KSA Pipeline Transport Market Outlook to 2028

KSA Pipeline Transport Market Overview

In recent years, the KSA pipeline transport market has experienced substantial growth, this is reflected by the global pipeline transport market reached a valuation of USD 20.45 billion in 2023.

Key players in the KSA Pipeline Transport Market include Saudi Aramco, Sabic, Ma’aden, and National Gas and Industrial Company. These companies dominate the market due to their extensive supply chains, advanced pipeline technologies, and strong distribution networks.

The city of Dhahran, dominates the pipeline transport market. This region is home to the majority of the country’s oil and gas fields, including Ghawar, the largest onshore oil field in the world. In 2023, Eastern Province dominated the market, driven by its extensive infrastructure and strategic importance in the oil and gas industry.

In 2023, Saudi Aramco has focused on expanding its pipeline infrastructure, particularly through the Master Gas System (MGS) expansion, which is a significant project aimed at increasing gas handling and transport capacity. The third phase of this project (MGS-III) will enhance the capacity from 12.5 billion cubic feet per day (cf/d) to 16.1 billion cf/d by 2028.

KSA Pipeline Transport Market Segmentation

The KSA Pipeline Transport Market can be segmented based on several factors. Like Type of Pipeline, Application, and Region.

By Type of Pipeline: In 2023, the KSA Pipeline Transport Market is segmented by type of pipeline into crude oil pipelines, natural gas pipelines, and petrochemical pipelines. Crude oil pipelines dominate the market due to their essential role in transporting oil from extraction sites to refineries and export terminals. The expansion of key projects like the East-West Pipeline significantly contributes to this segment's dominance.

By Application: In 2023, the KSA Pipeline Transport Market is segmented by application into transportation, distribution, and storage. Transportation dominates the market, supported by the extensive network of pipelines transporting crude oil and natural gas across the country. The strategic importance of pipelines in ensuring efficient and cost-effective transportation underpins this segment's leading position.

By Region: In 2023, the KSA Pipeline Transport Market is segmented by region into North, South, East, and West. The Eastern region dominates the market, driven by the concentration of oil and gas production and the extensive pipeline network. The Eastern Province, particularly the city of Dhahran, is home to the majority of the country’s oil and gas fields, including Ghawar, the largest onshore oil field in the world.

KSA Pipeline Transport Market Competitive Landscape

Company

Establishment Year

Headquarters

Saudi Aramco

1933

Dhahran

SABIC

1976

Riyadh

National Gas & Industrialization Co.

1963

Riyadh

Saudi Pipeline Services Company

1997

Dammam

Advanced Petrochemical Company

2005

Jubail

Advanced Petrochemical Company has awarded an engineering, procurement, and construction (EPC) contract valued at SAR 50.98 million to Gas Arabian Services Co. (GAS). This contract entails the establishment of a pipeline to transfer associated petroleum gas from Advanced's facilities to Jubail United Petrochemical Co., a subsidiary of SABIC. The project aims to enhance industrial integration and reduce carbon emissions by adopting a circular economy approach

SABIC has cemented its role in the pipeline transport market, particularly in transporting petrochemical products. In 2024, SABIC invested USD 1 billion to expand its petrochemical pipeline network, boosting production capacity and market presence. This investment supports the growth of the petrochemical industry. SABIC focuses on sustainability initiatives, developing eco-friendly pipeline materials and technologies to reduce environmental impacts.

KSA Pipeline Transport Industry Analysis

KSA Pipeline Transport Market Growth Drivers:

Increased Energy Demand: The rising demand for energy in Saudi Arabia is driving the expansion of the pipeline transport market. The total energy consumption was reported to have increased by 2.5% to 228 million tonnes of oil equivalent (Mtoe) in 2022. This growth in energy demand necessitates the expansion of the pipeline infrastructure to ensure efficient and reliable transport of oil and gas across the country.

Expansion of Natural Gas Projects: The expansion of natural gas projects in Saudi Arabia is a key driver for the pipeline transport market. In 2024, the country produced 13 billion cubic feet of natural gas per day, up from 11 billion cubic feet in 2023. The increased production has led to the development of new pipeline projects to transport natural gas from extraction sites to processing facilities and end-users, thereby boosting the pipeline transport market.

Technological Advancements in Pipeline Monitoring Advancements in pipeline monitoring technologies are significantly driving the growth of the KSA Pipeline Transport Market. In 2024, companies invested over USD 2 billion in AI, Io T, and advanced sensor technologies to enhance the safety, efficiency, and reliability of pipeline operations. These technologies enable real-time monitoring, early detection of leaks, and predictive maintenance, reducing downtime and operational costs.

KSA Pipeline Transport Market Challenges

Aging Infrastructure: One of the significant challenges facing the KSA Pipeline Transport Market is the aging infrastructure. Addressing this challenge requires substantial investments in upgrading and replacing outdated pipelines to ensure safety and reliability. The aging infrastructure also poses operational inefficiencies, which can disrupt the steady supply of oil and gas.

Geopolitical Risks: Geopolitical risks and regional conflicts continue to pose significant challenges to the pipeline transport market in Saudi Arabia. In 2024, tensions in the Middle East affected the stability and security of pipeline operations, leading to disruptions and increased costs for security measures. Ensuring the safety and reliability of pipelines in such a volatile region remains a significant challenge.

KSA Pipeline Transport Market Government Initiatives:

National Industrial Development and Logistics Program (NIDLP): The Saudi government launched the NIDLP in 2019, aiming to enhance the country's logistics infrastructure, including pipeline transport. The program seeks to attract investments worth USD 450 billion by 2030, with a significant portion allocated to pipeline projects. This initiative is expected to drive the development and modernization of the pipeline network, supporting the market's growth.

Public-Private Partnerships (PPPs): In 2024, the government signed PPP agreements worth USD 3 billion for the construction and maintenance of new pipeline projects. These partnerships are expected to bring in private sector expertise and funding, accelerating the development of the pipeline infrastructure and enhancing market growth.

KSA Pipeline Transport Future Market Outlook

The KSA Pipeline Transport Market is expected to grow significantly by 2028, along with a respectable CAGR during the period of 2023-2028, driven by increasing technological advancements and government initiatives.

Future Market Trends

Expansion of Hydrogen Pipelines: By 2028, the development of hydrogen pipelines will be a significant trend in the KSA Pipeline Transport Market. The Saudi government’s investment of USD 10 billion in green energy projects, including hydrogen production and transport, is expected to drive the construction of new pipelines. These pipelines will support the country's vision to become a global leader in renewable energy and reduce carbon emissions

Integration of Smart Technologies: The KSA Pipeline Transport Market will witness increased investments in infrastructure over the next five years. By 2028, the government and private sector are projected to invest USD 20 billion in expanding and modernizing the pipeline network. These investments will focus on enhancing capacity, reducing bottlenecks, and improving connectivity between production sites, refineries, and export terminals.
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