India Oil and Gas Midstream Market Size (2024 - 2029)

India Oil and Gas Midstream Market Size Summary

The midstream oil and gas market in India is poised for growth, driven by increasing investments in pipeline infrastructure and a rise in oil and gas production and consumption. The expansion of LNG terminal projects further supports this growth trajectory. Despite these positive factors, the industry faces challenges such as the volatility of crude oil prices and reduced consumption due to the impacts of COVID-19, which have hindered profitability and market expansion. The transportation segment, particularly pipelines, is expected to experience significant growth, with new projects in various stages of development. The growing import of natural gas and the expansion of pipeline networks in city gas distribution are anticipated to create substantial opportunities in the market.

The pipeline system remains the most cost-effective method for transporting natural gas, crude oil, and petroleum products over long distances. India's pipeline infrastructure has seen considerable expansion, with notable projects like the Jagdishpur-Haldia and Bokaro-Dhamra Pipeline phase two. The country's natural gas infrastructure is well-developed in the northwest, but the southern and eastern regions require further development to connect coastal LNG import terminals to inland demand centers. The construction of new LNG terminals, including those by Atlantic Gulf and Pacific, is expected to significantly enhance the midstream sector. The Indian government's goal to increase the share of natural gas in the energy mix by 2030 underscores the importance of connecting LNG regasification terminals to demand centers, which is crucial for future growth in LNG imports and storage facilities. The market is moderately fragmented, with key players including Indian Oil Corporation, Hindustan Petroleum Corporation Limited, Petronet LNG Limited, Adani Enterprises Ltd, and Gail Limited.