Nigeria, Canada and China will be significant spenders on planned pipelines by 2022, considerably expanding their pipeline network, a new report has stated.
GlobalData, a data and analytics company, said the United States and Russia would dominate global capital expenditure on planned major, trunk crude oil, petroleum products and natural gas pipelines during the outlook period of 2018 to 2022.
According to the company’s report titled: ‘Global Planned Pipelines Industry Outlook to 2022’, Nigeria, China and Canada are expected to account for 6.5 per cent, 6.8 per cent and 9.6 per cent, respectively of the global pipeline spending by 2022.
“The three longest planned pipelines in the world in the outlook period are Xinjiang-Guangdong-Zhejiang SNG in China; Russia-India pipeline, and Trans Saharan Gas pipeline in Nigeria, with lengths of 8,972km; 6,000km and 4,400km, respectively. All three are planned natural gas pipelines,” it stated.
GlobalData forecasts that the global planned natural gas pipeline length will grow to 153,902km by 2022, adding that planned crude oil and petroleum product pipelines will also witness impressive growths of 36,876km and 30,840km, respectively.
It added, “Among countries, the US and Russia are set to spend an estimated $88.4bn and $78.8bn, respectively on their new build pipelines. The length of the pipelines in the US and Russia will increase to 35,633km and 20,680km, respectively by 2022 should all projects be realised.
“The US is the biggest spender in the global planned oil and gas pipelines industry, with natural gas pipelines accounting for around 40 per cent of the total planned pipelines network by 2022. Crude oil and natural gas liquids are the additional major planned pipelines with 31 per cent and 24 per cent share, respectively.”
An oil and gas analyst at GlobalData, Soorya Tejomoortula, said booming unconventional oil and gas production was in turn driving the growth of the pipeline network in the US.
“More and more operators are focusing on connecting growing unconventional production with the Gulf coast for export of oil and gas,” he added.
GlobalData identifies Russia as the second most important country in the global planned pipelines industry for spending on upcoming pipelines, with its spending mostly focused on construction of natural gas pipelines, accounting for 88 per cent of the total planned network expected to start operations by 2022.
Petroleum products pipelines and oil pipelines are the next major planned pipelines in Russia with capex share of seven per cent and four per cent respectively, according to the report.
“Russia is further expanding its massive natural gas pipelines network for exports. The country is building pipelines to transport natural gas from its production centres to demand centres such as China, Japan, India and Europe,” Tejomoortula said.
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