2012 Pipeline Construction Report

By Rita Tubb, Managing Editor | January 2012, Vol. 67 No. 1

In Mexico, a McDermott International subsidiary completed a project to install three oil and gas pipelines for PEMEX Exploración y Producción in the Bay of Campeche.

Asia Pacific
Countries in the Asia Pacific region are undertaking massive construction projects to meet growing energy demand. The region accounts for the highest number of new and planned pipeline miles. Some 20,234 miles represent projects in the engineering and design phase; 14,061 miles reflect projects in various stages of construction with China, India and Australia the most remaining the most active areas.

Australia/Papua New Guinea

LNG continues to be the big newsmaker in Australia which accounts for seven sites under construction and eight more in the planning or engineering phase.

Marking the start of one of the country’s latest mega-projects is the $16 billion Santos GLNG LNG plant on Curtis Island. The plant includes the development of coal seam gas (CSG) resources in the Bowen and Surat Basins in southeast Queensland, construction of a 261-mile gas transmission pipeline from the gas fields to Gladstone, and two LNG trains with a combined nameplate capacity of 7.8 mtpa on Curtis Island.

Once completed, GLNG alone will supply 11 percent of Korea’s domestic gas needs and 9 percent of Malaysia’s gas consumption. First LNG exports should start in 2015.

FSU- Eastern Europe
Russia and nations in the FSU and Eastern Europe hold promise for future oil and gas activity and several are constructing and planning extensive pipeline networks to Europe and the Asia Pacific region.

Transneft is contractor and operator on the Zapolyarye-Purpe oil pipeline project. The 310-mile Zapolyarye-Purpe pipeline, with capacity to ship up to 45 MMt/a of crude, will transport oil from the Yamal-Nenets Autonomous District and northern Krasnoyarsk territory. Some 750 miles of supply lines will need to be built. Zapolyarye-Purpe will connect fields on the Yamal Peninsula to the Eastern Siberia-Pacific Ocean pipeline (ESPO). The pipeline will be constructed in three phases with the final phase scheduled for completion in 2016.

Two other pipelines - Nabucco and Russian-backed South Stream - are proposed to tap Azeri gas for export to Europe. A final investment decision on the $20 billion Azeri development is expected in 2013.