United Kingdom Oil and Gas Midstream Market Size (2024 - 2029)

United Kingdom Oil and Gas Midstream Market Size Summary

The United Kingdom's midstream oil and gas market is poised for growth, driven by increasing demand for natural gas and oil, alongside rising production levels within the country. The sector benefits from an extensive network of pipelines that facilitate the transportation of oil from North Sea platforms to coastal terminals in Scotland and northern England. Significant discoveries, such as those west of Shetland, present new opportunities for midstream companies, potentially connecting these regions to the mainland. However, the shift towards renewable energy sources has tempered large-scale investments in the midstream industry, posing a challenge to its expansion. Despite this, the transportation industry remains optimistic due to enhanced production levels and increased imports through pipelines from neighboring countries like Norway.

The United Kingdom's reliance on oil and gas from its North Sea resources and imports underscores the importance of its midstream infrastructure. The country's pipeline capacity is expected to see modest growth, supported by rising oil production and heightened demand for natural gas. Key operational pipelines, such as the Bacton-Zeebrugge Interconnector and Langeled Pipeline, play a crucial role in meeting the country's energy needs. The construction of new pipelines, like the Forties Oil and Gas Pipeline System, aims to enhance distribution safety and reliability. The market is moderately consolidated, with major players including Storengy SA, GASSCO, E.ON UK plc, SSE PLC, and Interconnector Limited, all contributing to the sector's development during the forecast period.