Asia-Pacific Oil and Gas Midstream Market By Technology (Pipeline Monitoring Systems, SCADA Systems, Control Valves and Actuators, Leak Detection Systems, Advanced Metering Infrastructure), By Product (Crude Oil, Natural Gas, Liquefied Natural Gas (LNG), Refined Petroleum Products), By Operation (Gathering, Processing, Transportation, Storage, Distribution), By Country, Competition, Forecast and Opportunities 2020-2030F

Market Overview

Asia-Pacific Oil and Gas Midstream Market was valued at USD 10.45 Billion in 2024 and is expected to reach USD 12.72 Billion by 2030 with a CAGR of 3.17% during the forecast period.

The Asia-Pacific oil and gas midstream market plays a pivotal role in ensuring energy connectivity across the region by facilitating the transportation, storage, and processing of hydrocarbons from upstream production to downstream consumption. As one of the world’s most dynamic energy markets, the Asia-Pacific region is witnessing significant growth in midstream infrastructure due to the rising demand for oil and natural gas, driven by rapid industrialization, urban expansion, and population growth, particularly in emerging economies like India, China, Indonesia, and Vietnam. The increasing need for energy security, diversification of energy sources, and regional interconnectivity is prompting heavy investment in pipeline networks, liquefied natural gas (LNG) terminals, and storage facilities.

Governments and private players across the region are accelerating efforts to develop extensive pipeline corridors for crude oil, refined products, and natural gas to address supply-demand gaps and reduce reliance on imported fuels. China, for instance, is rapidly expanding its oil and gas pipeline grid and LNG regasification capacity as it transitions toward cleaner fuels. India is also enhancing its national gas grid and investing in strategic petroleum reserves to buffer against global supply shocks. Meanwhile, Southeast Asian nations are focusing on regional pipeline connectivity and floating storage regasification units (FSRUs) to improve energy access and flexibility.

The growth of LNG infrastructure is a key highlight of the midstream segment, as countries increasingly view natural gas as a transitional fuel for decarbonization. Australia remains a global LNG powerhouse, while markets like the Philippines, Thailand, and Vietnam are investing in new regasification terminals to secure long-term gas supplies. Additionally, rising industrial demand and the shift away from coal are accelerating natural gas adoption.

Challenges such as high capital costs, complex regulatory environments, and geopolitical tensions in certain areas continue to pose risks. However, ongoing technological advancements, including digital pipeline monitoring and automation in storage and transportation, are improving operational efficiency and safety. With growing cross-border collaborations, policy support, and energy diversification goals, the Asia-Pacific midstream oil and gas sector is poised for steady growth, playing a critical role in the region’s evolving energy landscape over the forecast period.

Key Market Drivers

Rising Energy Demand Across Asia-Pacific

The Asia-Pacific region is experiencing a significant surge in energy demand due to rapid urbanization, industrialization, and population growth. Countries such as India and China are at the forefront, accounting for nearly 45% of the global increase in energy demand over the past decade. This demand directly drives investment in midstream infrastructure—especially in pipelines and LNG terminals—to transport and store fuel efficiently.

In India, natural gas demand is expected to double by 2030, according to the Ministry of Petroleum and Natural Gas. Similarly, China's natural gas consumption reached 388.8 billion cubic meters in 2023, and the nation is planning an extensive pipeline network expansion to meet rising domestic needs. These figures underline the critical importance of strengthening midstream logistics to ensure uninterrupted energy supply.

Expansion of Natural Gas Infrastructure and LNG Terminals

Natural gas is increasingly seen as a transition fuel to cleaner energy, leading to strong growth in LNG infrastructure development. Asia-Pacific countries, especially Japan, China, South Korea, and India, are significantly investing in LNG import terminals and regasification facilities.

As of 2024, Asia-Pacific accounts for over 70% of global LNG imports, with China importing 71.2 million tonnes of LNG in 2023 and expected to increase its LNG terminal capacity by over 100 million tonnes per annum (MTPA) by 2030. India also plans to increase its LNG regasification capacity from 47.5 MTPA to over 70 MTPA by 2025. These expansions enhance midstream demand for transportation, storage, and regasification assets.

Government Policies and Strategic Initiatives

Several Asia-Pacific governments are implementing favorable policies to develop midstream infrastructure, reduce import dependency, and boost domestic production. India’s National Gas Grid project, for instance, aims to build 33,764 km of gas pipeline infrastructure, connecting major consumption centers with supply hubs.

Similarly, China's "Energy Security Strategy" supports pipeline investments to improve domestic fuel distribution and enhance strategic petroleum reserves (SPRs). Southeast Asian nations such as Indonesia and Vietnam are launching public-private partnerships (PPPs) to invest in LNG import infrastructure, providing new midstream business opportunities and ensuring energy resilience.

Regional Interconnectivity and Cross-Border Pipelines

The push for regional energy integration is propelling cross-border midstream projects. Initiatives like the Trans ASEAN Gas Pipeline (TAGP) aim to connect the natural gas infrastructures of 10 ASEAN countries, fostering energy trade and security.

TAGP currently links over 3,673 km of pipelines, and further extensions are in progress. Projects such as the China-Myanmar Oil and Gas Pipeline, which spans over 2,500 km, serve as key examples of midstream infrastructure facilitating cross-border energy flows and reducing shipping dependence through chokepoints like the Malacca Strait.

Rising Industrial and Urban Consumption

The ongoing expansion of industrial manufacturing and urban centers has increased the demand for reliable energy supply chains, creating higher demand for efficient midstream infrastructure. Asia-Pacific’s industrial gas demand is projected to rise by 30% by 2030, particularly in chemicals, steel, cement, and power generation sectors.

Urbanization also plays a critical role. Over 2.3 billion people live in urban areas in Asia-Pacific, and this is expected to reach 3.5 billion by 2050, according to UN estimates. The energy needs of urban areas demand robust midstream networks for safe and timely fuel delivery, particularly through pipelines and LNG distribution systems.

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Key Market Challenges

High Capital and Operational Costs

Developing and maintaining midstream infrastructure such as pipelines, LNG terminals, and storage facilities in Asia-Pacific requires substantial investment. Construction of a single kilometer of onshore pipeline can cost up to USD 5 million, while offshore pipelines and LNG infrastructure incur even higher expenses. These capital-intensive projects face financing hurdles, especially in developing nations with budget constraints.

Moreover, operational costs—such as regular maintenance, advanced safety systems, and skilled workforce requirements—add to the burden. Volatility in oil and gas prices also makes long-term returns uncertain, discouraging private sector involvement. For instance, several proposed LNG terminals in Southeast Asia have been delayed or shelved due to cost overruns and funding gaps. These financial challenges slow project timelines and restrict regional connectivity, affecting overall market efficiency.

Regulatory Complexity and Bureaucratic Delays

Asia-Pacific comprises a diverse set of countries, each with its own regulatory frameworks, environmental standards, and land acquisition laws, making cross-border midstream development difficult. In India and Indonesia, for example, obtaining clearances for new pipelines or terminals involves multiple agencies and prolonged timelines—often stretching over 3–5 years.

Differences in safety standards, licensing procedures, and tax regimes between neighboring countries further hinder the implementation of cross-border energy infrastructure like pipelines. Regulatory uncertainty also discourages foreign investment and slows private-public partnership developments. These complications cause significant project delays, raise costs, and reduce investor confidence across the midstream value chain.

Geopolitical Risks and Security Threats

The Asia-Pacific region is exposed to several geopolitical tensions and territorial disputes that threaten midstream energy infrastructure. For example, the South China Sea is a crucial corridor for LNG shipping, yet territorial claims by China, the Philippines, and Vietnam create instability. Midstream assets in conflict-prone or insurgency-affected areas also face sabotage risks, as witnessed in parts of Myanmar and Pakistan.

Additionally, piracy and maritime tensions pose risks to offshore platforms and LNG tankers, while pipeline vandalism remains a concern in rural regions. These threats increase insurance costs, necessitate enhanced security protocols, and delay projects, undermining the reliability and safety of midstream operations.

Environmental and Social Opposition

The midstream oil and gas sector faces rising resistance from environmental groups and local communities concerned about ecological damage, emissions, and land use. Projects like pipeline constructions often cut through forests, tribal lands, and coastal zones, triggering legal battles and public protests.

In Australia and India, several pipeline and LNG infrastructure projects have been stalled or canceled due to environmental clearance issues or social opposition. For example, India’s East Coast LNG project faced strong resistance due to potential impacts on marine biodiversity. Environmental regulations are also tightening, requiring costly mitigation measures like environmental impact assessments, emissions control, and ecosystem restoration, all of which affect project feasibility.

Technological and Logistical Limitations in Remote Regions

Many midstream projects in Asia-Pacific are located in geographically challenging terrains—mountainous areas, dense forests, or remote offshore fields—where deploying infrastructure is technologically complex and logistically demanding. Laying pipelines across the Himalayas or constructing offshore LNG terminals in the South China Sea involves significant engineering challenges and extended project durations.

In countries like Indonesia and Papua New Guinea, inadequate transport infrastructure and lack of skilled workforce further hinder progress. Harsh weather conditions, such as monsoons and typhoons, disrupt project schedules and maintenance activities. These limitations reduce the scalability and speed of midstream developments, especially in emerging markets with poor infrastructure readiness.

Key Market Trends

Expansion of Cross-Border and Regional Energy Connectivity

Asia-Pacific governments are increasingly focusing on building interconnected energy grids and transnational pipeline networks to promote regional energy security and economic cooperation. Projects such as the Trans ASEAN Gas Pipeline (TAGP) and China-Myanmar Oil and Gas Pipeline are key examples of this regional integration trend.

The TAGP aims to connect over 3,600 km of gas pipelines across Southeast Asia, enabling energy flow between Malaysia, Thailand, Singapore, and Indonesia. Similarly, the China-Myanmar pipeline, spanning 2,500 km, enables the transportation of crude oil and gas directly to China’s Yunnan province, bypassing the Malacca Strait.

Such infrastructure facilitates energy trade, enhances supply reliability, and allows smaller economies like Laos or Cambodia to access affordable energy. As geopolitical and environmental risks rise, countries are exploring multilateral agreements to support shared pipeline access and joint storage capacity, bolstering midstream demand across borders.

Increasing Investments in Underground and Strategic Storage Facilities

With rising volatility in global oil and gas markets, countries in Asia-Pacific are strengthening strategic petroleum reserves (SPRs) and underground gas storage (UGS) capacity to safeguard against supply disruptions. Nations like China, India, Japan, and South Korea are leading this trend.

China, for instance, is building one of the world's largest SPR programs, aiming to store over 500 million barrels of oil by 2030. India recently completed its Phase II SPR project, adding over 6.5 million metric tonnes of crude storage capacity. These reserves are complemented by underground gas storage sites that help balance seasonal demand.

The growth in strategic and commercial storage enhances the midstream market by creating sustained demand for tanks, pipelines, pumping stations, and metering systems. Additionally, storage acts as a buffer to price shocks and supply chain disruptions, making midstream logistics more vital to national energy planning.

Shift Toward Decarbonization and Low-Carbon Fuel Transport

As the global energy transition accelerates, the Asia-Pacific midstream sector is adapting by exploring low-carbon fuels such as hydrogen, ammonia, and bio-LNG. Countries like Japan, South Korea, and Australia are making early moves to retrofit existing midstream infrastructure to support the transport of these alternatives.

Japan and Australia have initiated hydrogen export-import supply chains, and dedicated pipelines for hydrogen blending are under pilot trials in parts of South Korea and China. Meanwhile, India is investing in bio-LNG supply chains to support its clean mobility push.

Midstream firms are now planning for multi-fuel infrastructure, integrating renewable-powered compressors, carbon capture-ready storage, and retrofitted pipelines. This decarbonization shift not only aligns with national climate commitments but also ensures long-term asset viability as oil and traditional gas volumes potentially decline in the coming decades.

Segmental Insights

Product Insights

Crude Oil segment dominates in the Asia-Pacific Oil and Gas Midstream market in 2024 due to a combination of rising demand, expanded refining capacity, and increased regional production. Several major economies in the region, including China, India, and Southeast Asian countries, continue to rely heavily on crude oil to support their industrial growth, transportation needs, and strategic energy planning.

China, the region’s largest consumer, imports over 10 million barrels per day (bpd), much of which is transported through midstream infrastructure such as pipelines, storage terminals, and tankers. The country has also significantly expanded its Strategic Petroleum Reserve (SPR), increasing the demand for crude oil storage and transportation infrastructure. Similarly, India’s crude oil imports reached around 4.6 million bpd in 2024, driven by growth in transportation and refining sectors.

Moreover, multiple midstream projects across Asia-Pacific are focused specifically on crude oil pipelines and terminals, such as the China-Myanmar Crude Oil Pipeline and the East Coast Refinery and Pipeline Project in India. These infrastructure developments are not only increasing throughput capacity but also reducing dependency on maritime chokepoints, enhancing energy security.

Refining capacity is also expanding across the region. For example, India and China have added new mega-refineries, which require continuous crude oil supply via midstream networks. The sustained investment in refining has led to long-term contracts and strategic investments in crude oil logistics infrastructure.

Furthermore, global market volatility has prompted countries in the region to build up crude inventories and reserve capacity, further boosting the need for midstream services. As long as the region continues to rely on crude as a primary energy input and feedstock for petrochemicals, the crude oil segment will maintain its dominance in the midstream market by volume and infrastructure value.

Operation Insights

Transportation segment dominated the Asia-Pacific Oil and Gas Midstream market in 2024 due to the region’s growing energy demand and expanding cross-border pipeline infrastructure. Countries like China, India, and Australia have heavily invested in pipeline networks and marine logistics to ensure efficient crude oil and natural gas delivery from production sites to refineries and LNG terminals. Major projects, such as the China-Russia Power of Siberia gas pipeline and India’s national gas grid expansion, have significantly increased transportation capacity. Additionally, the region’s geographic diversity and dependence on imports further elevate the importance of robust transportation infrastructure in the midstream sector.

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Country Insights

Largest Country

China dominates the Asia-Pacific Oil and Gas Midstream market in 2024 due to its massive energy demand, extensive infrastructure investment, and strategic emphasis on energy security. As the world’s largest crude oil importer and one of the top natural gas consumers, China’s reliance on an efficient and resilient midstream network is critical to sustaining its economic growth and industrial operations.

China has aggressively expanded its pipeline network, which now exceeds 110,000 kilometers, covering crude oil, refined products, and natural gas. Major infrastructure projects like the China-Russia “Power of Siberia” gas pipeline, China-Myanmar Oil and Gas Pipeline, and domestic long-distance gas pipelines have solidified China’s dominance in midstream capacity. These pipelines not only increase supply reliability but also reduce dependence on maritime chokepoints like the Strait of Malacca, improving national energy security.

In addition, the Chinese government has prioritized the development of LNG import terminals, with over 22 operational terminals and more under construction. China’s push toward cleaner energy sources has driven strong growth in LNG imports, necessitating expanded regasification capacity, storage facilities, and internal distribution networks.

Moreover, China is investing heavily in strategic and commercial storage. It plans to expand its Strategic Petroleum Reserve (SPR) capacity to over 500 million barrels by 2030, prompting the development of massive crude oil and gas storage infrastructure. This makes the country a key player in midstream logistics across both oil and gas domains.

China’s state-owned giants—CNPC, Sinopec, and CNOOC—along with the country’s newly formed PipeChina (China Oil & Gas Pipeline Network Corporation), are leading midstream development, enabling integrated transportation, storage, and processing services across vast regions. These advancements, coupled with robust government backing and long-term planning, firmly position China as the leading country in the Asia-Pacific oil and gas midstream market in 2024.

Emerging Country

Japan is the emerging country in the Asia-Pacific Oil and Gas Midstream market in the coming period due to its strategic focus on energy diversification, LNG infrastructure expansion, and energy security. As one of the world’s largest LNG importers, Japan is investing in advanced regasification terminals, floating storage units (FSUs), and underground gas storage. The government is also promoting hydrogen and ammonia co-firing capabilities, which require midstream adaptation. Additionally, Japan’s energy transition policies are driving investments in upgrading existing midstream infrastructure for cleaner fuels. These factors position Japan as an important and evolving participant in the regional midstream landscape over the forecast period.

Recent Developments

• In February 2025, during India Energy Week, the Government of India signed multiple strategic agreements and MoUs to bolster energy security, diversify supply chains, and encourage innovation in the oil and gas sector. Addressing the media, Petroleum Minister Shri Hardeep Singh Puri emphasized that these agreements represent key milestones in building a more resilient and sustainable energy framework for India, aligning with long-term national goals for energy independence and low-carbon growth.
• In March 2025, Cairn Oil & Gas, a Vedanta Group subsidiary and India’s largest private E&P company, initiated a major offshore development project on India’s West Coast. The project, launched via a Memorandum of Understanding (MoU) and Master Service Agreement (MSA) with 2H Offshore, targets an estimated ultimate recovery of 20 MMBOE. It is the largest development under India’s Discovered Small Fields (DSF) offshore blocks, enhancing Cairn’s production profile and offshore asset portfolio.
• In February 2025, ONGC entered into a strategic agreement with bp, appointing it as the Technical Services Provider (TSP) for the Mumbai High field—India’s most productive offshore oil asset. The partnership aims to leverage bp’s global technical expertise to optimize reservoir performance, boost hydrocarbon recovery, and modernize field operations. This collaboration marks a key step in ONGC’s efforts to maximize output from mature assets and sustain production from critical domestic fields.
• In January 2025, ONGC announced a projected USD10.3 billion revenue increase, supported by enhanced oil and gas production from the Mumbai High field. This growth is driven by a technical partnership with bp Exploration (Alpha) Ltd, a wholly owned subsidiary of BP Plc, engaged as the Technical Service Provider. The collaboration focuses on deploying advanced recovery technologies and performance optimization, positioning Mumbai High for substantial productivity improvements and long-term value generation.

Key Market Players

• Kinder Morgan Inc.
• Enbridge Inc.
• Enterprise Products Partners L.P.
• TransCanada Corporation (now TC Energy)
• Magellan Midstream Partners L.P.
• Plains All American Pipeline L.P.
• Williams Companies Inc.
• Energy Transfer LP
• Phillips 66 Partners L.P
• ONEOK Inc

Report Scope:

In this report, the Asia-Pacific Oil and Gas Midstream Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

·         Asia-Pacific Oil and Gas Midstream Market, By Technology:

o   Pipeline Monitoring Systems

o   SCADA Systems

o   Control Valves and Actuators

o   Leak Detection Systems

o   Advanced Metering Infrastructure

• Asia-Pacific Oil and Gas Midstream Market, By Product:

o   Crude Oil

o   Natural Gas

o   Liquefied Natural Gas (LNG)

o   Refined Petroleum Products

• Asia-Pacific Oil and Gas Midstream Market, By Operation:

o   Gathering

o   Processing

o   Transportation

o   Storage

o   Distribution

• Asia-Pacific Oil and Gas Midstream Market, By Country:

o   China

o   Japan

o   India

o   South Korea

o   Australia

o   Singapore

o   Thailand

o   Malaysia

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Asia-Pacific Oil and Gas Midstream Market.

Available Customizations:

Asia-Pacific Oil and Gas Midstream Market report with the given market data, Tech Sci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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