Midstream Sector Dynamics: Exploring New-Build & Expansion Project Trends

What is Driving the Trend towards New Construction and Expansion?

The global energy market is observing a shift towards the midstream sector, primarily driven by a surge in oil and gas production. Plentiful reserves, access to advanced extraction technologies, and favourable government policies are responsible for this uptrend. Consequently, this has stimulated a sizeable number of new construction and expansion projects, focused on fortifying infrastructure to streamline the transportation, storage and wholesale marketing of oil, gas or refined petroleum products.

What are the Key Trends in New-build and Expansion Projects?

New-build projects involve months of strategic designing, engineering precision and regulatory compliance, necessitating significant capital investment. However, the outcome is a state-of-the-art facility, designed to cater for future expansion and enhancements. Expansion projects, on the other hand, are aimed at harnessing the operational capacity of existing infrastructure. These projects entail modifications and scale-up operations at current facilities, providing an economical alternative to new constructions while boosting operational efficiency.

What are the Future Expectations?

With the global demand for hydrocarbon products expected to persist, midstream companies will continue to focus on new-build and expansion projects. However, the sector's growth trajectory will depend on the global economic landscape, regulatory framework, and technological advancements. Moreover, the increased emphasis on sustainability may introduce disruptions, motivating midstream companies to explore renewable energy sources and transform their operational model, leaning more towards sustainable practices.