Market Trends of Russian Federation Oil and Gas Downstream Industry
This section covers the major market trends shaping the Russian Federation Oil & Gas Downstream Market according to our research experts:
Refining Capacity to Witness Growth
- In 2019, Tuapse Refinery, Orsk Refinery, Novokuibyshev Refinery, and many such refineries are being expanded or modernized, in the country, and may lead to an increase in the growth in the sector.
- In 2019, The Omsk Refinery is the Gazprom Group's leading oil refining company. It is one of Russia's most advanced and the world's largest refineries and is expected to undergo expansion phase in the forecast period.
- In 2018, Russian oil refineries produced approximately 6.7 million barrels per day, remaining at the same level for two consecutive years. The largest producer of oil refinery throughput is Rosneft.
- Hence, refining capacity is expected to witness significant growth with expansion and modernization leading to an increase in the refining capacity.
Understand The Key Trends Shaping This Market
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Increasing Natural Gas Consumption and Production to Drive the Market
- In the Russian Federation, oil production increased by 1.6% to 563.3 million tons of oil equivalent (mtoe) in 2018 from 554.3 Mtoe in 2017. Consumption of oil increases to 146.3 million tons of oil equivalent (Mtoe) in 2018 from 146.0 Mtoe in 2017. Increasing demand and an increase in the production of oil are boosting the growth in the market.
- In Russian Federation, natural gas production increased by 5.3% to 575.6 million tons of oil equivalent (Mtoe) in 2018 from 546.5 Mtoe in 2017. Consumption of natural gas increases to 390.8 million tons of oil equivalent (Mtoe) in 2018 from 370.7 Mtoe in 2017. Increasing demand for gas and increase in production is boosting the growth in the market.
- In 2019, China National Chemical Engineering Co. Ltd. and Baltic Chemical Complex (a subsidiary of RusGasDobycha) have signed an agreement to build a 13.3 billion USD petrochemical plant which is expected to be the largest in the world.
- Hence, increasing the consumption and production of natural gas is expected to increase the growth in the market. Investment in the oil and gas sector is also exected to act as a prominent driver in the industry.
