2013 Pipeline Construction Report

By Rita Tubb, Managing Editor | January 2013, Vol. 68, No. 1

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.

Asia Pacific

The Asia Pacific region accounts for 33,811 miles of new and planned pipeline miles, slightly lower than last year.

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 LNG 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. Completion is expected in 2015, joining Line C of the Central Asia-China Gas Pipeline which also is under construction.

Line C covers 329 miles in Uzbekistan. It is estimated that 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 Bcm/a.

In India, negotiations are under way for the Indian Oil Corporation (IOC) to acquire a 30 percent 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 LPG Pipeline, 183-mile Sanganer-Bijwasan Naphtha Pipeline, 168-mile branch pipeline from Patna to Motihari and Baitalpur, 750-mile Cauvery Basin Refinery to Trichy Pipeline and 250-mile Ennore-Trichy-Puducherry LPG Pipeline.

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.