Transportation of oil and natural gas can be done through pipelines. Pipeline transport is a long distance transportation of oil and gas through a systematize attachment of pipes. Moreover, a pipeline is market area for consumption of oil and gas. Not only gas and oil to be transported through pipelines, chemically substances can also be sent through the pipelines. In addition, through pipelines water for drinking or irrigation to be transported over long distances where water is need such as over hills or where the facility of canal is very poor due to pollution or environmental impact. Usually buried pipelines are used to transport oil which is made up of steel or plastic whereas natural gas pipelines are constructed of carbon steel. Moreover, significant increase in the demand of oil and natural gas as a fuel has driven the tremendous growth in the construction of pipeline which further resulted in the market growth of oil and gas pipeline globally.
In the Asia-Pacific region, demand for natural gas is increasing so they largely construct pipelines for the domestic transportation of natural gas in the country. Moreover, oil and natural gas is of low density which result increase in the transportation of oil and gas through pipeline as it is not easy to store or transport through vehicle. It is also expected that in North America major pipelines are to be constructed or start operating for supplying gas and oil in the other regions. Establishment pipeline for the transportation of oil and gas in the US displaces transportation of the natural gas through ships. Not only has this pipelines are much economical from other ways of transportation which resulted in the significant growth in the market of oil and gas pipeline.
According to the report analysis, ‘GLOBAL OIL AND GAS PIPELINES INDUSTRY OUTLOOK TO 2022 – CAPACITY AND CAPITAL EXPENDITURE FORECASTS WITH DETAILS OF ALL OPERATING AND PLANNED PIPELINES’ suggests that recent developments and increase in latest awarded contracts at regional level resulted in the significant growth in the oil and gas pipeline market. However, the market structure remains moderately concentrated for the construction of oil and gas pipeline as it depend upon the huge capital investment, whereas technological knowledge makes it a big challenge for the new entrants in the market. The natural gas has been known as a key substitute of crude oil to generate power which makes it outstanding resource in the Asia-Pacific region followed by other regions such as Europe.
The demand for natural gas is expected to grow globally which leads to significant increase in the demand for natural gas pipeline. With the increase in the demand of oil and gas pipeline the key players are benefited from the development of strategic accordingly with the center companies. Whereas booming unconventional oil and gas production is in turn driving growth of the pipeline network in the US. Moreover, Russia is also expanding the oil and gas pipeline for exports, whereas the oil and gas can be transported from production centers to demand centers which results the market of oil and gas pipeline of both such as of importer and exporter. Therefore, the market of oil and gas pipeline market will grow in the coming years positively.
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