Market Trends of Gulf of Mexico Oil and Gas Midstream Industry
This section covers the major market trends shaping the Gulf Of Mexico Oil & Gas Midstream Market according to our research experts:
Pipeline Sector to Witness Growth
- The oil production in the Gulf of Mexico increased, by 3.87%, to 1,983 thousand barrels per day, in January 2019 from 1,909 thousand barrels per day in January 2018. An increase in the production of oil increases the need for better midstream infrastructure and thereby is expected to boost the midstream industry.
- In 2018, Texas City Terminal Pipeline is a proposed natural oil pipeline in Texas that will run from a proposed offshore oil terminal to Texas City, Texas, the United States. It is expected to have a length of 128.7 kilometers (80 miles) and is expected to come online during the forecast period.
- In 2018, Transcontinental Gas Pipeline is an operating natural gas pipeline that has a capacity of 15,580 million cubic feet per day and has a length of 16,415 km (10,200 miles). It is one of the most important pipelines in the country because it covers a very large distance from the Gulf of Mexico to New York City Area and provides crude oil to different locations all over the eastern part of the United States.
- Therefore, factors, such as increasing oil and gas production, coupled with upcoming projects, are expected to boost the midstream sector in the years.
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Increase in Investment to Drive the Market
- The natural gas production in the Gulf of Mexico decreased, by 5.63%, year on year, to 80810 million cubic feet, in 2018 from 101925 million cubic feet, in 2015. The natural gas in following a trend of decreasing production, which restrains the market.
- In 2019, Freeport-McMoRan LNG Terminal was a proposed LNG export terminal in the United States. The expected capacity of the terminals is 24 million metric ton per annum and is expected to be completed by 2022. As of 2019, the terminals are under construction.
- In 2019, one of the largest terminals in the region is the Ingleside Energy LNG Terminal, which is an LNG export terminal located at the Port of Corpus Christi in Ingleside, Texas, United States. The capacity of the LNG terminals is approximately 1 billion cub feet per day. The LNG Terminals provide for the capacity of export of LNG to countries all over the world.
- The Gulf of Mexico oil and gas midstream industry is expected to grow slightly in the forecast period due to the increase in the investment in the region.
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