Market Trends of Peru Oil and Gas Downstream Industry
This section covers the major market trends shaping the Peru Oil & Gas Downstream Market according to our research experts:
Oil Refining Capacity to Witness Growth
- The refining capacity in the country remained stable in the 2015-2018 period. The country lacks necessary infrastructure requirements related to the oil and gas downstream sector. Moreover, the rugged terrain in the country makes the supply chain a massive obstacle.
- In 2019, expansion in the refining capacity of the second-largest refinery in the country is expected to take place over the forecast period. Talara Refinery is expected to increase its capacity from 65,000 barrels per day to 95,000 barrels per day.
- Consumption of natural gas increased in the country, by 3.52% from 5.8 million ton of oil equivalent, in 2017 to 6.1 million ton of oil equivalent, in 2018. Production of gas in Peru increased slightly by 0.23%, year on year, from 10.9 million ton oil equivalent in 2015, to 11.0 million ton oil equivalent, in 2018. Increase in natural gas production provides boost to the petrochemical industry.
- Hence, the refining capacity is expected to increase slightly over the forecast period due to an increase in investment in the oil and gas downstream sector.
Understand The Key Trends Shaping This Market
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Increasing Consumption of Oil to Drive the Market
- The increase in the consumption of oil and gas in the country is expected to positively impact the growth of the oil and gas downstream industry over the forecast period. Increase in the midstream infrastructure is also expected to make the downstream sector more economically viable.
- Production of oil in the country increased, by 12.4%, from 137,000 barrels per day, in 2017 to 154,000 barrels per day, in 2018. The consumption of oil, in the country, increased, by 1.96%, year on year, from 247,000, in 2015 to 267,000, in 2018. The increase in consumption and production of oil is expected to increase the growth in the industry.
- In 2018, Peru's new government plans to promote infrastructure projects and investments to improve the country's productivity, including restarting of a natural gas pipeline and plans to build a petrochemical plant. The increase in gas infrastructure is expected to promote the petrochemical industry.
- The oil and gas downstream industry in Peru is expected to grow significantly in the forecast period due to an increase in oil and gas consumption and proposed new investment in the country.
