Oil and Gas Pumps Market: Growth, Size, Share, and Trends

Driver: Rapid expansion of gas terminals

The expansion of gas terminals is a strategic response to the increasing global demand for cleaner energy sources, with natural gas emerging as a prominent component of the energy transition. Gas terminals serve as key nodes in the transportation network, facilitating the liquefaction, regasification, and storage of natural gas. The intricate processes involved in these terminals necessitate advanced pumping systems to ensure the smooth and secure flow of gas throughout the supply chain. Oil and gas pumps, powered by cutting-edge technologies, become indispensable in optimizing the performance of these terminals, from the unloading of liquefied natural gas (LNG) from carriers to the distribution of regasified gas to end users. As the demand for natural gas continues to grow, driven by environmental considerations and the shift toward cleaner energy alternatives, the need for reliable and efficient pumping solutions becomes increasingly pronounced. Industry stakeholders are, therefore, compelled to invest in research and development initiatives to enhance the technological capabilities of oil and gas pumps, ensuring they meet the specific requirements of gas terminal operations. Thus, with the increasing demand for natural gas, the networks for gas transportation are expanding at a rapid rate.

In a liquefied natural gas production process, gas from the field is sent to the liquefaction facility, and it undergoes several steps to become liquefied. Pumps are used in this process to calculate amine and facilitate reflux for scrub columns and fractionation towers. The commercial transportation of natural gas and CO2 is currently available. However, an efficient gas transport network requires large compressors and pumping stations to handle high-pressure volumes. The materials used to manufacture these pumps must withstand high pressures and be corrosion-resistant. In May 2020, Polskie LNG signed a contract for the extension of an existing liquefied natural gas regasification installation. This extension included an additional submerged combustion vaporizer (SCV) regasifier, which was designed and assembled along with cryogenic pumps. This investment was aimed at extending the functionality and technical capabilities of the terminal in Swinoujscie with the addition of two SCV devices, enabling regasification capacity of 7.5 billion m3/year of natural gas per year to be installed.

Further, the United States is expected to add 30 new gas terminals in the next decade to meet rising demand for natural gas. Floating LNG terminals (FLNG terminals) are becoming increasingly popular as they are more flexible and cost-effective to build than traditional land-based terminals. FLNG terminals can be located closer to offshore gas fields, which reduces the cost of transporting natural gas to market. These new terminals will create jobs, boost the economy, and help meet the growing demand for energy. All the upcoming plans to expand the gas transport networks are expected to support the growth of the pumps market in the oil & gas industry.

Restraint: Increasing focus on use of renewable energy

Governments and businesses globally are striving to diminish their dependence on fossil fuels and transition toward a sustainable future. Consequently, the anticipated decline in the demand for oil and gas products poses a challenge for the oil and gas pump market. Over the past decade, the substantial growth of renewable energy in regions like Asia Pacific, Europe, and North America, propelled by decreasing power generation costs and heightened environmental concerns, has led to increased competition with traditional oil and gas sources. This shift is impacting the market share of oil and gas companies and complicating investment justifications for new pumps. Investing in new oil and gas pumps has become intricate for industry players, as stringent global environmental regulations raise operational costs, diminishing profitability. Simultaneously, the rising adoption of cost-effective and efficient renewable energy sources like solar, wind, and geothermal power is further challenging the oil and gas sector. The transition to renewable energy is contributing to a decrease in oil and gas prices, constraining companies from investing in new projects and expanding production capacities. This reduction in capital expenditures is directly influencing the oil and gas pumps market, potentially leading to decreased demand for pump systems.