How digitising the project lifecycle is shaping the oil & gas EPC market

Employing tools and processes, such as digital twins, Al-enabled project control, and improved construction will convert the whole definition of the traditional EPC industry, Aashi Mishra from Research Nester tells OGN

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THE global energy industry is transforming right before us. When a major Gulf refinery suffered a weeks-long commissioning delay, it was not due to the pipeline fitters but rather because of mismatched engineering models, late procurement updates, and manual handovers between contractors.

Today's oil and gas engineering, procurement, and construction (EPC) firms are solving exactly that problem by digitising the project lifecycle.

But now the industry is standing at the complicated cross-border of rising hydrocarbon demand and taking efficient methods to decarbonise.

As the International Energy Agency (IEA) confirms that natural gas emissions rose by around 2.5 per cent (180 Mt CO₂) in 2024, becoming the largest contributor of CO2 emissions, the question transforms from whether the EPC model must change to how.

The answer lies in a profound transformation, one that leverages digitalisation, embraces efficiency, and navigates the complex path toward a lower-carbon future.

EPC IN THE EVOLVING ENERGY TRANSITION LANDSCAPE

The global energy demand increased by more than 2.2 per cent in 2024, the fastest in a decade, and the energy transition increases investment in developing midstream and downstream infrastructure that keeps EPC activity robust.

Energy agencies project large, sustained capital flows into energy systems as nations adapt generation mixes and expand export infrastructure; these investments make EPC execution efficiency a strategic priority for owners and investors alike.

Concurrently, intense pressure from governments, investors, and the public to reduce the industry's carbon footprint has made sustainability a central pillar of project planning.

According to the International Energy Agency (IEA), the global energy sector is the source of around three-quarters of greenhouse gas emissions today.