Global Gas Pipeline Infrastructure Market by Operation (Distribution, Gathering, Transmission), by Application (Metering, Compressor) and Region (North America, Latin America, Europe, Asia Pacific and Middle East & Africa), Forecast To 2028

Summary of the Report

Global gas pipeline infrastructure market was worth USD 2,480.2 million in 2019. It is forecast to grow at a compound annual rate (CAGR of 3.4%) between 2020 and 2027. The forecast period will see a rise in gas pipeline infrastructure usage due to rising natural gas demand from key industries, including power generation, commercial and residential, manufacturing and chemical. The industry is expected to continue growing due to the paradigm shift towards clean energy sources.

The industry landscape is expected to be boosted by rising government investments in accessibility and the need to expand the existing pipeline network across multiple regions. The BP Statistical Review of World Energy 2019 shows that 478.9 million cubic meters of natural gas was traded by European countries through their pipeline infrastructure. Increasing trade will increase the demand for gas pipeline infrastructure.

Due to rising government spending on infrastructure expansion and growing exploration and production activities, the U.S. accounted the largest portion of the global industry in 2019. The region's growth will be further aided by significant production from natural gas and new projects in the Permian Basin.

Pembina Pipeline Corporation purchased Kinder Morgan Canada Limited in December 2019 and the U.S. section of the Cochin Pipeline System. This acquisition strategy will allow the company to be a major supplier of premium quality condensate in Chicago and expand its reach into the U.S. market via a cross-border pipeline.

According to the IEA, North American natural gas production grew at a rate 9.6% in 2018. Large industry players have attracted huge investments in natural gas pipeline infrastructure. The market growth is expected to be slowed by the possibility of under-utilized pipeline capacities in a low carbon future economy.

Various regions will see an increase in growth due to increased stringency in regulations regarding clean energy consumption and the development of additional capacity for cross-border gas pipes. In January 2020, Turkstream, a natural gas pipeline from Russia to Turkey, opened, adding 30 BCMA capacity to Turkey, South, and Southeast Europe.

Product Insights

With 70.5% of global market volume, the distibution pipeline segment was the most important. The segment is expected to grow due to rising consumption in the end-use segments like the growing number of gas-fired energy plants, the chemical sector, and the residential and commercial sectors.

Over the forecast period, revenue from the transmission pipeline segment will grow at a rate of 3.2%. This segment will experience strong growth in countries like the U.S., Russia and China. It also has significant inter-regional trade via imports and exports. Slow growth in market liberalization could hinder segment growth. National Oil Companies (NOCs), for example, have access to transmission pipelines in China without having access to third-party line rights.

With a revenue-based CAGR 3.3%, gathering pipeline will be the fastest growing segment. This is due to an increase in natural gas production, which saw a 5.2% rate of growth in 2018, compared with 2017. Increasing production results in higher utilization of gathering pipes, which transport gas from the point where it was produced to another facility for refinement or transmission.

The gathering pipeline segment will continue to grow due to the discovery of new reserves in several countries, including the U.S. and China. Gas gathering pipeline infrastructure can be either built or acquired under long-term agreements with gas producers. Contracts that last for a long time protect the majority of the reservoir's economic life, and act as an entry barrier to third parties seeking to enter the market for gas pipeline infrastructure.

Application Insights

Due to the increasing trend to expand pipeline capacity and extend new gas sources to tap additional volumes, the segment of compressor stations was worth USD 623.6 billion in 2019. Transmission pipelines have compressor stations that are located every 80-150 kilometers. This allows for increased pressure to keep the gas moving.

The segment will be enriched by strict safety regulations for transportation and the introduction of highly-technical compressor stations. If the compressor station is near a reliable power source, it can be replaced with an electric compressor. This will reduce fuel and maintenance costs as well as help to eliminate emissions.

Metering stations are expected to experience higher growth in the application segment and a revenue-based CAGR (3.5%) over the forecast period. This is due to strict regulations regarding accuracy in custody transfer and fiscal metersing which measure natural gas delivery volumes and pressures into and out of the pipeline system. A slight error in measurement could result in financial exposure for custody transfer transactions that can cause losses of billions of dollars.

Regional Insights

North America held 54.8% of the global market's total volume in 2019, representing the largest share. North America is home to some of the most prominent pipeline companies. It has a highly integrated transmission- and distribution infrastructure that can transport natural gases to and from all states in the region. With more than 80% of all the pipeline lengths in the region, the U.S. is the largest hub for gas pipeline infrastructure.

Canada is expected to achieve the highest revenue-based CAGR at 3.9% during the forecast period. The main factors driving regional market growth are expansion and replacement of existing pipeline infrastructure. In February 2020, Canada's Federal Court of Appeal approved Trans Mountain's expansion. This would have increased its capacity by 300,000 bpd and added 600 miles to the pipeline.

Russia is the dominant market player due to the large investments made across the region by operators. Gazprom, for example, built 146 gas pipelines that ran over 2,000 km across Russia in 2018. Gazprom allocated US$ 5.71 billion in 2005-2018 for expanding the gas grid coverage, thereby increasing Russia's penetration to 68.6% by December 2018.

Asia Pacific is predicted to experience the fastest growth, with a revenue-based CAGR at 3.7% during the forecast period. China is third largest natural gas consumer, after the United States and the Russian Federation. The International Energy Agency predicts that China will be the world's largest natural gas importer by 2022. This is due to strong investments and high demand growth in the region.

Market Share Insights & Key Companies

The industry's competitiveness is determined by its high degree of forward integration, product penetration into regional markets, and the security of gas supply. The industry participants supply natural gas via different distribution channels such as LNG shipping, local companies, direct supply to industrial/manufacturing facilities, and power plants. The companies will also benefit from the cost-of-service fees that shippers pay for oil and gas transportation through the pipeline. This ensures a substantial rate of return on pipeline assets. The following are some of the major players in the market for gas pipeline infrastructure:

• Enbridge

• Gazprom

• TransCanada Pipelines Limited

• Kinder Morgan

• Pembina Pipeline Corporation

• Saipem

• Engas

• Alliance Pipeline

Up Market Research published a new report titled “Gas Pipeline Infrastructure Market research report which is segmented by Operation (Distribution, Gathering, Transmission), by Application (Metering, Compressor), By Players/Companies Saipem, Engas, TransCanada Pipelines Limited, Enbridge, Kinder Morgan, Pembina Pipeline Corporation, Gazprom, Alliance Pipeline”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.

Report Scope

The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.

Global Gas Pipeline Infrastructure Market Report Segments:

The market is segmented by Operation (Distribution, Gathering, Transmission), by Application (Metering, Compressor).

Gas Pipeline Infrastructure Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.

Key Benefits for Industry Participants & Stakeholders:

• Industry drivers, restraints, and opportunities covered in the study
• Neutral perspective on the market performance
• Recent industry trends and developments
• Competitive landscape & strategies of key players
• Potential & niche segments and regions exhibiting promising growth covered
• Historical, current, and projected market size, in terms of value
• In-depth analysis of the Gas Pipeline Infrastructure Market

Overview of the regional outlook of the Gas Pipeline Infrastructure Market:

Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.

Highlights of The Gas Pipeline Infrastructure Market Report:

1. The market structure and projections for the coming years.
2. Drivers, restraints, opportunities, and current trends of Gas Pipeline Infrastructure Market.
3. Historical data and forecast.
4. Estimations for the forecast period 2028.
5. Developments and trends in the market.

                1. Distribution

                2. Gathering

                3. Transmission

                1. Metering

                2. Compressor

8. Market scenario by region, sub-region, and country.
9. Market share of the market players, company profiles, product specifications, SWOT analysis, and competitive landscape.
10. Analysis regarding upstream raw materials, downstream demand, and current market dynamics.
11. Government Policies, Macro & Micro economic factors are also included in the report.

We have studied the Gas Pipeline Infrastructure Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.

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Reasons to Purchase the Gas Pipeline Infrastructure Market Report:

• The report includes a plethora of information such as market dynamics scenario and opportunities during the forecast period
• Segments and sub-segments include quantitative, qualitative, value (USD Million,) and volume (Units Million) data.
• Regional, sub-regional, and country level data includes the demand and supply forces along with their influence on the market.
• The competitive landscape comprises share of key players, new developments, and strategies in the last three years.
• Comprehensive companies offering products, relevant financial information, recent developments, SWOT analysis, and strategies by these players.