Offshore Pipeline Market Analysis

Global Offshore Pipeline Market Overview:

Offshore Pipeline Market Size was valued at USD 12.5 Billion in 2023. The Offshore Pipeline market industry is projected to grow from USD 12.89 Billion in 2024 to USD 16.05 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 2.78% during the forecast period (2024 - 2032). Increasing demand for refined products and government initiatives to raise the use of natural gas & energy sources are the key market drivers enhancing market growth.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Offshore Pipeline Market Trends

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  Growing demand for refined products is driving the market growth

  
  

Market CAGR for offshore pipelines is driven by the growing demand for refined products. Petroleum is the primary material for various chemicals, such as fertilizers, plastics, pharmaceuticals, and solvents. Several organizations plan to considerably raise their oil refining capacity to meet the increasing demand for refined products such as diesel and gasoline. Major companies such as BP, Exxon Mobil, Rosneft, and Total will likely spend over USD 385 billion on refinery capacity addition or new refinery development projects. A few vital projects include Sasol’s 1.5 million ton/annum petrochemical plant, DuPont’s elastomer and polyethylene plant in the US, and Shell’s 1.5 million ton/annum polyethylene plant. Thus, the improvement of refining capability to meet the demand for refined products is anticipated to lead to an increase in the necessity for the construction of new pipeline networks, which will rise the growth of the pipeline and process service market.

Additionally, rising natural gas demand has resulted in the discovery of new gas sources and the adoption of easy and low-cost natural gas export transportation via subsea (offshore) pipelines, which are expected to drive the offshore pipeline industry. For Instance: In September 2022, EUROPIPE, based in Germany, was contracted by North American TC Energy (TCE) to supply the Southeast Gateway Pipeline project in the Gulf of Mexico. TCE is building the USD 4.5 billion offshore gas pipeline joined hands with the Mexican state-owned power company Commission Federal de Electricidad (CFE) to ensure electricity supply in southeastern Mexico. At the end of August, the project was awarded to EUROPIPE, a joint venture of Salzgitter Mannesmann and Aktien-Gesellschaft der Dillinger Huttenwerke. The project’s scope includes an anti-corrosion coating of 265,000 metric tonnes of pipe (365 Kilometers).

Furthermore, Eni reported a major new gas discovery at the Nargis-1 exploration well in the Nargis Offshore Area Concession off the coast of Egypt in the Eastern Mediterranean Sea in January 2023. The Nargis-1 well was bored in 1,014 feet (309 meters) of water and encountered Miocene and Oligocene gas-bearing sandstones. The discovery can be developed by utilizing Eni’s current infrastructure.

Furthermore, recent cost-cutting waves and important technology advancements have allowed many oil and gas exploration and production corporations to diversify into viable deepwater and ultra-deepwater developments.  As a result, it is anticipated that demand for offshore pipeline will increase throughout the projection period due to the rising demand and government initiatives. Thus, driving the Offshore Pipeline market revenue.

Offshore Pipeline Market Segment Insights:

Offshore Pipeline Product Insights

The Offshore Pipeline Market segmentation, based on product, includes oil, gas, and refined product. The refined product segment dominated the market, accounting for the maximum market revenue due to rising demand, primarily from the global developing economies. Oil pipelines carry crude oil to refineries from subsea or within the oilfield, such as flow lines, export lines, and feeder lines. These oil pipelines are not very lengthy in size.

Further, the oil segment is anticipated to be the fastest-growing segment due to the construction of new refineries owing to rising discoveries of new oilfields globally.

Offshore Pipeline Bases of Line Insights

The Offshore Pipeline Market segmentation, based on the basis of line, includes export line and transport line. The transport line segment generated the maximum market revenue. Offshore pipelines are the major component of any offshore gas and oil project. These offshore pipelines transport oil and gas products from underwater wells to the platform and oil and gas from the platform to the shore for further process and distribution.

Offshore Pipeline Diameter Insights

The Offshore Pipeline Market segmentation, based on diameter, includes below 24’ and greater than 24’. The greater than 24’ category generated the most income. The diameter of the pipe can control the hydrocarbon flow and pressure. Key contractors in the market are Saipem, McDermott International and the National Petroleum Construction Company (NPCC).

Figure 1: Offshore Pipeline Market, by Diameter, 2024 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Offshore Pipeline Regional Insights

By region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. The North American Offshore Pipeline market area will dominate this market, owing to a rise in the demand for subsea pipelines. In addition, the growing investment in subsea E&P projects will boost market growth in this region.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: Offshore Pipeline Market Share By Region 2022 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe's Offshore Pipeline market accounts for the second-largest market share due to Europe's dependence on imports of conventional fuels and energy demands. Further, the German Offshore Pipeline market held the largest market share, and the UK Offshore Pipeline market was the fastest growing market in the European region.

The Asia-Pacific Offshore Pipeline Market is expected to grow at the fastest CAGR from 2023 to 2032 due to the great use of natural gas and rising investment in refined products. Moreover, China’s Offshore Pipeline market held the largest market share, and the Indian Offshore Pipeline market was the fastest growing market in the Asia-Pacific region.

Offshore Pipeline Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development to expand their product lines, which will help the Offshore Pipeline market grow even more. Market participants are also undertaking various strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Offshore Pipeline industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the global Offshore Pipeline industry to benefit clients and increase the market sector. In recent years, the Offshore Pipeline industry has offered some of the most significant advantages to refined products. Major players in the Offshore Pipeline market, including TechnipFMC Plc (UK), Petrofac Limited (UK), McDermott (US), Fugro (The Netherlands), Saipem (Italy), Enbridge Inc. (Canada), Cortez Subsea (UK), and others, are attempting to increase market demand by investing in research and development operations.

Talos Energy is a cutting-edge energy firm focused on upstream exploration and production, carbon capture and sequestration. Talos strives to deliver crucial energy solutions to modern society, such as conventional energy resources and carbon management solutions. Talos is dedicated to leveraging its technical, operational, and commercial expertise to help meet society’s growing demand for secure, responsible and affordable energy and to advancing numerous carbon capture projects for the future, all while being global citizens and creating value for all stakeholders. For instance: In January 2023, Talos Energy, based in Houston, discovered commercial volumes of oil and natural gas in two deepwater discoveries in the US Gulf of Mexico, which it plans to develop as subsea tie-backs to its Ram Powell tension-leg platform (TLP). According to the US player, the primary targets at Lime Rock and Venice have 78 feet and 72 feet of net pay zone thickness, respectively, with exceptional geologic attributes.

OVM Petrom is the largest energy firm in Southeastern Europe, Romania’s largest private investor, greatest tax player, and largest employer. OVM operates across the whole energy value chain, from oil and gas production and exploration to refining and fuel distribution and then to power generating and gas and power selling. Every year, OVM’s staff works millions of man-hours to deliver the energy required for modern life, light, heat and transportation fuels. OVM Petrom’s Exploration & Production activities include oil and gas production in Romania and exploration in Romania, Bulgaria, and Georgia. Deep onshore and offshore exploration, mature fields, and shallow offshore production are all areas of experience for us. For Instance:  In January 2023, the Romanian gas pipeline operator announced plans to build a new pipeline worth USD 529.30 million to connect offshore Black Sea gas to the national grid. OMV Petrom, a Romanian oil and gas business majority-owned by Austria’s OMV and state-owned Romgaz, is expected to make a final investment decision in a long-awaited offshore project by the middle of 2023. The project is estimated to cost USD 3.8 billion and produce at least 6 billion cubic meters of gas annually.

Key Companies in the Offshore Pipeline market include

• TechnipFMC Plc (UK)


• Petrofac Limited (UK)


• McDermott (US)


• Fugro (The Netherlands)


• Saipem (Italy)


• Enbridge Inc. (Canada)


• Cortez Subsea (UK)

Offshore Pipeline Industry Developments

January 2022 McDermott Middle East Inc. was awarded a major engineering, construction, procurement, and installation (EPCI) contract for the offshore scope of QatarEnergy’s North Field Expansion Project. Through the expansion project, the State of Qatar’s liquefied natural gas (LNG) production capacity will be increased from 77 million tonnes per annum (MTPA) to 126 MTPA.

April 2022 Worley announced that it had been awarded a contract to deliver major front-end engineering design (FEED) services for the Nigeria-Morocco Gas Pipeline (NMGP). When completed, the more than 4,349-mile-long gas pipeline will connect Nigeria with Morocco, travel through 11 West African countries, and reach Europe; Worley claims that it will be the world’s longest offshore pipeline and the second longest pipeline overall.

Offshore Pipeline Market Segmentation:

Offshore Pipeline Product Outlook

• Oil


• Gas


• Refined Product

Offshore Pipeline Basis of Line Outlook

• Export Line


• Transport Line

Offshore Pipeline Diameter Outlook

• Below 24’


• Greater than 24’

Offshore Pipeline Regional Outlook

• North America
  
  
  
  • U.S.
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America