Saudi Arabia Oil And Gas Midstream Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 81.34 Billion |
| Market Size (2029) | USD 93.55 Billion |
| CAGR (2024 - 2029) | 2.84 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Saudi Arabia Oil And Gas Midstream Market Analysis
The Saudi Arabia Oil And Gas Midstream Market size is estimated at USD 81.34 billion in 2024, and is expected to reach USD 93.55 billion by 2029, growing at a CAGR of 2.84% during the forecast period (2024-2029).
- Over the medium term, factors such as increasing production and consumption of natural gas and refined petroleum products and increasing usage of pipelines for fuel transportation are likely to drive the oil and gas midstream market during the forecast period.
- On the other note, environmental concerns regarding new pipelines and transportation infrastructure are likely to restrain the growth of the oil and gas midstream market.
- Nevertheless, the country's plans to develop unconventional natural gas reserves in the eastern Jafurah field can create an opportunity for companies with expertise in unconventional resources and increase the capacity required for storage and pipelines.
Saudi Arabia Oil And Gas Midstream Market Trends
Pipeline Sector to Witness Growth
- Pipelines provide a convenient and economical mode of transportation for oil and natural gas from upstream production to downstream refineries, power stations, industries, and domestic consumers in Saudi Arabia. As of 2022, Saudi Arabia had 17 natural gas pipelines supplying natural gas across the country.
- Saudi Aramco's Master Gas System, a network of pipelines that connects its key gas production and processing sites throughout the kingdom, is currently undergoing an expansion. As of 2022, the system's current capacity was around 9.6 billion standard cubic feet per day of natural gas supplying Eastern, Central, and Western industrial complexes.
- However, Saudi Aramco owned and operated around 90 crude oil and petroleum products pipelines, totaling 12,000 miles as of 2022, which link producing fields to processing plants and export terminals. The major operational pipelines are the East-West crude and the Abqaiq-Yanbu, which carry liquid natural gas products.
- Moreover, in November 2022, Saudi Aramco announced that it was releasing a tender for 1.6M metric tonnes of 56-inch non-sour surface pipelines needed for the Master Gas III project in Saudi Arabia. The new pipelines will help Aramco to supply natural gas from East to West Saudi Arabia. Also, Aramco will require more pipelines for the carbon capture and storage system that will supply all the carbon emissions captured through around 400 to 500 thousand metric tonnes (MT) pipelines.
- Hence, the pipeline sector is expected to witness significant growth in Saudi Arabia's oil and gas midstream market during the near future.
Increasing Gas Production to Drive the Market
- Saudi Arabia has made a significant stride in energy resources by discovering new natural gas fields in the southern Empty Quarter region. Production of natural gas in Saudi Arabia also increased significantly from 99.2 billion cubic meters in 2015 to 120.4 billion cubic meters in 2022. A further increase in production is expected to boost the sector's growth.
- Also, abundant and cheap natural gas has become a crucial contributor to long-term energy security as well as economic development and diversification of Saudi Arabia. In Saudi, the government has placed gas at the center of its clean energy transition strategy as it aims to reduce its carbon footprint meaningfully by 2030 and reach net zero by 2060. Saudi has plans to raise its gas production by over 50% to c.15bsfd by 2030, with incremental volumes expected from natural gas and ethane.
- In November 2023, the Saudi Arabian Oil Company (Saudi Aramco) identified two major fields, namely Al-Hiran and Al-Mahakik, in this expansive desert area in the southern Arabian Peninsula. This discovery marks a significant advancement for Saudi Arabia in diversifying its energy resources. The nation, predominantly known for its vast oil reserves, is now expanding into natural gas.
- With regard to expansionary projects, Jafurah’s unconventional field development stands out as one of the largest in terms of incremental capacity addition and investment size (expected to require over USD 68 billion in capex over the first ten years of development, as per Aramco). Jafurah is forecasted to add 200 million standard cubic feet per day (MSFD) by 2025, scaling up to a sustainable 2.0 billion standard cubic feet per day (BSFD) by 2030 and 2.2 bsfd by 2036, in addition to 420 msfd of ethane and 630 kbpd of NGLs and condensate. Besides Jafurah, Aramco expects to add 2.5 bsfd of incremental gas production capacity by 2025 from the Marjan field. Such developments are anticipated to offer significant opportunities for the Saudi Arabia oil and gas midstream market during the forecast period.
- Owing to the above points, increasing natural gas production is expected to drive the growth of the country's oil and gas midstream market.
Saudi Arabia Oil And Gas Midstream Industry Overview
The Saudi Arabian oil and gas midstream market is consolidated. Some of the major companies (in no particular order) include TotalEnergies SE, Medra Arabia, Saudi Arabian Oil Company, Chevron Corporation, and Shell PLC.
Saudi Arabia Oil And Gas Midstream Market Leaders
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TotalEnergies SE
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Medra Arabia
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Chevron Corporation
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Shell plc
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Saudi Arabian Oil Company
*Disclaimer: Major Players sorted in no particular order
Saudi Arabia Oil And Gas Midstream Market News
- Dec 2023: Saudi Arabia introduced its inaugural natural gas storage project in Al-Hawiyah, Unaizah. The storage project boasts a substantial storage capacity of 2 billion cubic feet (bcf); this project stands as a flagship initiative under the National Industrial Development and Logistics Program, a pivotal component of Saudi Vision 2030.
- Jan 2022: Streamline Innovations Inc. (Streamline) and Zamil Group Trade & Services (Zamil), a trading company and supplier to the energy sector, announced a partnership to market and deploy Streamline's environmentally forward treatment solutions for hydrogen sulfide (H2S) in Saudi Arabia. Under the deal, Zamil will serve as Streamline's agent in the country.
Saudi Arabia Oil And Gas Midstream Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Scope of the Study
- 1.2 Market Definition
- 1.3 Study Assumptions
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET OVERVIEW
- 4.1 Introduction
- 4.2 Market Size and Demand Forecast in USD, until 2029
- 4.3 Recent Trends and Developments
- 4.4 Government Policies and Regulations
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4.5 Market Dynamics
- 4.5.1 Drivers
- 4.5.1.1 Increasing Usage of Pipelines for Fuel Transportation
- 4.5.1.2 Increasing Production and Consumption of Natural Gas and Refined Petroleum Products
- 4.5.2 Restraints
- 4.5.2.1 Environmental Concerns Regarding New Pipelines and Transportation Infrastructure
- 4.6 Supply Chain Analysis
- 4.7 PESTLE Analysis
5. MARKET SEGMENTATION
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5.1 Type
- 5.1.1 Transportation
- 5.1.1.1 Overview
- 5.1.1.1.1 Existing Infrastructure
- 5.1.1.1.2 Projects in Pipeline
- 5.1.1.1.3 Upcoming Projects
- 5.1.2 Storage
- 5.1.2.1 Overview
- 5.1.2.1.1 Existing Infrastructure
- 5.1.2.1.2 Projects in Pipeline
- 5.1.2.1.3 Upcoming Projects
- 5.1.3 LNG Terminals
- 5.1.3.1 Overview
- 5.1.3.1.1 Existing Infrastructure
- 5.1.3.1.2 Projects in Pipeline
- 5.1.3.1.3 Upcoming Projects
6. COMPETITIVE LANDSCAPE
- 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
- 6.2 Strategies Adopted by Leading Players
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6.3 Company Profiles
- 6.3.1 TotalEnergies SE
- 6.3.2 Medra Arabia
- 6.3.3 Saudi Arabian Oil Company
- 6.3.4 Chevron Corporation
- 6.3.5 Shell PLC
- 6.3.6 Arabian Petroleum Supply Company (APSCO)
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
- 7.1 The Country's Plans to Develop Unconventional Natural Gas Reserves
Saudi Arabia Oil And Gas Midstream Industry Segmentation
In the oil and gas sector, midstream activities include the processing, storing, transporting, and marketing of oil, natural gas, and natural gas liquids (NGL).
The Saudi Arabia oil and gas midstream market report is segmented by type. By type, the market is segmented by Transportation, Storage, and LNG Terminals. For each segment, the market sizing and forecasts have been done based on revenue (USD).
| Type | Transportation | Overview | Existing Infrastructure |
| Projects in Pipeline | |||
| Upcoming Projects | |||
| Type | Storage | Overview | Existing Infrastructure |
| Projects in Pipeline | |||
| Upcoming Projects | |||
| Type | LNG Terminals | Overview | Existing Infrastructure |
| Projects in Pipeline | |||
| Upcoming Projects |
Saudi Arabia Oil And Gas Midstream Market Research FAQs
How big is the Saudi Arabia Oil And Gas Midstream Market?
The Saudi Arabia Oil And Gas Midstream Market size is expected to reach USD 81.34 billion in 2024 and grow at a CAGR of 2.84% to reach USD 93.55 billion by 2029.
What is the current Saudi Arabia Oil And Gas Midstream Market size?
In 2024, the Saudi Arabia Oil And Gas Midstream Market size is expected to reach USD 81.34 billion.
Who are the key players in Saudi Arabia Oil And Gas Midstream Market?
TotalEnergies SE, Medra Arabia, Chevron Corporation, Shell plc and Saudi Arabian Oil Company are the major companies operating in the Saudi Arabia Oil And Gas Midstream Market.
What years does this Saudi Arabia Oil And Gas Midstream Market cover, and what was the market size in 2023?
In 2023, the Saudi Arabia Oil And Gas Midstream Market size was estimated at USD 79.03 billion. The report covers the Saudi Arabia Oil And Gas Midstream Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Saudi Arabia Oil And Gas Midstream Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Saudi Arabia Oil And Gas Midstream Industry Report
Statistics for the 2024 Saudi Arabia Oil and Gas Midstream market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Saudi Arabia Oil and Gas Midstream analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
