Saudi Arabia Oil and Gas Midstream Market

Saudi Arabia Oil and Gas Midstream Market Size and Share:

The Saudi Arabia oil and gas midstream market size was valued at USD 81.3 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 125 Billion by 2033, exhibiting a CAGR of 4.92% from 2025-2033. Continual advancements in transport networks, increased storage capabilities, rising global energy requirements, integration of innovative digital tools, efforts to shift toward cleaner energy sources, and policies aimed at fostering economic diversification are some of the factors driving the Saudi Arabia oil and gas midstream market share.

The market is majorly influenced by the expanding storage capacity to ensure uninterrupted supply during fluctuating demand cycles and increasing investments in modern tank farms and storage facilities. For example, on September 30, 2024, Saudi Arabia commenced operations at the Hawiyah Gas Storage facility, its inaugural natural gas storage project. Aramco developed this facility, with the capacity to inject up to 2 billion standard cubic feet of processed gas per day into the Kingdom's Master Gas System, improving the supply of energy during periods of high demand. This initiative supports the liquid fuel displacement program and aligns with Saudi Vision 2030's objectives to reduce carbon emissions and diversify energy sources. Moreover, the development of export terminals along the Red Sea and Persian Gulf shores enhances global connectivity, catering to the growing energy requirements of Asia and Europe is supporting market expansion. Additionally, the push for environmental compliance has led to the adoption of eco-friendly practices, which is providing an impetus to market growth.

Besides this, strategic partnerships with global investors boost financial inflows and technological advancements, thereby facilitating the Saudi Arabia oil and gas midstream market demand. For instance, on June 30, 2024, Saudi Aramco signed contracts exceeding USD 25 Billion for the development of the main gas network at the Jafurah gas field, one of the largest unconventional gas fields globally. These agreements are integral to Aramco's strategy to expand its natural gas production, supporting energy transition and domestic industrial growth. Also, the growing need for petrochemical feedstocks has increased the development of specialized infrastructure, such as ethane and LPG pipelines, which is positively impacting the market. Apart from this, the focus on hydrogen as a clean energy carrier is driving the establishment of dedicated infrastructure for production, storage, and transport, which highlights the dynamic growth of the midstream market in the region.

Saudi Arabia Oil and Gas Midstream Market Trends:

Increasing Investment in Pipeline Infrastructure

As energy security has increasingly been on the minds of people across the world, Saudi Arabia's strategic position at the hub connecting Asian and European markets further promotes infrastructure upgrading. The country also embraces more modern pipeline monitoring technologies to improve efficiency and safety, minimizing the risks involved in operation. Furthermore, international alliances for finance, as well as capability, have quickened the pace of development. Several significant investments in pipeline infrastructure provide a boost to the Saudi Arabia's oil and gas midstream market growth due to the increasing domestic and international energy demand. For example, on September 3, 2024, Saipem announced it had secured two contracts valued at USD 1 Billion in Saudi Arabia involving offshore engineering and construction projects. The scope of contract includes the installation of subsea pipelines and the development of offshore platforms, further enhancing Saudi Arabia's energy infrastructure. These investments ensure that Saudi Arabia remains dominant in the e oil exporting country globally but with strength during fluctuations in the energy markets.

Adoption of Digital Technologies in Operations

The Saudi Arabia oil and gas midstream market analysis indicates a trend of digital transformation in midstream operations. Companies are adopting predictive maintenance, real-time monitoring, and data analytics to improve operational efficiency. Supervisory control and data acquisition (SCADA) systems and internet of things (IoT) enabled sensors are widely adopted for enhanced pipeline monitoring and management. This digitization also enables cost-saving while reducing environmental impacts because every leak or failure can be detected in its early stages. For instance, on September 16, 2024, Saudi Aramco announced several agreements for augmenting the deployment of artificial intelligence technologies throughout its operations. The agreements are expected to enhance operational efficiency, promote better sustainability, and contribute toward the successful execution of Aramco's digital transformation programs. Digital tools are integrated into the country's long midstream network in order to maintain efficiency and safety.

Diversification into Natural Gas Infrastructure

Diversification into natural gas infrastructure is enhancing Saudi Arabia's oil and gas midstream market outlook, driven by the need to reduce reliance on crude oil revenues. Expansion of the natural gas pipelines and processing facilities to accommodate the rising demand for clean energy domestically is key to this trend. It's part of the Vision 2030 plan that focuses on sustainability and economic diversification. The diversification also facilitates the speed of development of LNG terminals and export facilities with global energy companies. For example, on June 6, 2024, Sinopec's engineering subsidiary signed a USD 11 Billion agreement with Saudi Aramco to construct natural gas pipelines in Saudi Arabia. This strategic cooperation aims to upgrade the Kingdom's gas infrastructure and enhance energy cooperation between China and Saudi Arabia. With natural gas playing a central role in the energy transition, Saudia Arabia is positioned as a key region for market growth.

Saudi Arabia Oil and Gas Midstream Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the Saudi Arabia oil and gas midstream market, along with forecasts at the country and regional levels from 2025-2033. The market has been categorized based on type.

Analysis by Type:

• Transportation
• Storage
• LNG Terminals

Transportation forms an integral part of Saudi Arabia's midstream oil and gas midstream market, enabling efficient transportation of crude oil, natural gas, and finished products from the production location to processing and export terminals. Domestic and international energy needs are satisfied through an expansive pipeline network of the country, including the Master Gas System. Advanced technologies and pipeline monitoring systems also promote efficiency and mitigate the risks to the environment. Saudi Aramco's pipeline expansion and optimization investments over the years illustrate the importance transportation has in upholding the country's position as one of the leaders in the energy world.

The storage infrastructure supports energy security and stability in the market. It provides facilities for the storage of crude oil, refined products, and natural gas. Strategic storage locations such as Yanbu and Ras Tanura denote that the kingdom is equipped to deal with supply-demand reversals and flat-out exports. Storage facilities serve the kingdom's obligation to OPEC. By incorporating leading-edge automation and safety features, the storage segment ensures the reliability of the oil and gas supply chain, with assured operations and consolidating the country's lead in the energy markets worldwide.

LNG terminals are becoming increasingly important in Saudi Arabia's strategy to diversify its energy mix and reduce reliance on crude oil exports. These facilities support the import and regasification of LNG, which is vital for meeting the country's growing domestic energy demand. Projects such as the development of new LNG import terminals highlight Saudi Arabia's ambition to integrate natural gas into its energy landscape. LNG infrastructure further opens avenues for realizing the country's dream of its growth role in the international market of gas, simultaneously adding value toward Vision 2030 in facilitating energy transition processes.

Regional Analysis:

• Northern and Central Region
• Western Region
• Eastern Region
• Southern Region

The Northern and Central Region of Saudi Arabia is crucial to the country's oil and gas midstream activities due to its location and ongoing exploration activities. The region houses parts of the Master Gas System, which guarantees the smooth transportation of natural gas in the country. The region also houses various processing facilities and pipelines that link to major industrial zones. The region is playing a crucial role in diversifying energy sources and supporting the kingdom's vision to expand its natural gas infrastructure with ongoing projects such as unconventional gas developments in the Jafurah Basin.

The Western Region is an important contributor to Saudi Arabia's oil and gas midstream market due to its access to the Red Sea and critical export terminals, including Yanbu. This area serves as a strategic hub for crude oil storage and shipping, ensuring efficient export routes to Europe and North America. The region also supports domestic energy distribution through advanced pipeline systems. Investments in upgrading port facilities and developing petrochemical infrastructure further enhance its importance. The Western Region's integration into global energy supply chains underscores its strategic role in maintaining Saudi Arabia's energy export reliability.

Pipelines, storage facilities, and processing plants characterize the long chain of networks of the oil and gas midstream market of Saudi Arabia's eastern region. Ghawar Field and the Ras Tanura terminal lie in the region and offer easy transport routes for the largest amounts of crude oil and gas, allowing easy export. All the advanced infrastructure for both energy markets within and outside the nation lies in this region. The region's key investments in enlarging natural gas infrastructure, for example, at Jubail Industrial City, reassert its support role for industrial expansion and the overall energy supply in the world.

The southern region is an emerging region in the oil and gas midstream market in Saudi Arabia. As the area develops more integration in the country's network of distributing natural gas and refined products, Projects to improve pipeline connectivity and storage capacity are designed to meet the growing energy needs of developing cities and industrial centers in the south. The Southern Region also supports domestic energy security and regional balance in energy distribution. Its developing midstream infrastructure is consistent with the overall strategy of the kingdom to establish a resilient and integrated energy network across the country.

Competitive Landscape:

The market is highly competitive and is driven by heavy investments in infrastructure and technological advancements. Major players in the industry are currently working on increasing pipeline networks, enhancing their storage capacities, and incorporating digital solutions to maximize operations and enhance efficiency. The implementation of government initiatives that align with Vision 2030 are supporting the development of natural gas infrastructure and developing energy resources. Companies are using partnership and innovation to enhance their position in the market while seeking to respond to home and international demands on energy. For example, on April 12, 2024, SLB, Aramco, and Linde announced an agreement to develop a carbon capture and storage (CCS) hub in Jubail, Saudi Arabia, projected to be among the world's largest. Its goal is to have a capture capacity of as many as nine Million metric tons a year by the completion of phase one by the end of 2027. Also, the pressure of sustainability compliance has been influencing the competitive strategy in the oil and gas midstream market in Saudi Arabia.

The report provides a comprehensive analysis of the competitive landscape in the Saudi Arabia oil and gas midstream market with detailed profiles of all major companies.

Latest News and Developments:

• March 4, 2024: GAS Arabian Services Company announced it signed two big deals worth SAR598 Million (USD 159.3 Million) with Saudi Power Procurement Company for the execution of two major gas pipeline projects in Saudi Arabia. The deal includes engineering, procurement, and construction services on two projects - Taiba (SAR256.1 Million) and Qassim (SAR342 Million). The contract shall be executed in 22 months.
• April 4, 2024: Saudi Aramco awards contracts worth USD 7.7 Billion to expand its Fadhili Gas Processing Plant capacity to meet surging domestic and international gas demand. The deals, which are engineering, procurement, and construction contracts, fall under the energy giant's strategy to enhance Saudi Arabia's energy supply and sustainability. This supports the country's overall energy transition objectives while enhancing economic growth and employment.
• June 3, 2024: LyondellBasell completed the acquisition of a 50% stake in the National Petrochemical Industrial Company (NATPET), based in Saudi Arabia, marking a significant expansion of its polypropylene business. With the acquisition, LyondellBasell is enhancing its footprints in the Middle East and accessing that region's strategic entry into world markets and low-cost feedstocks. This move enhances the long-term growth capability of the firm as its capacity to produce and regional integration rises.
• October 2024: Wood secured a significant engineering services contract with Saudi Aramco for the Southern and Northern Areas gas increments project, aimed at boosting natural gas production in Saudi Arabia. This seven-year project will involve one million engineering hours and peak with over 400 Wood employees across locations in Saudi Arabia, the UK, and India. Wood will provide project management consultancy, including Pre-FEED and FEED engineering, supporting Aramco's goal of enhancing energy efficiency and reducing carbon emissions in energy production.

Saudi Arabia Oil and Gas Midstream Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Saudi Arabia oil and gas midstream market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the Saudi Arabia oil and gas midstream market.
• Porter's Five Forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Saudi Arabia oil and gas midstream industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.