Natural Gas Pipeline Transportation: Introduction
- Natural gas is a naturally occurring hydrocarbon gas consisting primarily of methane. It is used as a source of energy for industrial, residential, as well as commercial applications.
- From deep wells in the earth’s surface, companies extract hydrocarbons comprising methane mixtures, which are then processed and refined into pure methane and transported as pipeline quality gas to be distributed in households, commercial establishments, and industries as fuel. These reserves come from reservoirs comprising crude oils and other non-commercial substances. Pure methane is extracted from materials and is transferred through local and long-distance pipelines for delivery to various customers.
Key Drivers and Restraints of Natural Gas Pipeline Transportation Market
- According to International Energy Agency (IEA), oil and natural gas meet 50% of the world’s energy demand. Consumption of natural gas increased by 4.6% in 2018. According to Rystad Energy, total energy consumption in the commercial sector stood at 4, 12,627 Ktoe in 2018 and is anticipated to rise during the forecast period.
- Natural gas is transported via a series of large piping infrastructure. Pipeline transportation of natural gas provides a safe, economic, and environmentally sound alternative to most other options of energy transport. In the power sector, natural gas is used as a fuel for co-generation power plants. In the fertilizer industry, natural gas is used as feedstock for the production of ammonia and urea. In the petrochemical industry, natural gas is used for the production of chemical products such as methanol. Natural gas is used as a fuel for cooking and heating purposes in domestic and commercial applications. Thus, usage of natural gas in various industries is expected to drive the natural gas pipeline transportation market.
- Governments of countries across the globe are leaning toward a low carbon future. This is anticipated to impact the consumption of oil and natural gas, resulting in limited production of oil and natural gas. In turn, this is likely to hamper the global natural gas pipeline transportation market.
COVID-19 Impact Analysis on Supply Chain
- Governments of several countries across the globe have imposed stringent lockdowns to limit the spread of the coronavirus. Movement of individuals and economic activities, related to goods and services, have come to a halt because of lockdowns. Supply could not adjust to the drop in consumption. This resulted in considerable buildup of gas in storage. Low prices and unprecedented drop in demand have created difficulties for the upstream sector in regions with unfavorable production economies.
Natural Gas Pipeline Transportation Market Segmentation
- The global natural gas pipeline transportation market can be segmented based on type, pipeline component, and location
- In terms of type, the global natural gas pipeline transportation market can be divided into gathering pipeline, transportation pipeline, and distribution pipeline
- In terms of pipeline component, the global natural gas pipeline transportation market can be segregated into transmission pipes, compressor stations, metering stations, and valves
- In terms of location, the global natural gas pipeline transportation market can be classified into onshore and offshore
Natural Gas Pipeline Transportation Market: Regional Segmentation
- In terms of region, the global natural gas pipeline transportation market can be split into Middle East & Africa, Latin America, Asia Pacific, Europe, and North America
- Natural gas is being highly publicized as low-carbon energy system, which is building the credibility of companies in the market landscape. Europe is anticipated to absorb most of the natural gas supply from exporters, as users are switching from coal to gas in the power sector. Thus, the natural gas pipeline transportation market is projected to expand significantly in Europe during the forecast period.
- According to the World Energy Council, the U.S. has 1,161 trillion cubic feet of technically recoverable unconventional gas. China has 1,115 trillion cubic feet of unconventional gas. The U.S. was the leading country in terms of production of unconventional gas in 2018. Its annual production of unconventional gas stood at 22 trillion cubic feet in 2018. China’s production output stood at 10 trillion cubic feet in the year. Thus, surge in production of gas is expected to boost the natural gas pipeline transportation market during the forecast period.
Key Players Operating in Global Market
- Kinder Morgan
- Chevron Corporation
- PetroChina Company Limited
- ENBRIDGE INC.
- Berkshire Hathaway Energy
- Enable Midstream Partners
Global Natural Gas Pipeline Transportation Market: Research Scope
Global Natural Gas Pipeline Transportation Market, by Type
- Gathering Pipeline
- Transportation Pipeline
- Distribution Pipeline
Global Natural Gas Pipeline Transportation Market, by Pipeline Component
- Transmission Pipes
- Compressor Stations
- Metering Stations
Global Natural Gas Pipeline Transportation Market, by Location
Global Natural Gas Pipeline Transportation Market, by Region
- North America
- Russia & CIS
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Latin America
- Rest of Latin America
- Middle East & Africa
- South Africa
- Rest of Middle East & Africa
This study by TMR is all-encompassing framework of the dynamics of the market. It mainly comprises critical assessment of consumers' or customers' journeys, current and emerging avenues, and strategic framework to enable CXOs take effective decisions.
Our key underpinning is the 4-Quadrant Framework EIRS that offers detailed visualization of four elements:
- Customer Experience Maps
- Insights and Tools based on data-driven research
- Actionable Results to meet all the business priorities
- Strategic Frameworks to boost the growth journey
The study strives to evaluate the current and future growth prospects, untapped avenues, factors shaping their revenue potential, and demand and consumption patterns in the global market by breaking it into region-wise assessment.
The following regional segments are covered comprehensively:
- North America
- Asia Pacific
- Latin America
- The Middle East and Africa
The EIRS quadrant framework in the report sums up our wide spectrum of data-driven research and advisory for CXOs to help them make better decisions for their businesses and stay as leaders.
Below is a snapshot of these quadrants.
1. Customer Experience Map
The study offers an in-depth assessment of various customers’ journeys pertinent to the market and its segments. It offers various customer impressions about the products and service use. The analysis takes a closer look at their pain points and fears across various customer touchpoints. The consultation and business intelligence solutions will help interested stakeholders, including CXOs, define customer experience maps tailored to their needs. This will help them aim at boosting customer engagement with their brands.
2. Insights and Tools
The various insights in the study are based on elaborate cycles of primary and secondary research the analysts engage with during the course of research. The analysts and expert advisors at TMR adopt industry-wide, quantitative customer insights tools and market projection methodologies to arrive at results, which makes them reliable. The study not just offers estimations and projections, but also an uncluttered evaluation of these figures on the market dynamics. These insights merge data-driven research framework with qualitative consultations for business owners, CXOs, policy makers, and investors. The insights will also help their customers overcome their fears.
3. Actionable Results
The findings presented in this study by TMR are an indispensable guide for meeting all business priorities, including mission-critical ones. The results when implemented have shown tangible benefits to business stakeholders and industry entities to boost their performance. The results are tailored to fit the individual strategic framework. The study also illustrates some of the recent case studies on solving various problems by companies they faced in their consolidation journey.
4. Strategic Frameworks
The study equips businesses and anyone interested in the market to frame broad strategic frameworks. This has become more important than ever, given the current uncertainty due to COVID-19. The study deliberates on consultations to overcome various such past disruptions and foresees new ones to boost the preparedness. The frameworks help businesses plan their strategic alignments for recovery from such disruptive trends. Further, analysts at TMR helps you break down the complex scenario and bring resiliency in uncertain times.
The report sheds light on various aspects and answers pertinent questions on the market. Some of the important ones are:
1. What can be the best investment choices for venturing into new product and service lines?
2. What value propositions should businesses aim at while making new research and development funding?
3. Which regulations will be most helpful for stakeholders to boost their supply chain network?
4. Which regions might see the demand maturing in certain segments in near future?
5. What are the some of the best cost optimization strategies with vendors that some well-entrenched players have gained success with?
6. Which are the key perspectives that the C-suite are leveraging to move businesses to new growth trajectory?
7. Which government regulations might challenge the status of key regional markets?
8. How will the emerging political and economic scenario affect opportunities in key growth areas?
9. What are some of the value-grab opportunities in various segments?
10. What will be the barrier to entry for new players in the market?
Note: Although care has been taken to maintain the highest levels of accuracy in TMR’s reports, recent market/vendor-specific changes may take time to reflect in the analysis.