The Mexico oil & gas downstream market size is anticipated to expand at a robust CAGR during the forecast period, 2021-2028. The growth of the market is attributed to increasing demand for natural gas. Moreover, rising investment in refineries and LNG Terminals is fueling the market growth.
Oil and natural gas are major industries in the energy market and play an influential role in the global economy. The processes and systems involved in producing and distributing oil and gas are highly complex, capital-intensive, and require state-of-the-art technology. The oil & gas extraction can be divided into upstream, midstream, and downstream. Downstream operation involves converting the oil & gas resources into finished products. This includes refining crude oil, natural gas, and diesel.
Mexico has an estimated 17 trillion cubic feet (Tcf) of proven natural gas reserves. Natural gas is increasingly replacing oil as a feedstock in power generation. However, higher levels of natural gas consumption are expected to depend on more pipeline imports from the US or liquefied natural gas (LNG) imports from other countries. Mexico has an estimated 545 Tcf of recoverable shale gas resources, the sixth-largest in the world.
The true potential of accessing and developing shale gas in Mexico is hindered by, the accessibility of low cost U.S. natural gas, and a presidential proclamation barring the practice. However, Mexico has encouraged the increase of domestic natural gas production by inviting private companies to bid on new natural gas pipelines and storage facilities for imported U.S. natural gas.
Market Trends, Drivers, Restraints, and Opportunities:
- Increasing number of projects in the pipeline to handle the locally produced oil is anticipated to driver the Mexico oil & gas downstream market.
- Growing consumption of natural gas is expected to augment the market growth.
- Declining production of oil and gas in the country can hinder the market growth.
- The outbreak of COVID-19 has impacted the Mexico oil & gas downstream market. Government state bodies had enforced stringent norms on the opening of manufacturing facilities and restricted oil & gas exploration activities. However, declining number of cases is expected to recover the market soon.
- Sizeable crude oil discoveries have been made in Southeastern Mexico, which is expected to yield around 500 million barrels of crude oil. This can create lucrative opportunities for the new refineries in the country.
- Rising foreign investments owing to favorable government policies is anticipated to proliferate the market growth.
Scope of the Report
The report on the Mexico oil & gas downstream market includes an assessment of the market, trends, segment. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Mexico oil & gas downstream Market - Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2020
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Historic Data
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2018–2019
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Forecast Period
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2021–2028
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Segmentation
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Refineries and Petrochemicals Plants
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Geographic Zone
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Mexico
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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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Petróleos Mexicanos, Samsung Engineering Co. Ltd, Fluor Corporation, Grupo Idesa SA de CV, and Braskem SA.
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Mexico Oil & Gas Downstream Market Segment Insights:
Refineries segment to grow at a rapid pace
The refineries segment is anticipated to account for a key market share and is expected to grow at a steady rate during the forecast period. Refining and processing reduces the environmental impact of oil- and gas-derived fuels by removing harmful pollutants and improves their reliability during combustion. Oil refineries serve an important role in the production and transportation of fuels. The crude oil components once separated can be sold to different industries for a broad range of purposes. This all factors are contributing to the growth of the market segment.
Petrochemical plants segment to account a major market share
The petrochemical plants segment is anticipated to account for a major market share due to broader area of application. Rapid industrialization is expected to propel during the forecast period. Government initiatives and policies have encouraged foreign investment in the country, driving the growth of the market segment. Moreover, increasing partnership with government entities is boosting the growth of the market segment.
Segments
Segments Covered in the Report
The mexico oil & gas downstream have been segmented on the basis of
Refineries
Petrochemicals Plants
Country
Key Players
- Petróleos Mexicanos
- Samsung Engineering Co., Ltd.
- Fluor Corporation
- Braskem SA
- Grupo Idesa, S.A. de C.V.
Competitive Landscape
The major players of the market are Petróleos Mexicanos, Samsung Engineering Co. Ltd, Fluor Corporation, Grupo Idesa SA de CV, and Braskem SA.
Companies are investing in research and development activities to improve the yield from the oil wells. Moreover, they’re engaging in partnerships, joint ventures, mergers, and acquisitions to expand their market share.
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