Middle East to lead globally on gas processing capacity growth

GlobalData’s latest report, ‘Global Capacity and Capital Expenditure Outlook for Gas Processing Plants – Middle East to Add Highest Gas Processing Capacity’, suggests that global gas processing capacity is expected to grow by 13.5% during 2018 to 2022, from the current 531 billion cubic feet per day (bcfd) in 2018 to around 603 bcfd in 2022.

By region, the Middle East is expected to add the highest gas processing capacity by 2022, about 29.5 bcfd with 44 new-build projects. North America follows, with additions of 18.8 bcfd of capacity through 122 projects.

Globally, 249 new build (announced and planned) gas processing plants are expected to commence operations during the period 2018 to 2022. North America leads with 122 new build plants, followed by Middle East with 44 and Africa with 23.

Among countries, the US is expected to add the most planned capacity of 15.2 bcfd by 2022 through 92 projects. Iran follows, with 10.4 bcfd of capacity addition through 11 new-build projects.

Total gas processing capacity by region (mmcfd)

Source: GlobalData Midstream Analytics

A total of $139.7bn is expected to be spent on new-build (planned and announced) gas processing plants. The Middle East and the FSU lead globally in terms of capital expenditure (capex) over the next four years. The two regions are expected to spend $48.2bn and $36.4bn, respectively, on additions of planned processing capacity.

Russia and the US are expected to be the top spenders on new-build gas processing plants, with $19.3bn and $18.8bn respectively during 2018­­−2022. Among all the new build projects in the 2018–2022 period, the Galkynysh II in Turkmenistan and Tanajib in Saudi Arabia will have the highest gas processing capacities, of 2,899 million cubic feet per day (mmcfd) and 2,698 mmcfd, respectively.

Among companies, Saudi Arabian Oil Co has the highest proposed capex for new build projects during the 2018–2022 period, at $12.6bn. National Iranian Oil Company (NIOC) is expected to add the most gas processing capacity among companies by 2022, at 6.8 bcfd.

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