Pipeline Maintenance Services Market - Segmented by Location of Deployment, Service Type & Geography - Growth, Trends and Forecast (2018 - 2023)
As of 2017, there are over 1 million miles of pipelines in operation and for its efficient operation, maintenance at regular interval is necessary. Also, approximately 83,802 miles of pipelines are planned and under construction, of which 38,390 miles are in the engineering and design phase while 45,412 are in various stages of construction. With the installation and commissioning of these pipelines, the demand for pipeline maintenance services is expected to register a significant growth.
Growing Share of Unconventional Oil Production to Drive the Market
Most of the conventional oil fields, both offshore and onshore are aging at a rate faster than the rate of replacement, and will not be able to meet the growing energy demand. As a result, the oil & gas industry is looking to exploit unconventional reserve to meet the growing oil & gas demand. However, most of the unconventional resources, such as US shale and Canada oil sands, produce heavy and extra-heavy oils which contain a high concentration of impurities, such as bitumen, water, and carbon dioxide, which pose a threat to the integrity of the pipeline system in place. In addition, unlike conventional oils, these unconventional oils have a higher density, a higher content of nitrogen, oxygen, sulfur, heavy metals, and a wider quantity of heavier oil fractions. Another important aspect is the high flow resistance displayed, that normally impacts their natural flow. Due to these characteristics of unconventional hydrocarbons, pipeline maintenance services, such as cleaning with magnetic pigs are required at a more frequent rate to prevent future corrosion within the pipeline and to improve the efficiency and product flow of the pipeline system. Therefore, growing unconventional oil & gas production is expected to drive the demand for the pipeline maintenance services during the forecast period.
China and India to Drive the Growth in Asia-Pacific
In 2016, Asia-Pacific accounted for around 34% and 20% of crude oil and natural gas consumption respectively and was one of the largest markets of the oil & gas pipeline maintenance services. Both the countries are planning to expand their pipeline network, to meet the increasing oil & gas demand. As of June 2017, China had 112,000 km of oil and gas pipeline and is expected to reach 240,000 km by 2025. Further, as of September 2017, in India’s gas pipeline infrastructure was spread across 16,470 km. As of October 2017, India is the fourth largest importer of LNG and domestic LNG demand is expected to touch 90 billion cubic meters (bcm) in 2040, from 21.3 bcm in 2017-2018 (April-November). This is expected to translate into expansion of gas pipeline network across the country. With increasing pipeline network, the demand for pipeline maintenance services in the region is expected to grow substantially during the forecast period.
Key Developments in the Market
May 2018: Shell Midstream Partners, L.P. LLC recently made a purchase and sale agreement to acquire Shell's ownership interest in Amberjack Pipeline Company LLC, which is comprised of 75% of Amberjack Series A and 50% of Amberjack Series B for USD 1.22 billion. This acquisition is expected to demonstrate the company's ability to deliver against our promises and positions us well for the future."
The major players include - Baker Hughes A GE Company, EnerMech Ltd, STATS Group, Dacon Inspection Services Co. Ltd, Intertek Group PLC, IKM Gruppen AS, Oil States Industries Inc., and T. D. Williamson Inc., amongst others.
Reasons to Purchase This Report
Current and future pipeline maintenance services market outlook in the developed and emerging markets
Analyzing various perspectives of the market with the help of Porter’s five forces analysis
The segment that is expected to dominate the market
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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