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Midstream

Definition: In the Oil & Gas and Petrochemical sector, “Midstream” refers to all the phase of transportation from the production locations to the transformation locations. Typically, by “Midstream” we should understand pipelines, vessels and all types of carriers such as trains or trucks. With the evolution of the gas to wire technology (GTW) we should also put in that “Midstream” category the electrical transportation when it goes directly from fields, especially offshore fields, to local grids.

Comment:  Until the years 2000, “Midstream” was barely considered as a sector as such within the Oil & Gas industry as most the companies had decided for long to out-source this transportation function and pipelines were pretty rare. But with the development of the “Upstream” activities in further remote locations and with the political tensions or even direct attacks on existing pipelines, the “Midstream” emerged has a critical phase. In addition the environment constraints have imposed new requirements on the construction of these pipelines and consequently affected heavily their costs. Today the number of pipelines in project around the world and their demanding technical requirements has contributed to make from the “Midstream” a sector by itself within the Oil & Gas Industry. It has generated now its own champions and specialists. 

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