Gathering Pipeline Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented, By Type (Crude Oil Pipeline and Natural Gas), By Application (Onshore and Offshore), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 54.21 Billion
CAGR (2026-2031)	4.28%
Fastest Growing Segment	Natural Gas
Largest Market	North America
Market Size (2031)	USD 69.71 Billion

Market Overview

The Global Gathering Pipeline Market will grow from USD 54.21 Billion in 2025 to USD 69.71 Billion by 2031 at a 4.28% CAGR. The Global Gathering Pipeline Market comprises the network of low-pressure conduits designed to transport crude oil and natural gas from production wellheads to central processing facilities or transmission lines. This sector functions as the essential upstream link in the energy value chain, aggregating hydrocarbons from dispersed extraction sites for further refinement. The primary driver supporting market growth is the intensification of exploration and production activities, particularly in unconventional shale reserves that require dense gathering grids to maximize output. According to the International Gas Union, in 2025, global natural gas demand was projected to increase by 71 billion cubic meters, a statistic that underscores the urgent necessity for expanded gathering infrastructure to support rising consumption levels.

However, market expansion faces a significant challenge in the form of stringent regulatory frameworks and protracted permitting procedures. Environmental agencies globally are enforcing rigorous compliance standards to curb methane emissions and minimize ecological disruption, which frequently results in project delays and escalated capital expenditures. This regulatory complexity, combined with heightened public opposition to fossil fuel developments, creates a substantial barrier that may impede the timely construction and deployment of new gathering pipeline systems in key production regions.

Key Market Drivers

The surge in unconventional shale gas and tight oil production constitutes a primary catalyst for the market because these reserves require significantly denser gathering networks compared to conventional fields. Shale operators must continuously drill new wells to offset rapid decline rates, a process that necessitates the constant deployment of small diameter pipelines to connect fresh wellheads to central processing units. This operational intensity ensures a steady stream of projects for pipeline contractors as they work to aggregate hydrocarbons from dispersed sites in prolific basins. According to Reuters, March 2024, in the 'US oil output hits record high' article, domestic crude production reached a record 13.3 million barrels per day, a volume that directly correlates with the increased requirement for surface gathering infrastructure in key shale regions.

Rising global energy and electricity consumption further drives market momentum by compelling the upstream sector to maximize throughput capacity for both crude oil and natural gas. As industrialization and electrification accelerate, particularly in emerging economies, the pressure to transport extracted resources efficiently from remote sites to transmission hubs becomes critical to maintaining energy security. According to the Energy Institute, June 2024, in the 'Statistical Review of World Energy 2024', global primary energy consumption increased by 2% in 2023, highlighting the expanding need for robust logistical networks to meet end-user demand. To support this heightened activity, operators are committing substantial capital to physical assets, and according to the International Energy Agency, in 2024, global upstream oil and gas investment was projected to reach $570 billion, a trend that underpins the ongoing funding for essential gathering pipeline installations.

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Key Market Challenges

Stringent regulatory frameworks and protracted permitting procedures present a substantial barrier to the Global Gathering Pipeline Market. Environmental agencies globally are enforcing rigorous compliance standards to curb methane emissions, requiring operators to implement complex monitoring systems and adhere to strict ecological protocols. These requirements extend project timelines significantly, as gathering lines—which must be deployed rapidly to match drilling activities—are frequently stalled by lengthy environmental impact assessments and legal challenges. The resulting misalignment between upstream production and midstream takeaway capacity creates infrastructure bottlenecks, forcing producers to curtail output and restricting the physical expansion of gathering networks in key basins.

The economic impact of these regulatory delays creates a challenging environment for capital deployment. According to the American Petroleum Institute, in 2025, more than $34 billion in infrastructure investments were delayed due to unpredictable federal review processes. This capital, immobilized by administrative hurdles, directly constrains the industry's ability to construct necessary conduits for transporting crude oil and natural gas. Consequently, operators become hesitant to commit to new gathering projects, fearing that shifting compliance mandates and indefinite permitting timelines will erode project viability and hamper overall market growth.

Key Market Trends

The Integration of AI-Driven Predictive Maintenance Systems is fundamentally reshaping gathering network operations by shifting strategies from reactive repairs to proactive asset management. Operators are increasingly deploying digital twin models and machine learning algorithms to analyze vast datasets from sensor arrays, allowing them to predict equipment failures and corrosion fatigue before they disrupt flows. This technological pivot is critical for managing the complex, remote web of small-diameter pipes in unconventional basins where manual inspection is cost-prohibitive. According to DNV, November 2025, in the 'Pipeline Insights 2025' report, 85% of pipeline professionals reported an increased focus on digitalization over the past year, significantly outpacing the general energy industry average and signaling a major capital commitment to intelligent monitoring infrastructure.

Simultaneously, the Implementation of Advanced Methane Leak Detection Solutions has accelerated as companies move beyond regulatory compliance to actively mitigate product loss and environmental risks. The industry is rapidly adopting continuous monitoring technologies, including satellite imagery, aerial drone surveys, and laser-based ground sensors, to identify and seal fugitive emissions across dispersed wellhead connections. This operational overhaul is yielding measurable results in infrastructure integrity and emissions control. According to the Oil and Gas Climate Initiative (OGCI), October 2025, in the 'Annual Progress Report 2024', member companies reduced their aggregate upstream methane intensity by 62% compared to the 2017 baseline, a milestone that underscores the widespread deployment and efficacy of next-generation detection technologies in the upstream gathering sector.

Segmental Insights

The Natural Gas segment has emerged as the fastest-growing category within the Global Gathering Pipeline Market. This expansion is fundamentally driven by the global shift toward lower-carbon energy sources, positioning natural gas as a vital transition fuel. Increased production from unconventional sources, such as shale reserves, has triggered a heightened need for gathering infrastructure to collect raw gas from wellheads for processing. Additionally, growing consumption in the power generation and industrial sectors supports the continuous development of these pipeline networks, ensuring efficient transportation from extraction sites to downstream facilities.

Regional Insights

North America dominates the Global Gathering Pipeline Market, primarily driven by the extensive development of unconventional oil and gas resources in the United States and Canada. The region benefits from high production levels in key shale basins, such as the Permian and Marcellus, which necessitate robust gathering networks to transport hydrocarbons from dispersed wellheads to central processing facilities. Additionally, the U.S. Energy Information Administration (EIA) indicates that rising crude oil and liquefied natural gas (LNG) exports further incentivize the expansion of upstream infrastructure. This continuous investment in collection systems solidifies North America’s position as the leading regional market.

Recent Developments

• In September 2025, MPLX LP completed the acquisition of Northwind Delaware Holdings for approximately $2.375 billion, significantly expanding its presence in the Permian Basin. This transaction added a comprehensive sour gas gathering and processing system in the Delaware Basin, which includes over 200 miles of gathering pipelines and over 200,000 dedicated acres in Lea County, New Mexico. The acquired infrastructure is designed to handle substantial volumes of sour natural gas, supported by acid gas injection wells. This strategic move was intended to enhance the company’s integrated logistics and processing value chain while providing producers with critical solutions for gas composition challenges in the region.
• In January 2025, Pembina Pipeline Corporation announced the successful closing of an acquisition involving a 50% working interest in the Kaybob Complex from Whitecap Resources Inc. for approximately CA$420 million. This deal included long-term take-or-pay agreements for capacity at the facility and established an area of dedication for future volumes. Furthermore, the collaboration involved a commitment to fund the development of new infrastructure, including gathering laterals and battery upgrades in the Lator area. The transaction aligned with the company’s strategy to integrate gathering and processing assets within the liquids-rich Montney and Duvernay plays, securing durable cash flows and supporting regional production growth.
• In December 2024, Summit Midstream Corporation finalized the acquisition of Tall Oak Midstream III and its subsidiaries from an affiliate of Tailwater Capital LLC. The transaction, valued at approximately $155 million in cash plus equity, provided the company with a large-scale natural gas gathering and processing system in the Arkoma Basin. The acquired assets included over 400 miles of pipelines and processing capacity of 440 million cubic feet per day, supported by over 300,000 dedicated acres. This strategic consolidation was designed to diversify the company's operational footprint, increase its exposure to gas-weighted drilling activities, and generate operational synergies across its midstream portfolio.
• In October 2024, ONEOK, Inc. completed the acquisition of Medallion Midstream, the largest privately held crude oil gathering and transportation system in the Permian Basin’s Midland region. The transaction, valued at approximately $2.6 billion, added more than 1,200 miles of gathering pipelines and 1.5 million barrels of crude oil storage to the company’s asset base. This acquisition was executed to diversify the company's service offerings and integrate an extensive gathering network with its existing long-haul transmission pipelines. By securing significant acreage dedications and gathering capacity, the company aimed to capture increased volumes and enhance commercial synergies within the prolific Permian Basin production area.

Key Market Players

• GAIL Limited
• NOV Inc.
• Engas UK Ltd
• Welspun Living Limited
• Phillips 66 Company
• EITEP GmbH
• Saipem S.p.A.
• MRC Global Inc.
• General Electric Company
• Technip S.A.

By Type	By Application	By Region
Crude Oil Pipeline Natural Gas	Onshore Offshore	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Gathering Pipeline Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Gathering Pipeline Market, By Type:

• Crude Oil Pipeline
• Natural Gas

• Gathering Pipeline Market, By Application:

• Onshore
• Offshore

• Gathering Pipeline Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE