Russia Oil and Gas EPC Market Size (2024 - 2029)

The Russia Oil and Gas EPC market is anticipated to experience growth over the forecast period, driven by increasing demand for natural gas and low-sulfur fuel, which is expected to boost EPC contracts in the midstream and downstream sectors. Despite challenges posed by United States sanctions and restrictions, the market is poised to recover to pre-pandemic levels. The shift towards offshore deep and ultradeep exploration and production, particularly in the Arctic shelf, presents significant opportunities for expansion, as national oil companies adapt to declining onshore hydrocarbon production.

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Market Size of Russia Oil and Gas EPC Industry

Russia Oil and Gas EPC Market Summary
Study Period 2021 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2021 - 2022
CAGR 1.50 %
Market Concentration Low

Major Players

Russia Oil and Gas EPC Market Major Players

*Disclaimer: Major Players sorted in no particular order

Russia Oil and Gas EPC Market Analysis

Russia Oil and Gas EPC Market is projected to register a CAGR of over 1.5% during the forecast period.

COVID-19 negatively impacted the market in 2020. Presently the market is likely to reach pre-pandemic levels.

  • Over the medium term, factors such as IMO regulation and global efforts to reduce the use of coal for power generation, the demand for natural gas and low-sulfur fuel are expected to increase. This factor, in turn, is expected to promulgate the increasing EPC contracts across the midstream and the downstream sectors.
  • On the other hand, the United States sanctions and restrictions on collaboration with Russia are likely to restrain the country's oil and gas EPC market.
  • Nevertheless, the shift of the E&P sector toward offshore deep and ultradeep areas is expected to be the major opportunity for the Russian Oil and Gas EPC Market. Russia has been actively producing oil and gas from the Arctic shelf for quite some time. Still, with a decline in onshore hydrocarbon production, the national oil companies have no choice but to shift to complex and technologically challenging offshore deep-water and ultradeep water fields.

Russia Oil and Gas EPC Industry Segmentation

EPC stands for Engineering, Procurement, and Construction. Engineering and Procurement involve the detailed engineering design of a project and procuring all necessary equipment and raw materials. Construction is related to delivering a functional facility to the client.

Russia's oil and gas EPC market is segmented by sector. By sector, the market is segmented into upstream, midstream, and downstream. The market size and forecasts for each segment have been done regarding revenue (USD billion).

Sector
Upstream
Midstream
Downstream
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Russia Oil and Gas EPC Market Size Summary

The Russian oil and gas EPC market is poised for growth, driven by a shift towards offshore deep-water exploration and production, as onshore hydrocarbon resources decline. The market is expected to recover to pre-pandemic levels, with increasing demand for natural gas and low-sulfur fuel spurring EPC contracts in the midstream and downstream sectors. However, U.S. sanctions and restrictions on collaboration with Russia present challenges. The development of LNG liquefaction plants and the expansion of pipeline infrastructure to Europe and Asia are key strategies to diversify gas exports and enhance market capacity. Notable projects, such as the construction of natural gas liquefaction plants and the expansion of LNG facilities, are set to boost the midstream segment, contributing to the overall market growth during the forecast period.

In the downstream sector, the Russian EPC market is expected to benefit from increased investment in petrochemical infrastructure. The country's refineries and petrochemical plants are undergoing expansion to meet rising demand, with significant projects like the Baltic Ethane Cracker and the Ust-Luga polymer plant underway. These developments are supported by international EPC companies, which are playing a crucial role in design and procurement activities. The fragmented market features key players such as Technip FMC, Hyundai Heavy Industries, Saipem SpA, Petrofac Limited, and McDermott International Inc. As the market evolves, these companies are likely to drive innovation and efficiency, further propelling the growth of the Russian oil and gas EPC market.

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Russia Oil and Gas EPC Market Size - Table of Contents

  1. 1. MARKET OVERVIEW

    1. 1.1 Introduction

    2. 1.2 Market Size and Demand Forecast in USD billion, till 2027

    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 Sector

      1. 2.1.1 Upstream

      2. 2.1.2 Midstream

      3. 2.1.3 Downstream

Russia Oil and Gas EPC Market Size FAQs

The Russia Oil and Gas EPC Market is projected to register a CAGR of less than 1.5% during the forecast period (2024-2029)

Saipem SpA, McDermott International Inc.​, TechnipFMC PLC, Petrofac Limited and Hyundai Heavy Industries Co. Ltd are the major companies operating in the Russia Oil and Gas EPC Market.

Russia Oil and Gas EPC Market Report Snapshots

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