Azerbaijan Oil and Gas Downstream Market Size (2024 - 2029)

The Azerbaijan oil and gas downstream sector is poised for growth, driven by increasing demand for natural gas and petroleum products, alongside rising oil and gas production. The market has rebounded to pre-pandemic levels, supported by investments in modernizing the downstream industry, including the integration of new petrochemical plants with existing refineries. However, a decline in oil consumption may hinder market expansion. Opportunities are anticipated in the sector through advancements in the desulfurization process, aligning with governmental climate agreements to reduce sulfur content in refined crude oil.

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Market Size of Azerbaijan Oil and Gas Downstream Industry

Azerbaijan Oil and Gas Downstream Market Summary
Study Period 2021 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2021 - 2022
CAGR 1.21 %
Market Concentration Low

Major Players

Azerbaijan Oil and Gas Downstream Market Major Players

*Disclaimer: Major Players sorted in no particular order

Azerbaijan Oil and Gas Downstream Market Analysis

The market for oil and gas downstream in Azerbaijan is expected to register a CAGR of more than 1.21% during the forecast period.

The market was negatively impacted by COVID-19. Presently the market has now reached pre-pandemic levels.

  • Factors, such as increasing demand for natural gas and rising production of oil and gas, coupled with increasing demand for petroleum products in the country, are expected to boost the demand in the market during the forecast period. In a process to modernize the downstream industry, new petrochemical plants integrated with the old refineries are making headway. The increase in investment is expected to augment the growth in the market.
  • However, a decrease in oil consumption is expected to impede the growth of the market.
  • The government may reduce the sulfur contents in refined crude oil to follow the climate agreement. Modernizing the desulfurization process is expected to create an opportunity in the downstream sector in the future.

Azerbaijan Oil and Gas Downstream Industry Segmentation

The processes of refining, marketing, and eventually selling petroleum products are referred to as downstream. In the downstream business, a corporation refines crude oil and natural gas and markets and sells petroleum products to wholesale and retail customers. Processed natural gas is often sold directly to electric and gas utilities. 

The market is segmented by Refineries and Petrochemical Plants. The report offers the market size and forecasts in revenue (USD Billion) for all the above segments.

Refineries
Overview
Existing Infrastructure
Projects in Pipeline
Upcoming Projects
Petrochemical Plants
Overview
Existing Infrastructure
Projects in Pipeline
Upcoming Projects
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Azerbaijan Oil and Gas Downstream Market Size Summary

The Azerbaijan oil and gas downstream market is poised for moderate growth, driven by increasing demand for natural gas and petroleum products. The sector has rebounded to pre-pandemic levels after the negative impact of COVID-19. Efforts to modernize the industry, including the integration of new petrochemical plants with existing refineries, are expected to further stimulate market expansion. However, a decline in oil consumption poses a challenge to growth. The government's initiatives to reduce sulfur content in refined crude oil, in line with climate agreements, present potential opportunities for the downstream sector's future development.

The market is characterized by a consolidated landscape with key players such as the State Oil Company of the Azerbaijan Republic, Royal Dutch Shell PLC, Total SA, KBR Inc., and TechnipFMC PLC. The country's high-quality crude oil, particularly the BTC blend, requires minimal refining maintenance, supporting the efficiency of operations. Increased natural gas production and consumption are anticipated to bolster the petrochemical industry, with SOCAR Polymer expected to enhance production capacities. Azerbaijan's strategic role in diversifying energy supply sources, particularly through increased gas shipments to Europe, underscores its significance in the regional energy market.

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Azerbaijan Oil and Gas Downstream Market Size - Table of Contents

  1. 1. MARKET OVERVIEW

    1. 1.1 Introduction

    2. 1.2 Refining Capacity Installed and Forecast, in thousand barrels per day, till 2025

    3. 1.3 Recent Trends and Developments

    4. 1.4 Government Policies and Regulations

    5. 1.5 Market Dynamics

      1. 1.5.1 Drivers

      2. 1.5.2 Restraints

    6. 1.6 Supply Chain Analysis

    7. 1.7 PESTLE Analysis

  2. 2. MARKET SEGMENTATION

    1. 2.1 Refineries

      1. 2.1.1 Overview

        1. 2.1.1.1 Existing Infrastructure

        2. 2.1.1.2 Projects in Pipeline

        3. 2.1.1.3 Upcoming Projects

    2. 2.2 Petrochemical Plants

      1. 2.2.1 Overview

        1. 2.2.1.1 Existing Infrastructure

        2. 2.2.1.2 Projects in Pipeline

        3. 2.2.1.3 Upcoming Projects

Azerbaijan Oil and Gas Downstream Market Size FAQs

The Azerbaijan Oil and Gas Downstream Market is projected to register a CAGR of greater than 1.21% during the forecast period (2024-2029)

State Oil Company of the Azerbaijan Republic, TOTAL SA, KBR, Inc., TechnipFMC plc and Royal Dutch Shell PLC are the major companies operating in the Azerbaijan Oil and Gas Downstream Market.

Azerbaijan Oil and Gas Downstream Market Report Snapshots

Azerbaijan Oil and Gas Downstream Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)