Pipeline & Gas Journal’s 2013 worldwide construction report.
P&GJ’s 2013 survey figures indicate 116,837 miles of
pipelines are planned and under construction worldwide. Of these, 83,806
represent projects in the planning worldwide design phase while 33,031
reflect various stages of construction.
Following is a look at new and planned pipeline miles in the seven
basic regional groups (see area map). North America–41,810;
South/Central America and Caribbean –12,285; Africa–7,999; Asia
Pacific–33,811; Former Soviet Union and Eastern Europe–10,374; Middle
East–7,791; and Western Europe and European Union–2,767. For
information on these and other pipeline projects, see P&GJ’s
sister publication, Pipeline News.
The U.S. rising shale gas production is credited with increasing
mileage of new and planned pipelines. DTE Energy, Enbridge Inc. and
Spectra Energy Corp., plan to jointly develop the NEXUS Gas Transmission
NGT Nominal Group Technique
NGT Not Greater Than
NGT Next Generation Technology
NGT Next Generation Telecom
NGT NASA Ground Terminal
) system to move growing supplies of Ohio Utica shale gas to markets
in the Midwest, including Ohio and Michigan, and Ontario, Canada. The
proposed NGT project will originate in northeastern Ohio, include 250
miles of large-diameter pipe, and be capable of transporting 1 Bcf/d of
natural gas. Targeted in-service date is November 2015.
The Front Range
Pipeline that will originate in the
Denver-Julesburg Basin (DJ Basin) in Weld County, CO and extend about
435 miles to Skellytown, TX is planned by Enterprise Products Partners,
Anadarko Petroleum and
Midstream. It will provide takeaway capacity
and market access to the Gulf Coast. Initial capacity is expected at
150,000 bpd which can be expanded to 230,000 bpd. Enterprise will
construct and operate the pipeline which is expected to begin service
later this year.
Enterprise continues to expand its natural gas and NGL
infrastructure in South Texas and Mont Belvieu, TX to accommodate the
Eagle Ford Shale play. Construction is progressing on a 350-mile
pipeline, a processing facility and an NGL fractionator at the Mont
Belvieu complex. Included in the expansion are two additional pipeline
segments totaling 168 miles, of which 26 miles of 24-inch pipeline will
extend the mainline to the far western reaches of the Eagle Ford. The
remaining 142 miles, to be built in two segments, will comprise 30-and
36-inch line in the eastern portion of the Eagle Ford. A new 64-mile,
30-inch line from the cryogenic facility to its Wilson natural gas
storage facility in Wharton County will provide takeaway capacity for
Enterprise plans to loop 62 miles of gas pipeline with 24-inch and
30-inch loops. Construction on the expansion should be ready for
The company has a 173-mile extension of the partnership’s NGL
pipeline system under construction from Yoakum, TX to the western
reaches of the Eagle Ford in LaSalle County. The pipeline will link to
the company’s NGL pipeline system that delivers Eagle Ford
production to Mont Belvieu where Enterprise is constructing three NGL
fractionators. The extension is set to begin service in the second
Williams Partners gained approval to expand its Transco natural gas
pipeline to provide an additional 250,000 Dth/d of incremental firm
transportation capacity to the Northeast. The expansion will primarily
consist of 12 miles of pipe at locations in Pennsylvania and New Jersey
in addition to a 25,000-hp compressor facility in Essex County, NJ along
with other facility modifications. The cost of the project is estimated
to be $341 million. It is to be placed into service in November.
Just as the shale boon has increased gas pipeline construction,
shale plays are also increasing the nation’s crude oil pipeline
Data from the U.S. Energy Information Administration indicates oil
production (including lease condensate) averaged almost 6.5 MMbpd in
September 2012, the highest volume in nearly 15 years. The states with
the largest increases are Texas and North Dakota.
From September 2011 to September 2012, the
production rose more than 500,000 bpd as North Dakota production
increased by more than 250,000 bpd. Increased production from
smaller-volume producing states, such as Oklahoma, New Mexico, Wyoming,
Colorado, and Utah, is also contributing to the rise in domestic crude
oil production and pipeline construction.
One example is TransCanada’s Gulf Coast project involving a
485-mile, 36-inch crude oil pipeline beginning in Cushing, OK and
extending south to Nederland, TX to serve the Gulf Coast marketplace.
The 47-mile Houston Lateral project is an additional project under
development to transport oil to refineries around Houston.
Construction on the Gulf Coast pipeline commenced August 2012 with
an anticipated in service date of mid-to-late 2013. The line will have
initial capacity to transport 700,000 bopd and can expand to transport
830,000 bopd to refineries.
Gulf of Mexico
, Enbridge Inc. will build, own and operate a
crude oil pipeline to connect the proposed Heidelberg development,
operated by Anadarko Petroleum, to an existing third-party pipeline
system. The lateral is expected to be operational by 2016. The
Heidelberg lateral will originate in Green Canyon Block 860, 200 miles
southwest of New Orleans in 5,300 feet of water. The 20-inch pipeline
will extend 34 miles and is expected to be in service in 2016.
Canada remains fully committed to construction of its 1,179-mile
Keystone XL Pipeline from Hardisty, Alberta to Steele City, NB.
TransCanada indicated it still anticipates approval of the Presidential
Permit application–which is required as the pipeline will cross the
Canada/ U.S. border–in the first quarter of 2013, after which time
construction will quickly begin.
TransCanada is active in Mexico where its subsidiary,
Transportadora de Gas Natural del Noroeste, will build, own and operate
the El Oroto-Mazatlan pipeline for the Comision Federal de Electricidad
CFE Cash Flow to Equity
CFE Comisión Federal de Electricidad
CFE Certified Fraud Examiner
). The $400 million pipeline project will begin at El Oro and end in
Mazatlan, in the state of Sinaloa. The 24-inch pipeline will be
257-miles long and have contracted capacity of 202 MMcf/d. The pipeline
is expected to be in service in late 2016. It will interconnect with the
El Encino-to-Topolobampo pipeline that TransCanada was awarded the
contract to build, own and operate. Construction of the two pipelines is
supported by 25-year natural gas transportation service contracts with
Sempra Mexico’s parent, Sempra International, was awarded two
contracts by the CFE to construct, own and operate a 509-mile, US$1
billion pipeline network connecting the northwestern states of Sonora
and Sinaloa. The network will be built in two segments that will connect
with the U.S. interstate system in Arizona and provide natural gas to
power plants. The first segment, a 36-inch, 310-mile line will extend
from Sasabe, south of Tucson to Guaymas, Sonora. Its capacity will be
770 MMcf/d. Commissioning is expected by late 2014.
The second segment will extend from Guaymas to El Oro, Sinaloa. It
will be a 30-inch, 190-mile pipeline with capacity of 510 MMcf/d.
Commissioning is expected in mid 2016.
Caribbean, South & Central America
Planned pipelines continue to outnumber actual mileage under
construction throughout this region with Brazil continuing to lead in
As noted by energy experts
Research, competition is forcing the
global offshore oil and gas industry to undergo a technological
revolution in order to access a broader range of reserves, and Brazil is
The report * states that
Floating Production Storage and Offloading
FPSO Foster Parent Society of Ontario
FPSO Fleet Publication Supply Office
) technology is playing an increasingly important role in meeting
the surging demand for fresh fossil fuel sources in more remote offshore
locations. Brazil’s national oil company Petrobras is taking the
lead, investing enormous amounts of money to benefit from the FPSO
According to the report, the number of FPSO vessels in Brazil was
32 at the end of 2011, but could expand by 30 by 2017.
FPSO systems are seen as needed to achieve daily production
exceeding 1 MMbbls of oil by 2017. Petrobras and partners announced
contracts had been approved for $4.5 billion of construction work, for
eight FPSOs planned for the Santos basin pre-salt blocks, with the first
vessel expected to start production in 2015.
Petrobras is involved in constructing pipelines in support of
FPSOs. One project is the contract to Saipem for the Guara and
Lula-Northeast gas export pipelines in the Santos Basin, 162 miles off
the coasts of Rio de Janeiro and Sao Paulo, in water depths of
2,100-2,200 meters. The contract encompasses installation and
pre-commissioning of a 34-mile, 18-inch line that will connect the Guara
FPSO to a subsea gathering manifold in the Lula field and a second
14-mile, 18-inch line to connect the Lula-Northeast FPSO to the same
manifold in the Lula field. Offshore activities for both will be
performed mainly by the Saipem
FDS Federated Department Stores, Inc.
FDS Fiche de Données de Sécurité
FDS Famicom Disk System
FDS Faculty of Dental Surgery
2 through 2013.
In Argentina, Rigzone reports national oil company
YPF Esquimalt, British Columbia, Canada
YPF Young Peoples Fellowship
help from Norway’s Statoil to develop its potentially huge shale
gas resources. YPF
Miguel Galuccio unveiled an ambitious five-year
growth plan that he hopes will lead foreign oil companies to help YPF
develop shale gas reserves believed to be the world’s
third-largest. Much of this will depend on YPF’s ability to
properly exploit the 774 Tcf of gas and 23 Bboe that the U.S. EIA
estimates lies trapped in the Neuquen basin.
In other regions, Saipem has contracted with Venezuela’s
Petroleo S.A. for the Dragon-CIGMA Gas Export Pipeline which is part of
the Delta Caribe Oriental project. Saipem will install as 68-mile,
36-inch subsea line to connect the Dragon Platform to the CIGMA complex
close to Guiria and in the Gulf of Paria, state of
city (1992 pop. 131,769), S central Bolivia, constitutional capital of Bolivia and capital of Chuquisaca dept. Since 1898, La Paz has been the administrative capital of Bolivia.
activities will be handled by the Castoro 7 pipelay vessel and should be
Work is under way in southern Peru on the 675-mile South Andean Gas
Pipeline, also known as the Gasoducto Andino del Sur. The route starts
at the Camisea gas fields in Cusco and then run south through the cities
of Puno, Arequipa, Matarani, and Ilo, and may be extended to Tacna. Cost
estimates range up to US$3 billion. Constructor Kuntur Transportadora de
Gas indicates construction could take three years.
Off Trinidad, Technip was awarded an
EPCI Enhanced Proliferation Control Initiative
EPCI Engineering, Procurement, Construction, and Installation
EPCI Electronic Payment Certification Institute
contract by BG
International for development of the Starfish Field. The field lies at a
water depth of 130 meters and will be tied back to BG’s existing
Dolphin ‘A’ Platform. The contract includes project
management, detailed design and procurement of: a 14-inch, 6-mile
concrete-coated production towline; 7-mile control umbilical; riser and
spoolpiece tie-ins; and four flexible jumpers. Offshore installation is
expected in mid-2014 with Technip’s G1200 handling all pipelay,
umbilical lay and heavy lift operations.
The Asia Pacific region accounts for 33,811 miles of new and
planned pipeline miles, slightly lower than last year when P&GJ
reported 34,295 miles.
Several projects involve pipelines of significant length, including
China National Petroleum Corporation’s third West-East Gas Pipeline
that is nearing construction. With a length of 4,584 miles, the project
consists of one trunk, eight branches, three gas storages and one
(liquefied natural gas): see under natural gas.
station. The 3,243-mile trunkline will start at Horgos in Xinjiang and
end at Fuzhou of Fujian Province, traveling through 10 provinces and
regions including Xinjiang. With design pressure of 10-12 Mpa and annual
deliverability of 30 Bcm, completion is expected in 2015, joining Line C
Central Asia-China Gas Pipeline
which also is under construction.
It is estimated that Line C gas supply will commence in January
2014 and reach the designed throughput in late 2015, enhancing
transmission capacity of the Central Asia-China Gas Pipeline to 55
In India, negotiations are under way for the Indian Oil Corporation
International Olympic Committee
n abbr (= International Olympic Committee) →
n abbr (=
) to acquire a 30% stake in state-owned gas utility Gail (India)
Ltd.’s 963-mile natural gas pipeline from Surat in Gujarat to
Paradip in Odisha. Gail gained approval to construct the pipeline to
connect the west and east coasts in April 2012. The pipeline would have
a capacity to transport up to 60 MMcf/d. GAIL will have 36 months to lay
the pipeline and commission it.
IOC reportedly plans 1,243 miles of new pipeline projects to expand
infrastructure for transportation of crude oil and petroleum products.
These include the 435-mile Paradip-Haldia-Budge Budge-Kalyani-Durgapur
see liquefied petroleum gas.
1. LPG – Linguaggio Procedure Grafiche (Italian for “Graphical Procedures Language”). dott. Gabriele Selmi. Roughly a cross between Fortran and APL, with graphical-oriented extensions and several peculiarities.
Pipeline, 183-mile Sanganer-Bijwasan
, term usually restricted to a class of colorless, volatile, flammable liquid hydrocarbon mixtures.
branch pipeline from Patna to Motihari and Baitalpur, 750-mile Cauvery
Basin Refinery to Trichy Pipeline and 250-mile Ennore-Trichy-Puducherry
Gail is developing the Kochi-Koottanad-Bangalore-Mangalore Pipeline
that will pass through the states of Kerala, Karnataka and Tamil Nadu.
The first phase of 31 miles was completed in 2012. The second 447-mile
phase is scheduled to be completed this year.
In Vietnam, the consortium of Chevron, PetroVietnam Gas, Mitsui Oil
Exploration & Production Public Co. Ltd. plans
to build the 249-mile O Mon Gas pipeline to transport natural gas to
fuel the 2,760-MW O Mon power complex. If constructed, it will be one of
the longest gas pipelines in Vietnam. PetroVietnam has a controlling
stake of 51% in the US$7 billion project. No timeline for has been
The focus here is on LNG where seven facilities are under
construction and six more are planned.
The Queensland Curtis LNG (QCLNG) project being developed by
wholly owned by the BG Group, will be the world’s first project to
turn coal seam gas into LNG. The project, under construction since 2010,
will provide hydrocarbons for export markets in 2014.
This major, integrated project involves: expanding QGC’s
existing coal seam gas production in the Surat Basin of southern
Queensland; building a 335-mile natural gas pipeline network linking the
gas fields to Gladstone; and constructing a
change of a substance from the solid or the gaseous state to the liquid state. Since the different states of matter correspond to different amounts of energy of the molecules making up the substance, energy in the form of heat must either be supplied to
plant on Curtis
Island, near Gladstone, where the gas will be converted to LNG for
export. This is one of Australia’s largest capital infrastructure
projects, involving US$20.4 billion of investment.
Australia Pacific LNG is a coal seam gas to LNG joint venture
partnership between Origin, ConocoPhillips and Sinopec. In October the
first of more than 330 miles of pipe for the project had been laid. The
main transmission pipeline will enable coal seam gas to be transported
from gas fields in the Surat and Bowen basins to an LNG plant on Curtis
Island, off the coast of Gladstone for processing and export. There, the
first two gas production trains can process up to 9 Mtpa.
Construction of the Australia Pacific LNG pipeline is expected to
be complete in mid-2014.
Also in the region, Shell celebrate the cutting of first steel for
the Prelude Floating
Liquefied Natural Gas
see under natural gas.
A product of natural gas which consists primarily of methane. Its properties are those of liquid methane, slightly modified by minor constituents.
/sub·struc·ture/ () the underlying or supporting portion of an organ or appliance; that portion of an implant denture embedded in the tissues of the jaw.
with joint venture participants, Inpex and
, and lead
contractor, the Technip Samsung Consortium, at Samsung Heavy
Industries’ Geoje shipyard in South Korea.
More than 260,000 tons of steel will be fabricated and assembled
for the facility. When completed, the Prelude FLNG facility will be 488
meters long and 74 meters wide, making it the largest offshore floating
facility ever built. When fully equipped and with its cargo tanks full,
it will weigh more than 600,000 tons.
Once completed, the Prelude FLNG facility will be deployed in
Australian waters more than 125 miles from shore. This is the first of
what Shell expects to be multiple Shell FLNG projects.
According to GlobalData, production of oil and natural gas from
offshore West Africa is expected to increase from 1,564.2 MMboe in 2011
to 2,201.6 MMboe in 2020 at an AAGR of 3.8%. The offshore production of
oil and gas is expected to reach 2,011.4 MMboe by 2015 due to production
from projects in important producing countries such as Nigeria and
Angola. Beyond 2015, production is expected to increase marginally due
to the maturing of production fields in Equatorial Guinea, the Republic
of the Congo and Nigeria.
Moreover, the new pipelines under construction and planned will
ultimately increase natural gas exports from Africa to European markets.
Tanzania announced construction start of the Mnazi Bay to
Dar es Salaam
Gas Pipeline project in November. The 330-mile pipeline will transport
Mnazi Bay gas through a 36-inch line to Dares Salaam and other major
population and industrial centers. Construction is expected to take 18
FSU Frostburg State University
FSU Finance Sector Union
& Eastern Europe
The most significant report on construction starts in this region
came late last year with the announced construction of the long-awaited
South Stream Pipeline at Russia’s Russkaya compressor station site
near the Anapa, Krasnodar Territory.
The 1,490-mile pipeline will traverse the Black Sea and carry
Russian gas via Serbia, Hungary and Slovenia to Italy. The length of the
Black Sea section will exceed 560 miles. Its design capacity will be 3
Bcm. First gas supplies via South Stream are scheduled for December.
To feed the required gas to South Stream, Russia’s
transmission system throughput will be increased through construction of
an additional 1,520 miles of line pipe and 10 compressor stations with
total capacity of 1,473 MW. This project is named South Corridor and
will be implemented in two phases before December 2019.
In addition to working on diversifying the routes of Russian gas
supplies to the EU, Gazprom is anxious to develop its Asian markets.
Gazprom announced a $38 billion program to develop an East Siberian gas
field and build a pipeline to the Pacific port of Vladivostok to lessen
its reliance on exports to Europe and develop Asian markets. Plans call
for an investment of $24.5 billion to build the 2,000-mile pipeline from
the East Siberian Chayanda deposit to Vladivostok. The remaining $13.7
billion would be invested in field development.
In the Ukraine, a comprehensive upgrading of a section of the
Urengoi-Pomary-Uzhgorod gas mink pipeline (also known as the
West-Siberian Pipeline or Trans-Siberian Pipeline) which carries Russian
gas to Europe is under way by Naftogaz Ukrainy. This includes replacing
insulation and pipes, modernization and reconstruction of pumping
stations. Investments in the first stage, which will require three
years, will cost US$539 million. The total cost to upgrade the
country’s pipelines is estimated at US$6.5 billion and completion
is expected in 2020.
United Arab Emirates
federation of sheikhdoms (2005 est. pop. 2,563,000), c.30,000 sq mi (77,700 sq km), SE Arabia, on the Persian Gulf and the Gulf of Oman.
recently completed a 248-mile pipeline
from the Habshan fields in Abu Dhabi to Fujairah terminal on the
, which has the capacity of exporting 2 MMbop/d to Asian markets in
case of any disruption in shipment through the
Strait of Hormuz
The UAE began operating the pipeline–which was constructed by
China in July. It can export 75% of the country’s oil production
which is about 2 MMbpd. The UAE is also increasing Fujairah’s
storage and off-loading capacities.
Threats to close the Strait of Hormuz are credited with a move by
Saudi Arabia to bypass Gulf shipping lanes. In June Saudi Arabia
reopened the Iraqi Pipeline in Saudi Arabia (
IPSA International Professional Security Association
), originally built by
Saudi Arabia reconditioned the IPSA Pipeline to secure alternative
routes to export oil. Tests through the 1.65-MMbpd line delivered crude
into storage facilities at Mu’ajjiz near Yanbu on the Red Sea for
at least four months, according to published reports.
The IPSA Pipeline is seen as an essential link as more than a third
of the world’s seaborne oil exports pass through the narrow Strait
of Hormuz from Saudi Arabia, Iran, Kuwait, Iraq, the UAE and Qatar.
Qatar’s LNG exports are shipped through Hormuz.
Iraq has awarded South Korea’s KOGAS a $127.5 million contract
to construct two 68-mile pipelines linking the cities of Kirkuk and
Beiji. The lines will be used to transport liquid and dry natural gas.
The lines are slated for completion in late 2014.
Western Europe & EU Countries
While pipeline construction in Western Europe and European Union
countries has shown an increase, the EU seems ready to take a major step
to speed up construction by improving its approval process of strategic
energy pipelines and grids. Although still requiting final approval of
the European Parliament and member states, it could come by spring. The
fast-track permitting rules will only apply to the most strategic
infrastructure, labeled “projects of common interest” because
they benefit more than one member state.
This could include the proposed southern corridor route to bring
gas supplies from Azerbaijan and reduce dependency on Russian gas.
As to area activity, Poland’s Gas Transmission Operator
Gaz-System has a host of gas pipelines planned, including the
cross-border Poland-Slovakia pipeline which will connect the natural gas
transmission systems of the two countries, and expansion of the
Poland-Czech Republic pipeline. The European Commission is co-financing
business and feasibility studies for the two projects.
The parties to the Poland-Slovakia project are Gaz-System S.A. and
Eustream–the Slovakian transmission system operator.
Gaz-System accounts for several gas pipeline projects awaiting
decisions, including the: 81-mile Zdzieszowice-Wroclaw pipeline; 32-mile
Skoczow-O wi cim pipeline; 117-mile Szczecin-Lwowek pipeline; 110-mile
Rembelszczyzna- Gustorzyn pipeline; 165-mile Szczecin-Gda sk pipeline;
105-mile Gustorzyn- Odolanow pipeline; 41-mile Polkowice- ary pipeline;
and 61-mile Strachocina-Pogorska Wola pipeline.
A significant project awaiting a development decision is the
Norwegian Sea Gas Infrastructure project. A spokesperson with Statoil
indicated to P&GJ that a decision would be made shortly. The project
calls for 312 miles of pipeline to gather gas from the Aasta Hansteen,
Linnorm and other discoveries in the Norwegian Sea and pipe it to
Eleven oil and gas companies are reportedly financing the project
of which Statoil is development operator. Start-up is planned in 2016.
* To purchase the GBI Research FPSO Report, phone +44 (0)1204 543
528 or email firstname.lastname@example.org
By Rita Tubb, Managing Editor
North America 41,810 Western Europe & EU Countries 2,767 FSU-Eastern Europe 10,374 South & Central America and Caribbean 12,285 Africa 7,999 Middle East 7,791 Asia Pacific Region 33,811 Under Construction: 33,031 Planned: 83,806 TOTAL: 116,837 Note: All figures are in miles