The Peru oil & gas downstream market size was USD XX Billion in 2022 and is likely to reach USD XX Billion by 2031, expanding at a CAGR of 1.61% during 2023–2031. The growth of the market is attributed to the government’s heavy investments in the refineries.
Peru's downstream oil and gas market is some what consolidated. Oil refining capacity is projected to increase as current refineries are expanded and the government focuses on improving oil and gas infrastructure. Peru's gas reserves are estimated to be 12.4 trillion cubic feet (Tcf), accounting for 0.2 per cent of the world's total gas reserves. Because refineries can be used to their full capacity, the large-scale output may present an opportunity for downstream firms. Peru's oil and gas downstream business is anticipated to develop as the country's oil and gas consumption rises. An increase in investment is also projected to boost the sector's growth.
In April, global oil consumption dropped by 25%, but it has since risen dramatically, lowering its losses to only 8%. Looking ahead, oil demand is anticipated to rebound substantially in 2021, but it will still be lower than it was before to COVID-19—approximately 4% lower in the base case, and nearly 7% lower in Rystad Energy's second-wave scenario.
Over the projected period, the increase in oil and gas consumption in the country is predicted to boost the expansion of the oil and gas downstream business. The downstream industry is projected to become more economically viable as midstream infrastructure improves. From 137,000 barrels per day in 2017 to 154,000 barrels per day in 2018, the country's oil production grew by 12.4%. The country's oil consumption grew by 1.96 per cent year on year, from 247,000 barrels in 2015 to 267,000 barrels in 2018. The rise in oil consumption and production is projected to boost the industry's growth. Peru's new administration intends to push infrastructure projects and investments in 2018 in order to boost the country's productivity, including the resumption of a natural gas pipeline and plans to construct a petrochemical factory. The petrochemical industry is projected to benefit from the expansion of gas infrastructure. Due to increased oil and gas consumption and projected new investment in Peru, the oil and gas downstream industry is predicted to develop considerably in the projection period.
In the years 2015-2018, the country's refining capacity remained constant. The country lacks the essential infrastructure for the downstream oil and gas industry. Furthermore, the country's rough topography makes the supply system a major challenge. Over the projection year, the second-largest refinery in the country is scheduled to expand its refining capacity in 2019.
The Talara Refinery's capacity is projected to expand from 65,000 to 95,000 barrels per day. Natural gas consumption grew by 3.52 per cent in the country, from 5.8 million tonnes of oil equivalent in 2017 to 6.1 million tonnes of oil equivalent in 2018. From 10.9 million tonne oil equivalent in 2015 to 11.0 million tonne oil equivalent in 2018, Peruvian gas production rose by 0.23 per cent year on year. The petrochemical sector benefits from the increased natural gas output. As a result of increased investment in the oil and gas downstream industry, refining capacity is projected to grow somewhat over the projection period.
Market Trends, Drivers, Restraints, and Opportunities
Increasing oil and gas output is expected to drive the market expansion during the forecast period.
Growing government assistance is anticipated to fuel market growth in the coming years.
The country is dealing with a number of supply-related challenges that are estimated to stifle market growth during the forecast period.
Scope of the Report
The report on the Peru oil & gas downstream market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
Peru Oil & Gas Downstream Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
Plants (Refineries and Petrochemicals)
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
Key Players Covered in the Report
Total SA, Royal Dutch Shell PLC, CF Industries Holdings, Inc., Repsol SA, and Petróleos del Perú SA
Market Segment Insights
Refineries segment is projected to account for a large market share
In terms of plants, the Peru oil & gas downstream market is segmented into refineries and petrochemicals. The refineries segment is expected to account for a key share of the market during the forecast period owing to heavy investments in the oil and gas refineries.
The Peru oil & gas downstream market has been segmented on the basis of
- Total SA
- Royal Dutch Shell PLC
- CF Industries Holdings, Inc.
- Repsol SA
- Petróleos del Perú SA
Key players competing in the Peru oil & gas downstream market include Total SA, Royal Dutch Shell PLC, CF Industries Holdings, Inc., Repsol SA, and Petróleos del Perú SA. Some of these players are investing in several market strategies such as mergers, acquisitions, partnerships, collaborations, capacity expansion, and product launches to increase their market shares.