Brazil Oil and Gas Midstream Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | > 3.50 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Brazil Oil and Gas Midstream Market Analysis
The Brazilian oil and gas midstream market is projected to register a CAGR of over 3.5 % during the forecast period.
In 2020, COVID-19 had a detrimental effect on the market. Presently, the market has reached pre-pandemic levels.
- Over the medium term, factors such as increasing oil and gas activities in the country and the increasing natural gas trade from neighboring countries are expected to drive the growth of the Brazilian oil and gas midstream market during the forecast period.
- On the other hand, Brazil's shift toward renewable sources for electricity generation poses a huge threat to the oil and gas midstream sector and is likely to restrain the Brazilian oil and gas midstream market.
- Nevertheless, the demand for oil is expected to increase to three million barrels per day, while the demand for gas is expected to increase to 82 billion cubic meters by 2040 in Brazil. In a bid to meet the rising demand for oil and gas, the pipeline capacities are expected to get expanded, and new pipeline projects are expected to get commissioned, which is expected to create an opportunity for the country's midstream market in the near future.
Brazil Oil and Gas Midstream Market Trends
Transportation as a Significant Segment
- The pipeline is a significant means of transportation for natural gas, crude oil, and oil products. In Brazil, pipelines act as a substantial mode of transportation for natural gas. Brazil installed its natural gas pipelines due to domestic oil and gas field developments and natural gas imports from Bolivia.
- In August 2022, according to CEO Cynthia Silveira, the Transportadora Gasoduto Bolívia-Brasil (TBG) of Brazil was expected to issue a public call for more gas transportation capacity by the end of the year 2022.
- Further, Brazil produced about 3.7 million barrels of oil equivalent and 131,325 thousand cubic meters of gas per day, according to data from the Brazilian National Agency of Petroleum, Natural Gas, and Biofuels (ANP) from May 2022. Brazil presently ranks seventh globally in terms of daily oil barrel production, and within ten years, it is anticipated to produce more than 5.3 million barrels per day.
- Brazil's oil production decreased by 1.56% in 2021. In 2021, the natural gas production was 156.8 million metric tons, compared to 2020, which was 159.3 million metric tons.
- In mid-2022, a division of the Brazilian Ministry of Energy, the Energy Research Company (EPE), published the "Transport Gas Pipeline Plan 2022-2026" (PIG), which served as a guide for investments in gas pipeline construction throughout the country. In the 2022-26 plan, there are five gas pipeline routes that will be constructed, primarily to carry gas from the Sergipe and Alagoas basins as well as pre-salt gas. The document indicates that USD 4 billion will be invested to fund the construction of each pipeline.
Due to the above points, the midstream sector is also expected to increase during the forecast period along with the transportation sector.
Growing Pipeline Infrastructure to Drive the Market
- Brazil accounted for about 2.9 million barrels per day of crude oil production and was the tenth-largest oil-producing country in the world in 2021. According to the United States Energy Information Administration (EIA), more than 90% of Brazil's oil production is extracted from deep-water oil fields offshore. According to the EIA, Brazil had 12.7 billion barrels of proven crude reserves in 2021, the second largest in South America after Venezuela.
- Around 30 offshore oil & gas projects are expected to start across the region by 2023, which requires a cumulative greenfield investment of around USD 50 billion. These projects are operated by a mix of national oil companies (NOCs) and major independent companies.
- As of 2021, Brazil was the major country in South America regarding oil & gas spending. The country's offshore pre-salt oil fields pumped around 50% of the total oil output, and this share increased to approximately 75% by the end of 2020. This increasing production and dependency on offshore oil & gas fields could be attributed to steadily decreasing production expenses due to improved drilling technology, growing expertise in the offshore oil & gas industry, and increased infrastructure.
- Petrobras, the country's national oil company, has an extensive natural gas pipeline network of around 9000 km. Apart from the existing pipeline, 11 gas pipeline projects have been announced or outlined by companies operating in the country in recent years. The announced projects make up over 1900 km of new pipelines in pipeline extensions, offshore pipelines, etc. In August 2021, Brazil started negotiations with Argentina to construct a 1430-kilometer-long pipeline exporting gas from Vaca Muerta reserves at an estimated cost of nearly USD 4.9 billion. Such projects are expected to provide an opportunity for the country's midstream oil & gas sector.
- In January 2022, ONGC Videsh Ltd., the overseas investment arm of the state-owned Oil and Natural Gas Corporation (ONGC), entered the development stage of production on its deep offshore block BM-SEAL-4, Brazil, located in the Sergipe Alagoas Basin. Brazil's Petrobras is the operator of the block with 75% participating interest (PI), while ONGC Videsh Ltd. holds the remaining 25% stake. The block development module of Petrobras envisages the installation of a shared floating production storage and offloading (FPSO) facility and a gas pipeline.
- Brazil's natural gas production increased by 0.7% in 2021. In 2021, the natural gas production was 24.3 billion cubic meters, compared to 24.2 billion cubic meters in 2020.
- Owing to the above points, growing pipeline infrastructure is anticipated to drive the Brazil oil and gas midstream market during the forecast period.
Brazil Oil and Gas Midstream Industry Overview
The Brazilian oil and gas midstream market is consolidated. Some of the major key players in the market include (in no particular order) Petroleo Brasileiro SA, Total SA, Alvopetro Energy Ltd., Gas TransBoliviano SA, and Engie SA., among others.
Brazil Oil and Gas Midstream Market Leaders
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Petroleo Brasileiro SA
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Total SA
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Alvopetro Energy Ltd
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Gas TransBoliviano SA
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Engie SA
*Disclaimer: Major Players sorted in no particular order
Brazil Oil and Gas Midstream Market News
- November 2022: The Norwegian company Kanfer Shipping AS entered into a partnership agreement with Nimofast Brasil S.A. to establish small- and medium-scale LNG shipping, small-scale floating storage units (FSUs), and LNG bunkering solutions in Brazil from 2025 onward.
- March 2022: Brazilian energy company Petrobras considered selling the Bolivia-Brazil natural gas pipeline to US-based private equity firm EIG Energy Partners. Transportadora Brasileira Gasoduto Bolívia-Brasil (TBG) operates the Brazilian section of the pipeline, known as Gasbol, which is designed to carry up to 30 million cubic meters per day of natural gas from Bolivia to Brazilian consumers. As a result of the sale of its 51% stake in Transportadora Brasileira Gasoduto Bolívia-Brasil (TBG), the Brazilian state-run oil company expects to receive over USD 500 million.
Brazil Oil and Gas Midstream Market Report - Table of Contents
1. INTRODUCTION
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET OVERVIEW
4.1 Introduction
4.2 Brazil Oil and Gas Midstream Market in USD billion, till 2028
4.3 Brazil LNG Terminals Installed Capacity and Forecast, in MTPA, till 2028
4.4 Recent Trends and Developments
4.5 Government Policies and Regulations
4.6 Market Dynamics
4.6.1 Drivers
4.6.2 Restraints
4.7 Supply Chain Analysis
4.8 PESTLE Analysis
5. MARKET SEGMENTATION
5.1 Transportation
5.1.1 Overview
5.1.2 Key Projects
5.1.2.1 Existing Projects
5.1.2.2 Projects in Pipeline
5.1.2.3 Upcoming Projects
5.2 Storage
5.2.1 Overview
5.2.2 Key Projects
5.2.2.1 Existing Infrastructure
5.2.2.2 Projects in Pipeline
5.3 LNG Terminals
5.3.1 Overview
5.3.2 Key Projects
5.3.2.1 Existing Infrastructure
5.3.2.2 Projects in Pipeline
5.3.2.3 Upcoming Projects
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Petroleo Brasileiro SA
6.3.2 Total SA
6.3.3 Alvopetro Energy Ltd
6.3.4 Gas TransBoliviano SA
6.3.5 Engie SA
6.3.6 Transportadora Brasileira Gasoduto Bolívia-Brasil S.A
6.3.7 Nimofast Brasil S.A.
6.3.8 Kanfer Shipping AS
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Brazil Oil and Gas Midstream Industry Segmentation
The midstream sector pertains to transporting and storing crude oil and natural gas extracted. It includes infrastructure such as crude oil and natural gas pipelines, gas treatment plants, natural gas liquefaction plants, and liquefied gas and regasification storage.
The Brazilian oil and gas midstream market is segmented by transportation, storage, and LNG terminals. For each segment, market sizing and forecasts have been done based on revenue (USD billion).
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Brazil Oil and Gas Midstream Market Research FAQs
What is the current Brazil Oil and Gas Midstream Market size?
The Brazil Oil and Gas Midstream Market is projected to register a CAGR of greater than 3.5% during the forecast period (2024-2029)
Who are the key players in Brazil Oil and Gas Midstream Market?
Petroleo Brasileiro SA, Total SA, Alvopetro Energy Ltd, Gas TransBoliviano SA and Engie SA are the major companies operating in the Brazil Oil and Gas Midstream Market.
What years does this Brazil Oil and Gas Midstream Market cover?
The report covers the Brazil Oil and Gas Midstream Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Brazil Oil and Gas Midstream Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Brazil Oil and Gas Midstream Industry Report
Statistics for the 2024 Brazil Oil and Gas Midstream market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Brazil Oil and Gas Midstream analysis includes a market forecast outlook 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
