Brazil Oil and Gas Midstream Market - Growth, Trends, and Forecast (2020 - 2025)

The Brazilian oil and gas midstream market is expected to register a CAGR of over 3.5%, during the forecast period.

• The market includes the transportation and storage facilities of the Brazilian oil and gas industry. Transportation includes the oil and gas pipelines, while storage includes the tanks required to store crude oil, oil products, and liquified natural gas.
• Factors, such as increasing oil and gas activities in the country and the increasing natural gas trade from the neighboring countries, are expected to drive the growth of the market over the forecast period. However, Brazil's shift toward renewable sources for electricity generation poses a huge threat to the oil and gas midstream sector, which is likely to resist the growth of oil and gas pipeline installation in the coming years.
• The increasing pipeline infrastructure, with the development of oilfields in its onshore and offshore region, is expected to expand the midstream market during the forecasting period.
• The demand for oil is expected to get increased to three million barrels per day, while demand for gas is expected to get increased to 82 billion cubic meters by 2040, in Brazil. In a bid to meet the rising demand for oil and gas, the pipeline capacities are expected to get expanded, and new pipeline projects are expected to get commissioned, which is expected to create an opportunity for the country’s downstream market in the near future.
• Transportation is one of the prominent segments in Brazil’s downstream sector. Most of the pipeline infrastructure present in the country transport natural gas, while very few transports crude oil and oil products. The rising demand for crude petroleum products is expected to drive the market of oil and gas midstream in Brazil.

Key Market Trends

Transportation as a Significant Segment

Pipeline acts as a major mode of transportation for crude oil, oil products, and natural gas. In Brazil, pipeline act as a major mode of transportation for natural gas. Brazil's natural gas pipelines were installed due to its developments in its domestic oil and gas fields, and imports of natural gas from Bolivia.

• During 2018, Brazil's midstream market is majorly shared by natural gas pipelines. There are nearly eight operational natural gas pipelines in Brazil that includes three cross-border gas pipelines with Bolivia. Cumulatively all the pipelines traded nearly 7.6 billion cubic meters of natural gas, in 2018.
• Apart from Bolivia, as of 2019, Brazil was planning to construct three gas pipelines with Argentina, which includes an extension of Gasoducto Cruz del Sur to Argentina, gas pipeline between Parama (Argentina), and Uruguaiana (Brazil), and a gas pipeline connecting Venezuela, Argentina, and Brazil. Commissioning of these pipelines is certain to boost the gas trading and pipeline infrastructure with the countries.

Growing Pipeline Infrastructure to Drive the Market

Brazil holds nearly 3000 kilometers of the under-construction gas pipeline, which is expected to expand the pipeline infrastructure market during the forecasting period.

• There are nearly three major pipeline projects in the country, which include both capacity expansion pipeline and newly construct pipelines. Capacity expansion pipeline includes the Bolivia-Brazil pipeline (GASBOL), which is expected to increase its capacity to 3.6 million cubic meters by 2022. The new construction of the gas pipeline includes the gas pipeline between Argentina and Brazil, and Sao Carlos, Sao Paulo, and Brasilia.
• During 2018, Brazil has 84 developed fields that are majorly located onshore. Furthermore, Brazil's offshore discoveries are one of the largest in the globe and are expected to grow over the forecasted period. Hence, the development of the fields is expected to install new oil and gas pipelines and thus is expected to boost the midstream market of the country in the near future.

Competitive Landscape

The Brazilian oil and gas midstream market is consolidated. The key players in the market include Petroleo Brasileiro SA, Total SA, Alvopetro Energy Ltd, Gas TransBoliviano SA, and Engie SA, among others.

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