Central Asia Oil & Gas Upstream Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | > 3.50 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Central Asia Oil & Gas Upstream Market Analysis
The Central Asia oil and gas upstream market is expected to register a CAGR of over 3.5% during the forecast period, 2022-2027. The COVID-19 pandemic has negatively affected the market. For instance, in January 2022, due to concerns about the omicron variant of the coronavirus, oil prices in the Kazakhstan country increased by 5% after the government protested train lines and hit production at the country's Tengiz oilfield. Factors such as plans to improve oil production are expected to drive the growth for the market during the forecast period. However, oil production has decreased slightly over the past few years due to technological constraints and government regulations. This, in turn, likely to restrain market growth during the forecast period.
- Onshore projects are expected to remain the most utilized of the deployment locations as they provide for cheaper access to the oil resources.
- There have been significant oil discoveries in countries like Turkmenistan and Kazakhstan. Economically feasible oil extraction may become an opportunity for the companies and may lead to a boom in oil production.
- Kazakhstan is expected to dominate the market, owing to the increase in oil and natural gas productions.
Central Asia Oil & Gas Upstream Market Trends
This section covers the major market trends shaping the Central Asia Oil & Gas Upstream Market according to our research experts:
Onshore Segment to Dominate the Market
- In Central Asia, most of the economically viable oil and gas fields in the country are situated inland. Many countries, such as Kazakhstan, is the largest economy in Central Asia and home to more than 18 million people. The country is rich in coal, oil, natural gas, and uranium. The country has seen significant growth in its exploration and production activities in recent days.
- Oil production in the region has grown around 2.4% respectively, in the past five years. Although Kazakhstan produces some gas, most of it is re-injected to enhance oil recovery locally. On the contrary, most of the gas produced by Turkmenistan and Uzbekistan is exported to China, Russia, and Azerbaijan.
- Moreover, Kazakhstan's primary export oil grade is the Caspian Pipeline Consortium (CPC) Blend. CPC Blend is of light quality with an API (American Petroleum Institute) gravity of 45.3° and sweet crude (0.56% sulfur), which is of high value for its high yield of gasoline and light distillates. Most of the CPC blend is produced from the Tengiz field.
- In November 2021, the Chevron-led consortium that operates the Tengiz Oil field had begun an early production from a USD 45 billion expansion project intended to lift output to 850,000 b/d. Tengizchevroil consortium had brought on stream three metering stations producing 100,000 b/d connected to new wells drilled as part of this expansion.
- Owing to the above points onshore segment is expected to dominate the market during the forecast period.
Kazakhstan is Expected to Dominate the market
- Kazakhstan was the world's ninth-largest exporter of crude oil and 12th of natural gas as of 2021. As of december 2021, natural gas exported by Kazakhstan was 15,101.000 million cubic meters. The increase was primarily due to demand from Russian Federation and China.
- Natural gas production increased by 14.03%, i.e., from 27.8 billion cubic meters in 2010 to 32.7 billion cubic meters in 2021. Consumption of natural gas increased by 22.06%, i.e., from 9.5 bcm in 2010 to 15.1 bcm in 2021. Therefore, increasing demand for natural gas is boosting the investments within the country.
- In 2021, the Ministry of Energy, Kazakhstan announced USD 116.8 million for the implementation of 146 oil and gas projects across the country. The allocated budget is utilized for the extension of gas networks, providing access to gas for around 10,388 thousand people within the country.
- Moreover, in June 2021, Kazakhstan started the construction of a new gas processing plant in the Makat district in the Atyrau region, near the existing onshore Bolashak oil and gas treatment complex. The project has an investment cost of USD 860 million and has a capacity to process 1 billion cubic meter/year of sulfur dioxide from the Kashagan field.
- Hence, increasing investments in the oil and gas industry are expected to drive the market due to the addition of fresh capacity. An increase in the demand from neighboring countries like the Russian Federation and China is also expected to boost the market during the forecast period.
Central Asia Oil & Gas Upstream Industry Overview
The Central Asia Oil and Gas Upstream Market is moderately consolidated. The major companies include National Company JSC (KazMunayGas), Chevron Corporation, Karachaganak Petroleum Operating BV, Gazprom International Limited, and PJSC Lukoil Oil Company.
Central Asia Oil & Gas Upstream Market Leaders
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KazMunayGas
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Chevron Corporation
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Gazprom International Limited
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PJSC Lukoil Oil Company
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Sinopec Oilfield Service Corporation (SSC)
*Disclaimer: Major Players sorted in no particular order
Central Asia Oil & Gas Upstream Market News
- In June 2022, Chevron Corporation, through its subsidiary Chevron Munaigas Inc. and JSC NC 'KazMunayGas' (KMG), announced a memorandum of understanding to explore potential lower carbon business opportunities in Kazakhstan. Both companies had a plan to evaluate the potential for lower carbon projects in areas such as carbon capture, utilization, and storage (CCUS).
- In January 2021, Karachaganak Petroleum Operating BV (KPO) signed the agreement sanctioning the Karachaganak Expansion Project-1A (''KEP1A Project''). The sanctioning of the KEP1A Project is a milestone in the continued development of the Karachaganak field, building the Karachaganak Gas Debottlenecking Project (KGDBN) and the Fourth Injection Compressor (4IC) Project.
Central Asia Oil & Gas Upstream Market Report - Table of Contents
1. INTRODUCTION
1.1 Scope of Study
1.2 Market Definition
1.3 Study Assumptions
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET OVERVIEW
4.1 Introduction
4.2 Market Size and Demand Forecast in USD billion, till 2027
4.3 Crude Oil Production Forecast, in thousands barrels per day, till 2027
4.4 Natural Gas Production Forecast, in billion cubic feet per day, till 2027
4.5 Recent Trends and Developments
4.6 Government Policies and Regulations
4.7 Market Dynamics
4.7.1 Drivers
4.7.2 Restraints
4.8 Porter's Five Forces Analysis
4.8.1 Bargaining Power of Suppliers
4.8.2 Bargaining Power of Consumers
4.8.3 Threat of New Entrants
4.8.4 Threat of Substitutes Products and Services
4.8.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Type of Deployment
5.1.1 Onshore
5.1.2 Offshore
5.2 Geography
5.2.1 Kazakhstan
5.2.2 Turkmenistan
5.2.3 Uzbekistan
5.2.4 Rest of Central Asia
6. COMPETITIVE LANDSCAPE
6.1 Mergers & Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 JSC Turkmengaz
6.3.2 Sinopec Oilfield Service Corporation
6.3.3 Gazprom International Limited
6.3.4 PJSC Lukoil Oil Company
6.3.5 Chevron Corporation
6.3.6 KazMunayGas Grid Solutions SAS
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Central Asia Oil & Gas Upstream Industry Segmentation
The scope of Central Asia oil and gas upstream market report consists of
| Type of Deployment | |
| Onshore | |
| Offshore |
| Geography | |
| Kazakhstan | |
| Turkmenistan | |
| Uzbekistan | |
| Rest of Central Asia |
Central Asia Oil & Gas Upstream Market Research FAQs
What is the current Central Asia Oil and Gas Upstream Market size?
The Central Asia Oil and Gas Upstream Market is projected to register a CAGR of greater than 3.5% during the forecast period (2024-2029)
Who are the key players in Central Asia Oil and Gas Upstream Market?
KazMunayGas, Chevron Corporation, Gazprom International Limited, PJSC Lukoil Oil Company and Sinopec Oilfield Service Corporation (SSC) are the major companies operating in the Central Asia Oil and Gas Upstream Market.
What years does this Central Asia Oil and Gas Upstream Market cover?
The report covers the Central Asia Oil and Gas Upstream Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Central Asia Oil and Gas Upstream Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Central Asia Oil and Gas Upstream Industry Report
Statistics for the 2024 Central Asia Oil and Gas Upstream market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Central Asia Oil and Gas Upstream analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
