China Oil and Gas Midstream Market Outlook 2031
The China Oil and Gas Midstream Market size was valued at USD XX Billion in 2022 and is likely to reach USD XX Billion by 2031 expanding at a CAGR of 3.04 % during the forecast period, 2023 – 2031. Midstream oil and gas sector includes services and procedures that come in between of the upstream and downstream oil and gas sector.
Activities in midstream section includes processing, transportation, and storage of crude oil and natural gas. In most general cases, oil and gas reserves are not located in the same geographic location as major consumption regions and refining assets.
Transportation is a major part of midstream activities and can include using rail cars, pipelines, tanker ships, and trucking fleets. The midstream oil and gas division is kept apart from downstream and upstream in many of the oil companies as it is considered as a low risk and regulated kind of business. Processing oil and gas liquids into saleable and usable products is the starting operation in the midstream process.
Processing involves procedures, such as measuring the production rate of oil, gas, and water from reservoir, separating the three components from each other, and removing the impurities from the components to prepare crude oil and gas. After the field processing, treated oil and gas is transported via a complex transportation, transmission and supply arrangement.
The storage of oil and gas is separated from each other. Storage facilities for refined liquids and crude oil includes bulk terminals, holding tanks, and refinery tanks to get oil into pipelines or prepared to be transported vessel. Natural gas has extremely high pressure, so it is stored in underground reservoirs till the time of transportation.
The midstream segment has an important role in the oil and gas energy operations. It helps in transportation of the raw crude oil and gas obtained from reservoirs and transform it into functional crude products, which is used by the end-users.
The COVID-19 pandemic outbreak had considerably impacted the China oil and gas midstream market. During the pandemic, the storage facilities was in constantly usage for storing hydrocarbons as well as the pipelines was also used for the transportation of fuel. Additionally, resilient demand for LNG also increased during the pandemic, which kept the demand for midstream services normalized.
However, the lockdown imposed by government bodies across the country, social distancing, remote working, and closure of commercial activities as part of policies to curb the virus spread created some operational challenges for midstream oil and gas sector, such as low prices for crude oil and overproduction due to gap in demand and supply chain.
China Oil and Gas Midstream Market Trends, Drivers, Restraints, and Opportunities
- Increasing government policies for increasing the production of oil and gas in the country is one of the key factors driving the market.
- Rising demand for wide network of pipeline across the country for the safe and quick transportation of natural gas is projected to boost the market during the forecast period.
- Growing environmental concern regarding transportation infrastructure and new pipeline acts as a major challenge that can restrict the market growth in the coming years.
- Decreasing production of oil in the country is expected to hamper the market growth during the projected timeline.
- Escalating investment and development of small and complex offshore fields in different areas of country is anticipated to create significant growth opportunities for the market.
Scope of China Oil and Gas Midstream Market Report
The report on the China oil and gas midstream market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
Attributes
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Details
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Report Title
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Oil and Gas Midstream Market - China Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023–2031
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Segmentation
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Types (Storage, Transportation, and Liquefied Natural Gas Terminals)
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Country
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China
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
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Key Players Covered in the Report
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PJSC Gazprom; China Petroleum & Chemical Corp.; POSCO; China National Petroleum Corp.; and PJSC Gazprom
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China Oil and Gas Midstream Market Segment Insights
Transportation segment to grow at high CAGR
In terms of types, the China oil and gas midstream market is divided into storage, transportation, and liquefied natural gas terminals. The transportation segment is estimated to grow at high CAGR during the forecast period owing to the increasing demand for supplying oil and gas in different parts of country.
On the other hand, the liquefied natural gas terminals segment is anticipated to register significant growth during the projected period attributed to the rising need of terminals for managing, importing, exporting, and refilling the liquefied natural gas.
Segments
The China oil and gas midstream market has been segmented on the basis of
Types
- Storage
- Transportation
- Liquefied Natural Gas Terminals
Country
Key Players
Competitive Landscape
Key players competing in the China oil and gas midstream market are PJSC Gazprom; China Petroleum & Chemical Corp.; POSCO; China National Petroleum Corp. Companies are focusing on expanding the mainstreaming capacity for fulfilling the high product demand from the market and to maintain their competitive position in the market. Companies have been widely engaged in collaborations, strategic partnership, merger & acquisition, and joint ventures to boost their market share and acquire new buyers.
For instance, in December 2019, a planned pipeline was completely constructed, between the China and Russian Federation through Siberia. Power of Siberia, which is the name of the project, was taken into operation and the deliveries of Russian gas to China through first-ever pipeline were launched.