The global natural gas pipeline infrastructure market is projected to reach $3.228 trillion (U.S.) by 2027, according to a report by Grand View Research Inc.

The growth will expand at a revenue/volume-based compound annual growth rates of 3.4% over the forecast period, the California-based company said.

Rising natural gas imports along with growing investments in infrastructure and network expansion are likely to strengthen market demand, it said.

The market is primarily driven by replacement of existing pipeline infrastructure due to enhanced safety, and pipeline expansion in some regions will also provide a major boost, it said.

It noted that Gazprom had invested 5.9 billion (RUB) on infrastructure expansion in the Sakhalin region with nine inter-settlement gas pipelines constructed between 2008 and 2018.

Gathering pipeline is the fastest-growing segment expanding at a revenue-based CAGR of 3.3% over the forecast period. That is due to the discovery of new gas reserves in the United States and China, it said.

Distribution pipelines represent $1.693 trillion of the forecasted total owing to the growing global demand for natural gas in residential, power plant and industrial uses, it said.

Transmission pipelines are expected to register a revenue-based CAGR of 3.2% to 2027 due to rising natural gas imports and exports all across the globe, it said.

Asia Pacific is expected to witness the fastest expansion with a revenue-based CAGR of 3.7% due to natural gas consumption from emerging economies and growing reliance on imports from other regions, it said.