Offshore Pipeline Market Size and Share Analysis by Diameter (Below 24 Inches, Greater than 24 Inches), Product (Natural Gas, Crude Oil, Refined Products), Line Type (Transport Line, Export Line), Installation Technique (S LAY, J LAY, TOW IN), Depth of Operation (Shallow Water, Deepwater) - Global Industry Demand Forecast to 2030

Market Overview

The offshore pipeline market size stood at USD 13,571 million in 2022, and it is expected to grow at a compound annual growth rate of 4.10% during 2022–2030, to reach USD 18,716 million by 2030.

The rising demand for natural gas and crude oil, notably from the APAC region, as well as a growing emphasis on secure, reasonably priced, and safe connections for oil and gas resource supply, is expected to drive the market over the forecast period.

The need for pipelines is also expected to expand due to an increase in shale gas resource discoveries and development in the North American region. Already, the continent has generated a significant demand for the installation of pipelines off its shores. Moreover, during the forecast period, the rising hydrocarbon imports via subsea (offshore) pipelines will have a significant positive impact on the offshore pipeline industry.

Essentially, the demand for refined goods has grown rapidly due to the population growth, urbanization, and booming automotive sector. The offshore pipeline technology has been identified by the key industry players as a strategic energy infrastructure investment for long-term economic success.

After extraction, hydrocarbons should be transported to their final destination safely and affordably. The best option for doing so is these pipelines. Since there is a lower chance of spillage and subsea pipes are unaffected by tides, cyclones, and other geographical events, they are chosen over ships.

Additionally, they serve as the most-affordable mode of transportation, as pipelines that are laid once can be used for many years. Before a pipeline is laid, research must be done to determine its length, kind of seabed, potential impediments, and other factors, in order to lower risk and maintenance costs.

Europe has the largest market for offshore pipelines. The key drivers for the market expansion in the region are the presence of high-energy-consuming nations, such as the U.K., France, and Germany, rising hydrocarbon production, and financial advantages of such pipelines.

Similarly, in the MEA region, an EPCI contract for the offshore portion of QatarEnergy's North Field Expansion Project was awarded to McDermott Middle East Inc. in January 2022. The North Field East (NFE) and North Field South (NFS) development projects will boost the State of Qatar's ability to produce liquefied natural gas (LNG) from 77 million tons per year (MTPA) to 126 MTPA, which would make it the largest LNG project in the world.

Additionally, in November 2021, Eni entered into an agreement to sell a 49.9% stake in its subsidiaries TPMC and TTPC, which operate the TMPC and TPC gas pipelines, to Snam for EUR 385 million. TMPC operates offshore gas pipelines connecting the Tunisian coast to Italy's coast, while TTPC operates onshore gas pipelines connecting Tunisia's coast to Algeria.

To ensure the security of Italy's natural gas supply, the deal will foster synergies between the parties considering their expertise on certain aspects of gas transportation, thus opening up the possibility of projects within the North African hydrogen value chain.

High Demand for Refined Petroleum Products Drives Market

Many chemicals, medications, fertilizers, solvents, and polymers are made from petroleum. To fulfill the rising demand for refined petrochemicals, such as gasoline and diesel, several corporations, including Exxon Mobil, BP, Rosneft, and Total, intend to invest significantly to dramatically increase their oil refining capacity, by expanding the existing refineries and building new ones.

The significant projects initiated in this regard include a 1.5-million-ton-per-year petrochemical plant by Sasol, 1.5-million-ton-per-year polyethylene facility by Shell, and a polyethylene and elastomer plant by Dow DuPont in the U.S. As a result, the need for new pipeline networks, to meet the demand for refined products, would increase.

Moreover, to increase productivity, these and many other E&P companies are exploring new fields both onshore and offshore. With time, the world is relying more on offshore resources and expanding E&P operations in greater depths, to safeguard future supplies. Hence, the spending on infrastructure, including pipelines, subsea template systems, smart well control systems, and subsea processing systems, will be driven by the continued growth of the industry.

Additionally, it will encourage the construction of new floating production storage and offloading (FPSO) platforms, tension leg platforms, and multipurpose support vessels. However, it necessitates longer submarine energy lines. In order to share applications between wells and platforms, subsea "smart wells" require extended WANs, LANs, and sensor, instrumentation, and control connections.

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North America To Have Significant Share in Global Revenue

North America is expected to hold a significant share in the coming years. The region has witnessed an increase in the demand for subsea pipelines, as both the countries in the region are making significant investments in subsea E&P projects.

It is projected that the pipeline infrastructure in the region will continue to be used at full capacity during the forecast period. Moreover, because of the growing E&P activities in the Gulf of Mexico, the market for offshore pipelines in the U.S. will expand dramatically.

A large number upcoming new projects seek to extract a total of more than 835 billion cubic feet of natural gas reserves. One of them, the Manuel Project in the U.S. territorial waters part of the Gulf of Mexico began in 2021, according to BP. The project includes a new subsea production system for two additional wells connected to the Na Kika platform.

The wells are expected to increase gross platform production by 20,100 barrels of oil equivalent per day. Furthermore, due to technical improvements, the Canadian pipeline business is projected to grow steadily in the coming years. The Canadian gasoline industry may experience high production levels via pipelines, which are the safest and the most-cost-effective way to meet the energy needs of high-value end markets.

The discovery of new reserves throughout the region is essentially propelling the growth of the market. For instance, Equinor and its partner, Wellesley, have discovered the oilwells 35/10-7 A and 35/10-7 S in the Troll and Fram areas within the Toppand prospect.

Such discoveries of untapped oil and gas deposits in the region support the construction of new refineries and call for new pipelines. Another factor that boosts interest in offshore pipelines in the region is the advancement in adaptable line innovation.

Rising Offshore Hydrocarbon Discoveries Offer Market Opportunities

The offshore pipeline sector is expected to receive major investments in North America. In order to meet its rising need for petroleum products, the U.S. has begun to concentrate on shale oil and gas production. Services for pipeline integrity are crucial to lowering transportation risks, ensuring structural integrity, and protecting people and assets. In order to prevent geo-hazardous conditions along the pipeline and safeguard it from corrosion, these services are of the utmost importance.

For instance, Enbridge's future pipeline project in North America, the Enbridge Line 3 Replacement Pipeline, will use Metegrity's Pipeline Enterprise software as its construction quality management system (CQMS). To upgrade its pipes, Enbridge has invested USD 4.4 billion, a portion of which was used to increase the functionality of smart pigs (data capturing tools), to keep an eye on its pipelines from a central control room in Alberta, Canada

Natural Gas Category Is Expected To Experience Significant Growth

The natural gas category, under the product segment, is expected to witness growth of around 4.7% during the forecast period. As a result of the increasing demand for LNG and LPG, new gas fields have been discovered, and undersea pipes are now being used to transport the commodity easily and affordably.

In 2021, the world produced around 4 trillion cubic meters of natural gas. With 1,109.9 billion cubic meters, North America produced most of it, followed by the Middle East and Africa (917.9 billion cubic meters).

Moreover, Guyana announced plans in October 2021 to construct a 220-km-long subsea gas pipeline. The proposed pipeline will be able to carry roughly 50 million standard cubic feet of gas per day from the Liza Phase 1 and 2 projects, which are run by ExxonMobil.

Similarly, Abu Dhabi National Oil Company, in January 2022, announced the discovery of a 1.5–2-trillion-standard-cubic-feet raw natural gas field in an offshore area located northwest of the U.A.E.

Additionally, a number of gasoline exploration and production companies have widened their portfolios of sustainable deep-water and ultra-deep-water developments as a result of the recent cost reductions and significant technological advancements. Thus, the natural gas category is expected to occupy a share of more than 36% in 2030.

Key Players in Offshore Pipeline Market Are:

• Saipem SpA
• Subsea 7 S.A.
• McDermott International Ltd.
• John Wood Group PLC
• TechnipFMC plc
• Sapura Energy Berhad
• Petrofac Limited
• BOURBON Maritime
• Allseas Group S.A.
• Cortez Subsea Limited

Offshore Pipeline Market Size Breakdown by Segment

This report offers deep insights into the offshore pipeline market, with size estimation for 2017 to 2030, the major drivers, restraints, trends and opportunities, and competitor analysis.

Based on Diameter

• Below 24 Inches
• Greater than 24 Inches

Based on Product

• Natural Gas
• Crude Oil
• Refined Products

Based on Line Type

• Transport Line
• Export Line

Based on Installation Technique

• S LAY
• J LAY
• TOW IN

Based on Depth of Operation

• Shallow Water
• Deepwater

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
• Asia-Pacific
  • Japan
  • China
  • India
  • South Korea
  • Australia
• Latin America
  • Brazil
  • Mexico
• Middle East and Africa
  • Saudi Arabia
  • South Africa
  • U.A.E.