Market Trends of Europe Tank Protection Industry
Oil and gas is major segment in the market
- The growth of natural gas demand globally, in line with the increasing share of natural gas in the energy mix, is expected to be a primary driver for the growth of the global oil & gas market. Natural gas witnessed a significant change in its global production and consumption, owing to the countries shifting from coal to natural gas as a primary energy source for cleaner energy during the last ten years.
- According to BP statistical review 2022, In 2021, Oil refining throughput in Europe is 11453 Thousand barrels per day, increasing from 12810 Thousand barrels per day in 2015. This increase is due to the European region's demand for oil and gas.
- Offshore oil & gas projects in Europe have higher breakeven prices compared to similar projects in other parts of the world, making them less resilient in the current turbulent times. Most of the offshore projects in the region are in the North Sea and Arctic shelf, and the extreme weather conditions in these areas can be one of the primary reasons for the higher breakeven prices. Thus, an increase in oil and gas projects will lead to a rise in the Europe tank protection market during the forecast period.
- As of March 2022, there were 44 active refineries in Russia, with a combined capacity of about 7 million barrels per day. Most of the oil refineries in the country were commissioned in the Soviet Era and before that. Refinery utilization in the country has remained low for quite some time and started increasing in 2019.
- Hence, owing to the above points, increasing investment in the oil and gas sector will drive the market during the forecast period.
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Germany fastest growing region in the Tank protection market
- Germany is the largest gas market in Europe, and most of the country's gas supply is from Russia. Among the European markets with potential additional import capability, Germany has plans to add the most regasification capacity, at a projected 13.2 MTPA.
- In February 2022, Germany plans to build two LNG terminals in Brunsbuttel and Wilhelmshaven, to reduce its dependence on Russian gas. German energy major Uniper will build and operate the LNG terminal at Wilhelmshaven. The FSRU, with a capacity of 7.3 MTPA, is expected to cover around 8% of Germany's gas demand in the future. The project is expected to be completed in two phases i.e., by the end of 2022 and 2025, respectively.
- In May 2022, Norwegian state-owned operator Gassco awarded a contract to engineering firm Wood to support secure gas transportation from the Norwegian Continental Shelf (NCS) to the United Kingdom and European countries. Under the three-year contract, Wood will work with Gassco to modernize the gas-receiving facilities. The company will be responsible for providing engineering, procurement, and construction management services for gas-receiving terminals in Easington, UK; Zeebrügge, Belgium; Dunkerque, France; Dornum, Germany; and Emden, Germany.
- According to BP statistical review 2022, In 2021, Oil refining capcity in germany is 2121 Thousand barrels per day increased from 2049 Thousand barrels per day in 2015.
- Hence, with the expansion of the refinery and petrochemical business and the upcoming project, the country is expected to witness an increase in the demand for tank protection markets.
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