Market Trends of Mexico Pipeline Services Industry
This section covers the major market trends shaping the Mexico Pipeline Services Market according to our research experts:
Pre-commissioning and commissioning services to dominate the market
- Pre-commissioning and commissioning services will have a major market share in the year 2021 and is expected to continue its dominance in the coming years.
- The growing crude oil production within the country will, in turn, culminates the growth of crude oil supply within the country and facilitates pre-commissioning and commissioning services of pipelines. In March 2022, the country produced 1625.44 tbsp of crude oil through PEMEX and private companies. Also, several key pipelines in Mexico were placed in service earlier in 2020-21, strengthening the confidence of players involved in the pre-commissioning and commissioning pipelines.
- Low carbon steel is the most widely used material for oil and gas pipelines across the country, owing to its properties, such as toughness, ductility, weldability, ability to withstand temperature changes, and cost-effectiveness, as compared to stainless steel. But it is susceptible to corrosion in the presence of air, soil, and water, which is a significant disadvantage.
- The corrosion repair systems are designed to strengthen the pipe affected by corrosion and contain the transported fluid in the event of failure. The corrosion repair systems include full circumferential welded sleeves, welded patches, composite reinforcements, and pipe section replacements.
- Moreover, in August 2022, Touchstone Exploration Inc. announced a notice that the Coho gas facility and pipeline would begin pre-commissioning and commissioning activities has been sent to local homeowners.
- Therefore, pre-commissioning and commissioning services are expected to boost the demand for the pre-commissioning and commissioning services market in the country during the forecast period.
Understand The Key Trends Shaping This Market
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Increasing Natural Gas Pipeline Imports from the United States
- Natural Gas Pipeline infrastructure is a cost-effective and secure method of transferring gas by joining gas sources to gas-consuming markets.
- In contrast to the 11.6 per cent increase for the year concluded in May 2022, U.S. import prices increased 10.7% for the year ending. Prices for imported natural gas jumped 165.5% between June 2021 and June 2022.
- Natural gas consumption in Mexico increased by 5.7% in 2021. In 2021, the natural gas production was 88.2 billion cubic metres compared to 2020, which was 83.7 billion cubic metres.
- According to United Energy Information Administration, Natural gas pipeline exports from West Texas to Mexico averaged 1.6 billion cubic feet per day (Bcf/d) during May 2022. the most pipeline exports from West Texas. Also, the share of Mexico's natural gas supply met by pipeline imports from the United States grew from 61% in 2019 to 72% in 2021
- Moreover, in Mexico, the electric power sector and (to a slightly lesser degree) the industrial sector have been leading growth in natural gas consumption in recent years. Much of this growth in natural gas consumption has been met by growth in pipeline imports from the United States.
- Furthermore, in May 2022, The Tahuehueto Gold Mine in Durango, Mexico, began pre-production mining and mill commissioning operations, according to an announcement from Altaley Mining Corporation.
- Hence, the increasing natural gas pipeline imports from United States is expected to drive the Mexico Pipeline Services during the forecast period.
