Market Trends of United Kingdom Oil and Gas Midstream Industry
This section covers the major market trends shaping the UK Oil & Gas Midstream Market according to our research experts:
Transportation Sector to Witness Growth
- The United Kingdom has an extensive network of pipelines that carry oil extracted from North Sea platforms to coastal terminals in Scotland and in northern England.
- In 2018, natural gas imported by The United Kingdom in the form of LNG was 7.3 billion cubic meters (bcm), and the natural gas pipeline was to 42.8 bcm, this is an increase with respect to LNG imported, in 2017. Primarily due to the increasing demand for gas in the country.
- Consumption of natural gas increased in the country, by 2.3%, year on year, to 67.8 mtoe, in 2018 from 61.9 million tons of oil equivalent (mtoe), in 2015. Oil consumption in the United Kingdom has increased by 0.56 %, year on year, rising to 77.0, in 2018 from 75.3, in 2015. Increasing consumption is indicative of increasing economic growth of the country
- In 2018, Bacton-Zeebrugge Interconnector and Langeled Pipeline are the most significant operational gas pipelines in the country with 74 cubic meters and 72 cubic meters of max flow capacity, respectively.
- The United Kingdom's pipeline capacity is expected to grow slightly in the forecast period due to an increase in oil production in the country and increase in demand for oil and natural gas.
Understand The Key Trends Shaping This Market
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Increasing OIl Production to Drive the Market
- The United Kingdom depends on oil and gas supply prominently from its resources in the North Sea and Neighbouring countries like Norway. In 2019, most of the pipelines that the United Kingdom imports from are linked with the oil and gas fields in the North Sea.
- Oil production in the United Kingdom increased substantially, by 9.0%, to 50.8, in 2018 from 46.6, in 2017.
- In 2018, crude stocks and product stocks account for around 14.5 million tons of storage in the United Kingdom. The oil is stored in many places, including terminals and refineries.
- In 2018, Forties Oil and Gas Pipeline System (FPS) is currently under construction for an increase in distribution safety and reliability. The pipeline transports around 600,000 barrels of oil per day, which accounts for about 40% of the UK's production of oil.
- Hence, increasing the production of oil is expected to increase the growth of the sector in the forecast period.
