Southeast Asia Oil and Gas Midstream Market Growth | 2031

Report Description

The Southeast Asia oil and gas midstream market size was valued at USD XX Billion in 2022 and is anticipated to reach USD XX Billion by 2031, expanding at a CAGR of 4.6% during the forecast period, 2023–2031. The growth of the market is attributed to increasing consumption of oil and natural gas.

The oil and gas industry is divided into three components that are upstream, midstream, and downstream. Midstream falls between upstream and downstream. Midstream activities include storage, processing, transportation by pipeline, rail, oil tanker, or truck of petroleum products, and wholesale marketing of crude or refined petroleum products. Companies in the market provide operating services of tanker ships, pipelines, and storage facilities.

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Pipelines and other transport systems is used to move crude oil from production site to refineries as well as deliver various refined products to downstream distributors. Natural gas pipeline networks aggregate gas from natural gas purification plants and deliver it to downstream customers, which includes local utilities. The midstream operations do include some elements of the upstream and downstream activities. The midstream sector includes natural gas processing plants that purify the raw natural gas as well as removes and produces elemental sulfur and natural gas liquids (NGL) as finished end-products.

Southeast Asia Oil and Gas Midstream Market Trends, Drivers, Restraints, and Opportunities

• Increasing pipeline capacity in the region is expected to drive the market growth during forecast period.

• Major overhauling of oil and gas laws in emerging countries is expected to attract foreign direct investment, fueling the market growth.

• Rising number of upcoming pipeline infrastructure projects in countries such as Thailand and Malaysia is speculated to spur the growth of the market.

• Increasing consumption of oil owing to rapid industrialization is expected to propel the market growth.

Scope of Southeast Asia Oil and Gas Midstream Market Report

The report on the Southeast Asia oil and gas midstream market research report includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Southeast Asia Oil and Gas Midstream Market Segment Insights

Transportation segment to dominate the market share

The transportation segment is anticipated to dominate the market share.  Increasing number of oil and gas pipeline networks in Southeast Asia countries is expected to proliferate the demand for transportation systems in the market. Growing oil and gas supply in different regions is expected to boost the existing transportation capacity and encourage construction of new pipelines. In 2018, consumption of natural gas increased in the region by 0.15% to 134.3 million tons from 134.1 million tons in 2017. However, the gas production has decreased in the region to 192.4 million tons in 2018 from 194.6 million tons in 2017. Nevertheless, the initiatives to increase the natural gas consumption is expected to positively impact the segment growth.  

Storage to accounts considerable market share

The storage segment is expected to account a considerable market share owing to the government initiatives to ramp up the oil & gas production. For instance, the Government of Indonesia announced its plans to double the refining capacity of storage during the period, 2017-2025, to make it reach 2.2 million barrels per day. The policies is expected to majorly benefit the market.

Moreover, the government plans to increase the gas supply network to meet the high energy demand in the domestic market is anticipated to drive the segment growth.

LNG terminals segment to expand at a rapid pace

The LNG terminals segment is speculated to grow at a rapid pace during the forecast period. This is attributed to the plan of the Government of Singapore to shift toward LNG to meet the bulk of its natural gas demand during the forecast period. This is due to the increase in the LNG import capacity, which including construction of floating regasification plant.

Thailand to accounts major market share

Based on geographies, the market is segregated into Thailand, Vietnam, Malaysia, Indonesia and Rest of Southeast Asia.  Thailand is anticipated to account for a major market share owing to ample oil storage capacity. The total storage capacity in the country is anticipated to be approximately 10.2 million kiloliters. In 2019, Thailand's national oil and gas firm PTT Plc plans to develop a gas pipeline in the Northeast to add capacity to the group's existing gas pipeline. The improvement in pipeline infrastructure is anticipated to help Thailand become a hub for liquefied natural gas (LNG) in Southeast Asia. Increasing consumption oil is expected to boost the growth in the oil and gas midstream sector in the country and the region.