Pipeline & Gas Journal’s 2009 International Pipeline Construction Report

Once again, international pipeline projects indicate a much higher number of planned pipelines versus actual construction. This is reflected in P&GJ’s latest international survey figures that indicate 85,076 miles of pipelines are under construction and planned at this time. Of these, 17,941 miles account for pipelines in various stages of construction, while 67,135 miles are planned projects.

This year’s figures show pipelines in the engineering and design phase rose 15,979 mile over the past year going from 51,156 miles a year ago to 67,135 miles today. Conversely, the number of actual pipeline miles under construction decreased from 19,015 to 17,941 miles during this same time period.

Despite the fall in new pipeline construction miles, the international sector could see a record number of new pipeline miles constructed in the coming years. Construction of many long-planned projects is expected to be driven by higher energy prices and growing energy consumption.

Supporting this is the Energy Information Administration’s recently released International Energy Outlook 2009 (IEO 2009). The EIA report notes that the current global economic downturn will dampen world energy demand in the near term, as manufacturing and consumer demand for goods and services slows. However, with economic recovery anticipated to begin within the next 12 to 24 months, most nations are expected to see energy consumption growth at rates anticipated prior to the recession.

According to the reference case projections in the report, world marketed energy consumption is projected to grow by 44% between 2006 and 2030, driven by strong long-term economic growth in the developing nations of the world.

The report projects strong economic growth to continue in both China and India over the projection period, with their combined energy use increasing nearly twofold and making up 28% of the world’s energy consumption in 2030.

The report also notes that non-OECD Asia shows the most robust growth of all the non-OECD regions, with energy use rising by 104% from 2006 to 2030. Energy consumption in other non-OECD regions also grows strongly over the projection period, with increases of around 60% forecast for the Middle East and Central and South American and 50% for Africa. A smaller increase, about 25%, is expected for non-OECD Europe and Eurasia (including Russia and the other former Soviet Republics), as declining populations and substantial gains in energy efficiency result from the replacement of inefficient Soviet-era capital equipment.

Construction Overview
P &GJ’s construction report provides details on some, but not all, of the major pipeline projects under construction and planned at this time. In defining areas with high levels of activity, the following reflects new and planned pipeline miles in the six basic geopolitical grouping used in this article (see accompanying map): South/Central America and Caribbean 13,526; Africa 6,253; Asia Pacific 36,133; Former Soviet Union and Eastern Europe 18,797; Middle East 6,232; Western Europe and European Union 4,135. More information is provided in P&GJ’s sister publication Pipeline News.