2012 Pipeline Construction Report

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

Gazprom and China National Petroleum Corporation (CNPC) plan to partner to build the 1,616-mile Altai Pipeline to deliver natural gas from western Siberia to northwestern China. The contract period is 30 years and the supply volume, upon reaching design capacity, will be 30 Bcm/yr. First supplies are planned for 2015.

Africa
Limited energy development in Africa is due to political, economic, operational and geopolitical risks. The region accounts for 6,683 miles of planned pipelines and 934 miles under construction.

One area that may hold promise for near-term activity is Nigeria. At the World Petroleum Congress in Qatar, Minister of Petroleum Resources Diezani Alison-Madueke outlined $130 billion in investment plans for oil and gas sectors over the next five years, calling for construction of 1,245 miles of oil and gas pipelines to boost domestic gas supply, a petrochemical plant, new fertilizer and manufacturing plants and three greenfield refineries.

Awaiting a construction start is the 2,565-mile Trans-Saharan Gas Pipeline (TSGP) planned by the Nigerian National Petroleum Company and Sonatrach. Total, Gazprom and the European Union have all displayed an interest in assisting construction. EU officials say the pipeline could supply 20 Bcm/y of gas to Europe by 2016.

Western Europe/EU
While pipeline activity in Western Europe and EU Countries was expected to increase following a decision by the European Commission to provide US$1.9 billion in grants to ensure that some 30 gas project would not be delayed, the growing financial crisis among many EU countries could derail near-term activity.

Those projects scheduled to receive grants include the 500-mile Interconnector Turkey-Greece-Italy (ITGI) project, 130-mile Poseidon Pipeline, 281-mile Skanled Pipeline, 2,050-mile Nabucco Pipeline, 235-mile Odessa-Brody project and the 130-mile Slovakia- Hungary Interconnector.

Middle East
In the Middle East 8,805 miles of pipelines are planned and 2,675 miles are in various stages of completion.

South & Central America/Caribbean

Several South, Central American and Caribbean countries are implementing plans for new pipeline infrastructure.