The global gas processing infrastructure market will be worth $12.88 billion in 2016, according to a new analysis by Visiongain.
Investment in onshore gas processing infrastructure around the world depends on the unique supply and demand circumstances in each market, such as the unconventional gas boom in the U.S. and Canada and the growth in domestic demand for gas in places like the United Arab Emirates and Saudi Arabia, the research firm noted.
Economic sanctions on Iran have been lifted following a landmark nuclear deal that was signed in January. The re-entrance of Iran in the global oil and gas sphere will result in large investments being made in order to process gas that will be produced from the remaining phases of the South Pars field, the report said.
Visiongain also expects Russia to drive growth in the global gas processing market after the country signed a 30-year contract to supply gas to China, and is focused on constructing a plant that will exclusively process gas for Chinese exports.
Over the next decade, the global gas processing market is set to witness continuous investment, although the location of these investments will vary from year to year.
The current low oil price has resulted in a slowdown in investments on gas field developments, which in turn has delayed processing projects. However, according to the report, most of these projects will not be canceled as there is still global demand for gas with countries seeking to reduce their emission levels, utilizing gas as a cleaner transitional fuel.
