The Australia oil and gas midstream market plays a crucial role in ensuring the smooth transportation, storage, and distribution of oil and gas products throughout the country. As an integral part of the energy sector, it serves as the bridge between upstream exploration and downstream refining and distribution. The Australia oil and gas midstream market size is projected to grow at a CAGR of 4.84% between 2025 and 2034. This growth is being driven by an increase in domestic energy demand, expanding export capacities, and an ongoing need for modern infrastructure.

In this blog, we’ll delve into the key aspects of the Australian oil and gas midstream market, including the types of infrastructure, services, and regional dynamics that shape the industry. Additionally, we will explore the market’s competitive landscape, demand and pricing indicators, and the trends influencing its future growth.

Market Segmentation Analysis

The Australian oil and gas midstream market is diverse, covering several types of infrastructure and services that are critical to the functioning of the oil and gas supply chain. These segments include storage tanks, pipelines, LNG terminals, and other infrastructure types, each contributing uniquely to the sector.

By Infrastructure

  • Storage Tanks Storage tanks are essential for the containment and storage of crude oil, refined products, and natural gas. In Australia, both underground and above-ground storage tanks are utilized depending on the type of resource being stored and its proximity to key infrastructure. As Australia continues to ramp up LNG exports, storage tanks will play a crucial role in buffering supply and demand fluctuations. Recent technological advancements in tank monitoring systems are also increasing efficiency and safety.

  • Pipelines Pipelines are the backbone of the midstream sector, facilitating the transportation of oil, gas, and refined products. Australia has an extensive network of pipelines connecting production fields to refineries, processing plants, and export terminals. The country is also expanding its pipeline capacity to accommodate growing LNG exports to Asia. These developments contribute significantly to the midstream market’s projected growth, as well as to Australia’s role as one of the largest exporters of natural gas.

  • LNG Terminals LNG export terminals are critical infrastructure for the oil and gas midstream market in Australia, a leading LNG exporter. Terminals located along the east and west coasts of Australia, such as the Gladstone LNG Terminal and the Woodside-operated North West Shelf project, are essential in liquefying and exporting natural gas to international markets. The continuous expansion of these terminals, along with new terminal developments, is a key growth driver for the market.

  • Others Other essential infrastructure components in the Australian oil and gas midstream sector include compressor stations, metering stations, and offshore platforms. These systems support the flow of oil and gas and ensure that the quality of the product is maintained throughout transportation. Future technological innovations, such as automation and predictive maintenance, are expected to enhance operational efficiency and reduce downtime.

By Service

The midstream market provides a wide range of services crucial to the transportation and storage of oil and gas. These services include storage, refining, processing, and transportation, each tailored to specific types of oil and gas products.

  • Storage Services Storage services include the provision of tanks and other storage solutions for crude oil, refined products, and natural gas. Companies in Australia are increasingly investing in high-tech, large-scale storage facilities to ensure they can manage fluctuations in supply and demand. Additionally, the integration of digital technologies, like IoT-based monitoring systems, is helping streamline storage management.

  • Processing and Refining Services Processing and refining services are essential for converting raw materials like crude oil into consumable products, such as gasoline, diesel, and petrochemicals. The midstream sector plays a crucial role in supporting refining operations, ensuring the smooth transportation of raw materials to refineries, as well as distributing finished products across the country.

  • Transportation Services Transportation services include the movement of crude oil, refined products, and natural gas from production sites to storage facilities, processing plants, and export terminals. These services rely heavily on pipelines but also involve rail, tanker ships, and trucking. With the expansion of the LNG export market, pipeline infrastructure is growing in importance, with several new pipeline projects underway.

Regional Market Analysis

Australia’s vast geography and diverse energy landscape contribute to a varied midstream market across regions. The country’s east and west coasts have distinct oil and gas infrastructure that caters to different needs.

  • Eastern Australia: Queensland, New South Wales, and Victoria have significant oil and gas reserves, as well as key LNG export terminals. The Eastern Gas Pipeline and the Australian Pacific LNG project are major contributors to this region's midstream sector. As LNG demand from Asia continues to increase, eastern Australia is expected to see substantial growth in midstream infrastructure.

  • Western Australia: The state is a hub for natural gas production, with major projects like the North West Shelf and Wheatstone LNG terminals driving demand for midstream infrastructure. Western Australia’s midstream market is focused on oil and gas transportation and LNG exports.

Market Dynamics: SWOT and Porter’s Five Forces Analysis

SWOT Analysis

  • Strengths:

    • Australia’s rich natural gas and oil reserves.
    • Well-established infrastructure networks for domestic and export markets.
    • A leading exporter of LNG globally.

  • Weaknesses:

    • Aging infrastructure in some regions requiring significant investment in upgrades.
    • High operational costs for maintaining and expanding pipelines and storage facilities.

  • Opportunities:

    • Increasing demand for LNG and natural gas, particularly from Asia.
    • Technological advancements in pipeline automation, predictive maintenance, and digital monitoring.
    • Expansion of LNG export terminals and new pipeline projects to meet growing demand.

  • Threats:

    • Regulatory challenges, including environmental and safety standards.
    • Volatility in oil and gas prices, impacting investment in infrastructure.
    • Increasing competition from renewable energy sources.
Porter’s Five Forces Analysis
  • Threat of New Entrants: Moderate, as the oil and gas midstream sector is capital-intensive with high regulatory barriers.
  • Bargaining Power of Suppliers: High, given that suppliers of key components (such as pipes, tanks, and equipment) play an essential role in infrastructure development.
  • Bargaining Power of Buyers: Moderate, as large oil and gas companies have considerable purchasing power, but there is limited competition in the sector.
  • Threat of Substitutes: Moderate, with renewable energy sources and emerging technologies like hydrogen beginning to gain traction in the energy market.
  • Industry Rivalry: High, as several large players, including Jemena, APA Group, and Santos, compete for market share in a growing industry.

Competitive Landscape

The Australia oil and gas midstream market is dominated by a few large players who control significant infrastructure assets. Key players in the market include:

  • Jemena: A major operator of gas infrastructure in Australia, including pipelines and storage.
  • APA Group: One of the leading companies providing gas transportation and storage services.
  • Santos: A major energy company with substantial interests in LNG and midstream infrastructure.

Other companies, both domestic and international, are also investing in the Australian midstream sector as the demand for LNG and oil continues to grow.