An essential component of infrastructure for the storage of natural gas liquids, refined petroleum products, and crude oil is an oil and gas storage terminal. To enable effective transportation and distribution of oil and gas products, these terminals are placed in close proximity to significant ports, refineries, or distribution centers. These terminals, which are usually furnished with sizable storage tanks, allow businesses to efficiently handle inventory, streamline operations, and react to changes in consumer demand. By following tight environmental and safety requirements, terminal operators play a critical role in guaranteeing the safe handling, storage, and transportation of these commodities.
Middle East Oil and Gas Storage Terminal Market Driving Factors and Challenges
Drivers: The market for oil storage terminals is primarily driven by the rise in demand for petroleum products worldwide, which in turn stimulates oil producers to boost their output. Refinery utilization is on the rise, and storage terminal construction is becoming more and more necessary as a result. Moreover, as personal and commercial travel by air have increased globally, so too has the demand for crude oil by-products like gasoline, LNG, diesel, and aviation fuel.
Demand for oil and gas is rising as a result of population growth, urbanization, and industrialization. It necessitates additional storage space. This is increasing the market for oil storage terminals globally in terms of demand opportunities. YoY consumption continues to rise, with the exception of 2020 because to the pandemic. This will definitely encourage the construction of oil terminals for both industrial and home oil usage. The automotive and aviation industries use a lot of items made from crude oil, which will fuel market expansion.
Challenges: The fluctuating price of oil presents a big obstacle. MEA countries are especially vulnerable to global changes in oil prices because of their reliance on oil earnings. This volatility influences the demand for storage services by influencing the profitability and utilization rates of storage terminals.
Limited infrastructure is another challenge in the MEA region. While some countries have well-established storage facilities, others may lack the infrastructure required due to underfunding in the past or geopolitical reasons.
Impact of COVID-19 on Middle East Oil and Gas Storage Terminal Market
The increasing concerns about COVID-19 are hurting a lot of international companies, especially those in the automotive and aerospace industries. The operations in the Middle East have mostly been exempt from lockdown protocols because many of these nations rely on the oil and gas sector. Yet the COVID-19 pandemic posed a major danger to the Middle East's industrial sector. The stringent precautions put in place to stem the virus's spread created challenging working conditions for many of the sector's vital operations. It is necessary for workers to keep their social distance when working in small spaces. In an attempt to bring stability to a historically turbulent profession, restrictions such as travel bans that restrict workers' availability to employers also create uncertainty.
Middle East Oil and Gas Storage Terminal Market Key Players:
The market study provides market data by competitive landscape, revenue analysis, market segments and detailed analysis of key market players are; Brooge Energy Limited, VTTI, Fujairah National Group, Royal Vopak, General Petroleum, Horizon Terminals, Oman Tank Terminal Company, Oiltanking GmbH, Mitsubishi Corporation, Abu Dhabi National Oil Company.
Middle East Oil and Gas Storage Terminal Market Segmentation:
By Type: Based on the Type, Middle East Oil and Gas Storage Terminal Market is segmented as; Strategic, Reserve, Commercial Reserve.
By Tank Type: Based on the Tank Type, Middle East Oil and Gas Storage Terminal Market is segmented as; Fixed Roof, Floating Roof, Bullet Tank, Spherical Tank.
By Product: Based on the Product, Middle East Oil and Gas Storage Terminal Market is segmented as; Diesel, Petrol, Aviation Fuel, Crude Oil, Kerosene, Gas, Others.
By Region: This research also includes data for Qatar, Saudi Arabia, United Arab Emirates.
This study also encompasses various drivers and restraining factors of this market for the forecast period. Various growth opportunities are also discussed in the report.