Saudi Arabia Oil and Gas Midstream Market Size and Share - Growth Analysis Report and Forecast Trends (2026-2035)

The Saudi Arabia oil and gas midstream market size is projected to grow at a CAGR of 5.20% between 2026 and 2035. The market is driven by increasing exploration and production (E&P) activities, increasing investments in pipeline infrastructure, and rising collaborations to enhance large-scale energy infrastructure in the region.

Q1 2026 Market Updates

Geopolitical Impact of Iran, US, and Israel War on the Saudi Arabia Oil and Gas Midstream Market

United States: The United States is a critical technology partner and joint venture participant in Saudi Arabia's oil and gas midstream infrastructure, with U.S. firms including Chevron, Schlumberger, and Halliburton providing technology and services for pipeline monitoring, storage operations, and LNG terminal development. The Iran war has created an acute crisis for Saudi midstream operations. The Iranian drone strike on the Ras Tanura refinery and export terminal on March 2, 2026, disabled 550,000 barrels per day of processing capacity at one of the world's most critical crude export facilities. U.S. military assets have been deployed to defend Saudi energy infrastructure, but the attack demonstrated that Saudi Arabia's concentrated midstream infrastructure is uniquely vulnerable. The East-West Pipeline, rated at 5 million barrels per day and providing Saudi Arabia's only non-Gulf export route, is now operating at maximum utilisation as the Kingdom attempts to reroute Gulf-blocked exports.

Iran: Iran's oil and gas midstream infrastructure, including its pipeline network, storage facilities, and the critical Kharg Island export terminal, has been severely targeted by US-Israeli strikes. Kharg Island, which handles approximately 90% of Iran's crude oil exports, has been damaged by strikes. Iran's ability to export hydrocarbons has been effectively eliminated, and its domestic midstream network carrying refined products to Iranian cities has been disrupted by strikes on refineries and power generation facilities. The Islamic Republic of Iran Broadcasting reported that critical water, gas, and electricity infrastructure was being destroyed across multiple cities, confirming the broad targeting of Iran's industrial and energy midstream network.

Israel: Israel's oil and gas midstream infrastructure, particularly the Eilat-Ashkelon Pipeline and the Haifa refinery complex, is operating under heightened security protocols. Israel halted gas production at the Karish and Leviathan fields on February 28, disrupting approximately 13 to 14 billion cubic metres per year of supply to Egypt and Jordan. These fields have not fully resumed production as security conditions remain elevated. Israeli midstream assets, though limited in scale, represent a strategic vulnerability, and the country has been reinforcing physical and cybersecurity protections for its energy infrastructure throughout the conflict.

Key Takeaways

Government

• Saudi Aramco and the Saudi Ministry of Energy should accelerate completion of the parallel crude export pipeline network planned to break ground by 2026, providing critical redundancy for the East-West Pipeline system and reducing the concentration risk exposed by the Ras Tanura strike.
• The Saudi government should fast-track advanced pipeline monitoring and protection systems deployment across all critical midstream assets, using the Ras Tanura attack as a design basis for prioritising physical and cyber resilience upgrades.
• Multilateral energy agencies should coordinate with Gulf state governments on emergency midstream infrastructure sharing protocols, building on existing GCC interconnection frameworks to create redundant oil and gas transit capacity that can be activated when individual national systems are targeted.

Market

• The Saudi Arabia oil and gas midstream market, valued at USD 4.70 billion in 2025 and projected to grow at a 4.37% CAGR to USD 5.82 billion by 2030, is receiving an unprecedented strategic demand catalyst from the Ras Tanura strike, which has permanently elevated the security and resilience investment case.
• The East-West Pipeline's operation at maximum utilisation in response to the Hormuz blockade demonstrates the critical value of non-Gulf export infrastructure, reinforcing the investment case for pipeline network redundancy and capacity expansion in the Master Gas System Phase 3.
• FDI inflows to Saudi Arabia dropped 60 to 70% in Q1 2026 due to conflict risk, creating near-term capital allocation headwinds for non-essential midstream projects while concentrating available budget on security-critical infrastructure.

Procurement

• Saudi Aramco's procurement teams should immediately activate emergency contracting for pipeline repair and restoration services at the Ras Tanura complex, leveraging existing service agreements with U.S. and European oilfield services companies.
• Midstream infrastructure project developers should review all Gulf coast facility construction timelines, assessing workforce safety, equipment delivery, and security requirements in light of the active conflict environment.
• Procurement teams should advance orders for pipeline monitoring sensors, leak detection systems, and cybersecurity infrastructure that were in long-term planning, given that the Ras Tanura strike has made midstream security a national priority requiring accelerated deployment.