Global offshore oil and gas pipeline demand set for 26% drop in 2020, but recovery will be swift

The global oil and gas market demand for large-diameter offshore pipeline, known as trunkline, is set for an annual drop of 26% this year, with the size of total installations forecasted to reach 2,150 kilometers (km), a Rystad Energy analysis shows. This downturn’s impact on trunkline demand is, however, lighter than that of 2016, and recovery is likely to be swift, led by projects in the Middle East.

Although it is set for a significant drop from last year’s 2,913 km, offshore trunkline demand is holding up much better now than during the previous downturn, when demand plummeted to just 938 km in 2016 from 2,488 km the year before.

Rystad Energy estimates the market’s recovery to be swift this time, as Middle Eastern projects are likely to propel demand to almost pre-Covid-19 levels already from 2022 and push it even higher from 2023, when offshore trunkline installations are projected to exceed 3,000 km.

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