Africa to add 6,916 km of planned crude oil pipelines by 2022, says GlobalData

gasppBy 2022, Africa is set to add the second highest trunk pipeline length to the global crude oil pipelines industry. (Image source: chagpg/Adobe Stock)Africa is forecast to add the second highest trunk pipeline length to the global crude oil pipelines industry between 2018 and 2022, contributing a total length of 6,916 km, according to leading data and analytics company GlobalData

North America is forecast to add the highest trunk pipeline length, with a total length of 16,136 km, said GlobalData.

The company’s report ‘Global Crude Oil Pipelines Industry Outlook to 2022’ forecasts that around 36,876 km of planned pipeline length will be added globally by 2022, taking the total global crude oil pipeline length to 398,769 km by 2022.

GlobalData further identifies Africa as the third highest for spending on planned pipelines in the global crude oil pipelines industry to 2022, with an estimated capex of US$13.7bn. Algeria is forecast to be the top country in the region with a planned oil pipeline addition of 668 km during the outlook period.

Tejomoortula added, “Africa is expanding its crude oil pipeline network for domestic consumption as well as for exports. The planned investment for the pipeline projects are will also generate employment and improve the socio-economic conditions in the region.”

North America has the highest new build capex spending of all the regions, with approximately US$48.8bn during the 2018–2022 period. Among the countries in the region, the US would have the highest planned pipeline additions of 11,168 km by 2022.

North Ame 5(Image source: GlobalData)

Soorya Tejomoortula, oil and gas analyst at GlobalData, explained, “Booming unconventional oil and gas production is, in turn, driving the growth of the pipeline network in the US. More and more operators are focusing on connecting growing unconventional production with the Gulf coast for export of oil and gas.”

The Middle East is the third highest among the global regions in terms of pipeline length additions and the second highest in the industry for spending on new build oil pipelines. The region is expected to add about 5,655 km of planned oil pipelines with an estimated capex of US$21.6bn spent between 2018 and 2022. Among the countries in the Middle East, Iran will lead with planned length additions of 1,198 km by 2022, according to GlobalData’s forecast.

The report also states that the three longest planned global crude oil pipelines in the forecast period are Keystone XL Project in Canada, Basra–Aqaba oil pipeline in Iraq, and South Sudan–Djibouti in South Sudan with lengths of 1,897 km, 1,700 km and 1,600 km respectively. All the three are planned natural gas pipelines.

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