The oil and gas separator market is expected to grow with a CAGR of over 2% during the forecast period of 2020-2025. Increasing production of conventional oil and gas along with unconventional hydrocarbons for separation and client's specifications regarding the quality of transported oil and gas are likely to drive the oil and gas separator market. However, stringent government policies towards the disposal of leftover s such as salts and sand after the process are expected to restrain the oil and gas separator market.
- The increasing production is likely going to require more number of separators to separate oil and gas at the field before its transportation. In 2018, the increase in crude production was about 2%; thus, the upstream segment is expected to dominate the oil and gas separator market.
- The development in the area of gas hydrates, which is still in the research phase and its requirement of new technologies for its production, is likely to create several opportunities for the oil and gas separator market in the future.
- Middle-East and Africa held a significant market share and are expected to dominate the market during the forecast period.
Key Market Trends
Upstream Segment Expected to Dominate the Market
- Oil and gas separator is a pressurized vessel that is used for the separation of oil, gas, water, sand, salts, and other solid sediments. The separation step is required to separate oil and gas from the unwanted water and sediments. In the upstream segment, the separator is used right after the crude oil and gas are produced from the well and comes to the surface; the separation at this stage is essential and is done to prevent the corrosion of the pipelines. The separation is also done according to the requirement of a client having a facility for processing a particular type of oil or gas with precise specifications.
- The increasing number of wells at new fields and deepwater explorations requires the installation of new group gathering stations (GGS) at the sites and thus requiring more number of separators to separate hydrocarbons before its storage or transportation.
- As of 2018, the global crude oil production was 4474.3 million tonnes (MT), which was higher than the production of 2017, 4379.9 million tonnes (MT). The increase in the production exhibits the requirement of more installation capacity of the separators to prevent overloading of the existing ones and to prevent them from failures.
- In 2019, McDermott International, Inc signed a contract with Woodside Energy Ltd for the front end front-end engineering and design (FEED) activities for a floating production unit (FPU) for the Scarborough field gas development in Western Australia. The floating production unit (FPU) contract includes an inbuilt unit of gas separation.
- In 2019, MODEC won the engineering, procurement, construction and installation (EPCI) contract issued by the ConocoPhillips Australia Barossa Ltd for its floating production storage and offloading (FPSO) unit in the Barossa Field. The field is expected to produce gas and condensate for which an oil-gas separator is being built in the FPSO unit and is expected to be operational by 2023.
- Hence, owing to the above points, the upstream segment is likely to dominate the oil and gas separator market during the forecast period.
Middle-East and Africa is Expected to Dominate the Market
- Middle-East and Africa, due to its highest crude oil production in the world, held a significant market share in the market. In 2018, Middle-East and Africa produced 1878.4 million tonnes (MT), which is approximately 42% of the total crude oil production.
- Countries in Middle-East and Africa have changed their spending pattern and started to invest a significant amount of money on their crude oil and natural gas refining capacity.
- In recent years, several new oil and gas fields were discovered in the region, such as, in 2019, a new oil field was found in Khuzestan province of Iran, which is expected to have 50 billion barrels of oil. The development of such newly discovered fields is expected to require new production facilities and more number of separators.
- In 2019, McDermott International, Inc announced that Saudi Aramco had awarded it a contract for its Marjan Field. The engineering, procurement, construction, and installation (EPCI) contract includes the development of oil and gas separation plants offshore.
- In 2019, Saudi Aramco awarded Saipem to expand Berri Field production by 250000 barrels per day. The planned facilities will, upon completion, include a new gas-oil separation plant in Abu Ali Island to process 500,000 barrels of Arabian Light Crude Oil per day, and additional gas processing facilities at the Khursaniyah gas plant to process 40,000 barrels of associated hydrocarbon condensate. The oil and gas separation units are expected to be used in large quantities.
- Hence, owing to the above points, Middle-East and Africa are expected to dominate the oil and gas separator market during the forecast period.
The oil and gas separator market is moderately fragmented. Some of the key players in this market include Alfa Laval AB, Schlumberger Limited , Frames Group BV, ACS Manufacturing, Inc, and Aager GmbH.
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