|
Forecast Period
|
2026-2030
|
|
Market Size (2024)
|
USD 11.10 Billion
|
|
Market Size (2030)
|
USD 16.87 Billion
|
|
CAGR (2025-2030)
|
7.07%
|
|
Fastest Growing Segment
|
Safety & Compliance
|
|
Largest Market
|
Saudi Arabia
|
Market Overview
Middle East & Africa Oil & Gas Midstream
Market was valued at USD 11.10 Billion in 2024 and is expected to
reach USD 16.87 Billion by 2030 with a CAGR of 7.07% during the forecast
period.
Oil and gas midstream refers to the sector of the
energy industry involved in the transportation, storage, and wholesale
marketing of oil, natural gas, and refined products. It acts as a crucial link
between the upstream (exploration and production) and downstream (refining and
retail) sectors. The midstream segment primarily focuses on the infrastructure
and services necessary to move raw materials from production sites to
processing facilities, refineries, and distribution points.
Key midstream activities include the operation of
pipelines, storage terminals, and processing plants, which ensure that oil and
gas can be safely and efficiently transported over long distances.
Additionally, midstream companies may manage liquefied natural gas (LNG)
facilities, tankers, and rail systems. The transportation of products can
involve various methods, including pipelines, trucks, railways, and ships.
Given the essential role of midstream in maintaining
the flow of energy products to consumers, this sector is vital for both energy
security and economic stability. Midstream infrastructure also plays a key role
in minimizing risks such as supply disruptions and price volatility, making it
a backbone of the oil and gas industry.
Key Market Drivers
Increasing
Energy Demand and Supply Needs
One of the primary drivers of the Middle East and
Africa (MEA) oil and gas midstream market is the rising global demand for
energy, particularly in emerging economies. The MEA region, which holds some of
the world’s largest oil and natural gas reserves, plays a crucial role in
meeting global energy needs. The demand for energy in Asia, Europe, and other
parts of the world is driving both the extraction of raw oil and gas as well as
the need for efficient transportation and storage infrastructure to ensure
smooth supply chains.
As the demand for oil and gas products grows, so does
the need for robust midstream infrastructure. The construction of pipelines,
terminals, storage facilities, and liquefied natural gas (LNG) plants is
required to transport these resources over long distances, from the production
fields to the refineries and ultimately to end consumers. For instance,
significant investments in pipeline projects, such as the East African Crude
Oil Pipeline (EACOP) and Trans-Saharan Gas Pipeline, aim to improve connectivity
and energy access across the region.
The demand for cleaner energy, especially natural gas,
is increasing as countries shift away from coal and oil-based power generation
due to environmental concerns. This shift further accentuates the need for
effective gas transportation and distribution networks. Furthermore, with
global markets diversifying their energy sources and reducing reliance on coal
and petroleum, the MEA region’s role as a key exporter of natural gas, through
liquefaction and gas pipeline systems, is growing. These changing dynamics will
require more advanced and extensive midstream infrastructure.
The MEA region, specifically the Gulf Cooperation
Council (GCC) countries, has already invested significantly in midstream
infrastructure, and continued expansion is expected to meet both domestic and
international needs. This ongoing growth in energy demand continues to push the
development of midstream facilities, supporting both regional development and
global energy supply chains. The International Energy Agency (IEA) projects that energy
demand in Africa will grow by over 30% by 2030, driven by population growth,
urbanization, and industrial expansion.
Geopolitical
Stability and Strategic Position
The geopolitical stability and strategic location of
the Middle East and Africa make the region a focal point for global oil and gas
trade. The MEA region serves as a major hub for the global energy market, as
many of the world’s largest oil-producing countries are located in this region,
notably Saudi Arabia, Iraq, and the United Arab Emirates. In particular, the
region is home to vital international shipping routes, such as the Strait of
Hormuz, through which a significant portion of the world's oil passes daily.
These geopolitical factors create an environment where midstream infrastructure
development is critical for ensuring the smooth flow of energy resources to
global markets.
Geopolitical stability plays a crucial role in
attracting investment in oil and gas infrastructure, as international investors
seek to minimize risks related to supply chain disruptions, production halts,
and security threats. For instance, projects like the Trans-Mediterranean and
Maghreb-Europe gas pipelines are built to ensure that natural gas from North
Africa can be securely transported to Europe, which is heavily reliant on these
energy imports. Similarly, the development of pipelines and storage facilities
across the Middle East is designed to mitigate the risks associated with
political unrest and protect vital energy resources.
The importance of the MEA region in the global energy
sector has prompted many countries to invest in strengthening their midstream
infrastructure to ensure the continued flow of energy even in times of
political uncertainty. Strategic partnerships between governments and private
investors are also helping to develop secure and reliable oil and gas
transportation systems, which are key to both regional and global energy
security. The
Middle East controls critical global energy shipping lanes, including the Strait
of Hormuz (transits ~20% of global oil) and Bab el-Mandeb, linking the Red Sea
to global markets.
Technological Advancements and Digitalization
Technological advancements and digitalization are
becoming increasingly important drivers of the oil and gas midstream sector in
the Middle East and Africa. As the oil and gas industry faces the challenges of
efficiently managing larger volumes of crude oil, natural gas, and refined
products, there is a growing need to invest in state-of-the-art technologies
that improve operations and safety. Digital solutions are also being adopted to
streamline operations, enhance monitoring, reduce costs, and improve energy
efficiency in the midstream segment.
The implementation of technologies such as automated
control systems, data analytics, and real-time monitoring is helping companies
manage pipeline networks more efficiently, minimizing downtime and improving
performance. For example, smart sensors and Internet of Things (IoT) technology
are used to monitor pipelines for potential leaks, corrosion, or other issues
that could lead to disruptions. This ensures early detection of problems and
faster response times, reducing maintenance costs and minimizing environmental
risks. Additionally, advancements in drone technology are providing new
opportunities for inspecting pipelines and storage facilities, reducing the
need for manual inspections, and allowing companies to carry out more frequent
and detailed assessments of their infrastructure. Artificial intelligence (AI)
and machine learning are also being used to predict maintenance schedules,
optimize routes for transportation, and enhance the overall efficiency of the
supply chain.
Digitalization of midstream processes is improving
transparency and communication across the entire value chain. This is
particularly important in the MEA region, where energy infrastructure spans
vast distances and crosses multiple borders. Digital tools enable real-time
data sharing and analysis, facilitating coordination between production,
transportation, and distribution facilities, which ultimately leads to better
decision-making.
As the Middle East and Africa continue to develop
their oil and gas infrastructure, technological innovations will play a central
role in ensuring that the region remains competitive and capable of meeting the
demands of a growing global energy market. Midstream operators across the GCC and
North Africa are increasingly deploying AI-powered predictive maintenance and
IoT-enabled sensors to monitor pipeline integrity, detect leaks, and optimize
asset performance in real-time.
Government Policies and Investments in Infrastructure
Government policies and strategic investments in
energy infrastructure are key drivers of the oil and gas midstream market in
the Middle East and Africa. National governments and regional organizations are
increasingly recognizing the importance of developing strong midstream
infrastructure to secure energy supplies, enhance economic growth, and attract
foreign investment. Governments in the region have been actively supporting the
growth of midstream infrastructure through favorable policies, investments, and
partnerships with international and private players.
One of the major trends in the region is the
implementation of policies that encourage public-private partnerships (PPPs),
especially in countries such as Saudi Arabia, the UAE, and Algeria. These
partnerships are designed to bring together the expertise, capital, and
technology of private companies with the regulatory support and resources of
governments. Such collaborations are crucial for developing new pipelines, LNG
terminals, and storage facilities that are essential for the smooth functioning
of the oil and gas supply chain.
In addition to supporting infrastructure projects,
governments in the MEA region are also providing favorable regulatory
frameworks to attract investments in midstream facilities. For example, some
countries have introduced tax incentives and subsidies for energy projects,
which can significantly lower the costs of developing midstream infrastructure.
These investments are particularly important for supporting large-scale
projects, such as the development of regional gas pipelines, LNG export
terminals, and petroleum transportation networks, which require substantial
capital and resources.
The ongoing energy transition in the MEA region has
spurred governments to invest in diversifying their energy mix, with a growing
focus on natural gas and renewable energy sources. To support this shift,
governments are investing in midstream infrastructure that facilitates the
transportation and distribution of these cleaner energy resources. For
instance, the development of gas pipeline networks in countries like Egypt and
Nigeria is crucial for supporting the growing demand for natural gas as a cleaner
alternative to coal and oil. Saudi Arabia’s Vision 2030 includes major investment in
energy infrastructure, with Aramco continuing to expand its pipeline network
and storage capacity.
Download Free Sample Report
Key Market Challenges
Geopolitical Instability and Security Risks
One of the key challenges
facing the oil and gas midstream sector in the Middle East and Africa (MEA) is
the ongoing geopolitical instability and security risks in various parts of the
region. The MEA region is home to some of the world’s largest oil and gas
reserves, but it is also a hotspot for political and military conflicts, which
can have a direct impact on the infrastructure that supports oil and gas
transportation. This instability creates significant risks for midstream
operators, who must navigate both the physical dangers of operating in conflict
zones and the uncertainty of evolving political landscapes.
The challenges posed by
geopolitical instability can affect the entire supply chain, from exploration
and production to transportation and distribution. For example, oil pipelines,
storage facilities, and LNG terminals are often located in regions where political
unrest or conflict may lead to attacks, sabotage, or theft. In particular,
areas such as the Sahel, parts of North Africa, and the Gulf of Guinea are
plagued by terrorist activities and insurgencies that directly target energy
infrastructure. These threats can disrupt the flow of oil and gas, causing
significant delays, damage to infrastructure, and even casualties.
The security risks also
extend to maritime operations, where vital shipping routes like the Strait of
Hormuz and the Bab el-Mandeb are crucial for the global oil trade. Piracy,
territorial disputes, and military blockades in these areas pose additional challenges
to the safe and secure transportation of oil and gas products. For example, the
frequent tension in the Gulf region, particularly between Iran and other
countries, has led to instances of attacks on oil tankers and pipeline
infrastructure. Moreover, these geopolitical risks can deter foreign investment
in midstream infrastructure. Companies may be hesitant to commit significant
capital to projects in regions where the potential for conflict or instability
is high. This leads to delays in the development of critical infrastructure,
such as pipelines, terminals, and storage facilities, which are necessary for
the efficient flow of energy resources.
To mitigate these
challenges, midstream companies operating in the MEA region must invest in
advanced security measures, including physical protection, surveillance
systems, and contingency planning for emergencies. Governments and
international stakeholders also have a role to play in stabilizing the region,
fostering diplomatic solutions to conflicts, and ensuring that energy
infrastructure is protected.
Infrastructure Gaps and Maintenance Challenges
Another significant
challenge facing the Middle East and Africa's oil and gas midstream sector is
the underdeveloped or aging infrastructure in some parts of the region, as well
as the difficulty of maintaining and upgrading it in an increasingly complex
environment. While certain countries like Saudi Arabia, the UAE, and Qatar have
well-developed energy infrastructure, many others in Africa and parts of the
Middle East still face major infrastructure gaps. These gaps hinder the
efficient and reliable transportation of oil and gas products, affecting both
domestic energy consumption and export capabilities.
In regions where
infrastructure is lacking, the development of oil and gas transportation
networks such as pipelines, storage facilities, and liquefied natural gas (LNG)
terminals is either in the early stages or has been insufficient to meet
growing demand. This can result in energy shortages, transportation
bottlenecks, and higher costs for both producers and consumers. For example,
parts of sub-Saharan Africa struggle with inadequate pipeline infrastructure to
transport natural gas from production areas to power plants, limiting the
region’s ability to use natural gas as a cleaner energy alternative to coal and
oil.
In addition to
infrastructure gaps, the maintenance of existing facilities presents another
critical challenge. Many of the midstream infrastructure assets in the region
are aging, with some having been in operation for decades. This means that
regular maintenance and repairs are necessary to prevent breakdowns and ensure
the continued safe operation of pipelines and storage facilities. However,
limited financial resources, a shortage of skilled labor, and the difficulty of
accessing remote or hazardous areas can complicate maintenance efforts.
The combination of aging
infrastructure and the growing demand for energy in the region creates an
environment where delays and inefficiencies are more common. These
infrastructure issues also extend to the lack of modern technology to monitor
and manage the transportation systems effectively. Without advanced monitoring
systems, companies may struggle to detect issues such as leaks, corrosion, or
blockages, which can lead to costly repairs and environmental damage.
To address these challenges,
significant investment is required in both building new infrastructure and
modernizing existing facilities. Governments and private sector players need to
collaborate to upgrade the region’s energy transportation network to meet
rising demand and improve efficiency. Moreover, regional cooperation on
infrastructure projects is essential, particularly in Africa, where countries
with shared borders can benefit from coordinated pipeline and transportation
networks.
Maintenance and operational
improvements can be supported by adopting advanced technologies such as remote
monitoring, automation, and predictive analytics. These technologies can help
companies better manage their assets, reduce downtime, and extend the lifespan
of infrastructure. However, achieving these improvements requires a long-term
commitment to investment, training, and technology adoption, which remains a
significant challenge for many countries in the region.
Key Market Trends
Expansion of Natural Gas Infrastructure
One of the most prominent market trends in the Middle
East and Africa (MEA) oil and gas midstream sector is the growing focus on
natural gas infrastructure development. Over the past few years, natural gas
has become a critical part of the energy mix in the region, due to its
relatively cleaner combustion compared to coal and oil. The increasing demand
for natural gas, both domestically and for export, has led to a significant
investment in infrastructure that supports its extraction, transportation, and
distribution.
Governments in the MEA region are prioritizing the
development of natural gas pipelines, LNG export terminals, and storage
facilities as part of their broader energy diversification strategies. For
example, countries like Qatar, Egypt, and Nigeria are making substantial
investments in gas infrastructure to meet both domestic needs and expand their
role in global gas markets. The discovery of new gas reserves in countries such
as Mozambique and Tanzania is also driving infrastructure growth, as these resources
require efficient transport systems to bring the gas to international markets.
In the GCC region, particularly in Saudi Arabia and
the UAE, natural gas is being seen as a transitional fuel that will help these
countries shift towards a more sustainable energy mix while still relying on
their vast hydrocarbon resources. With increasing domestic demand for
electricity generation and industrial use, these countries are developing new
pipelines and LNG terminals to secure their energy supply.
This trend is not just driven by domestic needs but
also by global market forces. Europe and Asia are increasingly looking for
reliable, cleaner energy sources, and natural gas exports from the MEA region
are becoming more essential. LNG infrastructure projects, such as the expansion
of export terminals in countries like Algeria and Egypt, are integral to these
market dynamics. As a result, the natural gas midstream sector in the MEA is
expected to grow rapidly, offering new opportunities for both energy producers
and consumers.
Increased Investment in Energy Transition Technologies
Another important trend in the MEA oil and gas
midstream market is the rising investment in energy transition technologies.
With global energy markets increasingly focused on decarbonization, there is
growing pressure for oil and gas companies to adopt cleaner technologies that
reduce emissions and improve the environmental performance of their operations.
In the MEA region, governments and private companies are investing in
technologies that support the shift toward more sustainable energy systems, while
still maintaining the viability of the oil and gas sector.
Technologies that reduce the carbon footprint of oil
and gas operations are gaining attention. Carbon capture and storage (CCS) is
one such technology being actively pursued in the region. The Middle East, in
particular, is home to several large-scale CCS projects, with countries like
Saudi Arabia and the UAE leading efforts to develop infrastructure that can
capture carbon emissions from oil and gas production and store them safely
underground. This technology is seen as crucial for mitigating the environmental
impact of continued fossil fuel production while enabling these countries to
continue utilizing their hydrocarbon resources.
In addition to CCS, investments in renewable energy
sources such as solar and wind are increasingly integrated into the region’s
oil and gas operations. For instance, some oil and gas companies in the Gulf
countries are utilizing solar power to help reduce their reliance on
conventional energy sources for operational needs, such as powering
desalination plants and other energy-intensive processes in oil extraction.
This shift towards hybrid energy models, combining oil and gas with renewable
energy, is not only helping reduce emissions but also diversifying the energy
mix to include more sustainable sources. Moreover, the digitalization of the
oil and gas midstream sector is another key aspect of the energy transition.
The use of data analytics, artificial intelligence (AI), and automation in
pipeline monitoring, leak detection, and asset management helps to optimize
operations and improve energy efficiency. By investing in these digital
solutions, MEA oil and gas companies can reduce waste, improve safety, and
ensure more efficient transportation of resources, aligning with global
sustainability goals.
Segmental Insights
Pipeline Transportation Insights
The Crude Oil held the largest market share in 2024. The Crude Oil
segment dominates the Middle East and Africa (MEA) Oil & Gas Midstream
market due to the region's vast oil reserves, which are among the largest in
the world. The MEA region, especially countries like Saudi Arabia, Iraq, the
UAE, and Kuwait, plays a crucial role in global oil production and export. As
the leading oil exporters globally, these countries rely heavily on their
midstream infrastructure, particularly crude oil pipelines, to transport oil
from production fields to refineries and export terminals.
Crude oil pipeline infrastructure is essential for
moving vast quantities of oil over long distances with minimal loss and at a
lower cost compared to other transportation methods like shipping or trucking.
Given the size of the region and the location of many oil fields in remote
areas, pipelines are the most efficient and economically viable solution for
transporting crude oil. The region has developed an extensive network of
pipelines that connect upstream production areas to refineries and export hubs,
facilitating the smooth export of crude oil to international markets.
The significance of crude oil pipelines in the MEA
market is also tied to the region’s key role in global energy security. The
transportation of crude oil via pipeline ensures a steady and reliable supply
to major consumers in Asia, Europe, and North America, making the MEA region a
critical player in the global energy supply chain. This is particularly true
for countries like Saudi Arabia, whose pipelines connect the Persian Gulf to
the Red Sea, providing an alternative route to the crowded Strait of Hormuz.
Storage Solutions Insights
The Tank Farms held the largest market
share in 2024. Tank farms play
a crucial role in the Middle East and Africa (MEA) oil and gas midstream market
due to their significant contribution to storage, transportation, and
distribution of crude oil, refined products, and natural gas liquids (NGLs).
The region, which holds some of the world’s largest oil and gas reserves,
relies on tank farms to manage the substantial volume of hydrocarbons produced
and exported, ensuring a continuous, efficient, and secure supply chain.
Tank farms are strategically located near refineries,
terminals, and export points, serving as essential storage hubs before the
products are either refined, transported to domestic markets, or exported
internationally. In the MEA region, where large-scale oil and gas production is
concentrated, tank farms act as buffers to handle supply and demand
fluctuations, enabling the management of inventory while ensuring that the
product is available when needed.
One of the key drivers for the growing importance of
tank farms in the MEA market is the increasing demand for oil and refined
products globally. As the region’s oil and gas export capacity expands, so too
does the need for efficient storage solutions. The establishment of large tank
farms in countries like Saudi Arabia, the UAE, and Oman ensures that companies
can store and manage reserves before they are shipped, offering flexibility in
meeting both local consumption and global export needs. Furthermore, tank farms
are integral to maintaining the security and safety of oil and gas storage
operations. In a region where geopolitical tensions and security risks can
disrupt energy flows, these storage facilities help mitigate the risks
associated with transportation and delivery, providing a buffer against sudden
disruptions.
Download Free Sample Report
Country Insights
Saudi Arabia held the largest market
share in 2024. Saudi Arabia plays a central role in the Middle East and Africa (MEA)
oil and gas midstream market due to its vast hydrocarbon reserves, strategic
geographic location, and strong government-backed investments in energy
infrastructure. As the world’s largest crude oil exporter and one of the top
producers, Saudi Arabia requires a robust midstream network to transport crude
oil, natural gas, and refined products efficiently from production sites to
domestic and international markets.
The country’s midstream sector is anchored by an
extensive network of pipelines, storage facilities, and export terminals. Key
infrastructure assets like the East-West Crude Oil Pipeline (Petroline) and
various gas pipelines support the seamless flow of energy resources from inland
fields to the Red Sea and Persian Gulf coasts, enabling diversification of
export routes and improving supply security. Saudi Aramco, the state-owned oil
giant, plays a dominant role in developing and maintaining this infrastructure,
ensuring operational excellence and long-term sustainability.
Saudi Arabia is investing heavily in expanding its
natural gas infrastructure as part of its Vision 2030 strategy, which aims to
diversify the economy and reduce reliance on oil. Projects include new gas
pipelines, processing facilities, and initiatives to develop unconventional gas
fields, all of which require significant midstream support. Additionally, Saudi
Arabia’s stable political environment and favorable regulatory framework make
it an attractive destination for foreign investment in the midstream sector.
The government actively promotes public-private partnerships to support
infrastructure development, enhancing the country’s competitive position in the
global energy market.
Saudi Arabia’s continued focus on energy security,
technological advancement, and environmental performance—through initiatives
such as carbon capture and digital pipeline monitoring—further strengthens its
leadership in the MEA midstream market. These factors collectively make Saudi
Arabia a cornerstone of the region’s midstream growth and a strategic hub for
regional and global energy flows.
Recent Developments
- In February 2024, Summit Midstream Partners announced
the launch of an open season for its Double E Pipeline project. This initiative
seeks to assess interest and secure transportation commitments for natural gas
from the Permian Basin to the Waha Hub. The open season highlights Summit
Midstream’s strategy to expand its infrastructure and address the increasing
demand in the market. This project reflects the company’s dedication to
enhancing its energy transportation capacity and strengthening the regional gas
market.
- In March 2025, Egypt is
offering additional offshore acreage in its latest oil and gas licensing round.
This move aims to attract more investments in the country’s energy sector by
providing opportunities for exploration in previously untapped offshore areas.
The initiative is part of Egypt’s ongoing strategy to bolster its oil and gas
production, enhance its role as a regional energy hub, and meet rising demand
for hydrocarbons both domestically and internationally.
Key Market Players
- Royal
Dutch Shell PLC
- Exxon
Mobil Corporation
- Chevron
Corporation
- Enbridge
Inc.
- Kinder
Morgan, Inc.
- TransCanada
Corporation
- Williams
Companies, Inc.
- Enterprise
Products Partners L.P.
|
By Pipeline Transportation
|
By Storage Solutions
|
By Midstream Services
|
By Country
|
- Crude Oil
- Natural Gas
- Product Pipelines
|
- Tank Farms
- Underground Storage
- Floating Storage
|
- Inspection &
Maintenance
- Safety &
Compliance
|
- United Arab Emirates
- Saudi Arabia
- South Africa
- Turkey
- Qatar
- Nigeria
- Algeria
- Rest of Middle East
& Africa
|
Report Scope:
In this report, the Middle East & Africa Oil &
Gas Midstream Market has been
segmented into the following categories, in addition to the industry trends
which have also been detailed below:
- Middle
East & Africa Oil
& Gas Midstream Market, By Pipeline
Transportation:
o Crude Oil
o Natural Gas
o Product Pipelines
- Middle
East & Africa Oil
& Gas Midstream Market, By Storage
Solutions:
o Tank Farms
o Underground Storage
o Floating Storage
- Middle
East & Africa Oil & Gas Midstream Market, By Midstream Services:
o Inspection & Maintenance
o Safety & Compliance
- Middle
East & Africa Oil & Gas Midstream Market, By Country:
o United Arab Emirates
o Saudi Arabia
o South Africa
o Turkey
o Qatar
o Nigeria
o Algeria
o Rest of Middle East & Africa
Competitive Landscape
Company Profiles: Detailed analysis of the major companies
present in the Middle East & Africa Oil & Gas Midstream Market.
Available Customizations:
Middle East & Africa Oil & Gas Midstream
Market report with the given market data, TechSci 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).
Middle East & Africa Oil & Gas Midstream Market is an upcoming
report to be released soon. If you wish an early delivery of this report or
want to confirm the date of release, please contact us at [email protected]