Nigeria 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 | < 1.50 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Nigeria Oil and Gas Midstream Market Analysis
Nigeria's oil and gas midstream market is expected to register a CAGR of less than 1.5% during the forecast period.
COVID-19 negatively impacted the market in 2020. Presently, the market has reached pre-pandemic levels.
- Over the medium term, factors such as increasing production and consumption of natural gas and refined petroleum products, rising investments in the oil and gas sector, and increasing LNG exports are expected to boost the demand for pipeline services and drive the oil and gas midstream market in the country during the forecast period.
- On the other hand, environmental concerns regarding new pipelines and transportation infrastructure are likely to restrain the growth of the oil and gas midstream market in the coming years.
- Nevertheless, exploration and production of oil and gas fields in the region are expected to become an opportunity for companies working in the oil and gas midstream industry as more pipeline and storage infrastructure may be required.
Nigeria Oil and Gas Midstream Market Trends
Transportation Sector to Dominate the Market
- Pipelines dominate the oil and gas transportation industry. The oil and gas supply in the country is expected to exceed the existing transportation capacity, thus requiring expansions and the construction of new pipelines.
- As of December 2022, according to the Global Energy Monitor, there were about 3200 km of operating gas pipelines and 2535 km of operating oil pipelines in the country to transport crude oil and gas. With the increasing demand for petroleum products, new pipeline infrastructure is required.
- The rising energy demand has resulted in an increase in pipeline construction and transportation facilities as the continuous need for energy demands new oil and gas infrastructure. This increasing energy demand has increased new terminal and pipeline construction, including oil and gas pipelines and transportation.
- In July 2022, Algerian, Nigerian, and Nigerian Energy Ministers signed an agreement for the construction of a 4,000-kilometer gas pipeline across the Sahara Desert that is expected to supply Europe with additional gas.
- Natural gas production in Nigeria reached 45.9 billion cubic meters at the end of 2021. The increased consumption incentivizes the investors for the required increase in capacity and improves future investments, thereby boosting industry growth.
- Hence, pipeline capacity is expected to increase slightly during the forecast period due to an increase in the consumption of oil and gas and rising investment in the sector.
Increasing Investment in the Pipelines, Along with Growing LNG Exports, is Expected to Drive the Market
- According to the National Bureau of Statistics, Nigeria's crude oil exports jumped to about NGN 5.6 trillion in the first quarter of 2022, reflecting a 200% increase compared to the same period in 2021. Similarly, Nigeria is pushing for more natural gas exports to European countries as they look for alternative gas-supplying nations due to the sanctions on natural gas imports from Russia. In the first quarter of 2022, the revenue generated from export and feedstock sales to the Nigeria Liquefied Natural Gas Limited (NLNGL) hit USD 243.57 million, surpassing receipts from crude oil exports by 259.4%.
- Further, the government of Nigeria is also focusing on increasing the domestic consumption of natural gas by developing pipelines for industries and the residential sector. For instance, in 2020, Nigeria began constructing a USD 2.8 billion gas pipeline project, the biggest in the country's history. The 614-kilometer-long pipeline will run from Ajaokuta to Kano under the auspices of the Nigerian National Petroleum Corporation (NNPC).
- The West African Gas Pipeline is an operating pipeline that delivers gas from Nigeria's Niger Delta to West African nations such as Benin, Togo, and Ghana. The length of the pipeline is approximately 677 kilometers (421 miles), with a capacity of 200 million cubic feet per day. This pipeline is one of the primary pipelines in the region, as it connects many countries.
- The LNG exports from Nigeria increased from 26.9 billion cubic meters in 2015 to 23.3 billion cubic meters in 2021.
- In terms of the pipeline, Nigeria aims to transport more liquefied natural gas to Europe as the countries in Europe are looking for an alternative to the dwindling supplies of Russian gas, which will aid the midstream market. For instance, as of 2022, the Nigeria LNG facility is undergoing expansion to add a seventh LNG processing unit and supporting infrastructure to increase its total production capacity from 22 million metric tons per annum (MTPA) to 30 MTPA.
The Nigerian oil and gas midstream industry is expected to grow slightly over the forecast period due to the anticipated increase in production, consumption, and exports of gas and an increase in investment in the country's pipeline infrastructure.
Nigeria Oil and Gas Midstream Industry Overview
The Nigerian oil and gas midstream market is consolidated. Some major companies include (in no particular order) Nigerian National Petroleum Corporation, Duport Midstream Company Limited, Shell PLC, Eni SpA, and Chevron Nigeria Limited, among others.
Nigeria Oil and Gas Midstream Market Leaders
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Duport Midstream Company Limited (DMCL)
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Nigerian National Petroleum Corporation
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Chevron Nigeria Limited
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Eni SPA
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Shell PLC
*Disclaimer: Major Players sorted in no particular order
Nigeria Oil and Gas Midstream Market News
- September 2022: A memorandum of understanding (MOU) was signed between the National Nigerian Petroleum Company Limited (NNPC) and the Moroccan Office of Hydrocarbons and Mines (ONHYM) for the development of the Nigeria-Morocco gas pipeline project (NMGP) linking Nigeria to Morocco, which also aims to supply natural gas to West Africa and Europe. The project passes through 13 African countries along the Atlantic coast and supplies the landlocked states of Niger, Burkina Faso, and Mali. It is expected to supply more than 5,000 billion cubic meters of natural gas to Morocco.
- January 2022: Nigeran company Asiko Energy started construction of a dual LPG and LNG terminal in Ijora, Lagos State, Nigeria. Besides being the first land-based LNG receiving terminal in Africa, the terminal was expected to also be the first dual liquefied gas terminal in Nigeria. This facility was anticipated to have a full containment LNG storage tank, as well as a storage capacity of 5,000 tonnes of LPG and propane, which will enable it to receive, store, and distribute LPG, propane, butane, and LNG.
Nigeria 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 Nigeria Oil and Gas Midstream Market in USD billion, till 2028
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.5.1 Drivers
4.5.2 Restraints
4.6 Supply Chain Analysis
4.7 PESTLE Analysis
5. MARKET SEGMENTATION
5.1 Sector
5.1.1 Transportation
5.1.2 Storage and Terminal
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 Nigerian National Petroleum Corporation
6.3.2 DuPort Midstream Company Limited
6.3.3 Shell PLC
6.3.4 Eni SpA
6.3.5 Chevron Nigeria Limited
6.3.6 Phillips Oil Co. Nigeria Ltd.
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Nigeria Oil and Gas Midstream Industry Segmentation
The midstream sector covers the transportation, storage, and trading of crude oil, natural gas, and refined products. In its unrefined state, crude oil is transported by two primary modes: tankers, which travel interregional water routes, and pipelines, through which most of the oil moves for at least part of the route.
The Nigerian oil and gas midstream market is segmented by type. By type, the market is segmented into transportation, storage, and LNG terminals. For each segment, market sizing and forecasts have been done based on revenue (USD billion).
| Sector | |
| Transportation | |
| Storage and Terminal |
Nigeria Oil and Gas Midstream Market Research FAQs
What is the current Nigeria Oil and Gas Midstream Market size?
The Nigeria Oil and Gas Midstream Market is projected to register a CAGR of less than 1.5% during the forecast period (2024-2029)
Who are the key players in Nigeria Oil and Gas Midstream Market?
Duport Midstream Company Limited (DMCL), Nigerian National Petroleum Corporation, Chevron Nigeria Limited, Eni SPA and Shell PLC are the major companies operating in the Nigeria Oil and Gas Midstream Market.
What years does this Nigeria Oil and Gas Midstream Market cover?
The report covers the Nigeria Oil and Gas Midstream Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Nigeria Oil and Gas Midstream Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Nigeria Oil and Gas Midstream Industry Report
Statistics for the 2024 Nigeria Oil and Gas Midstream market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Nigeria Oil and Gas Midstream analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
Nigeria Oil and Gas Midstream Market Report Snapshots
