2012 Worldwide Pipeline Construction Report

By Rita Tubb, Managing Editor | January 2012, Vol. 239 No. 1

In Saudi Arabia, Saudi Aramco awarded an EPIC contract to Saipem for the Al Wasit Gas development of the Arabiyah and Hasbah offshore fields. This encompasses 12 wellhead platforms, two tie-in platforms and an injection platform, a 36-inch, a 160-mile export trunkline, 125 miles of mono-ethylene glycol (MEG) pipelines, 125 miles of subsea electric and control cables and 25 miles of offshore flowlines. Also included are shore approaches and 75 miles of onshore pipelines.

ConocoPhillips and Abu Dhabi National Oil Company (ADNOC) awarded the Shah Gas project in Abu Dhabi to the Al Jaber Group. The project requires construction of facilities including gas-gathering systems, processing trains and product pipelines.
Adnoc has said it expects first production by late 2013 or early 2014.

In the UAE, Technip, in consortium with NPCC, was awarded an EPC contract by ZADCO for the Satah Full Field Development project, 124 miles northwest of Abu Dhabi. The $500 million contract includes offshore brownfield works to existing wellhead platforms and production manifold platform, installation of infield pipelines, as well as modifications and installation of facilities at the onshore Satah plant at Zirku Island.

Leighton Offshore is working under a $58 million contract from Iraq’s South Oil Company as part of the Crude Oil Export Facility Reconstruction Project (Sea Line Project). This involves developing two offshore platforms, a 47-mile, 48-inch oil pipeline and a Single Point Mooring system. The project will expand export capacity by building a pipeline connecting storage sites to the offshore crude oil export terminal near Basra in southern Iraq.

Foster Wheeler’s Global Engineering and Construction Group was awarded a project management consultancy (PMC) services contract by South Oil Company (SOC) for the Iraq Crude Oil Export Expansion Project. This calls for installation of two onshore and offshore pipelines plus three single-point moorings and a central manifold and metering platform. Scheduled for completion in 2013, the project is expected to boost Basra export capacity from 1.8 MMbp/d to 4.5 MMbp/d by 2014.

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

In Brazil, Petrobras is constructing a 530-mile ethanol pipeline to link the main ethanol- producing regions in Minas Gerais and São Paulo to the large consuming centers of São Paulo and Rio de Janeiro. The pipeline will have capacity to transport 21 MMcm/a.
The first section will extend 125 miles from Ribeirão Preto to Paulinia. Phase two involves construction northward through states in the mid-west. The system will be extended to Barueri and Guarulhos in greater São Paulo and Duque de Caxias in Rio Di Janeiro. The pipeline should be brought online in 2014.

Pacific Rubiales Energy Corp. has partnered with EXMAR to develop an LNG export project in northern Colombia. The project involves construction and development of a liquefaction and regasification barge, a small-scale vessel designed to deliver LNG to industrial consumers, and development of a pipeline from the company's La Creciente gas field to the Caribbean coast.

Front-end engineering and design have begun. The project and pipelines are expected to be operational in 2013.