Virtual Pipeline Market Report Scope & Overview:

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The Virtual Pipeline Market size was valued at USD 1.26 billion in 2023 and is expected to grow to USD 2.02 billion by 2032 and grow at a CAGR of 5.4% over the forecast period of 2024-2032.

A virtual pipeline substitutes for a physical pipeline by allowing gas to be delivered through a conventional gas pipeline as LNG by sea, land, air, or a combination of these modes of transportation to the delivery point.

When moving LNG from its source, such as an import terminal, it is squeezed into a cryogenic tank, or delivery point, whether it is a liquefaction facility or dispensation center. The natural gas is delivered just as it would have via the conventional pipeline thanks to a regasification station, a multipurpose building that incorporates LNG storage, vaporization, and pressure regulation, as well as control systems.

The kind, model, and quantity of engines, gas turbines, and compressors (centrifugal and reciprocating) that make up the station will be listed.

Engineers and operators will be able to assess how modifications to the system will affect the dynamic and the environment's impact and the gas's deliverability. For instance, the Witfully pipeline system user may drill down into a compressor station and provide a high-level description of the compressor station's level of specificity.

MARKET DYNAMICS

KEY DRIVERS:

• Growing operation at a remote location

• Growing Demand for Natural Gas and a Shifting Trend Toward Cleaner Energy Sources

Because of the serious risks posed by global warming, there has been a shift toward cleaner forms of energy, which has raised the demand for natural gas. Physical pipelines are not always practical due to topography or geopolitical events that may be responsible for the market's growth. A flexible option for the conveyance of virtual goods gas, and natural. In order to save money on pipeline installation and prepare for market expansion, it does not necessitate the extensive installation of a physical pipeline.

RESTRAIN:

• High cost

• Increasing adoption of renewable energy sources

OPPORTUNITY: 

• Increasing demand for clean energy

CHALLENGES: 

• Lack of pipeline infrastructure

There is a lack of pipeline infrastructure, there are minimal transportation challenges for natural gas facilities in rural areas. When compared to spending money on existing pipeline infrastructure or building new pipeline infrastructure in faraway regions, using a virtual pipeline has proven to be one of the most cost-effective solutions. The fact that more vehicle natural gas service stations may be built with comparatively less capital outlay thanks to this innovative technology highlights how it is also used in other industries that provide goods and services.

IMPACT OF RUSSIAN-UKRAINE WAR

Over the past ten years, the EU's dependency on Russian gas has progressively increased. Gas consumption in the bloc decreased only slightly over this time, but output has decreased by two-thirds since 2010, and the resulting deficit has been supplied by increased imports. As a result, from 2010 to 2018, Russia accounted for an average of over 40% of the total EU gas demand, up from 26% in 2010. One of the first organizations to voice concerns about this growing dependence was the IEA. In the previous year, Russia's pipeline gas exports to the EU were more than cut in half. However, the European gas market proved to be resilient as countries were able to immediately cut back on consumption and ramp up non-Russian supply to fill their storage facilities to above 95% capacity.

IMPACT OF ONGOING RECESSION

Increased energy costs have pushed inflation to excruciatingly high levels. Families into poverty compelled other factories to reduce output or even close and delayed economic growth to the point where several nations are approaching acute PE6BSBion. This winter, gas restriction may be necessary in Europe because of its historic reliance on Russian gas supplies, while many emerging economies are experiencing dramatically higher energy import costs and fuel shortages.

KEY MARKET SEGMENTATION

By Fuel Type

• CNG

• LNG

• Others

By Application

• Transportation

• Industrial & Commercial

REGIONAL ANALYSIS

North America currently holds the top spot in the global market for virtual pipeline systems, due to the U.S.'s significant market share, convenient availability, and affordable prices. Due to the quick movement in consumer preference toward adopting cleaner alternatives to fossil fuels as well as the considerable investments in natural gas made by developing economies.

Asia-Pacific is predicted to increase at a significant rate between 2022 and 2030.

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REGIONAL COVERAGE:

North America

• US

• Canada

• Mexico

Europe

• Eastern Europe

  • Poland

  • Romania

  • Hungary

  • Turkey

  • Rest of Eastern Europe

• Western Europe

  • Germany

  • France

  • UK

  • Italy

  • Spain

  • Netherlands

  • Switzerland

  • Austria

  • Rest of Western Europe

Asia Pacific

• China

• India

• Japan

• South Korea

• Vietnam

• Singapore

• Australia

• Rest of Asia Pacific

Middle East & Africa

• Middle East

  • UAE

  • Egypt

  • Saudi Arabia

  • Qatar

  • Rest of Middle East

• Africa

  • Nigeria

  • South Africa

  • Rest of Africa

Latin America

• Brazil

• Argentina

• Colombia

• Rest of Latin America

RECENT DEVELOPMENT

• In August 2022, Kinder Morgan paid USD 135 million to acquire North American Natural Resources, Inc., as well as its subsidiary firms North American Biofuels LLC and North American-Central LLC. The transaction comprises seven amounts of landfill gas to power facilities in Michigan and Kentucky in the amalgamate purchase amount and accompanying contract fees. Through this transaction, Kinder Morgan makes the Final Investment Decision (FID) to upgrade 4 of the 7 gas-to-power facilities to renewable natural gas facilities for an estimated US$175 million in capital costs.

• In June 2022, AVR, in collaboration with the Swedish business HaloSep AB, evaluated the viability of managing its cleaning wastes and dangerous gas locally. A proprietary method called HaloSep separates hazardous waste into fractions that can be used and safely disposed of by choosing HaloSep's solution, AVR will be enhanced into a circular by recovering material resources and lowering the environmental impact of the plant.

• December 20, 2021 The Federal Energy Regulatory Commission (FERC) has received a proposal from Tennessee Gas Pipeline (TGP), a Kinder Morgan, Inc. subsidiary, for the implementation of a sustainably sourced natural gas (RSG) supply assembling regathering service at specific sites along the Tennessee Gas Pipeline system. In order to serve end-users, utilities, power plants, and LNG facilities connected to the TGP system, the proposed service is intended to authorize providers as well as customers on TGP to purchase and sell RSG supplies at abstract trading facilities.

KEY PLAYERS  

The Major Players are Kinder Morgan, Stabilis Solutions, Inc., Hexagon Agility, Fiba Technologies, Petronas, CNG Services, Gas Malaysia, Galileo Technologies, NG Advantage, Marline Gas Services, Snam, Certarus Ltd. and other players are listed in a final report.