Market expected to grow more than 1.32% before 2025 for Gulf of Mexico midstream oil and gas
Factors such as increasing investment in the sector and increasing production of oil are expected to boost the demand for the Gulf of Mexico oil and gas midstream market before 2025, according to a new report naming the key market trends in the area.
It said: “The market for the Gulf of Mexico oil and gas midstream market is expected to grow at a CAGR of more than 1.32% during the forecast period of 2020 – 2025.”
However, it added that the area is marred by cyclones, “which is one of the major concerns for the midstream infrastructure and this, in turn, is likely to delay the projects in the coming years.”
Elsewhere, exploration and production of oil and gas fields in the region are expected to become an opportunity for the companies working in the oil and gas midstream industry as more pipeline and storage infrastructure may be required in the near future. An increase in investment in the region is also expected to boost the growth of the entire oil and gas sector in the region.
The oil production in the Gulf of Mexico increased, by 3.87 per cent, to 1,983 thousand barrels per day, in January 2019 from 1,909 thousand barrels per day in January 2018.
The Gulf of Mexico’s new pipelines are in the proposal stage and are expected to be completed in the forecast period.
In 2018, Texas City Terminal Pipeline proposed a natural oil pipeline in Texas that will run from a proposed offshore oil terminal to Texas City, Texas, the United States. It is expected to have a length of 128.7 kilometres and is expected to come online during the forecast period.
In 2018, Transcontinental Gas Pipeline is an operating natural gas pipeline that has a capacity of 15,580 million cubic feet per day and has a length of 16,415 km (10,200 miles). It is one of the most important pipelines in the country because it covers a very large distance from the Gulf of Mexico to New York City Area and provides crude oil to different locations all over the eastern part of the United States.
The natural gas production in the Gulf of Mexico decreased 5.63 per cent year-on-year, to 80,810 million cubic feet, in 2018 from 10,1925 million cubic feet in 2015.
In 2019, Freeport-McMoRan LNG Terminal proposed an LNG export terminal in the United States. The expected capacity of the terminals is 24 million tonnes per annum and is expected to be completed by 2022. The terminals have been under construction since 2019.
In 2019, one of the largest terminals in the region was the Ingleside Energy LNG Terminal, which is an LNG export terminal located at the Port of Corpus Christi in Ingleside, Texas. The capacity of the LNG terminals is approximately 1 billion cub feet per day. The LNG Terminals enable the capacity of export of LNG to countries all over the world.
The Gulf of Mexico oil and gas midstream industry is expected to grow slightly in the forecast period, due to the increase in the investment in the region.
For more information visit www.globenewswire.com
19th May 2020
