billion LPG terminal provides flexibility to route barrels globally amid China tariff swings. Storage caverns and cooling chains add complexity but triple per-unit earnings versus basic transport. License volatility with China forces cargo redirection to Europe or India, increasing demurrage risk for terminal operators. Integrated processing-to-dock platforms hedge against single-market dependency inside the US oil and gas midstream market.

Federal Permitting Bottlenecks (NEPA, Sec 401)

One-year EIS targets set by Interior reduce paperwork, but lawsuits still stall rights-of-way, resulting in delay costs of up to USD 2 million per mile. Section 401 water reviews allow states to halt projects even when federal agencies approve, thereby prolonging the queue. Energy Transfer’s Lake Charles LNG extension shows how serial FERC filings become routine in the US oil and gas midstream market. Developers front-load baseline studies and community outreach, inflating pre-FID spend but safeguarding schedules. Only the largest balance sheets can absorb multi-year delays without jeopardizing credit metrics.

Activist Opposition / ESG Capital Constraints

Global banks have tightened their fossil-fuel lending under shareholder pressure; Barclays, for instance, cut its midstream exposure following protests. Higher funding costs raise hurdle returns by 150–200 basis points, pushing smaller players to private credit. Equity investors now demand payout ratios above 50%, limiting retained cash for growth in the US oil and gas midstream market. Some firms issue sustainability-linked bonds tied to methane reduction targets to tap into ESG pools. Yet capital scarcity slows build-outs and may cede market share to cash-rich majors.

Segment Analysis

By Infrastructure: Pipeline Networks Anchor Market Foundation

Pipelines supplied 44.7% of 2024 revenue for the US oil and gas midstream market and form the connective backbone among basins, processors, and docks. Capital cost averages USD 4 million per mile onshore, making trunkline investments sizable yet defensible when underpinned by 20-year take-or-pay contracts. Kinder Morgan’s USD 9.3 billion backlog, two-thirds of which is dedicated to gas transmission, signals continued faith in continental grid expansion.

New builds emphasize bidirectional flow, sectionalized valves, and high-horsepower compression to swing gas between export and power-market pulls, features that older pipe lacks. Terminal infrastructure, although accounting for only 18% of 2024 revenue, is expected to advance at a 5.1% CAGR through 2030 as LNG and LPG docks proliferate. Calcasieu Pass 2 alone drives nearly 100 miles of new lateral pipe and twin loading berths, underscoring how each dock multiplies system spend. Storage caverns and tanks, often overlooked, yield optionality to capture shoulder-season arbitrage and to buffer ethane exports during license upheavals.

Note: Segment shares of all individual segments available upon report purchase

By Product Type: Crude Oil Dominance Faces LNG Growth Challenge

Crude oil transport represented 37.9% of the US oil and gas midstream market share in 2024, supplying refineries and export docks primarily along the Gulf Coast. Rates remain resilient despite high base volumes, yet face overcapacity in some corridors. LNG services, although smaller, post a 6.5% CAGR, reflecting vessel loading, boil-off management, and sub-zero pipeline specifications that command premium tolls.

Natural-gas pipeline revenue falls between oil and LNG, benefiting from the power sector's pull and feed-gas delivery. Phillips 66's Iron Mesa project demonstrates how operators can add midstream-grade gas processing to monetize NGLs before residue enters the pipeline, thereby blending income streams. Refined-product lines offer steady tariffs but limited growth opportunities. Operators hedge portfolio risk by owning assets across all four product lanes, smoothing cash flow through cycles.

By Service Type: Construction Activity Drives Market Expansion

Pipeline construction captured 30.3% of 2024 revenue and grew at a 4.2% CAGR as developers race to secure corridors ahead of tightening capital markets. Tallgrass’s Permian-to-REX project demonstrates the trend: 2.4 Bcf/d of capacity, USD 3 billion budget, late-2028 start. Engineering, environmental, and right-of-way services add layers of spend beyond steel.

Maintenance and repair generate reliable but slower growth, essential for 300,000 miles of active pipe. Storage and handling services gain importance as LNG and LPG exports need buffer capacity to manage vessel queues. Transportation logistics, including scheduling, nomination, and imbalance trading, become digital platform plays, offering fee potential without capital expenditure. Operators able to bundle construction, O&M, and logistics retain customers and defend share within the US oil and gas midstream market.

Note: Segment shares of all individual segments available upon report purchase

Geography Analysis

The Gulf Coast remains the gravitational center of the US oil and gas midstream market. Cheniere’s expansion to more than 60 Mtpa of liquefaction by 2028 concentrates feed-gas pulls in Texas and Louisiana. Refineries processing half of US crude depend on dense pipe grids for crude intake and product dispatch, reinforcing terminal proximity advantages. ONEOK–MPLX’s LPG venture in Texas highlights cascading investment in docks, tanks, and lateral lines.

The Permian Basin is the fastest-growing geography. Elevated associated-gas output feeds new processing trains and long-haul pipes linking to Gulf docks and western markets. Phillips 66’s Iron Mesa and Tallgrass’s connector showcase integrated build-outs that capture margin across the chain. Regulatory ease in Texas accelerates timelines compared with the Northeast, benefitting Permian projects in the US oil and gas midstream market.

Appalachia supplies rising volumes of dry gas to LNG terminals and Southeast utilities. Williams lifted contracted capacity 3.4% in 2024 by completing Regional Energy Access. Multi-state permitting hurdles necessitate persistent community engagement and route realignments, which lengthen lead times but offer resilient cash flow once in service. Continued LNG growth ensures Appalachian molecules remain essential despite complex approval pathways.