Midstream Oil and Gas Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Sector (Transportation, Storage and Terminals), By Region, By Competition, 2020-2030F

Market Overview

The Global Midstream Oil and Gas Market will grow from USD 34.61 Billion in 2024 to USD 43.29 Billion by 2030 at a 3.80% CAGR. The global midstream oil and gas market is defined by the critical activities involved in the gathering, processing, transportation, and storage of crude oil, natural gas, and natural gas liquids from production areas to end-use markets. Market growth is primarily driven by increasing global energy demand, especially for natural gas as a transitional fuel, alongside expanding upstream production volumes that necessitate robust infrastructure to deliver hydrocarbons efficiently. According to IEA data, global natural gas demand increased by 2.7%, or approximately 115 billion cubic meters, in 2024.

A significant challenge impeding market expansion is the ongoing geopolitical instability in key energy-producing and transit regions, which introduces substantial uncertainty and operational risks for infrastructure projects. Additionally, the increasing scrutiny over environmental concerns and the complexity of obtaining permits for new pipeline construction contribute to project delays and heightened capital expenditures.

Key Market Drivers

The global midstream oil and gas market is significantly influenced by increasing global energy consumption, which drives the fundamental requirement for extensive infrastructure to transport and process hydrocarbons. As economies expand and populations grow, the demand for primary energy sources, including crude oil and natural gas, continues to necessitate robust midstream solutions for efficient delivery from production basins to diverse consumption centers. This consistent demand underscores the critical role of pipelines, terminals, and storage facilities in maintaining stable energy supply chains. For instance, according to OPEC's World Oil Outlook (WOO) 2025, November 2025, "More realism enters the global energy discourse", global energy demand is projected to increase by 23% by 2050, highlighting the long-term necessity for sustained midstream development.

Further impacting the midstream sector is the rising demand for natural gas and liquefied natural gas. Natural gas is increasingly recognized as a crucial transitional fuel, contributing to power generation and industrial processes globally, while LNG offers flexibility in international energy markets. This expanding role directly necessitates increased midstream investment in liquefaction, regasification, and associated pipeline networks to connect supply with burgeoning global markets. According to Shell, February 2025, "Shell LNG Outlook 2025", global LNG trade reached a record 407 million tonnes in 2024, demonstrating substantial growth in this specific energy segment. Overall, the midstream sector is responding with substantial capital commitments to support these trends. According to Kinder Morgan, October 2025, "Kinder Morgan Reports Third Quarter 2025 Financial Results", its project backlog stood at $9.3 billion at the end of the third quarter of 2025, with approximately 90% associated with natural gas infrastructure, reflecting significant ongoing market investment.

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Key Market Challenges

Geopolitical instability in key energy-producing and transit regions significantly impedes the growth of the global midstream oil and gas market. Such instability introduces substantial uncertainty and elevated operational risks for critical infrastructure projects, including pipelines, processing plants, and storage facilities. This environment deters the significant, long-term capital investments necessary for expanding and maintaining robust hydrocarbon delivery systems.

The reluctance to commit substantial funds to projects in volatile areas directly hampers market expansion. According to the International Gas Union's Global Gas Report 2024, without additional production development, a 22% global gas supply shortfall is expected by 2030. This projected shortfall is exacerbated by underinvestment in gas infrastructure, a situation influenced by the persistent geopolitical hazards that increase perceived risks for investors and developers. Consequently, the essential infrastructure required to transport rising upstream volumes to end-use markets faces significant delays and limitations, restricting overall market capacity and efficiency.

Key Market Trends

The global midstream oil and gas market is significantly influenced by the digitalization of operations and the widespread adoption of predictive analytics. These advancements are transforming the sector by enhancing operational efficiency, improving safety protocols, and optimizing asset performance across gathering, processing, and transportation networks. Advanced technologies, including IoT sensors, artificial intelligence, and machine learning, enable real-time data analysis for proactive maintenance and reduced downtime. This broader industry commitment to modernization, which facilitates digital advancements, is substantial. For instance, the American Gas Association reported in January 2024 that cast iron pipeline use among its members had declined nearly 60% over the past 17 years, with these older systems being replaced by modern plastic pipelines offering enhanced safety and efficiency. This strategic integration of digital solutions allows midstream operators to transition from reactive to predictive maintenance models, thereby extending the lifespan of critical infrastructure and ensuring more reliable energy delivery.

Diversification into hydrogen and biofuel transportation networks represents another pivotal trend for the midstream sector, directly addressing evolving energy demands and global decarbonization goals. This involves adapting existing pipeline infrastructure for new energy carriers and developing dedicated networks for these emerging fuels. Industrial bodies are actively supporting this transition, as evidenced by the Pipeline Research Council International (PRCI) announcement in October 2024 that its Emerging Fuels Institute completed a project to update pipeline language and establish a new exception chapter for hydrogen pipelines within the ASME B31.8 Gas Transmission and Distribution Piping Systems Standard. This initiative facilitates the safe and standardized integration of hydrogen into pipeline systems, demonstrating the industry's commitment to expanding beyond traditional hydrocarbons and fostering a sustainable energy future.

Segmental Insights

The Transportation segment is experiencing rapid growth within the Global Midstream Oil and Gas Market, a trend underscored by various market analyses. This expansion is primarily propelled by the persistent increase in global energy demand, which necessitates efficient and reliable movement of crude oil and natural gas from diverse production regions to consumption centers globally. A key driver is the escalating role of natural gas as a cleaner transition fuel, leading to significant investments in new pipeline infrastructure and liquefied natural gas (LNG) export and import terminals, particularly in emerging economies. Furthermore, supportive governmental policies and sustained efforts towards infrastructure modernization contribute substantially to this segmental growth.

Regional Insights

North America dominates the global midstream oil and gas market, primarily driven by its substantial domestic production of crude oil and natural gas, particularly from prolific shale formations across the United States and Canada. This robust output necessitates an extensive and well-developed network of pipelines, storage facilities, and processing plants throughout the region, ensuring efficient movement of hydrocarbons. The region's strategic importance is further amplified by its significant and growing role as a major exporter of liquefied natural gas to international markets. Additionally, a supportive regulatory environment and continuous investments in infrastructure expansion, often overseen by bodies such as the Federal Energy Regulatory Commission for interstate assets, solidify North America's leading position by enabling seamless transportation and distribution of energy resources.

Recent Developments

• In November 2025, Pembina Pipeline Corporation and PETRONAS announced a 20-year agreement for 1.0 million tonnes per annum (mtpa) of Pembina's liquefaction capacity at the Cedar LNG facility. This long-term collaboration is a significant development in the global midstream oil and gas market, securing a stable revenue stream for Pembina. The agreement allows PETRONAS to access an additional natural gas export outlet for its Canadian upstream investments, enhancing supply diversity and reliability for customers, particularly in Asia.

• In August 2024, Brazos Midstream completed a new gas processing facility in Martin County, Texas, known as Sundance I, marking a significant new product launch within the global midstream oil and gas market. The facility, which was expected to commence operations in October 2024, enhances the company's processing capacity in the Permian Basin. Brazos Midstream also revealed plans for further expansion by constructing an additional cryogenic gas processing facility. This development supports the growing need for processing capabilities to handle increased natural gas production in the region.

• In March 2024, Enbridge entered into an agreement to form a joint venture, signifying a key collaboration in the global midstream oil and gas market. This partnership aims to develop, construct, own, and operate natural gas pipeline and storage assets. The project is specifically designed to connect natural gas supplies from the Permian Basin to the increasing demand from liquefied natural gas (LNG) facilities and other markets along the U.S. Gulf Coast. Enbridge contributed its Rio Bravo pipeline project and approximately US$350 million in cash to this venture.

• In January 2024, Kinder Morgan announced its investment of approximately $50 million in a carbon capture venture, directly expanding its presence in the global midstream oil and gas market. This initiative involved capturing carbon dioxide from two natural gas treatment facilities in Colorado. The captured CO2 was then transported via its Cortez pipeline to an existing sequestration site within the Permian Basin. This strategic move leverages Kinder Morgan's existing infrastructure and expertise in CO2 management, positioning the company to capitalize on emerging carbon capture and storage opportunities.

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 LP
• ONEOK Inc.

Report Scope:

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

• Midstream Oil and Gas Market, By Sector:

o   Transportation

o   Storage

o   Terminals

• Midstream Oil and Gas Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Europe

§  France

§  United Kingdom

§  Italy

§  Germany

§  Spain

o   Asia Pacific

§  China

§  India

§  Japan

§  Australia

§  South Korea

o   South America

§  Brazil

§  Argentina

§  Colombia

o   Middle East & Africa

§  South Africa

§  Saudi Arabia

§  UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Global Midstream Oil and Gas Market.

Available Customizations:

Global Midstream Oil and Gas 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).

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