The global oil and gas transmission pipeline length is forecast to grow from the current 1.8 million kilometres to 2.1 million kilometres by 2020, according to a report by GlobalData.
Titled ‘H2 2016 Global Length and Capital Expenditure Outlook for Oil and Gas Pipelines – Natural Gas Pipelines Take Lead in New Project Announcements’, the report estimates the 12.9% compound annual growth rate (CAGR) of total pipeline length to be majorly driven by planned projects in North America.
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The report estimates North America to see the construction of 68,586km of transmission pipeline with an investment of $171.4bn over the forecast period, making it the biggest region by planned pipeline length.
Five countries, including the US, India, Russia, Canada and Iran, are estimated to witness the construction of 128,058km of a new transmission pipeline with a capex of $312bn by 2020.
In terms of companies, Gazprom will build the most planned pipeline length of 14,751m with an estimated capex of $63.2bn over the forecast period, followed by TransCanada Corporation and IGI Poseidon S.A, which together propose to spend $53.3bn on planned pipeline projects.
The 6,000km-long Iran–Iraq–Syria–Lebanon gas pipeline, the 5,220km-long West–East Gas III gas pipeline in China, and the 4,600km-long Energy East gas pipeline in Canada are the three biggest planned projects, according to the report.
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By GlobalData
