Oil & Gas infrastructure includes, among other things, production facilities, liquefaction plants, refineries, pipelines, and storage tanks. According to a regional analysis of oil and gas construction projects, the Middle East and Africa region has the largest share of projects, by value, with projects worth USD 1.23 trillion in the pipeline accounting for approximately 45% of all projects in the pipeline globally. The quest for enhancing safety protocols and ensuring the resilience of energy infrastructure has sparked a revolutionary transformation in the maintaining pipeline integrity. Experts, armed with advanced techniques and technologies, have spearheaded a new era in safeguarding pipelines, thereby significantly mitigating the risks associated with potential hazards. In the energy sector, pipeline inspection and monitoring have become pivotal practices. The adoption of cutting-edge methodologies, such as robotic inspection tools and intelligent monitoring systems, has facilitated a comprehensive evaluation of pipeline conditions. Through the utilization of these technologies, operators can proactively identify and address issues, thereby preventing leaks, ruptures, or other potential failures.
Ultrasonic, PIGs, Magnetic Flux Leakage, Smart Ball, Fiber Optic Technology, etc. are the major technologies used for pipeline monitoring. By using magnetic flux leakage technology, it is possible to identify the remaining wall thickness, depth, and the precise location of metal loss caused by deterioration mechanisms—particularly in steel/ferrous pipes. Ultrasonic leak detection is a superior technology for pipeline inspection and monitoring; it accurately identifies leaks by analyzing pipeline variations and capturing emitted noise. Its exceptional sensitivity enables early detection of even the smallest leaks in oil and gas pipelines, preventing costly damages and environmental risks. Using sensor devices placed outside the pipe, the non-intrusive method minimizes disruption and damage. With versatility across pipeline materials and conditions, ultrasonic technology ensures high accuracy in leak detection.
Major Concerns in Middle East and Africa
There have been major terrorist activities and cybercrimes in the Middle East and Africa in the last two decades. Military adversaries, organized oil smugglers, and armed rebels also create threatening situations. Political unrest, internal disputes, and governmental instabilities in countries in the Middle East and Africa regions have significantly hampered the overall production of oil and gas and have created potential threats to oil and gas plants and pipelines carrying these media. The majority of conflicts are due to economic issues and the failure of parties to agree on the terms of transit, expenses sharing, and taxes. Cross-border pipeline operators face tax risks, although the governments involved sign pipeline agreements. Also, the government laws proposed internationally for cross-border pipelines are becoming more complex.
Nigeria is world’s seventh largest exported of oil and is expected to export 1.5 million bpd in 2023. However, in the past few years, oil and gas production has been hampered in Nigeria, due to the attack on oil and gas infrastructure by militants. Oil theft has also been a major issue faced by the oil & gas market in Nigeria, which has led the operating companies in the country to incur huge losses. Lack of infrastructure, uncertainties in regulations, and security concerns have led Nigeria to underutilize its refining capacities, thereby pushing the country to become a net importer of refined petroleum products. An evolving regulatory framework is essential to foster a proactive and systematic approach to pipeline safety, ensuring continuous improvement and reducing the potential for pipeline failures and environmental impacts in Nigeria.
Market Outlook
The region consists of major oil & gas producing countries such as Saudi Arabia, the UAE, and Iran, Qatar, and Nigeria which have some of the largest petroleum reserves in the world. Countries such as Saudi Arabia, UAE, Iran, and others export most of their production to neighbouring Asian countries such as China and India, which have high energy demand. Likewise, increasing oil & gas demand in other developing countries and the augmented demand for pipeline monitoring due to improved pipeline infrastructure offer excellent opportunities to this market.
FIGURE 1: Pipeline monitoring system MARKET TRENDS, Middle east and Africa
Source: Investor Presentations, Interviews with Experts, and MarketsandMarkets Analysis
Upcoming Oil & Gas Developments to Fuel the Pipeline Growth
The African region possess 125 billion barrels of proven oil reserves as of 2022. There are new exploration activities undertaken in many African countries such as Libya, Namibia, Angola, and Uganda in recent years. Uganda, a country with proven oil reserves for the past 20 years is expected to start oil production from Tilenga project by 2025. The heavy investment in developing the infrastructure will lead ways to pipeline monitoring market.
Middle East being the region with the highest petroleum reserves in the world is poised to maintain its dominating share in exports to Europe and Asian countries in future as well. Saudi Aramco has targeted to produce 0.65 bcm of natural gas per day by 2028 and is expected to develop unconventional gas reserves in North Arabia, South Ghawar, and the Jafurah Basin, east of Ghawar.
TABLE 1 africa: Key upcoming pipeline projects
| Project Name | Investment in USD | Pipeline Operation Length (km) |
| Central African Pipeline System (CAPS) | 30 billion | 6,500 |
| Nigeria-Morocco Gas Pipeline | 25 billion | 5,600 |
| Trans-Sahara Gas Pipeline (TSGP) | 13 billion | 4,128 |
| African Renaissance Pipeline Project | 6 billion | 2,600 |
| East African Crude Oil Pipeline (EACOP) | 3 billion | 1,443 |
| Ajaokuta–Kaduna–Kano Gas Pipeline | 2.8 billion | 618 |
Source: Secondary Research, and MnM Knowledge Store
The maintenance of pipeline integrity via monitoring also faces further hurdles in face of skilled workers. Another significant challenge lies in the extensive network of existing pipelines, posing difficulties in conducting comprehensive monitoring. Furthermore, factors such as aging infrastructure, remote locations, and harsh environmental conditions contribute to accessibility challenges. To surmount these barriers, it is imperative to foster collaboration among stakeholders i.e., Governments, pipeline operators, and technology providers must unite to formulate efficient strategies.
