January 2022, Vol. 249, No. 1
Features
Global Pipeline Construction Outlook 2022: Amid Some Positive Indicators, New Projects Limited
By Jeff Awalt, Executive Editor
Oil and natural gas prices climbed higher in 2021, prompting increased drilling and production among mostly independent producers in some regions, but a host of political and COVID-related economic concerns kept markets on edge and highly reactive for much of the year.
While an improved upstream outlook had positive implications for the midstream sector, global pipeline construction remained comparatively sluggish as project developers maintained a cautious approach, with capital spending aimed primarily at projects already underway.
A consensus among industry analysts calls for oil and gas prices to remain relatively strong and continue to drive strong upstream cash flows in 2022. But midstream benefits are expected to remain limited as many producers focus on shoring up their balance sheets and increasing shareholder returns.
These trends were reflected in Pipeline & Gas Journal’s annual analysis of pipeline construction activity, which found 103,324 miles of pipelines either planned or under construction worldwide at the start of 2022. Of those, 71,495 miles represent projects in the engineering and design phase, and 31,829 miles are in various stages of construction.
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