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Market Forecast 2015-2019energy business insight
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Africa: Key Pipelines
Chapter 6 : Major Project Overview
The Gaso
duto
do Norte ao Sul de Moça
m-
bique
(GAS
NOS
U) Proje
ct would connect
the north
ern Moza
mbique Rovu
ma Basin
with Mapu
to and possibly South
Africa.
Gigajoule spent
18 mont
hs considerin
g the
economic
viability of an LNG
proje
ct aimed
at supplying gas to Moza
mbique but found
that a large-diam
eter north
-sout
h pipeline
would be a more
economical optio
n. A
pipeline also has the added benefit of being
able to supply markets other
than large
port
cities
with gas.
Techn
ical and economic
feasib
ility studies
comp
leted
in 2014
found
that the proposed
pipeline to Richa
rds Bay in South
Africa
with a 5,000
MW
powe
r statio
n at the end
would be economically viable
. The proje
ct
would also help alleviate a South
African
electricity
supply crisis
and is seen
as a
cheap
er and more
environme
ntally
friend
ly
altern
ative
to building a third
coal-fired
powe
r statio
n.
However,
the South
African governme
nt
does
not curre
ntly see GASN
OSU
as a so-
lution
to their
problems
and does
not plan
to go ahead
with the proje
ct. As a result,
the less ambitious
pipeline endin
g at Ma-
puto
rema
ins more
likely
but the possibility
for a South
African exten
sion at a later
time
is still a possibility.
The plann
ed Juba to Djibo
uti pipeline is
considered
an altern
ative
to South
Sudan’s
curre
nt expo
rt pipeline which
passe
s
throu
gh Sudan. Sudan has repea
tedly
threa
tened
to shut South
Sudan out of the
pipeline over
argum
ents regarding transit
fees.
Adding further strain
to the relationship
between the countries,
Sudan has accus
ed
South
Sudan of supporting rebels and
claims that Sudan is stealing oil directly from
the pipeline.
South
Sudan has been
looking for altern
a-
tive ways
to expo
rt their
oil and considered
route
s throu
gh Kenya and Djibo
uti. Sudan
decid
ed on the Djibo
uti route
as it is
short
er and more
economical.Attra
cting
exter
nal investors continues
to be a struggle in the region. Receiving
investmen
t from
the West
for a proje
ct this
size in a country with little in terms of basic
infras
tructure is partic
ularly
challe
nging
.
In the East,
China
would have
to choose
between Sudan or South
Sudan, some
thing
it is unwilling to do.
Zimbabwe
Mo
zamb
iqu
e
Rovum
a
Mapu
to
Basin
Tanzania
Mad
ag
asca
r
Zambia Malawi
South
Africa
S.Sudan
DR of
Congo
Nairobi
Juba
Djibouti
SomaliaUganda
Kenya
Ethiopia
Map
is for illustra
tive purpo
ses only
Map
is for illustra
tive purpo
ses only
GASN
OSU
Developer: Gigajo
ule Intern
ationa
l & ENH
Coun
tries:
Moza
mbique, South
Africa
Product: GasCons
truction: 2016-2018Lengt
h: 2,450
kmDiam
eter:
LargeAnnu
al Capacity: n/a
Juba to Djibouti pipelineDeve
loper
: n/aCoun
tries:
South
Sudan
, Ethiop
ia, Djibouti
Product: OilCons
truction: 2018-2020
(est.)Lengt
h: 1,700
kmDiam
eter:
26”Annu
al Capacity: n/a
• Prospects
• Technologies
• Markets
© 2015
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od
EPC: Key Components – DW
Capex
Chapter 3 : Technical Review
Function:
To operate valves by mech
anical mean
s.
Desc
riptio
n: Actuators
have
significant
benefits when
linked
to the pipeline contr
ol and system.
How
it work
s: The mech
anical action will either be
driven by an electric moto
r, comp
ressed air drivin
g a
cylind
er by hydra
ulic fluid or by using
the gas in the
pipeline itself.
The Rotork Fluid
Syste
m has actua
tors
designed to be powe
red by pipeline gas with either oil
press
ure or direct gas meth
ods.
Actu
ator
(Stat
ion Equip
ment
)
Function:
To stop or restrict flow within a pipeline
for inspe
ction, repair and maintenan
ce (IRM) opera-
tions.
Desc
riptio
n: Materials for valves are chose
n based
on
press
ure, temp
eratu
re and properties
of the product
to be contr
olled. Corrosive
or erosive products may
requi
re a comp
romis
e in material selection, exotic
alloys
, or body
coatings to minim
ise these
material
intera
ctions and exten
d the life of the valve
or com-
pone
nts. Typically, carbo
n steel
alloys
are specified for
non-c
orros
ive applic
ations.
How
it work
s: Gate
Valve
: used
to block
flow comp
letely
to redirect flow or isolat
e a sectio
n for IRM.
The ‘gate’
in a gate valve
is a slab of metal which
is mova
ble within a frame
by mean
s of a threa
ded rod. This rod is con-
necte
d directly or indire
ctly to a turnin
g whee
l and possibly to a mech
anical actua
tor mech
anism
.
Glob
e Valve
: used
to contr
ol flow rate.
They
are name
d after
their
spher
ical shape
with the two halve
s of the
body
being
separ
ated by an intern
al baffle
which
has an open
ing that forms the seat onto
which
a mova
ble plug
can be fasten
ed. The sectio
n of the plug that protr
udes
into the flow will cause
frictio
n and thus can be used
to
contr
ol flow rates.
Othe
r types
: ball valve
and plug valve
used
for isolat
ion, butte
rfly valve
and diaph
ragm
valve
used
for isolat
ion
as well as flow contr
ol; check valve
used
for preve
nting
rever
se flow;
and press
ure relief
valve
used
for releasing
excessive
press
ure.
Valve
s (Stat
ion Equip
ment
)
Function:
To join straig
ht pipe sectio
ns toget
her if they
have
differ
ent sizes
Othe
r times
, fitting
s are used
instea
d of welding so
that flow regulation
and maintenan
ce operation
can be
carrie
d out
Desc
riptio
n: Fittings are classified accor
ding to their
shape
s, which
in turn imply
the usage
. The most
com-
mon
types
are: elbow
, tee, coupling, union
and cap.
Materials for a fitting
vary based
on the materials of
the pipeline the fitting
is attached to and its function.
The comm
on materials includ
e carbo
n steel,
copper
and cast iron.
How
it work
s: Elbow
s allow
the pipe to chang
e direc-
tion, usually in the 90° or 45° angle
. Tees
are used
to transport two-phase
fluid mixtu
res. Split
tees are
specially designed for hot tapping, a proce
ss in which
maintenan
ce or modi
ficatio
n can be done
to a pipeline
witho
ut interr
upting its flow.
Coup
lings
connect two
pipes
to each
other
; they are called
reducers if the
pipe sizes
are differ
ent. Caps
act as a prote
ctive
devic
e
to cover the end of a pipeline.
Fittin
gs Function:
To carry
the product
Desc
riptio
n: Indus
trial line pipe used
to transport
hydro
carbo
n are usually made
from
carbo
n steel,
chrom
ium, GRP,
nicke
l alloys
and other
alloys
.
How
it work
s: Line pipe are manu
factured in parts
to be later
joined by fitting
s. Specifications such
as
diameter and wall thickn
ess will vary accor
ding to the
techn
ical requi
reme
nts of the carrie
d product.
Line
Pipe
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od
Limitations and Alternative Transport Methods
Chapter 3 : Technical Review
Onsh
ore pipelines can be const
rained
by economic, techn
ical, geogr
aphic
al
and geopolitical limita
tions.The limita
tions
might make
altern
ative
transporta
tion meth
ods by rail, road
and/o
r FPSO
/FLNG/LN
G carrie
rs
much
attractive
optio
ns.
Onshore
pipeline limitations
While onshore pipelines have
helpe
d in
transporting oil, gas and condensat
es on-
shore
, they are not witho
ut limita
tions.
Some
key limita
tions
includ
e economic
viability, poten
tial negat
ive environme
ntal
impacts, land-space
, techn
ical const
raints
,
attacks and geopolitica
l limita
tions.Economic
viabil
ity is a key considerat
ion
in decid
ing on transporta
tion solution.
Cons
tructing an onshore pipeline requi
res
a high-Cape
x investmen
t, which
can be
limitin
g when
funds
are insuff
icient
or capital
is difficu
lt to raise.
Howerver
, the operating
Opex
can be considerab
ly lower than alter-
native
transport meth
ods. In certain cases
,
altern
ative
transporta
tion meth
ods (road
or
rail) may not be feasib
le due to geographi-
cal const
raints
. Additionally, oil & gas price
fluctu
ation
can also impact the economic
viability of onshore pipeline proje
cts.Envir
onme
ntal considera
tions
can limit the
const
ructio
n of pipelines which
impacts the
flora
and fauna
of the surro
undin
g environ-
ment
. This is typica
lly oppo
sed politically
and such
proje
cts are often
lobbied against
by the local
comm
unitie
s.
Land-spac
e constraints can be limitin
g to
the const
ructio
n of pipelines. Where space
is a concern, onshore pipeline const
ructio
n
can be difficu
lt partic
ularly
in the acqui
sition
of rights
-of-w
ay or land.
Geog
raphi
cal & Technical
constraints can
impair the ability
to const
ruct onshore pipe-
lines.
Various drillin
g meth
ods and const
ruc-
tion techn
iques
have
been
developed
such
as horizontal
directional drillin
g in cases
wher
e excav
ations and diggin
g of trenc
hes
can prove
to be difficu
lt.
Geop
olitical and political issues can
threa
ten onshore pipeline proje
cts. A case
in point
is in Myan
mar wher
e there
exists
energ
y-security
concerns in relation to
Thailand, India
and China
.Terro
rist attacks on pipelines do happen
and can threa
ten the go-ah
ead for onshore
pipeline proje
cts, espec
ially for large
cross
-
region transport pipelines. Additional costs
imple
ment
ing pipeline secur
ity meas
ures
might be a deter
rent for onshore proje
cts.
Terro
rist organ
isatio
ns often
target onshore
pipelines to threa
ten the intern
al stabil-
ity of regim
es and to cut off vital energ
y
sourc
es. They
can also threa
ten to sabot
age
pipelines until dema
nds are met,
effectively
holding the pipeline at ranso
m
Alternative transport methods
Alternative
transporta
tion meth
ods are
used
when
onshore pipeline transporta
-
tion is not economically, techn
ically
or
geographically viable
.
Rail is a flexib
le and scalab
le transporta
tion
meth
od for oil, partic
ularly
when
new pipe-
line proje
cts are facing
public oppo
sition
(usua
lly relating to environme
ntal dama
ge
concerns). Companie
s such
as South
ern
Pacific Trans
porta
tion provi
de such
servic
es.
Rail transporta
tion can be const
rained by
geography
and land obstr
uctions includ
ing
moun
tains
and water bodie
s. However,
rail transporta
tion can result in significant
accidents.
Road
transporta
tion includ
ing vehic
le trans-
porta
tion via tanke
rs, trucks and other
ve-
hicles
are plausible optio
ns wher
e distan
ces
are short
and when
it is economically viable
to do so. Road
transporta
tion meth
ods are
usually used
locally. Simila
r to rail transport,
road
transporta
tion may be limite
d to land
geography
and any route
obstr
uctions.
FPSO
/FLNG/LN
G Carriers
Floating carrie
rs such
as the Floating
Production Stora
ge & Offlo
ading
(FPSO
),
Floating Lique
fied Natural Gas (FLN
G) and
Lique
fied Natural Gas (LNG
) are viable
op-
tions
wher
e materials are to be transporte
d
acros
s water bodie
s. They
are prefe
rred
altern
atives
over
onshore pipelines when
the transporta
tion costs
of floating carrie
rs
are more
attrac
tive than building onshore
pipelines.
Rail
Road
FPSO
/ FLNG
/ LNG
Carr
ier
Alter
nativ
e Trans
port
Meth
ods
Figure
25: Altern
ative Transport Methods
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asing
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ent, your organ
isation agree
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to be copied in part or whole
or otherwise circula
ted in any form any of the contents without the writte
n permission
of Douglas-W
estwo
od
Project ProcessChapter 3 : Technical Review
Feasibility
Assessment
Feasibility
analysis surve
ys the poten
tial
route
and assesses the poten
tial and obsta
-
cles in the proposed
route
.
Geop
hysical Analy
sis
Geop
hysical studies are conducted
throu
gh
drive
along
, walk
along
and aerial surve
ys.
These assess the geolo
gical and environ-
ment
al feasib
ility of the proposed
route
.
Gove
rnme
nt and Regulatory Appr
ovals
Oper
ators
will often
have
to seek
local
governme
nt and regulators’ appro
val for the
go-ah
ead. This proce
ss some
times
involv
e
local
comm
unity
surve
ys and legal advisors.
Right
s of Ways
and Land
Acqu
isition
Rights of way are acqui
red within the
desired route
path.
At times
, the land will
have
to be acqui
red. This proce
ss often
involv
e legal consu
ltants
.
Key Components
The key comp
onents includ
e line pipe,
fitting
s, statio
n equip
ment
and storage facili-
ties. These comp
onents are often
procu
red
prior
to const
ructio
n.
Oper
ational Cont
rol Syste
ms
These systems are designed to be centr
es
of super
vision
that receive data from
all
statio
ns along
the pipeline and send
orders
back
to those
statio
ns
Procedure
s
O&M
activities are governed
by a set of
stand
ard proce
dures
developed
and imple
-
ment
ed by operators.
Deco
mmis
sionin
g
Conc
erns pipelines or parts
of pipelines
remo
ved due to corro
sion,
pipeline dam-
ages or reservoir press
ure issues. Regulatory
and governme
nt bodie
s have
the optio
n
to enact
a decommis
sionin
g progr
amme. It
seeks
to ensur
e that the decommis
sione
d
pipeline is not a risk to the environme
nt or
the local
comm
unity
by enfor
cing surve
y
and maintenan
ce follow
ups.
Route Selec
tion
This requi
res the utilisa
tion of systems such
as remo
tely sense
d data and GIS and will have
to consider the route
obstr
uctions and corre
sponding rights
of way and land acqui
sition
. Environme
ntal and safety
considerat
ions are also
key in this proce
ss.
Pipeline Calcu
lation
s
Desig
n data and mech
anical calculation
s are integral in the pipeline engin
eering proce
ss. This would involv
e operat-
ing, environme
ntal and line pipe data.
Key Materials
Material selection forms a crucial part the FEED
proce
ss. Cons
iderations
for this includ
e selection criter
ia, coatings
& corro
sion assessmen
t, qualit
y assessmen
t and stand
ards & specificatio
ns.
Cons
truction
Route
Prepa
ration
Route clearance
involv
es remo
val of veget
ation
and obstr
uction as well as transporta
tion of the const
ructio
n equip
-
ment
to the site of the pipeline route
.
Digging of trenc
hes takes
place
once
the route
has been
prepa
red and cleared of any obstr
uctions. Depe
nding
on
the site conditions
, differ
ent drillin
g techn
iques
may also be used
such
as horizontal
directional drillin
g, micro
-
tunne
lling.
Pipe Installation
Pipe installation
steps
includ
e: string
ing and bending, welding & coating and lowering & backf
illing.
If the line pipe is
an exten
sion,
it will be tied-in to existi
ng facilities
Comm
issioning
The last stage
of the pipeline const
ructio
n proce
ss involv
es hydro
static
testin
g and land resto
ration
. Most
pipelines
will be tested for leaks
hydro
static
ally or pneumatic
ally by monitoring press
ure. Once
all testin
g and work
s are
comp
leted, the const
ructio
n crew
will reinstate the site to the origin
al conditions
as much
as feasib
le.
FEED
Pre-FEED
O&M
EPC
Decommissioning
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od
Australasia: Outlook & Key Trends
Chapter 5 : Market Outlook
Pipeline const
ructio
n and expenditure
will continue to rise in Austr
alasia
, led
in large
part by gas activity (conv
en-
tional, CBM
and CSG) in Austr
alia.A numb
er of significant
natur
al gas
proje
cts are expected to come
on-
stream in the coming years
– increas-
ing the need
for onshore infras
truc-
ture.
There is an observable shift towards
medium diameter pipelines in the
region.
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
InstalledKM(thousand)
Capex($bn
)
Capex
Km installed
Robust grow
thAustr
alasia
is a concentra
ted but grow
ing
market. An uptick in activity is expected
over
the forec
ast perio
d follow
ing a
const
ructio
n spike
in 2012. Installation
s are
expected to grow
from
km this year
to
km by 2019.
Expenditure will be greatest in Austr
alia,
with
% of spend
ing in 2015. The secon
d
largest region on this basis
will be Papua
New
Guinea.
The key driver for grow
th in this market is
the need
for pipeline infras
tructure to bring
gas from
fields
to feed LNG
plants. This
will requi
re developm
ent over
the entire
forec
ast perio
d.
Gas dominanceThe Austr
alasia
n market has alway
s been
domi
nated
by gas pipelines and this trend
is expected to continue. In addition to
conventio
nal natur
al gas, this region also has
exten
sive coal bed meth
ane (CBM
) outpu
t
to diversify its gas product portfolio.Shift towards medium diameter
Durin
g the forec
ast perio
d, the medium
range
of 24-41
” will increase its propor-
tion of the market comp
ared
with the
<24”
range
and will accou
nt for
% of the
proje
cted installation
base.
The proportion
of large
range
pipe,
i.e. pipe of greater than
41”, will rema
in neglig
ible at %.
0%
20%
40%
60%
80%
100%
2010
2013
2016
2019
Gas
Liquid
%
%
%
%
%
%
2010-2014
2015-2019
km
km
Table
17: Australasia
Market Outlook by Capex and Length
“Gas
dema
nd on the east coast
of
Austr
alia will triple
with newly com-
missioned
LNG
proje
cts.”Senio
r Mana
geme
nt – Pipeline
Oper
ator
<24"
24-41
" >41"
CAP
EX $mill
ion
2014
2015
2016
2017
2018
2019
Cost
Break
down
RoW
Line Pipe
Fitting
s
Statio
n
Const
ructio
nOther
Costs
Produ
ct
Gas
Liquid
Diam
eter
<24"
24-41
"
>41"
Total
LENG
TH km
2014
2015
2016
2017
2018
2019
Produ
ct
Gas
Liquid
Diam
eter
<24"
24-41
"
>41"
Total
Histo
ric Forec
ast
Figure
37: Market Outlook by Capex and Length in Australasia
Figure
38: Annual Installed Length
by Produ
ct in Australasia
Figure
39: Australasia
Historic and
Forecast Length by Diam
eter
© 2015 Douglas-Westwood 65World Onshore Pipelines Market Forecast 2015-2019
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Eastern Europe & FSU: Key Pipelines
Chapter 6 : Major Project Overview
The proposed pipeline would supply China
and Korea with gas while allowing Russia
to meet its Energy Strategy which aims to
supply 20% of its gas exports to the Asia-
Pacific region.
Initially planned for 2008, the project has
been delayed to 2016. In 2014 Russia wrote
off 90% of North Korea’s debt to facilitate
the building of the pipeline on the most
economic of the three proposed routes.
The preferred route is entirely onshore
and passes through North Korea. A second
proposed route passes through China and
includes a subsea pipeline to South Korea.
A third route runs from Russia directly to
South Korea via a subsea section. With an-
ticipation of realising this project, Russia will
be the largest gas supplier to South Korea.
From the short-term perspective, the
interests of the three parties are aligned.
The pipeline will help South Korea acquire
natural gas at a better price and present
North Korea an opportunity to prop up its
economy as the project will offer an esti-
mated $100 million in annual transit fees.
Russia will gain access to a new market,
enhance its role in increasing the energy se-
curity of South Korea and mitigate tensions
on the peninsula.
In response to Western sanctions involving
Ukraine, Russia is attempting to diversify
its energy exports focusing on the East and
shifting away reliance on European markets.
North Korea and Russia, both under
Western sanctions, seem to have been
encouraged to strengthen diplomatic ties as
a result of their similar situations. The move
could also strengthen Moscow’s ties with
Seoul and undermine American alliance
building efforts in the Pacific.
Differences in interests between the coun-
tries have caused delays to a final agree-
ment on pricing. A low price or export
volume would not justify the field develop-
ment cost for Russia while South Korea
are negotiating for a lower price given their
reliance on gas imports. Seoul is reluctant
to rely on Pyongyang for energy imports
but an insurance policy where North Korea
would also be cut off should they decide
to use the pipeline as political leverage has
alleviated some concerns.
However, increasingly strong ties between
Moscow and Pyongyang, coupled with po-
tential for Russia to meet many of its strate-
gic and political goals, suggest that the line is
more likely to be built than previously.
Gazprom is a major partner for the
proposed pipeline project given the firm’s
expertise in long distance pipelines.
Irkutsk
Buryat Khabarovsk
Vladivostok
SeoulWeihai
Beijing
China
Mongolia
South
Korea
North
Korea
Japan
Russia
Map is for illustrative purposes only
Russia – South Korea
Developer: Gazprom
Countries: Russia, South Korea
Product: Gas
Construction: 2016-2018 (est.)
Length: 1,200km
Diameter: 48”
Annual Capacity: 10bcm
Stuck in the Pipeline – Project Delays
Hit Industry Outlook
Now in its 8th edition, the World Onshore
Pipelines Market Forecast 2015-2019 from
Douglas-Westwood, considers the prospects
for the onshore pipelines construction business
and values the future markets through to 2019
by key component, region, pipeline type and
diameter.
A substantial fall in oil prices since July 2014
has negatively impacted the onshore pipeline
market, although project delays are almost ex-
clusively in North America. The pipeline market
itself is well-cushioned from short-term com-
modity price fluctuations with projects typically
responsive to long-term demand and supply
trends, both within and between regions.
Douglas-Westwood (DW) expects onshore
pipeline expenditure to grow modestly to
$220bn between 2015 and 2019, an increase of
14% compared with $193bn over the preced-
ing five-year period. An increasing volume of
pipeline installations is expected in most regions,
supported by continued product demand
growth in both new and existing population
centres, new and increasing hydrocarbon sup-
ply, and a shift in energy demand preferences
towards gas.
North America and Asia remain the highest vol-
ume markets, together accounting for approxi-
mately 45% of global Capex. However, fastest
growth is anticipated in the Middle East. In total
DW expects almost 309,000km of line pipe to
be installed. This represents an increase of 11%
compared to the previous five-year period.
Key Trends
With an anticipated 35% increase in global
energy demand between 2010 and 2040,
natural gas is expected to significantly increase
its share of the energy mix – growing by 65%
over the same period. This trend, observable
in our previous edition of this report, is
progressing as expected, driven in large part by
non-OECD demand growth and technology
advancements, including in liquefied natural gas.
Investment in new infrastructure to support
LNG and unconventional gas developments
will be a major factor shaping future demand
for pipelines. Outside the major oil province
of the Middle East, gas pipelines accounted for
62% of km installed over the past five years with
this figure expected to increase to 66% for the
2015-19 period.
We have seen lower steel prices and greater
manufacturing capacity become available. Lower
levels of near-term activity among tubular goods
providers have released manufacturing capacity
for line pipes. Lower than expected economic
growth in Asia and reduced activity in North
American unconventional production is expect-
ed to support this scenario in the short-term.
2. World Onshore Pipelines
Market Forecast 2015-2019energy business insight
e: research@douglaswestwood.com t: +44 (0)203 4799 505
www.douglas-westwood.com
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The Douglas-Westwood Approach
• Industry consultation – discussions with a
wide range of companies including: opera-
tors, EPC contractors, equipment manufac-
turers, engineering consultancies and private
equity firms.
• Unique and proprietary data – detailed by
project in our in-house databases. Updated
year-round from published sources and
insight gained from industry consultation.
• Methodology – our forecast is drawn from
our in-house databases, which enables the
forecasts to be established on a project-
by-project basis; taking into account factors
such as progress to date, project size, loca-
tion and any other complications.
• Market forecasts – by region, product (gas
& liquid), diameter and key components
(line pipe, right-of-way, fittings, pumping &
compression stations and construction).
Key Themes
The Report covers all key commercial themes
relevant to players across the value chain in the
onshore pipeline sector:
• Regional forecasts – Capex within each
region, including examples of notable pro-
jects and operators within the region and
countries with most activity.
• Key drivers – discussion of factors en-
couraging onshore pipeline market growth
including the energy needed for industriali-
sation in emerging economies, increase in
population and GDP per capita, the surge
in transportation demand and the move
towards gas for power generation.
• Supply chain – detailing key contractors
regionally within FEED; line pipe; flow as-
surance, fittings & components; welding,
operations & maintenance.
• Key projects – for each region, detailing
the developers, countries involved, product,
length, diameter and capacity.
• Cost breakdowns – individual market
forecast for line pipe, right-of-way, fittings,
pumping & compression stations and con-
struction.
• Technical review – of the project process
from pre-FEED, FEED through to engineer-
ing, procurement & construction (EPC) and
operations & maintenance.
ISBN 978-1-910045-21-3
"Essential reading"
- Government Department
"An amazing and
comprehensive report"
- Financial Analyst
3. 2015 World Onshore Pipelines
Market Forecast
Prospects, Technologies, World Markets
2015-2019
4. © 2015 Douglas-Westwood 2World Onshore Pipelines Market Forecast 2015-2019
By purchasing this document, your organisation agrees that it will not copy or allow to be copied in part or whole or otherwise circulated in any form any of the contents without the written permission of Douglas-Westwood
Contents
Table of Contents
1 Summary & Conclusions..........................................7
Summary......................................................................................................................................... 8
Conclusions.................................................................................................................................... 9
2 Macro Drivers......................................................... 10
Population & GDP Growth Drive Energy Demand .............................................................11
The Energy Mix ...........................................................................................................................12
Oil Price Volatility.......................................................................................................................13
Regional Production – Consumption Balances .....................................................................14
Challenges ....................................................................................................................................15
3 Technical Review .................................................... 16
Project Process ...........................................................................................................................17
FEED: Overview..........................................................................................................................18
FEED: Route Selection ..............................................................................................................19
Limitations and Alternative Transport Methods...................................................................41
4 Supply Chain............................................................ 42
Supply Chain Map........................................................................................................................43
Line Pipe Contractors................................................................................................................44
Key Contractors .........................................................................................................................46
5 Market Outlook...................................................... 47
Methodology & Limitations.......................................................................................................48
Global Market: Outlook & Key Trends ..................................................................................49
Africa: Outlook & Key Trends..................................................................................................50
Asia: Outlook & Key Trends.....................................................................................................51
Australasia: Outlook & Key Trends.........................................................................................52
Eastern Europe & FSU: Outlook & Key Trends ....................................................................53
Latin America: Outlook & Key Trends ...................................................................................54
Middle East: Outlook & Key Trends........................................................................................55
North America: Outlook & Key Trends.................................................................................56
Western Europe: Outlook & Key Trends ..............................................................................57
6 Major Project Overview....................................... 58
Africa: Key Pipelines ..................................................................................................................59
Africa: Key Pipelines ..................................................................................................................60
Asia: Key Pipelines .....................................................................................................................61
Asia: Key Pipelines .....................................................................................................................62
Australasia: Key Pipelines .........................................................................................................63
Eastern Europe & FSU: Key Pipelines ....................................................................................64
Eastern Europe & FSU: Key Pipelines ....................................................................................65
Latin America: Key Pipelines ...................................................................................................66
Latin America: Key Pipelines ...................................................................................................67
Middle East: Key Pipelines ........................................................................................................68
Middle East: Key Pipelines ........................................................................................................69
North America: Key Pipelines .................................................................................................70
North America: Key Pipelines .................................................................................................71
Western Europe: Key Pipelines ..............................................................................................72
7 Appendix .................................................................. 73
Data and Text Conventions......................................................................................................74
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Contents
Figures
Figure 1: Global Expenditure 2010-2019........................................................................................................11
Figure 2: Global Kilometres Installed by Diameter Range Indexed to 2010.................................11
Figure 3: Global Market Outlook by Region 2015-2019.........................................................................11
Figure 4: Global Population Growth & Energy Demand, 1965-2015...............................................14
Figure 5: Historic Primary Energy Demand by Region.............................................................................14
Figure 6: The Changing Energy Mix....................................................................................................................15
Figure 7: World Liquids Production Growth, 2005-2014 .....................................................................15
Figure 8: Historical Brent and WTI Oil Prices, January 2007 – February 2015...........................16
Figure 9: Brent Annual Average Spot Price Forecasts, 2010 - 2020.................................................16
Figure 10: Regional Balance in oil & gas by Region in 2010 and 2030 (mtoe)............................17
Figure 11: US Steel Price, January 2004 – June 2015 ..............................................................................18
Figure 12: FEED Components...............................................................................................................................21
Figure 13: GIS Data Sample....................................................................................................................................22
Figure 14: GE PipeView Exchange Platform...................................................................................................23
Figure 15: Main Components of Pipeline Project Facilitation Tool.....................................................23
Figure 16: United States Interstate Natural Gas System Mainline Compressor Stations .......25
Figure 17: Safe Operating Temperatures of 13 Chromium Stainless Steel ..................................28
Figure 18: Limits for 13 Chromium in Sour Service Environment......................................................28
Figure 19: Corrosion Resistant Alloy Types....................................................................................................32
Figure 20: External Corrosion Direct Assessment Flowchart (Part 1).............................................33
Figure 21: External Corrosion Direct Assessment Flowchart (Part 2).............................................34
Figure 22: Pipeline Components..........................................................................................................................37
Figure 23: Construction Process..........................................................................................................................40
Figure 24: GEOPIG.....................................................................................................................................................43
Figure 25: Onstream Combination Inspection Tool. ................................................................................43
Figure 26: Alternative Transport Methods ......................................................................................................44
Figure 27: Onshore Pipelines Supply Chain...................................................................................................46
Figure 28: Global pipeline length installed annually. ..................................................................................51
Figure 29: Global Market Outlook by Capex and Length......................................................................52
Figure 30: Annual Installed Length by Product.............................................................................................52
Figure 31: Global Historic and Forecast Capex by Region ....................................................................52
Figure 32: Market Outlook by Capex and Length in Africa...................................................................53
Figure 33: Annual Installed Length by Product in Africa..........................................................................53
Figure 34: Africa Historic and Forecast Length by Diameter................................................................53
Figure 35: Market Outlook by Capex and Length in Asia......................................................................54
Figure 36: Annual Installed Length by Product in Asia.............................................................................54
Figure 37: Asia Historic and Forecast Length by Diameter ...................................................................54
Figure 38: Market Outlook by Capex and Length in Australasia........................................................55
Figure 39: Annual Installed Length by Product in Australasia ...............................................................55
Figure 40: Australasia Historic and Forecast Length by Diameter......................................................55
Figure 41: Market Outlook by Capex and Length in Eastern Europe & FSU...............................56
Figure 42: Annual Installed Length by Product in Eastern Europe & FSU......................................56
Figure 43: Eastern Europe & FSU Historic and Forecast Length by Diameter ............................56
Figure 44: Market Outlook by Capex and Length in Latin America.................................................57
Figure 45: Annual Installed Length by Product in Latin America ........................................................57
Figure 46: Latin America Historic and Forecast Length by Diameter...............................................57
Figure 47: Market Outlook by Capex and Length in Middle East ......................................................58
Figure 48: Annual Installed Length by Product in Middle East..............................................................58
Figure 49: Middle East Historic and Forecast Length by Diameter....................................................58
Figure 50: Market Outlook by Capex and Length in North America..............................................59
Figure 51: Annual Installed Length by Product in North America .....................................................59
Figure 52: North America Historic and Forecast Length by Diameter............................................59
Figure 53: Market Outlook by Capex and Length in Western Europe ...........................................60
Figure 54: Annual Installed Length by Product in Western Europe...................................................60
Figure 55: Western Europe Historic and Forecast Length by Diameter.........................................60
6. © 2015 Douglas-Westwood 4World Onshore Pipelines Market Forecast 2015-2019
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Contents
Tables
Table 1: Geographic Information Systems Software Packages ............................................................19
Table 2: General Material Selection for Pipelines in oil & gas Industry.............................................24
Table 3: Pipeline Materials and their Typical Limitations ..........................................................................26
Table 4: Materials for Process and Utility Use...............................................................................................26
Table 5: Guidelines for H2S Limits for Generic CRA Classes...............................................................27
Table 6: Corrosion Resistant Alloy Types........................................................................................................29
Table 7: Organisations governing Pipeline Materials and Relevant Codes & Standards..........32
Table 8: Structural Material Selection. ...............................................................................................................33
Table 9: Common ASTM Steel Pipe Specifications....................................................................................33
Table 10: Pipeline Control Systems ...................................................................................................................38
Table 11: Line Pipe Contractors...........................................................................................................................44
Table 12: Key Contractors.......................................................................................................................................46
Table 13: DW Product Classification.................................................................................................................48
Table 14: Global Market Outlook by Capex and Length........................................................................49
Table 15: Africa Market Outlook by Capex and Length..........................................................................50
Table 16: Asia Market Outlook by Capex and Length.............................................................................51
Table 17: Australasia Market Outlook by Capex and Length ...............................................................52
Table 18: Eastern Europe & FSU Market Outlook by Capex and Length......................................53
Table 19: Latin America Market Outlook by Capex and Length ........................................................54
Table 20: Middle East Market Outlook by Capex and Length..............................................................55
Table 21: North America Market Outlook by Capex and Length .....................................................56
Table 22: Western Europe Market Outlook by Capex and Length...................................................57
7. © 2015 Douglas-Westwood 5World Onshore Pipelines Market Forecast 2015-2019
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