The global oil and gas pipeline industry faces a ‘deep crisis’ as demand and prices continue to fall due to the ongoing Covid-19 pandemic.
This is according to data solutions’ firm GlobalData, which predicts further delays of pipeline projects and notes a weak global economic outlook has resulted in cost-cutting measures across the industry.
It states several pipeline operators have decided to cut capital expenditure (capex) or to put off investment on projects.
Sujith Singh, Oil and Gas Analyst at GlobalData, said: “Multiple pipeline operators are looking at project delays as a means to counter the impact of Covid-19.”
Some projects have been stalled or pushed by a year such as Red Oak pipeline in Oklahoma, USA and Pembina Peace Expansion VIII in Canada, while Chinese oil and gas enterprise Sinopec has announced a 2.5% cut in capex costs for 2020.
GlobalData has also resulted in reduced workforces and the suspension of construction activities across the globe.