The global gas processing industry is projected to grow to 581.7 billion cubic feet a day (bcfd) by 2020 from 511.7bcfd in 2016, resulting in an increase of 14%, says a GlobalData report.
Titled ‘Global Capacity and Capital Expenditure Outlook for Gas Processing Plants – Middle East to Underpin the Global Gas Processing Boom’, the report reveals that the growth in the industry will be driven by the Middle East, Former Soviet Union and Africa with significant gas processing capacity additions by 2020. The highest gas processing capacity globally will be in North America, at 209.4bcfd by 2020.
A capacity addition of 27.1bcfd is expected in the Middle East through 31 planned plants, while North America will be the second in terms of capacity addition, with 15.2bcfd. A total of 90 gas processing plants are planned in North America by 2020 for an estimated $22.5bn.
The Middle East will lead in terms of capital expenditure with a proposed amount of $30.1bn, while Iran and Iraq will be the countries with top capex-spending, estimated at $9.2bn and $6.8bn respectively.
New gas processing plants are planned for Valhalla in Canada and Coloane in China, while no plants have been cancelled since September 2015. Russia has the world’s biggest planned plant, namely the Amur gas processing plant with a capacity of 4,735.7 million metric cubic feet a day (mmcfd). The Prudhoe Bay II in the US follows the Russian plant with 3,297.8mmcfd of capacity.
The GlobalData report states that the maximum growth within the gas processing industry will occur in the Middle East, where an increase of 30% in capacity is expected by 2020. The region’s capacity is expected to surge from 88.5bcfd in 2016 to 115.7bcfd by 2020.
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By GlobalDataAmong the companies, National Iranian Oil Company will lead with capacity addition of 8,831mmcfd by 2020 followed respectively by Saudi Arabian Oil Company (5,072mmcfd) and Gazprom (4,930mmcfd).
With an expected spending of $13.3bn by 2020, Gazprom will lead globally among all companies in terms of capex spending.
