Westwood’s new report, World Onshore Pipeline Market Forecast 2020-2025, foresees 19 per cent decline in pipeline installations in 2020, from a high point of 48,000km in 2019
Capital expenditure is expected to fall by a greater amount, being 34 per cent lower in 2020 compared to 2019, mainly due to the completion in 2019 of several large-diameter pipelines with high associated capex per km.
Operational expenditure should be more insulated, falling by an estimated five per cent in 2019 as operators halt non-essential operations to both meet local COVID-19 pandemic restrictions and tighten budgets in the lower price environment.
In the longer term, with expected market improvement, it is anticipated that a number of large kilometre pipelines in Asia and the Middle East will be sanctioned, helping to boost kilometres installed and capital expenditure as governments seek to expand production capacity and improve infrastructure to market exports.
In this report, Westwood reviews global onshore pipeline installation activity through to 2025, providing a regional overview of pipeline installations, as well as the capital and operational expenditure.
To reflect the current uncertainty in the industry, this edition includes the potential impact of different oil price scenarios on the pipelines sector could have on new installation activity and opex.
