Pipeline Maintenance Service Market

Pipeline Maintenance Service Market Analysis

The Pipeline Maintenance Services Market is expected to register a CAGR of greater than 2.8% during the forecast period.

• The pipeline repair & maintenance segment is expected to have a significant market share. Corrosion is the biggest contributor to pipeline damages globally. Corrosion is expected to have the most significant share of operational and maintenance costs of a pipeline, indicating the importance of corrosion control services.
• In the coming years, offshore regions such as the North Sea and the Gulf of Mexico will likely experience a high volume of pipeline decommissioning and abandonment. Moreover, it is estimated that within 30 years, more than 470 pipelines in the North Sea alone will require partial or complete removal. This, in turn, is expected to create a massive opportunity for the pipeline maintenance services market around the globe.
• North America is expected to dominate the market, with most of the demand coming from the United States and Canada.

Pipeline Maintenance Service Market Trends

Pipeline Repair & Maintenance Segment to have a Significant Share in the Market

• The pipeline repair & maintenance service segment is expected to have a significant market share during the forecast period. In 2020, the pipeline repair & maintenance services segment held a 35% share of the market, and the claim is expected to grow as most of the demand is coming for corrosion repair services. Also, increasing the share of installed pipeline capacity in major regions such as NorthAmerica will drive the growth of repair & maintenance during the forecast period.
• Low carbon steel is the most widely used material for oil and gas pipelines worldwide, owing to its properties, such as toughness, ductility, weldability, ability to withstand temperature changes, and cost-effectiveness, as compared to stainless steel. But it is susceptible to corrosion in the presence of air, soil, and water, which is a significant disadvantage.
• The corrosion repair systems are designed to strengthen the pipe affected by corrosion and contain the transported fluid in the event of failure. The corrosion repair systems include full circumferential welded sleeves, welded patches, composite reinforcements, and pipe section replacements.
• One of the significant drivers for corrosion repair services is the growing share of heavy crude. The reserves for conventional oil are declining, while the demand for oil and gas is expected to register modest growth. Therefore, to meet the growing demand, unconventional and heavy oil production is increasing. The transportation of the heavy oil is harmful to the pipeline carrying the oil. Therefore, the heavy oil pipelines witness more frequent corrosion-related problems. Thus, the growing share of heavy crude is expected to drive the demand for corrosion repair services during the forecast period, which in turn will demand the use of pipeline repair & maintenance services across the globe.
• Hence, the demand for pipeline repair & maintenance will dominate the market during the forecast period with high demand for services from Canada and the United States.

North America to Dominate the Market

• North America is expected to have the largest market for pipeline maintenance services during the forecast period, primarily owing to huge installed pipeline capacity and government regulations.
• The United States has the largest network of pipelines in the world. Approximately one-third of the total pipeline market in the country is used to transport crude oil, delivering millions of gallons of oil equivalent/day to various refineries and export terminals.
• As of 2020, there are 232 gas pipelines in the region. It is being used to transport natural gas across the country and other countries.
• Moreover, over the past five years, the geographic focus of oil production shifted from the United States to Canada, which in turn will drive the market for Canada. As of 2020, 70 operating oil and gas pipelines are regulated by the CER that cross the Canada-US border: 31 oil and 39 natural gas.
• The oil pipeline transportation industry grew mainly due to the steady oil production. Directional drilling, hydraulic fracturing, and other advanced drilling techniques have increased the number of profitable oil reserves.
• Further, Canada's pipeline system is highly interconnected with the United States' pipeline system. This relationship has served both countries well in terms of the pipeline networks. It is expected to continue to do so in the future with many expansions and new pipeline projects planned. For Example, Pacific Trail Pipelines (PTP) Management Inc. is building a 471-kilometer natural gas pipeline to deliver natural gas from Summit Lake B.C. to the proposed Kitimat LNG facility site at Bish Cove. The pipeline's capacity would be 1 billion cubic feet per day (BCF/day).
• Hence, this is expected to create new opportunities for additional pipeline capacity during the forecast period, thereby boosting the pipeline maintenance services market in the region.

Pipeline Maintenance Service Industry Overview

The pipeline maintenance services market is fragmented. Some of the key players in this market include Baker Hughes A GE Co, EnerMech Ltd, T. D. Williamson Inc., STATS Group, and Dacon Inspection Services Co. Ltd. among others.

Pipeline Maintenance Service Market Leaders

Pipeline Maintenance Service Market News

• In October 2021, Optilan, a leading telecommunications and security systems integrator, announced completion of the first year of operation on the BTC pipeline project. The company reavelaed that out of the 14 completed projects, six projects were new pipelines, five projects were expansions of existing systems, two projects reversed the direction that the commodity flowed on the pipeline and one project was a change in the commodity carried by the pipeline.
• In October 2020, a consortium that includes Stork, a Fluor company, has secured a five-year pipeline maintenance contract in Peru. The contract was awarded by Compañía Operadora de Gas (COGA) to the consortium called Consorcio Mantenimiento de Gasoductos del Peru (CMgP). The consortium comprises Stork Peru and SICIM. As agreed, Stork will deliver integral pipeline maintenance services to the COGA operated Sistema De Transporte De Gas Natural y Líquidos de Gas Natural de Camisea.
• In November 2020, CenterPoint Energy's Southern Indiana Gas and Electric utility has asked regulators for a rate increase to recover the costs of its 7-year, $240 million natural gas pipeline modernization plan.