Overview

Global oil transmission pipeline development has slowed since 2019, but Asia and the Americas continue major planned expansions to serve export capacity and refinery supply.

Crude oil and natural gas liquids (NGL) transmission pipelines continue to expand worldwide, despite climate targets requiring rapid phaseout of fossil fuels. NGLs are used primarily as petrochemical feedstocks and blending components, and they face growing demand even as crude oil consumption plateaus. As of 2025, about 15,000 km of crude oil and NGL pipelines were under construction globally, with an additional 27,000 km proposed, representing a 16% year-over-year increase.

Asia alone accounts for over 60% of oil pipeline development activity globally, with China, Iraq, and India in the lead. Traditional exporters like the U.S. Gulf Coast, Canada, and Persian Gulf nations are expanding to maintain dominance, while emerging producers in Sub-Saharan Africa and South America aim to monetize local reserves and enter global markets.

These projects are primarily led by state-owned enterprises, including Iraq's Ministry of Oil and China National Petroleum Corporation, as well as oil majors like France’s TotalEnergies. While construction has slowed since 2019, due in part to Covid-19 disruptions, development continues largely unchecked.

Global oil demand is projected to peak by 2030, but pipelines are built to operate for 30–50 years. This contradiction highlights a risk of locking developing regions into carbon-intensive infrastructure, burdening their economies with obsolete assets while diverting capital from low-carbon energy transitions.

Methodology

Frequently asked questions