ultimate bending power...think big. size does matter. rosen maintains the industry’s most...
TRANSCRIPT
ULTIMATEBENDING POWER
MAATS BENDING EQUIPMENT STRENGTH, PERFORMANCE & RELIABILITY UNDER ALL CIRCUMSTANCES
®
Volume 17 Number 3 - March 2017
THINK BIG.
Size does matter. ROSEN maintains the industry’s most comprehensive technology portfolio, from hardware to software, as well as the largest tool fleet. Meaning more flexibility for you.
www.rosen-group.com
Contents
ON THIS MONTH'S COVER
Member of ABC Audit Bureau of Circulations
ISSN
14
72-7
390
Reader enquiries [www.worldpipelines.com]
Copyright© Palladian Publications Ltd 2017. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the copyright owner. All views expressed in this journal are those of the respective contributors and are not necessarily the opinions of the publisher, neither do the publishers endorse any of the claims made in the articles or the advertisements. Printed in the UK.
32
ULTIMATEBENDING POWER
MAATS BENDING EQUIPMENT STRENGTH, PERFORMANCE & RELIABILITY UNDER ALL CIRCUMSTANCES
®
Volume 17 Number 3 - March 2017
WORLD PIPELINES | VOLUME 17 | NUMBER 03 | MARCH 2017
The robust and reliable Maats bending machines are designed to perform the most diffi cult jobs under the most diffi cult operating conditions. The Maats bending
machines have the capacity to bend pipes up to 1 in. wall thickness at x100 of the maximum loadable pipe size. Maats is one of the leading suppliers of pipeline
construction equipment and services to the pipeline industry around the globe. Visit www.maats.com for more information.
03. CommentForging ahead in Africa and the Med.
05. Pipeline newsSeveral pipeline hearings and easements have recently taken place; many midstream projects are progressing steadily; and contracts have been awarded on projects such as Nord Stream 2, TurkStream and more.
REGIONAL REPORT
12. Still suffering or on the up?Dr. Hooman Peimani considers key events of 2016 and provides an outlook on pipeline projects in Africa and the Mediterranean region.
AUTOMATIC WELDING
18. Welding to withstand harsh environmentsAntonio Segadelli, Bonatti, Italy.
WELDING SAFETY EQUIPMENT
23. The power of weld purgingZach Carr, Aquasol Corporation, USA.
LEAK DETECTION
27. Applying acoustics as a subsea solutionPietro Barbagelata, CO.L.MAR, Italy.
PAGE
12
SUFFERINGDr. Hooman Peimani considers
key events of 2016 and provides an outlook for pipeline projects in Africa and the Mediterranean
region.
or on the up?
STILL
12
W hile Africa and the Mediterranean region are different in many ways, they both experienced
a very challenging 2016, and began 2017 with many uncertainties regarding their political and
economic future. Of course, excluding pockets of growth or better economic performance, all other
regions have had similar experiences but to a differing extent. This has been manifested in various forms
thanks to a prolonged global economic slowdown, along with political dissent and frustration due to events
such as controversial elections and devastating armed conflicts. The severity of such experiences has been quite prominent in Africa and the Mediterranean region, having a significant negative impact on their pipeline projects.
13
27
32. Fibre: making pipelines healthy John Williams, OptaSense, UK.
39. Keeping one step aheadHarry Smith, Atmos International, UK.
COATINGS & LININGS
43. Joining forces for coating developmentCraig Sloan and Corentin Lazarus (TechnipFMC, USA), with Marcos Möckel and Pablo Wiesemann (Shawcor, USA).
47. Protecting against external corrosionAlexander Tzamtzis, Belzona Inc., USA.
PLASTIC PIPE
52. Plastic: the new trend?Steve Cooper, on behalf of Plastics Pipe Institute, Inc., USA.
57. A multilayered approachStephen Boros, Pipeline Plastics, LLC, USA.
63. Surfing the TCP waveBart Steuten, Airborne Oil & Gas, the Netherlands.
HDD Q&A
67. World Pipelines' HDD Q&AWorld Pipelines' annual HDD Q&A featuring Vermeer, Direct Horizontal Drilling and Herrenknecht.
UT INSPECTION
73. A new wave of EMAT inspectionBorja Lopez and Frank Weinmeister, Innerspec Technologies, USA.
SCADA SYSTEMS
76. A digital foundationLars Larsson, Schneider Electric, Canada.
52
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Comment
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Applicable only to USA & Canada:World Pipelines (ISSN No: 1472-7390, USPS No: 020-988) is published monthly by Palladian Publications Ltd, GBR and distributed in the USA by Asendia USA, 17B S Middlesex Ave, Monroe NJ 08831. Periodicals postage paid New Brunswick, NJ and additional mailing offices. POSTMASTER: send address changes to World Pipelines, 701C Ashland Ave, Folcroft PA 19032
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FORGING AHEAD IN AFRICA AND THE MED
Africa and the Mediterranean region are home to a rich supply of oil and gas reserves.
Though this may be true, both regions have experienced resistance when it comes to midstream pipelines.
Throughout 2016 and to the present day, Nigeria has been on the receiving end of pipeline attacks. These sabotages, primarily in the Niger Delta region, have largely been claimed by militant groups who believe that the area should receive a greater share of the oil wealth generated by the Niger Delta’s crude reserves.
As a result of these attacks, Nigeria’s crude production has dwindled drastically. However, Africa is not alone in bearing the brunt of this opposition to pipeline infrastructure.
In October 2016, the Tabriz-Ankara pipeline (otherwise known as the Iranian-Turkey pipeline) came under attack by protest groups. Turkey has often fallen prey to pipeline disruptions, primarily caused by the guerrilla organisation, the Kurdistan Workers’ Party (PKK).
In a similar vein, in July 2016, resistance from Cyprus over the Turkey-Israel pipeline came to light. It was essential for Turkey to mend its ties with Cyprus before operations could begin, as the line would transport Israeli natural gas through Cypriot territory.
However, despite some disruption, several new and ongoing projects are still in the pipeline.
The Trans Adriatic pipeline (TAP) is currently forging ahead. Rikard Scoufias, TAP Country Manager for Greece, stated that the pipeline is “on track” to continue gas deliveries by 2020. Approximately 75% of pipes have already been delivered for construction in Albania, where TAP has recently completed the first phase of road infrastructure rehabilitation.
Ian Bradshaw, Managing Director of the TAP consortium, noted: “Approximately 100 km of pipeline length has been welded, 30 km has been backfilled and 6 km has been reinstated […] So far, over 60% of the 32 000 line pipes that are needed to build the 550 km Greek section have been delivered.”
TAP will connect to the Trans Anatolian pipeline (TANAP) at the Turkish-
Greek border, where it will transport Caspian natural gas to Europe. The project aims to help meet Europe’s energy demand and reduce its dependence on Russia.
In early 2016, Uganda and Tanzania partnered to construct the East African crude oil pipeline (EACOP). The 1145 km line will transport crude from Uganda to Tanzania, where it will then travel to international markets.
Work on EACOP began in December 2016, and on 18 January, Gulf Interstate Engineering was awarded a contract for the design of the
US$3.55 billion pipeline. Currently, Gulf expects its work to be completed in seven months, which will then allow for a contractor to be selected. The project is progressing at a steady pace.
One of the most topical projects launched in Africa and the Mediterranean is
the Trans-African natural gas pipeline. In an attempt to strengthen the economy of West Africa, the Nigerian Sovereign Wealth Fund and Morocco’s Ithmar Capital have announced they will develop the project. This means that Nigerian gas will be transported to Morocco before being delivered to its neighbouring European markets.
During a recent summit, King Mohammed VI of Morocco highlighted that the pipeline will not only benefit the African gas producing countries, but the entirety of West Africa.
The pipeline will be approximately 4000 km and, as the project advances, a specific route will be determined soon. However, though currently undecided, the line is expected to pass along the West African coast. Ghana, Cote D’Ivoire, Sierra Leone, Guinea, Senegal, Mauritania and Western Sahara are just a few of the coastal countries that the pipeline could potentially pass through.
Together with the other abovementioned projects, we can certainly expect to see more of this pipeline throughout 2017.
To read more about these pipelines, as well as several other current midstream projects in Africa and the Mediterranean region, turn to the regional report on p.12.
DESPITE SOME DESPITE SOME DISRUPTION, DISRUPTION,
SEVERAL NEW SEVERAL NEW AND ONGOING AND ONGOING [MIDSTREAM] [MIDSTREAM]
PROJECTS ARE PROJECTS ARE STILL IN THE STILL IN THE
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MARCH 2017 / World Pipelines 5
DAPL recieves its final easement
On 8 February, Energy Transfer Partners, L.P. (ETP) announced that Dakota Access, LLC (Dakota Access) received an easement from the US Army Corps of Engineers (Army Corps) to construct a pipeline across land owned by the Army Corps on both sides of Lake Oahe.
The Army Corps’ easement follows a directive from US President Donald Trump to the Army Corps, to take all necessary and appropriate steps that would permit the construction and operation of the Dakota Access (DAPL) pipeline. His directive included easements to cross federal lands.
As a result of this action, DAPL has received all of the federal authorisations that are necessary to proceed with completing the construction of the pipeline.
DAPL consists of approximately 1172 miles of 30 in. dia. crude oil pipeline, which runs from North Dakota to Patoka (Illinois).
Recently, the Association of Oil Pipe Lines (AOPL) hailed the issuance of the easement for the pipeline.
“Action on DAPL sends a signal to pipeline operators, our customers, and the workers and consumers that benefit from pipelines, that sanity is being restored to the pipeline approval process,” said Andrew Black, AOPL President and CEO.
World News
PennEast gets water quality approval
On 13 February, the company behind the PennEast pipeline announced that it had received notice from the Pennsylvania Department of Environmental Protection (PA DEP) stating that the company’s request for a 401 Water Quality Certification had been granted. This notice marked the receipt of a significant state permit.
Received on 10 February, the notification certified that “the construction, operation and maintenance of the project will not violate applicable state water quality standards.”
Water quality certifications are required as a prerequisite to receiving a federal license or permit for activities involving waterways. The 401 Water Quality Certification comes approximately two months before the issuance of Federal Energy Regulatory Commission’s (FERC) final environmental impact statement on the PennEast project, which is expected on 7 April.
The permit approval follows the July 2016 FERC decision that the PennEast pipeline can be constructed with minimal impacts on the environment.
Pat Kornick, PennEast Spokesperson, stated: “Pennsylvania’s water quality certification is a significant step in the regulatory review of the PennEast pipeline project, which continues to progress through a comprehensive, multi agency review process led by FERC.”
“The Department’s year-long review and conclusion provides additional assurance that PennEast can protect the environment, specifically water resources, while delivering much-needed affordable, abundant and reliable energy that will reduce electric and gas bills across the region for decades,” Kornick added.
Wyndwood pipeline hearing scheduled by NEB
The National Energy Board (NEB) will hold a public hearing to consider a proposal from Westcoast Energy Inc. (Westcoast) – doing business as Spectra Energy Transmission – to build and operate the 27 km Wyndwood pipeline expansion project in northeast British Columbia (Canada).
The NEB’s order, released on 14 February, outlines the key steps and deadlines for the hearing, which will include both oral and written components.
In general, these types of applications do not require a public hearing. However, given the elevated level of public interest in the project, the NEB has decided to hold a hearing in order to consider the input of those who could be directly affected or who have expertise to share.
The Board has received 16 applications to participate, and has granted intervenor status to 14 applicants and commenter status to one applicant. One application to participate was turned down. The NEB will consider evidence from local landowners, indigenous groups, companies and federal departments as it decides whether or not to approve the project.
The NEB is providing up to CAN$250 000 in funding to support meaningful participation by intervenors in the hearing process. As this project falls under Section 58 of the National Energy Board Act, the NEB is the final decision maker.
Update on Bayou Bridge pipeline
The US$670 million, 162 mile Bayou Bridge pipeline project has recently begun public hearings to discuss construction permits. During these hearings, the project has received both support and opposition. The pipeline will transport crude oil from the Atchafalaya Basin in Louisiana to Gulf South refineries, crossing 11 parishes on its route. While it is said to bring economic benefits to the state, the pipeline could potentially cause damage to the environment.
The project is expected to create approximately 2500 construction jobs, as well as produce US$17.6 million in sales taxes during construction and US$1.8 million in property taxes in its first year being operational.
Professor David Dismukes, CES Executive Director, and Louisiana Governor, John Bel Edwards, have voiced their support for the project.
Edwards commented: “There is no way to move crude in significant quantities that doesn’t have some risk associated with it. But, ultimately, the pipeline is much safer than moving it on trains or on trucks.”
Dismukes said: “[It] will help expand Louisiana’s energy economy by creating jobs and leveraging existing in-state energy infrastructure such as refineries, processing and storage assets.”
On the other hand, protestors claim that the project may damage the environment. Louisiana crawfishermen oppose the project as it could damage local fishing and hunting grounds, which are their primary source of income.
6 World Pipelines / MARCH 2017
IN BRIEF
IraqThe oil ministers of Iraq (Jabar al-Luaibi) and Iran (Bijan Zanganeh) have signed a Memorandum of Understanding for a study relating to the possibility of constructing a pipeline that would export crude oil from the northern Iraqi fields of Kirkuk via Iran.
RussiaAt a recent working meeting between Alexey Miller (Gazprom) and Rainer Seele (OMV), the parties discussed the crucial role that Nord Stream 2 will play in ensuring reliable supplies of Russian gas to the European market. They also discussed Russian gas supplies to Austria.
CanadaCanada’s National Energy Board has published a report entitled ‘Best Available Technologies in Federally-Regulated Pipelines’ onto its website. The report provides a detailed overview of the current state of pipeline technologies, as well as the best practices used to keep people safe and the environment protected.
PakistanSui Southern Gas Company Limited is set to expand Pakistan’s transmission network by laying nine natural gas pipelines in its Sindh and Balochistan provinces.
USAAn 8 in. dia. underwater natural gas pipeline, operated by Hilcorp Alaska, LLC, has been leaking in Alaska’s Cook Inlet for approximately 10 days. It has been reported that the risk to public health and safety is small.
Saudi ArabiaAn emergency response team has contained the leak in one of Saudi Aramco’s oil pipelines. The company plans to commence a thorough investigation of the accident.
World NewsDakota Access protest camp shut down
Authorities gave Dakota Access pipeline (DAPL) protesters until 2 pm on 22 February to vacate a campsite located on federal land near the line. Since the deadline has passed, officials now plan to enter the site.
While many opponents abandoned the Oceti Sakowin campsite peacefully ahead of the deadline, federal authorities arrested around 10 people who defied the order in a final show of dissent.
As part of a leaving ceremony just before the deadline, some of the last remnants of the protest camp – including makeshift wooden housing – were set ablaze by opponents of the project.
North Dakota’s Governor, Doug Burgum, reportedly stated that approximately 50 people remained at the camp on the evening of 22 February. He said that these opponents will be allowed to leave without being arrested, while contractors clean up the site. However, those who refuse to leave may be arrested.
Authorities sent buses to transport protesters to Bismarck, where they were offered fresh clothing, bus fares, and food and hotel vouchers.
Being around for almost a year, the camp has, at times, accommodated thousands of people. However, the US Army Corps of Engineers set the deadline, citing the threat of spring flooding.
Pony Express pipeline to connect to Holly Frontier refinery
Tallgrass Energy Partners, LP has announced that Pony Express Pipeline, LLC has reached an agreement with Holly Frontier Corp. and its affiliates (Holly Frontier) to build facilities that will connect Holly Frontier’s refinery complex in El Dorado, Kansas (El Dorado refinery) to the Pony Express pipeline.
The El Dorado connection facilities have been designed to meet the needs of the El Dorado refinery and will have a design capacity in excess of 100 000 bpd for any of the batched common stream crude types transported by the Pony Express pipeline. The construction of the connection facilities is expected to be completed by 4Q17.
Iran-Oman pipeline rerouted
According to the Iranian Oil Minister, Bijan Namdar Zanganeh, officials from Iran and Oman have signed an agreement to alter the route of the proposed Iran-Oman underwater natural gas pipeline.
The meeting that saw the signing take place was attended by representatives from Shell, Total and Korea Gas Corp. (KOGAS).
Zanganeh has been quoted as stating: “The two countries agreed that the gas exports pipeline avoids waters controlled by the United Arab Emirates and passes through deepwaters.”
While reports have previously suggested that a route change would make the pipeline more expensive, the agreed changes have been said to have no economic impact on the pipeline project.
The two countries signed an agreement to supply Iranian gas to Oman through the new pipeline in 2013. The deal is valued at approximately US$60 billion over 25 years. Zanganeh has also noted that the project would require US$1.2 billion in investments.
Kochi-Koottanad-Mangaluru pipeline is progressing
State-run Gas Authority of India Ltd. (GAIL) has awarded a contract for laying a 105 km Perole-Kodalamuguru-Mangaluru section of the 440 km Kochi-Kuttanad-Mangaluru natural gas pipeline.
The contract has been awarded to Infrastructure Leasing & Financial Services, which will likely allow the pipeline’s construction and completion to pick up momentum.
GAIL awarded a pipelay contract for 91 km at the Kochi-Koottanad section in in September 2016.
The Rs 4493 crore pipeline project has faced setbacks with regards to its completion, particularly concerning land acquisition problems in Kerala and Tamil Nadu. The pipeline was initially set to be completed by March 2013, but this date was first relaxed until June 2015 and then – as agreed by the Petroleum and Natural Gas Regulatory Board in December 2016 – until February 2019. However, GAIL is targeting completion for December 2018, as per the directives of the Ministry of Petroleum and Natural Gas.
The Kochi-Kuttanad-Mangaluru pipeline is set to be layed in two phases – a 44 km Phase I connecting Cochin port to the FACT plant in the city, along with a 1060 km Phase II that would take the line from the plant to Thrissur-Koottanad and Palakkad in Kerala, and onward to Coimbatore and Salem (Tamil Nadu) before reaching Bengaluru.
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8 World Pipelines / MARCH 2017
Events DIARY
26 - 30 March 2017
NACE Corrosion
New Orleans, USAhttp://nacecorrosion.org/
28 - 30 March 2017
StocExpo Europe
Rotterdam, the Netherlandshttp://www.easyfairs.com/stocexpo-rotterdam-2017/stocexpo-rotterdam-2017/
29 - 31 March 2017
OMC 2017
Ravenna, Italyhttp://www.omc.it/home.php?Lang=en
4 - 7 April 2017
Gastech Japan 2017
Chiba-city, Japanhttp://www.gastechevent.com/
9 - 13 April 2017
NASTT’s 2017 No-Dig Show
Washington D.C., USAhttp://nodigshow.com/
20 - 22 April 2017
India Oil and Gas Pipeline
Conference (IOGPC)
Mumbai, Indiahttp://www.asme.org/events/iogpc/
2 - 4 May 2017
12th Pipeline Technology
Conference
Berlin, Germanyhttp://www.pipeline-conference.com
9 - 12 May 2017
Pipeline Simulation Interest Group
48th Annual Conference
Atlanta, USAhttp://www.psig.org/
13 - 15 June 2017
Global Petroleum Show
Calgary, Canadahttps://globalpetroleumshow.com/
World News
To read more about the articles go towww.worldpipelines.com
News Highlights
➤ WhiteWater Midstream begins pipeline construction operations
➤ James Fisher designs new pipeline trenching tool
➤ STATS completes isolation on challenging Middle East subsea pipeline
➤ M&I Electric to provide midstream solutions for pipeline and terminal projects
Vacuworx system assisting contractors
In order to be competitive, contractors must be versatile and the tools they invest in should be adaptable to the demands of a job.
Vacuworx’s CM 3 vacuum lifting system has a compact modular design and has been designed for heavy duty material handling.
With a standard mounting plate, the CM 3 weighs the same as a standard skid steer bucket, so the host machine’s lift capacity is not impacted.
The all-steel unit is designed to accommodate single and/or double pad configurations, so it can lift a variety of material weights and sizes. The adjustable spreader bar for double pads extends from 61 - 85 in. (measured from outside to outside of the seal channels).
The CM 3 is operated by a hydraulically driven vacuum pump using the auxiliary hydraulics from the host machine (minimum 10 GPM required with maximum 3000 psi). With quick connect hydraulic hoses and a universal mounting plate assembly, the CM 3 can be attached in minutes to a variety of host machines. The unit is also equipped with a factory preset flow control valve to ensure optimal performance with equipment.
With the new CM 3, contractors can use less equipment and fewer personnel to complete jobs in record time. Moreover, since the system can be attached to different host machines quickly and easily, it can move to where it is needed most.
MPLX set to acquire Ozark pipeline
MPLX Pipeline Holdings – a Marathon Petroleum Corp. subsidiary – has signed an asset purchase deal with Enbridge Inc.’s Ozark Pipeline LLC.
Under the agreement, MPLX Pipeline Holdings is set to purchase the Ozark pipeline for US$220 million, subject to regulatory approvals. The deal is scheduled for closure in 1Q17.
Starting in Wood River (Oklahoma) and terminating in Cushing (Illinois), the Ozark pipeline is a 22 in., 433 mile crude oil line with a capacity of 230 000 bpd. The company plans increase the pipeline’s capacity to 345 000 bpd by 2Q18.
Perma-Pipe and Logstor bid on EACOP pipeline
MFRI’s subsidiary, Perma-Pipe and Danish, company, Logstor, have formed a consortium to bid on the East Africa crude oil pipeline (EACOP) project.
Their partnership has joined two leading pre-insulated piping manufacturers of North America and Europe to combine their fabrication, engineering and material science expertise.
The EACOP project is a 1450 km (900 mile) heavy crude oil pipeline running from the Lake Albert basin (Uganda) to the Tanga port (Tanzania), which is being developed by Total E&P, China National Offshore Oil Corp. (CNOOC) and Tullow Oil. The 24 in. dia. pipeline is electrically heat traced.
Perma-Pipe’s CEO, David Mansfield, commented: “We are very excited by this opportunity to join forces with Logstor to bid on what will be the longest insulated and heat traced pipeline in the world. We believe that the combined experience and expertise of our two organisations can bring significant value to the various EACOP stakeholders.”
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10 World Pipelines / MARCH 2017
Contract NewsNord Stream 2 grants offshore pipelay contract
Following an international tender process, Nord Stream 2 AG awarded an offshore pipelay contract to Allseas Group for the Nord Stream 2 natural gas pipeline.
The contract is expected to be signed soon, following a letter of intent agreed between both parties last December. Under the contract, the company will undertake offshore pipelay works for both lines in 2018 and 2019 using three pipelaying vessels – Pioneering Spirit, Solitaire and Audacia.
Using dynamically positioned pipelay vessels, which are able to carry out precise manoeuvring without anchors, should ensure additional environmental protection and safety in the congested Baltic Sea. Allseas’ Solitaire previously laid parts of the Nord Stream pipeline in the Gulf of Finland.
Henning Kothe, Chief Project Officer of Nord Stream 2 AG, said: “I am pleased that we have secured the necessary pipelay capacity for the project in the highly specialised offshore pipelay market. Following the award decisions in 2016 for pipe supply and for coating and logistics, we now have the major contracts in place to complete the project on schedule.”
The Nord Stream 2 project is proceeding as planned. Pipe production at three pipe mills is ongoing, with a total of 480 km of pipes to be produced by the end of 1Q17. Some 45 000 km of seabed have been covered by various survey vessels along the route corridor to ensure the safe installation and operation of the pipeline, with minimum environmental impacts. Altogether, around 200 companies from 20 countries are involved in the Nord Stream 2 project.
Offshore construction contract signed for TurkStream
South Stream Transport B.V. and Allseas Group have signed a contract for the construction of the second string of TurkStream’s offshore section.
The document was signed as part of the option included in the construction contract for the pipeline’s first string, which was inked in 2016.
Similarly to the construction of TurkStream’s first offshore string, Allseas plans to use its Pioneering Spirit vessel to lay over 900 km of pipes across the seabed for the second string of the pipeline.
The aim of the TurkStream project is to export gas from Russia, across the Black Sea to Turkey. While the first string of the pipeline intends to deliver gas to Turkish consumers, the second string will transport the exports further, delivering Russian gas to southern and southeastern Europe.
Each string of TurkStream will have the throughput capacity of 15.75 billion m3/y of gas.
First Subsea secures subsea supply contract
Allseas has awarded First Subsea a contract for the supply of a 42 in. Ballgrab pipeline recovery tool (PRT) for the Sur de Texas-Tuxpan pipeline project. This pipeline is a 700 km subsea gas pipeline that will interconnect with the Nueces-Brownsville pipeline and the Tuxpan-Tula pipeline.
First Subsea’s PRT has been specifically designed and constructed in a modular manner, accommodating different pipe specifications and permitting various pigging, dewatering and sealing scenarios.
Ballgrab PRTs were first used in 1994 and have been supplied to over 125 major projects worldwide.
“It’s great to be working with Allseas again, especially on this prestigious project,” says Phil Day, Proposals Manager, First Subsea.
Essar Projects awarded onshore pipelaying contract by GIGL
Engineering, procurement and construction company, Essar Projects, has been awarded a contract for a 100 km pipeline by GSPL India Gasnet Ltd (GIGL).
The project involves the laying of natural gas pipelines between Jalandhar and Amritsar, with diameters ranging from 12 - 18 in. This is a critical segment of GSPL India Gasnet Ltd’s 2100 km Mehsana-Bhatinda-Jammu-Srinagar pipeline (MBJSPL) project.
GIGL was incorporated in 2011 as a special purpose vehicle to build the pipeline, and is promoted by Gujarat State Petronet Ltd (GSPL), along with Indian Oil, Bharat Petroleum and Hindustan Petroleum.
The Jalandhar-Amritsar section is among the three sections for which GIGL recently completed the tender evaluation process.
Shiba Panda, Managing Director of Essar Projects, said: “We are proud to be associated with a project that is integral to building a countrywide gas pipeline grid for India.”
Yokogawa and eSimulation form midstream alliance
Yokogawa Corporation of America and eSimulation, Inc. have entered into a strategic alliance that will significantly expand their automation solution portfolios and bring enhanced value to the North American oil and gas midstream industry.
“We have always been impressed with eSimulation’s technology and their track record of success in generating value,” said Gene Cammack, Director of System Product Marketing for Yokogawa Corporation of America. “As a direct result of this relationship, Yokogawa has several major initiatives underway to structure our solutions for midstream applications.”
Mark Roop, President of eSimulation, is also pleased with the alliance. “eSimulation has been unlocking hidden value for its midstream clients since early 2000 by optimising midstream gathering and processing assets. [...] With this development, eSimulation is now able to offer a comprehensive midstream optimisation platform to manage gathering, processing, supersystems and multi-supersystem profitability.”
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SUFFERINGDr. Hooman Peimani considers
key events of 2016 and provides an outlook on pipeline projects in Africa and the Mediterranean
region.
or on the up?
STILL
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W hile Africa and the Mediterranean region are different in many ways, they both experienced
a very challenging 2016, and began 2017 with many uncertainties regarding their political and
economic future. Of course, excluding pockets of growth or better economic performance, all other
regions have had similar experiences but to a differing extent. This has been manifested in various forms
thanks to a prolonged global economic slowdown, along with political dissent and frustration due to events
such as controversial elections and devastating armed conflicts. The severity of such experiences has been quite prominent in Africa and the Mediterranean region, having a significant negative impact on their pipeline projects.
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Housing the major oil and gas exporting Arab countries, North Africa is still suffering from the aftershocks of the so-called ‘Arab Spring’. Oil and gas exporting Egypt and Libya are still in the midst of civil war, although the Egyptian government is in control of its country, unlike its Libyan counterpart. Egypt’s export pipeline to Israel (Arish-Ashkelon pipeline) has been idle since the fall of President Mubarak in 2011. Along with repeated attacks by extremist groups in 2011 and 2012 to stop gas exports to Israel, Egypt’s increasing domestic gas demand has left little gas for exports to other countries in order to end its gas exports to Israel and significantly reduce those to Jordan through the Arish-Aqaba pipeline.
Ironically, the idle pipeline could be used for future Israeli gas exports to Egypt, as Israel’s newly discovered offshore fields in the Mediterranean Sea could allow it to become fully self-sufficient in gas, while also exporting gas to its neighbouring Jordan, Egypt and Palestinian authorities, as well as Turkey – all needing a growing amount of gas.
Libya’s destructive civil war and recent terrorist activities have reduced its oil and gas production, pipeline transmission and exports.
Among the North African fossil energy exporters, Algeria has skipped its region’s Arab Spring and civil wars, but has suffered from occasional terrorist activities. Nevertheless, external factors have delayed its pipeline projects. Its Algeria-Sardinia (GALSI) pipeline will unlikely be built due to Italy’s future gas demand, which is lower than expected.
While Sudan has experienced extensive mass opposition, South Sudan has been immersed in a civil war since its 2011 independence, which has affected the two countries’ oil production, exports and pipeline projects.
In West Africa, the continent’s large oil and gas exporter, Nigeria, is yet to end its long-lasting civil war that is engulfing its Delta region in a conflict. This war has significantly damaged Nigeria’s oil and gas industry, particularly its pipelines. Along with vandalism and theft, pipelines have been the main target of the Delta region’s armed groups, each of which are taking their toll on its export capabilities. Its proposed Trans-Saharan pipeline for exporting gas to the European Union (EU) via Algeria is yet to become a reality due to the EU’s hesitations, arising from the project’s heavy cost, Nigeria’s abovementioned pipeline security challenges and its lower projected future gas demand.
The Mediterranean region has had more than its fair share of troubles affecting its energy life and pipeline activities. As a small energy exporter now under various sanctions that are crippling its oil exports, Syria has gone through nearly six years of civil war, which has had negative impacts on its energy infrastructure and exports. While its conflict’s tide has shifted in favour of its central government, which is seeking to restore its authority, Syria is yet to become stable enough for major pipeline activities.
Turkey’s extensive involvement in that conflict on the side of the Syrian anti-government groups damaged its ties with Russia. As a result, Moscow’s TurkStream project was halted in the aftermath of Ankara’s shooting down a Russian military aircraft in 2015. Turkey’s aborted coup of July 2016, along with Russia’s support of Turkish President, Recep Tayyip Erdogan, in its wake,
accelerated the normalisation of the countries’ ties. This started shortly before a divide between Tukey and the EU and the US emerged due to a range of issues.
As a replacement of the ill-fated South Stream pipeline, TurkStream is now becoming a reality, which will allow Russia to export more gas to Europe via Turkey. Meanwhile, construction of Trans Anatolian pipeline (TANAP) is progressing. TANAP is the feeder of the Western-backed rival Trans Adriatic pipeline (TAP), which is aimed at reducing Russia’s energy supplying role to the EU. Turkey’s goal of becoming the main regional hub of oil and gas exports has inclined its government to support both TANAP and TAP, notwithstanding its growing disputes with the EU and the US.
Two regional countries neighbouring Syria have escaped the negative impact of its civil war. However, oil and gas-deprived and importing Lebanon is not a major scene of pipeline activities. Bringing much surprise, Israel has been enjoying a change of fate from total dependency on imported gas to nearing gas self-sufficiency and developing a gas export capability, owing to its newly discovered offshore Mediterranean Sea gas fields. Its first export pipeline to Jordan is now under construction. This article summarises some key pipeline projects of Africa and the Mediterranean region.
Africa
AlgeriaAs a major oil and gas exporter, Algeria has considered many pipeline projects, including those passing through its territory. In March 2016, Arbi Bey Slimane – Algerian state Sonatrach’s Vice President for pipeline transportation – reportedly announced his company’s planned investment of US$3.2 billion over four years to increase its gas pipeline capacity due to output rises of its gas fields in order to “guarantee increased supplies to European clients.” Hence, it will build 1650 km of pipeline and six compression and pumping stations by 2020, primarily to transport output from its new southeast and southwest gas fields.
In July 2016, Sonatrach is reported to have announced signing two contracts for constructing the 344 km (48 in.) GR7 gas pipeline from el Menia in the Ghardaia district northwards to Hassi R’Mel (US$348 million; 21.2 billion m³/y) for transporting gas from new fields at Hassi Mouina, Hassi Ba Hamou and Ahnet. Signed by Sonatrach’s pipelines operator TRC with Algerian state companies, one contract was with Alfapipe (US$156 million) for the supply of 48 in. dia. pipes. Another contract was with Cosider and Sonatrach subsidiary ENAC (US$192 million) for engineering, procurement and construction to be completed within 30 months.
NigeriaNigeria, a major African oil and gas exporter, has so far failed to start the construction of its Trans-Saharan pipeline to feed gas to the EU through Spain via Algeria. Various factors have weakened enthusiasm among investors for the 4400 km long pipeline (US$30 billion) consisting of four lines: Nigeria-Niger border (1037 km), Niger-Algeria (841 km), Algeria (2303 km) and Algeria-
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Spain (220 km). They include uncertainty about the EU’s future gas demand and the mentioned insecurity of such expensive pipeline.
While Nigeria is still working on its realisation, this failure has prompted the country to pursue a similar project. On 3 December 2016, Nigerian Minister of Foreign Affairs, Geoffrey Onyema, announced the signing a joint venture between Nigeria and Morocco to construct a gas pipeline for exporting Nigerian gas to Europe during a visit by Moroccan King Mohammed to the Nigerian capital, Abuja. They agreed “to study and take concrete steps toward the promotion of a regional gas pipeline project that will connect Nigeria’s gas resources, those of several West African countries and Morocco.” The 4000 km Trans-African pipeline (also known as the Nigeria-Morocco pipeline) would “go along the coast from Nigeria all the way up to Morocco and into Europe eventually.” No timeline for its construction has been released.
LibyaThe continued civil war has damaged Libya’s oil and gas production, throughput of its pipelines and export capabilities since the overthrow of Colonel Moammar Gadhafi. Within this context, the December 2016 announcement of Libya’s National Oil Corp. on the reopening of certain pipelines after two years of closure was good news. The reopening of the pipelines from Libya’s western fields of Sharara and El Feel along with the fields’ increasing production will pave the way for a major boost in oil production, with the potential for 270 000 bpd of crude oil to be added to Libya’s oil production within three months.
Mediterranean region
TurkeyDespite its recent cooling ties with the EU and its domestic challenges since the abovementioned July 2016 coup attempt, Turkey is making progress to consolidate its desired role as a regional energy hub. Towards this end, the following two projects are at different stages of realisation.
TANAPTANAP (1850 km, including 19 km under the Sea of Marmara) is being built to feed the under-construction TAP in order to supply the EU with Azerbaijan’s Shah Deniz 2’s gas as part of the EU’s plan to lessen its growing dependency on Russia for energy. Of its annual capacity of 16 billion m3, 6 billion m3 will be consumed in Turkey, with the remaining 10 billion m3 to be exported to the EU via TAP. TANAP’s delivery of gas to Turkey and TAP could begin in June 2018 and June 2019, respectively, according to TANAP CEO, Saltuk Duzyol’s, 8 December 2016 announcement.
Starting from the Turkish border with Georgia in the Turkish village of Türkgözü, where it connects to its feeding and the currently operating South Caucasus pipeline, TANAP will link to TAP at the Greek border in Turkey’s Edirne, passing through 20 Turkish provinces.
TurkStreamThe thaw in Turkish-Russian relations following the July 2016 coup has revived TurkSteam (31.5 billion m3/y of gas; US$11.4 billion). While efforts for such a development initiated shortly before
the coup as ties between Ankara and Brussels were cooling, Turkey and Russia officially agreed to build the pipeline on 10 October 2016. Thus, the Russian and Turkish energy ministers signed a document in Istanbul in the presence of their respective Presidents, Vladimir Putin and Recep Tayyip Erdogan.
Providing two offshore strings of the gas pipeline from Russia to Turkey across the Black Sea, along with the onshore string for gas transit to Turkey’s border with neighbouring countries, Gazprom’s CEO, Alexey Miller, noted its importance for setting out “the legal framework for the TurkStream project.” TurkStream’s construction efforts received a major boost in December 2016, when South Stream Transport B.V. (a subsidiary of Gazprom) and Allseas Group S.A. signed a contract for building the first string of the pipeline’s offshore section to feed Turkey “with an option for laying the second string,” to feed Europe, according to Gazprom. Each string has an annual throughput of 15.75 billion m3.
Given the EU’s uncertain commitment to the pipeline and Russia’s bitter South Stream experience, Gazprom now aims to feed Turkey as it explicitly stated in November 2016.
Meant to feed Turkey with Russian gas and move the gas further to southern Europe via Greece, TurkStream’s original plan provides for four offshore strings (each 910 km) passing 660 km under the Black Sea within the decided South Stream pipeline corridor, followed by 250 km within a new corridor towards the Turkish European part. Reportedly, the Turkish onshore line’s length is 180 km, but that of Greece is unknown.
Israel The discovery of a few offshore gas fields in the Mediterranean Sea has helped Israel to meet the bulk of its growing domestic demand and aim to reach full gas self-sufficiency in just a few years. Of these, the Tamar field (discovered in 2009 with estimated 10 trillion ft3 reserves) is now feeding Israel, while plans for exporting its gas to neighbouring countries will soon bear fruit. As per a September 2014 Israeli-Jordanian energy co-operation, Israel will supply Jordan with US$15 billion of natural gas for “an initial term of 15 years and a total gross quantity of approximately 66 billion ft3 of natural gas,” as reported by Noble Energy, a company involved in developing the mentioned Israeli gas fields.
Reportedly, the actual delivery of gas to Jordan will begin in 2017, when the Israel-Jordan pipeline – which is currently under construction in the Sdom area by the Dead Sea – is set to become operational to supply gas to Jordan for “an initial term of 10 years,” as per a February 2016 agreement with the Tamar partners and Jordan for supplying 1.8 billion m3 over 10 years. A second pipeline is set to be built in the Beit Shean area for supplying gas to the Jordanian National Electric Power Company (NEPCO) from another Israeli gas field, Leviathan. Discovered in 2010 and with estimated reserves of 16 trillion ft3, the Leviathan field is set to go online before the end of 2019. According to a September 2016 agreement, 45 billion m3 of its gas will be supplied to Jordan over a 15 year period.
16 World Pipelines / MARCH 2017
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