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S U P E R I O R S P X - 6 6 0 P I P E L AY E R | P I P E L I N E @ W W M A C H . C O M | S U P E R I O R M F T G . C O M
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Volume 15 Number 5 - May 2015
VERSATILE.
Always a leading innovator, we supply customers with cutting-edge diagnostic and system integrity solutions. This, bound with our focus on flexibility, reliability, cost and quality, leads to offerings beyond your expectations.
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Contents
ON THIS MONTH'S COVER
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Copyright© Palladian Publications Ltd 2015. 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.
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Volume 15 Number 5 - May 2015
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03. Guest commentBy Denise Smiles, Optical Metrology Services (OMS) Chief Executive Officer.
05. Editor's commentA post-South Stream world.
07. Pipeline newsAmlekhgunj-Raxaul oil pipeline; Forties Pipeline System; The Roadrunner Gas Transmission pipeline project; Los Ramones II natural gas pipeline; and more.
REGIONAL REVIEW
14. Pushing forwards Amidst issues of security, political uncertainty and international conflict, Dr. Hooman Peimani looks at the status of pipeline projects in the Middle East and Africa.
EVENT FOCUS
20. The information highwayHeinz Watzka and Dennis Fandrich detail the development of Europe’s biggest pipeline conference and introduce the topics on focus at this year’s event.
PIPELINE PRECOMMISSIONING
26. Essential preparationVibha Zaman, Lloyd’s Register Energy, USA.
31. Compatible pig designsDave Forster, Propipe, UK.
TUBE AND PIPE MANUFACTURE
38. The benefits of bespokeGlacier Energy Services’ Onsite Machining Director Sandy Smart.
FIELD JOINT COATINGS
43. End-to-end performancePratheep Rajan and Kulvinder Juss, Canusa-CPS, Canada.
49. Testing coating performanceLuc Perrad, Expartech and Polyguard Products representative in Brussels, Belgium.
PIPELINE CORROSION
55. The science behind corrosionDr. Martyn Wilmott, EVRAZ, USA.
AUTOMATIC WELDING
62. Manual to automatic: welding shifts up a gearPetras Sabalys, Chief Executive Officer, AB Kauno Dujotiekio Statyba, Lithuania, and Danny Thomassen, Director, Magnatech International, the Netherlands.
67. Keeping within the parametersGeoffrey Barker, Lonestar Automated Welding, Australia.
71. A game-changing bondBill Atkinson, Tri Tool Inc., USA.
FLOW
77. DAS: the leak detectiveChris Shannon, Chief Executive Officer, Fotech Solutions, UK.
81. A growing interest in KHIsEduardo Luna-Ortiz and Matt Healey, Xodus Group, Ross Anderson, Hydrafact Ltd, and Eyvind Sørhaug, Talisman Norge AS, Norway.
HOT TAPPING & ISOLATION
85. Hot tapping 101Brian McKay, Topaz Inc., and Elaine Maruca, PLIDCO®, USA.
POWER GENERATION
91. Keeping it simpleAmin Almasi describes the latest improvements in compressor control systems to ensure that compressors can be operated safely, reliably and efficiently.
PIPELINE MACHINERY REVIEW
97. World Pipelines' quarterly pipeline machinery reviewFeaturing: Fontijne Grotnes; LCS Cable Cranes; and Pettibone.
WORLD PIPELINES | VOLUME 15 | NUMBER 5 | MAY 2015
Worldwide Machinery Pipeline Division provided Midwestern Pipelines, Inc., with a
SUPERIOR SPX-660 pipelayer for its Pembina project in Alberta, Canada. The project
consists of a 75 km of 16 in. pipe.
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The oil and gas industry faces a period of massive change. Prices are fluctuating greatly, project specifications are tightening and, all
the while, world energy demand is increasing. Reducing project risk and maximising process efficiency is therefore becoming even more critical.
Over the next two or three generations, the biggest driver for our sector will not be the fluctuating oil price, but the question of efficiency and process improvement. Globally, there is only a finite amount of oil remaining and it is our duty to make sure that we are maximising the capability of the industry to extract as much of it as possible, in as efficient, sustainable and risk-free way.
Innovation is therefore key – it has been central to the industry’s past success and will be to its future. Innovation is how we will deliver process improvement.
Precision measurement is one area where innovation can make a real difference to project success in terms of delivering on time and budget. Looking at the area of end dimensioning and fit-up of deepwater oil and gas pipes, it is evident how big this impact can be.
It is always the case that no two pipes will fit together perfectly with zero misalignment (or HiLo as it is often called). It is at the point when bringing pipes together that the challenges start. It is possible to minimise logistical issues, such as pipe handling, and maximise welding efficiency by addressing
misalignment. This ensures that there is as little impact as possible upon production schedules and cost.
In general, issues arise when pipes of differing geometries or roundness are aligned for fit-up. Indeed, production schedules will be affected profoundly when
fit-up is carried out through trial and error, especially if pipes have to be taken away from the bead stall and the sequence changes. Therefore, pre-installation precision measurement, as well as software fit-up simulation, will allow for the best possible solution to be devised. With accurate and quantifiable results, any necessary action can be taken and project specifications met.
This is just one area where innovation can make a real difference to project success. We must therefore continue to champion efficiency
and process improvement where we see it and as an industry, we must acknowledge that we have a long way to go and continue to move forward.
It is imperative that we attract the next generation of talented minds into the industry. We face the challenge of a skills gap and an ageing workforce and it is only through investing in new talent that we can overcome this. Oil and gas, as we know, is an industry that changes constantly and we must evolve with it to ensure the highest levels of operational efficiency at all times.
OVER THE NEXT TWO OR THREE GENERATIONS, THE BIGGEST DRIVER FOR OUR SECTOR WILL NOT BE FLUCTUATING OIL PRICE, BUT THE QUESTION OF EFFICIENCY AND PROCESS IMPROVEMENT
Guest
Optical Metrology Services (OMS) Chief Executive Officer Denise Smiles
Comment
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PUBLISHERNigel Hardy
A POST-SOUTH STREAM WORLD
As Russia outlines its newly proposed Turkish Stream pipeline project, it occurs to me that the Turk Stream vs Trans Anatolian
(TANAP)/ Trans Adriatic (TAP) dynamic is a repeat of the South Stream vs Nabucco battle of a few years ago. In the wake of the South Stream pipeline project cancellation (more on that later), Russia needs another export route and so has signed an MOU with Turkey’s BOTAŞ to build a pipeline under the Black Sea to the Turkey-Greece border.
The Turk Stream has the curious position of being both an alternative and a complementary project to TANAP/TAP (these are two out of the three proposed Southern Gas Corridor projects that would bring Azerbaijani gas to Turkey and Europe by 2018 and 2020 respectively). On one hand, the Russian and Azeri pipeline projects compete for the same southern corridor pipeline route; on the other hand, Turk Stream only goes as far as Turkey and will need additional pipeline capacity to get the gas further into Europe, and therefore may need some help from TAP.
Why must the Turk Stream pipeline stop at the Turkish border with Greece? For the same reason that South Stream eventually became unviable – European competition laws. The EU’s Third Energy Package (TEP) rules that no single company can own a pipeline through which it supplies gas. Gazprom can build its pipeline to Turkey without minding this rule, as neither country is an EU member, but onward transport of the gas would fall under TEP regulation. Russia will need its customers to buy directly from the planned natural gas hub in Turkey – the same location where TANAP is planned to culminate and tie up with TAP. It’s looking very busy in the Ipsala district of Turkey!
Might Russia be in a position to reserve space in TAP for onward transport of Turk Stream gas? In his article on Russia’s new gas strategy for the Natural Gas Europe advisory, Ilgar Gurbanov gives the following reasons why this might be a possibility: “First of all, Russia has no stake in TAP. Second, in the first stage, TAP is supposed to use 50% of its total capacity for 10 billion m3/yr. It can expand its capacity up to 20 billion m3/yr (100% of total capacity) in the second stage. Third, the EU
Commission’s regulation left 50% of TAP’s total capacity open for Third Party Access (TPA) for the Expansion Capacity (second stage). Fourth, the EU regulation also states that upon request of a third party, TAP is obligated to construct additional entry/exit points in Greece to receive gas from non-Shah Deniz sources.”1
The role of the EU is crucial in how this will all play out. Since a general European wobble about dependency on Russian gas a decade ago, the new thinking is that an EU-wide energy union will help bolster and protect EU members from a world where Gazprom holds all the cards. Last month,
Gazprom CEO Alexei Miller spoke in Berlin about what sort of price agreement could be envisaged if the Russian oil major were forced to negotiate one price for Europe, saying: “A common price isn’t the lowest price. It will most obviously be the highest price.” He is
suggesting that some EU countries would lose their historically low rate if a move towards a ‘one price’ system were made, but it remains to be seen how Gazprom could take such a hard line with a single-buyer system.
In the meantime, Russia has promised Greece the transit of 47 billion m3 of gas once Turk Stream is built, and hopes to co-operate on the building of further pipeline infrastructure (perhaps Gazprom can utilise the Interconnector-Turkey-Greece-Italy pipeline). Russia also continues to build relationships with Hungary, Serbia and Macedonia, whose pro-Russia leanings, along with those of debt-stricken Greece, go against the rest of Europe.
Finally, spare a thought for Ukraine and Bulgaria, both left out of the picture by an increasingly aggressive Russia and unsympathetic neighbours.
In the battle of South Stream vs Nabucco, neither pipeline was victorious; perhaps this time around we’ll see Southern Gas Corridor routes built in harmony with a Russian gas delivery conduit.
1. http://www.naturalgaseurope.com/analysis-turkish-stream-southern-gas-corridor-russia-gas-strategy-23199
THE ROLE OF THE EU IS CRUCIAL IN HOW THIS WILL ALL PLAY OUT
AATS EQUIPMENTPIPELINE
This is what experience looks likePOWER: The Maats bending machine program ranges from 16 to 60 inch. The robust and reliable Maats
bending machines have the capacity to bend pipes up to 1 inch wall thickness x100 of the maximum loadable
pipe-size. The Maats bending machines are the strongest available in the market.
OPERATION: The layout of the machines is simple, operating the machine is easy.
Machine settings can be easily controlled and if required easily adjusted.
MAINTENANCE: Built with mainly Liebherr components, all major parts have a
proven track record as components build on heavy duty construction machinery.
Service, maintenance and the odd repair is easy. Service and spare parts can be
easily obtained from your local Liebherr dealer, anywhere in the world.
Maats Pipeline Equipment • Breukersweg 4 • P.O. Box 165 • 7470 AD Goor (Holland)Tel.: +31 (0)547 26 00 00 • Fax: +31 (0)547-26 10 00 • [email protected] • www.maats.com
BENDING HISTORY
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MAY 2015 / World Pipelines 7
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COS safety report highlights industry’s safety performance
New data from industry operations and independent third-party audits reveals the US offshore oil and natural gas industry’s highest commitment to safety, according to the Centre for Offshore Safety’s (COS) first annual performance report.
“America’s offshore oil and natural gas industry is even safer than before, but our goal will always be zero accidents and zero spills,” said COS Executive Director Charlie Williams.
The report, based on data collected from COS members about their 2013 operations, highlights key indicators of safety performance, lessons learned from incidents, and information from the first cycle of safety audits now required by federal regulations. These audits are based on an industry standard developed by the American Petroleum Institute covering Safety and Environmental Management Systems. Key findings of the report include:
) On average, 96% of planned critical maintenance, inspections and testing were performed on schedule.
) All eligible COS members successfully completed audits of their safety and environmental management systems.
) COS participating members did not suffer a single fatality or loss of well control during more than 42 million work hours in the deepwater Gulf of Mexico.“This is the first report of its kind to be
published by US regulators or industry,” said Williams. “So long as there is any room for improvement, our work at COS will never be complete. This is our livelihood, and our work is critical to America’s new energy renaissance.”
Based on the report’s findings, the top three areas COS has identified for further improvement are:
) Safe mechanical lifting, such as the use of cranes and hoists.
) Process safety, with emphasis on risk management and maintenance, inspection and testing.
) Effectiveness of and adherence to operating procedures and safe work practices, particularly the quality of work plans and preparation.
Canada’s government asks for pipeline safety revamp
Canada’s Conservative Government has given the energy regulator about a year to deliver up-to-date guidelines for pipeline companies to improve safety and protect the environment.
Natural Resources Minister Greg Rickford instructed the National Energy Board to study the issue and report its findings with new safety guidelines by next year.
The instructions coincide with several major crude oil pipeline expansion projects proposed in Canada by companies such as Kinder Morgan, Enbridge and TransCanada Corp.
“I firmly believe that technology can and will ensure safer pipelines and protection of the environment,” Rickford wrote in a letter, addressed to the board’s Chairman, Peter Watson. “I also believe that guidance from the NEB ... will contribute towards achieving these important goals.”
In related news, senior engineers at Canada’s energy regulator are under investigation by their professional association over their probe of alleged safety code violations at TransCanada Corp, Canada’s second largest pipeline operator.
The Association of Professional Engineers and Geoscientists of Alberta (APEGA) has confirmed it is investigating some of its members who work at the National Energy Board (NEB).
The engineers had been investigating allegations of natural gas pipeline safety-code violations at TransCanada, brought to light by a whistleblower.
The probes coincide with the parliamentary debate on new pipeline safety legislation, in which the official opposition and environmental groups have criticised the regulator, saying it is too close to the industry it oversees.
Greece and Hungary endorse Turk Stream pipeline
Greece and Hungary have endorsed plans to build a new Russian gas pipeline. Their foreign ministers, Nikos Kotzias and Peter Szijjarto, added their names to a political declaration on the ‘Turkish Stream’ project, along with counterparts from Serbia, Macedonia and Turkey.
The declaration says they “expressed … support to create a commercially viable option of route and source diversification for delivering natural gas from the Republic of Turkey through the territories of our countries to the countries of Central and South Eastern Europe”.
It calls for the EU to help fund related infrastructure, claiming that the pipeline “would … make a significant contribution to the overall energy security of Europe and must therefore be a common responsibility of the European Union”. It also voices interest in “interconnecting the natural gas infrastructures of our countries with European Union financial assistance”.
Russian leader Vladimir Putin late last year in Ankara said he will build Turkish Stream, a pipeline under the Black Sea to Turkey, after the EU blocked construction of South Stream, a pipeline under the Black Sea to Bulgaria, Serbia, and Hungary. He noted that Turkish Stream will terminate at a new gas trading hub on the Greek-Turkish border.
The European Commission’s new Energy Commissioner, Maros Sefcovic, has criticised Turkish Stream, which is seen in EU circles as a political project designed to weaken Ukraine and increase EU dependence on Russia.
The Eurogroup of 19 member states, Greece’s principal creditor, is still locked in tense negotiations with Tsipras’ Finance Minister Yanis Varoufakis. On Friday, Eurogroup President Jeroen Dijsselbloem said there was “still a long way to go” on Greek proposals for economic reforms.
8 World Pipelines / MAY 2015
IN BRIEF
TanzaniaA 532 km pipeline connecting offshore natural gas fields to Tanzania’s commercial capital Dar es Salaam is complete, but technical setbacks will keep it from going online until November, officials have said.
CanadaThe National Energy Board has launched an online interactive pipeline incident map that offers Canadians the opportunity to view all pipeline incidents in Canada since 2008. NEB Chair Peter Watson said the tool “offers Canadians the ability to learn more about pipeline incidents and the companies involved.”
GhanaCeona has entered into a significant joint venture with Seaweld Engineering, which will act as a strategic partner for offshore deepwater construction projects in Ghana. The JV allows Ceona to extend its operations in West Africa.
YamalPoland’s natural gas giant PGNiG’s unit has filed for a green light from the anti-monopoly office UOKiK to take over Bartimpex and its gas-trading unit, which controls a 4% stake in EuRoPol Gaz and is the owner of the Polish stretch of the Yamal natural gas pipeline. PGNiG currently holds a 48% stake in EuRoPol Gaz, on a par Gazprom.
USAEVRAZ North America will make a CAN$200 million investment at its Regina, Sask., facility. “This investment will secure our position as the highest quality, lowest cost integrated producer of large diameter pipe in North America,” said Conrad Winkler, EVRAZ North America President and CEO.
MexicoAn oil spill in south-eastern Mexico has left more than 200 000 people without water. In an attempt to steal oil, thieves bored a hole in a Pemex-operated oil pipeline in the Mexican state of Tabasco.
World NewsFOR MORE NEWS VISIT HTTP://WWW.ENERGYGLOBAL.COM/PIPELINES/
Mexico to get second US shale gas pipeline
Mexico’s national oil company Pemex has signed a deal with US based investment firms BlackRock and First Reserve to begin the second phase of a pipeline that will bring natural gas from the Eagle Ford shale to cities hundreds of miles south of the border.
Pemex CEO Emilio Lozoya-Austin signed the deal with representatives from both companies in Mexico City on Thursday last week.
Under the 25 year deal, BlackRock is investing US$4.6 billion and First Reserve is investing US$30 million in the Los Ramones II natural gas pipeline, earning them a combined 45% control of the ambitious energy project.
The Los Ramones pipeline will transport natural gas from Texas to Mexico and is intended to facilitate imports of cheap US gas and lower Mexico’s high commercial electricity rates.
Nepal and India to sign oil pipe deal
Nepal and India are scheduled to sign an agreement to implement the long-delayed Amlekhgunj-Raxaul oil pipeline project by the first week of May, Minister of Commerce and Supplies Sunil Thapa said.
“The Indian government will be injecting IRs 2.75 billion into the project while Nepal will contribute IRs 750 million,” said Thapa. “The construction of the pipeline is expected to be completed within 30 months.”
Nepal’s contribution will be spent on automating Nepal Oil Corporation’s (NOC) Amlekhgunj depot and upgrading its capacity and building a pumping station. The government plans to construct the pipeline along the Amlekhgunj-Pathlaiya-Simara-Raxaul highway.
Earlier, the planned agreement on laying an oil pipeline between Nepal and India had snagged on differences over the period of the supply contract. Indian Oil Corporation (IOC) had said that Nepal should pledge to buy petroleum products from it for 15 years, but NOC wants to continue with the present five yearly pact. NOC and IOC have signed a new petroleum supply pact, which is valid until 31 March 2017. The deal confirms IOC as the sole exporter of petroleum products to Nepal for the next five years.
The 41 km cross-border pipeline to Amlekhgunj is the first phase of the project. Under the second phase, the pipeline will be extended to Kathmandu. The pipeline, which was first proposed by IOC in 1995, is expected to reduce fuel transportation costs by over 50%.
NACE International appoints Element expert for task group
NACE International has appointed Element Materials Technology’s Eva Coronado as Vice Chair of Task Group 085, which produces the NACE TM0177 Standard for sulfide stress corrosion cracking used in the oil and gas industry.
Eva will play a vital role in revising the TM0177 Standard, “Laboratory Testing of Metals for Resistance to Sulfide Stress Cracking and Stress Corrosion Cracking in H2
S Environments”. The standard is currently under review and its latest version scheduled for publication in 2015.
Rod Martin, Element’s Executive Vice President, Oil and Gas, comments: “The appointment of Eva to such an influential industry committee recognises her important work at Element over the last seven years in corrosion and sour service testing for clients in production, qualification and R&D. It also demonstrates the importance of her leadership role within the Corrosion laboratory at Element’s recently opened flagship facility in Houston.
“For Element to become the best and most trusted testing partner for our clients, it is clear that our Engaged Experts must collaborate with other industry leaders in setting the standards and accreditations for the TIC industry and contributing to the work of its foremost organisations.”
The news follows the recent announcement of a partnership between Element and NACE to host leading experts at its next biennial Oilfield Engineering with Polymers global conference scheduled for 2016.
Two trains with 8.9MM tons of LNG are heading from the depths of the Indian Ocean to the coast of Western Australia—and only one service provider can get them there.
See our video at Shawcorsuccess.com to learn more about what we did for one of the top liquefied natural gas providers in the world. And don’t miss our global offerings on display at OTC booth #3355.
INTEGRITY DRIVES EVERYTHING WE DO.
And our offshore partnerships are no exception. That’s why when a leading multinational energy corporation embarked on a $29 billion LNG plant development project, they trusted us to protect their trunklines and flowlines with our own advanced, customized pipeline coating systems—which in turn, protected the health of their environment and workers.
For 85 years, we’ve protected the integrity of our customers’ assets by operating with integrity of our own. And that’s what we’ll continue doing for you—both now, and for the entirety of your operation.
10 World Pipelines / MAY 2015
FOR FURTHER INFORMATION ON EVENTS VISIT WWW.ENERGYGLOBAL.COM/EVENTSEvents DIARY
1 - 5 June 2015
World Gas Conference
Paris, Francehttp://www.wgc2015.org/
8 - 10 June 2015
Pipeline Technology Conference
Berlin, Germanyhttp://www.pipeline-conference.com/
9 - 11 June 2015
Global Petroleum Show
Calgary, Canadahttp://globalpetroleumshow.com/
22 - 25 June 2015
Onshore Pipeline Engineering Course
London, UKhttp://www.ibcenergy.com/event/onshore-pipeline-engineering-course
24 - 26 August 2015
The Pipeline + Energy Expo
Tulsa, USA http://pipelineenergyexpo.com/
8 - 11 September 2015
Offshore Europe
Aberdeen, UKhttp://www.offshore-europe.co.uk/
14 - 17 September 2015
Turbomachinery Pump Symposia
Houston, USAhttp://pumpturbo.tamu.edu/
5 - 9 October 2015
49th IPLOCA Annual Convention
Singaporehttp://www.iploca.com/
9 - 12 November 2015
ADIPEC
Abu Dhabi, UAEhttp://www.adipec.com/
9 - 12 November 2015
Fabtech
Chicago, USAhttp://www.fabtechexpo.com/
World News
➤ Pure Technologies acquires Hunter McDonnell
➤ NEB recommends NGTL’s North Montney Mainline Project
➤ Moscow to fund US$2 billion LNG pipeline
To read more about the articles go to www.worldpipelines.com
News Highlights
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Magellan and TransCanada plan pipeline
Magellan Midstream Partners LP and TransCanada Corp. will build a pipeline to connect TransCanada’s Houston tank terminal to Magellan’s East Houston terminal.
The pipeline would give TransCanada’s Keystone and Marketlink shippers access to Magellan’s Houston and Texas City crude oil distribution system.
“Magellan is excited about the prospect of further enhancing our crude oil connectivity in the Houston market,” said Michael Mears, Magellan’s Chief Executive Officer, in a statement.
The move will provide more transportation and infrastructure options within Houston’s refinery row, according to analysts.
The project includes construction of a 9 mile, 24 in. diameter pipeline, in which Magellan and TransCanada would have a 50/50 ownership interest.
The project is estimated to cost about US$50 million, and the pipeline is expected to be in operation by late 2016, pending certain agreements and approvals.
ONEOK and Fermaca to construct pipeline
ONEOK Partners, L.P. has entered into a 50-50 joint venture with a subsidiary of Fermaca Infrastructure B.V. (Fermaca) to construct a pipeline that would transport natural gas from the Permian Basin in West Texas to Mexico.
The Roadrunner Gas Transmission pipeline project extends from ONEOK Partners’ ONEOK WesTex Transmission natural gas pipeline system at Coyanosa, Texas, west to a new international border-crossing connection at the US and Mexico border near San Elizario, Texas, where it will connect with Fermaca’s Tarahumara Gas Pipeline.
The project, to be constructed in phases, includes approximately 200 miles of new, 30 in. dia. pipeline currently designed to transport up to 640 million cubic ft3/d of natural gas, with up to 570 million cubic ft3/d to be transported to Mexico’s growing markets.
Amec Foster Wheeler wins BP contract
Amec Foster Wheeler has been awarded a contract by BP to provide operations, maintenance and project support for the Forties Pipeline System (which includes the Unity offshore platform and onshore pumping stations in Aberdeenshire and Perthshire) and the Central Area Transmission System terminal in Teesside, north-east England.
The contract, worth over £50 million, will run until January 2020 and will be managed from Amec Foster Wheeler’s Aberdeen offices. The contract secures 90 jobs, including two apprenticeships (currently based at the CATS terminal).
Alan Johnstone, Amec Foster Wheeler’s Managing Director for Upstream Asset Solutions, said: “Amec Foster Wheeler has been supporting BP since 1995 and this 20 year relationship demonstrates the strength of our position in asset support services for the world’s leading oil producers. We look forward to continuing to partner with BP and deliver technical excellence, within safe and efficient operations.”
Find out more about Shawcor, Canusa-CPS and our GTS-PE, GTS-PP and HBE coating technologies at Shawcorsuccess.com/pipeline
When high temperatures and tough installations cause other coating systems to falter, ours rise to the challenge.
BEHIND EVERY INNOVATION IS THE NEED TO PROTECT.
Protecting the integrity of your assets is the driving force behind the success of our Factory Grade™ Field-Applied Coating Systems for 3LPE, 3LPP and FBE-coated pipelines. Built to withstand deepwater temperature, impact and corrosion, our coatings deliver the truly consistent, end-to-end performance you need to eliminate moisture ingress—and it’s only from Shawcor company Canusa-CPS.
Find out more about Shawcor, Canusa-CPS and our GTS-PE, GTS-PP and HBE coating technologies at Shawcorsuccess.com/pipeline
When high temperatures and tough installations cause other coating systems to falter, ours rise to the challenge.
BEHIND EVERY INNOVATION IS THE NEED TO PROTECT.
Protecting the integrity of your assets is the driving force behind the success of our Factory Grade™ Field-Applied Coating Systems for 3LPE, 3LPP and FBE-coated pipelines. Built to withstand deepwater temperature, impact and corrosion, our coatings deliver the truly consistent, end-to-end performance you need to eliminate moisture ingress—and it’s only from Shawcor company Canusa-CPS.
12 World Pipelines / MAY 2015
Subsea 7 S.A. awarded contract offshore Brazil
Subsea 7 S.A. has been awarded a contract worth approximately US$200 million with a duration of approximately two years. The contract is for the installation of flexible lines for Petrobras’ projects using Subsea 7’s construction and flex-lay vessel Seven Seas, on a day-rate basis.
The vessel has been operating for Petrobras under a similar day-rate contract since 2013 and will commence the new contract in direct continuation to the current one.
The Seven Seas is a vessel capable of operating in water depths up to 3000 m and is equipped with an advanced flexible pipe-lay system with top tension capacity of 430 t.
The contract work scope will be similar to that of other Subsea 7 pipelay support vessels (PLSVs) operating under day-rate contracts in Brazil, providing engineering and installation services for client-supplied flowlines, umbilicals and subsea equipment.
Subsea 7’s Senior Vice President for Brazil, Victor Bomfim, said: “This new contract for Seven Seas maintains our solid presence in the market for PLSVs in Brazil. We are proud to provide continuous service to Petrobras as it develops its complex oil and gas fields offshore Brazil.”
Harkand secures Maersk Oil North Sea contract
Harkand has secured a multi-million pound contract with Maersk Oil North Sea Ltd for the provision of DSV services in the North Sea region. The 12 month contract will be serviced by Harkand’s two DSVs, the Harkand Da Vinci and Harkand Atlantis, supported by project management and engineering from Harkand’s Aberdeen office.
The contract covers well tie-ins, structure installation, piling, flexible flowline lay, flexible riser installation, pre-commissioning, riser recovery, decommissioning and general inspection, repair and maintenance (IRM) work.
Harkand Europe Managing Director, David Kerr said: “This contract win is a further acknowledgment, not only of the expertise and capacity we have built up within the region, but also the open culture that we have at Harkand. We look forward to delivering a consistent and cost efficient service to Maersk, which is especially critical in today’s business environment. By utilising both our sister DSVs, we will provide a robust and fully flexible approach to executing both planned and unplanned interventions and we will work closely with Maersk to ensure safe and successful campaigns.”
The Harkand DaVinci and Harkand Atlantis are both equipped with state-of-the-art saturation diving systems, 140t active heave compensated cranes and Super Mohawk ROV spreads.
Harkand provides offshore vessels, ROVs, diving, survey services, project management and engineering to the oil and gas and renewables industries.
Wood Group: five year EnQuest contract
Wood Group PSN has been awarded a new five year contract from EnQuest to provide engineering, design, construction, procurement and commissioning services to the Thistle, Heather and Northern Producer offshore assets in the North Sea.
The terms of the contract reflect EnQuest’s ongoing focus on reducing costs and improving the efficiency of its North Sea offshore operations.
Effective immediately, the contract includes extension options for up to a further five years.
Dave Stewart, Chief Executive Officer of WGPSN said: “The collaborative approach we are taking with EnQuest and our ability to deliver cost efficiencies together in the provision of services to the Thistle, Heather and Northern Producer assets has secured us this contract, which extends an agreement in place since 2009.
”The strong partnership and understanding we have built with this key client positions us well to support them in optimising safety and productivity across these assets at this challenging time for the sector.”
The contract adds to Wood Group’s scope of work with EnQuest in the North Sea; Wood Group Industrial Services (WGIS) holds a contract to deliver topsides integrity work on the Thistle platform.
Contract NewsTO KEEP UP-TO-DATE ON CONTRACTS VISIT WWW.ENERGYGLOBAL.COM
Augusta Steel selects Thermatool Welding Systems
Augusta Steel, an independent manufacturer of high quality steel tube based in Boksburg, South Africa, has recently installed a third Thermatool HF welder manufactured by Inductotherm Heating & Welding Ltd. The company is delighted to have this opportunity to play a key part in a series of strategic investments currently being made at Augusta Steel.
Thermatool specialises in the design and manufacture of high technology tube and pipe production equipment, offering the most comprehensive range of HF welders, seam annealers and high speed flying shears to the tube and pipe sector worldwide.
Sales Director Nico Erasmus adds: “This welder will be our third Thermatool welder purchased in three years. We have found Thermatool welders extremely reliable and very cost-effective. Having the same brand of welder also gives us the ability to have interchangeable consumable parts. From the initial enquiry to after sales service, Adrian Wood and his team has given Augusta steel impeccable service. We also have great comfort in dealing with Thermatool’s Agent in South Africa.”
Inductotherm Heating & Welding limited is one of 40 companies making up the INDUCTOTHERM GROUP and is the European manufacturing and technical headquarters for Thermatool, Radyne, Banyard and Newelco, producing a diverse range of induction heating and welding equipment specifically suited to the metal processing industry.
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Amidst issues of security, political uncertainty and international
conflict, Dr. Hooman Peimani looks at the status of pipeline projects in
the Middle East and Africa.
PUSHING
FORWARDS
14
The Middle East and Africa are different in many ways, but share one commonality: being rich in oil and gas. Needless to say, the Middle East has the world’s largest oil and gas reserves, accounting for 47.9% and 43.2% of the global reserves, respectively. Their bulk is located in the
Persian Gulf, being the single largest global oil (Iran, Iraq, Kuwait, Oman, UAE and Saudi Arabia) and LNG exporter (Qatar, Oman, UAE and Yemen); other Middle Eastern countries (for example, Syria and Yemen) have small oil and gas reserves. The only regional exception is Bahrain, which is running out of oil and depends on imports from Saudi Arabia.
Thanks to its major recent discoveries, Iran now has surpassed Russia (31.3 trillion m3) for having the world’s largest conventional gas reserves (33.8 trillion m3), and its conventional oil reserves (157 billion bbls) rank third only after Venezuela (298.3 billion bbls) and Saudi Arabia (265.9 billion bbls). Iraq has the fourth largest conventional oil reserves (150 billion bbls) while those of Kuwait and the UAE are the fifth (101.5 billion bbls) and the sixth (97.8 billion bbls), respectively. Qatar has the third largest global gas reserves (24.7 trillion m3) being the world’s largest LNG exporter. Oman has large oil deposits (5.5 billion bbls) but its gas reserves are small (0.9 trillion m3), which will make it dependent on imports to sustain its LNG exports while meeting its domestic needs.
In comparison, Africa’s continental oil and gas reserves pail in significance. Its share of the global oil and gas reserves are, respectively, 7.7% and 7.6%, and its share of the global exports is comparatively modest, although some of its exporters are individually major oil exporters thanks to their significant reserves, namely Algeria (12.2 billion bbls), Angola (12.7 billion bbls), Libya (48.5 billion bbls) and Nigeria (37.1 billion bbls). Some of its countries have significant LNG exports despite their relatively small gas reserves (Algeria: 4.5 trillion m3,
15
Egypt: 1.8 trillion m3, Nigeria: 5.1 trillion m3). Africa’s proximity to Europe has made it a natural supplier to, particularly, the Southern Europeans.
Of course, the bulk of the Middle Eastern and African oil and gas exports are conducted by oil and LNG tankers as the only practical option for exports to their large, consuming markets. Pipelines are in demand for mainly intra-state distributions and inter-state exports within the two regions as justified by geographical realities, financial sensibility and security considerations. Apart from a few exceptions (e.g., technical, but not yet, political feasibility of Iranian piped oil/gas exports to Europe), piped exports to Europe are practically a realistic option for the North African Arab gas exporters.
Adequate demand, physical feasibility, profitability and environmental sustainability are determining parameters to encourage pipeline construction only if security, political certainty and regional/international supportive environment are present, the main challenge in a growing number of African and Middle Eastern countries.
Against this background, many pipeline projects are at various stages of developments – despite the growing armed conflicts ranging from terrorist activities to civil wars. The well-known cases of Iraq, Egypt, Syria and Nigeria are now being replicated by Yemen and Libya to prevent, interrupt or delay pipeline projects.
Iran’s disputes with Western countries over its nuclear energy programme has created an obstacle to major pipeline projects for exporting Iranian oil and gas to Europe in search of alternative long-term suppliers to Russia, whose ties with the EU have been deteriorating rapidly over Ukraine. Should the April framework agreement between Iran and the P5+1 group lead to a rapprochement beyond the nuclear realm, conceivable large-scale oil and gas exports from Iran to Europe via Turkey will lead to major pipeline activities. It should likely prompt expanding the existing Iranian-Turkish gas pipeline’s capacity and connect it to Europe via Greece or Bulgaria, or link it, perhaps, to the Trans-Adriatic Pipeline scheduled for building next year to be followed by exclusive new oil and gas pipeline projects. This would be subject to an improvement in Iranian-Turkish relations on a declining course over their taking sides with opposite interests in Iraq, Syria and Yemen.
The Saudi-led military intervention in Yemen of some Arab states, including all the Persian Gulf ones excluding Oman and Iraq, in support of the ousted Yemeni president (Abed Rabbo Mansour Hadi) has the potential to deepen the Yemeni civil war and further empower the Yemen-based terrorist groups. Hence, the spillover of conflict from Yemen to the neighbouring oil and gas-producing countries (Oman and Saudi Arabia) and through them to the remaining ones (UAE, Qatar and Kuwait) could negatively affect pipeline projects in the Southern Persian Gulf. Yet, despite this grim propsect, many new major projects are envisioned or being undertaken in the Middle East.
Owing to the rise of extremist armed groups, expanding terrorist activities and/or civil wars, the deteriorating security situations in Nigeria, Libya, Egypt and South Sudan have rendered domestic and export pipeline projects in these countries unrealistic, unattractive, costly and/or highly risky. Yet, pipeline activities, including major projects, have taken place in other parts of the continent.
Of the completed, under-construction and planned projects, the majority are gas ones indicating the growing importance of
gas in the covered regions’ energy mix and that of Europe as an export destination for various reasons, including decreasing CO
2
emissions, its lower cost compared to oil and its abundance/availability, as evident in the following brief account of major pipeline developments.
The Middle East
IranIran plans to increase its gas transfer capacity by 300 million m3/d by constructing three pipelines to begin in the current Iranian calendar year (started on 21 March, 2015). Coupled by the development of the more phases of its Persian Gulf South Pars Gas Field (SPGF), their construction will increase Iran’s gas production capacity, according to National Iranian Gas Company Planning Director Hassan Montazer Torbati.
The 6th cross-country gas pipeline (611 km; 110 million m3/d; US$2 billion) is the first priority designed for gas exports to Iraq, Syria, Lebanon and Europe. Its first and second sections have been completed.
The 9th cross-country gas pipeline (1863 km; 110 million m3/d; US$6 billion) is being built towards Iran’s northwestern borders aimed at increasing Iran’s existing gas exports to Turkey for supplying Europe in the future.
The 11th cross-country gas pipeline (1100 km; 100 million m3/d; US$4 billion) will connect the SPGF to Iran’s northeastern region to make it self-sufficient instead of relying on Turkmen gas imports (30 million m3/d) since the late 1990s.
After the implementation of these projects, Iran’s total gas transfer capacity will reach 1 billion m3/d within three years, according to Torbati.
Iran-Iraq gas pipelines Progressed by 98% in March, Iran’s pipeline project to supply Bagdad is set to go online in May, according to Alireza Kameli, the head of the National Iranian Gas Export Company. The pipeline (100 km; 48 in.) stretches from Charmaleh in Iran’s Ilam province to Naft-Shahr bordering Iran and Iraq. Reportedly, its extension to the Iraqi Mansourieh Power Plant is also completed leaving a 7 km stretch to Baghdad for completion. Iran will initially export 4 million m3/d of gas to Iraq to gradually increase to 35 million m3/d for feeding three Iraqi power plants. The stretch was constructed in the Iraqi region where military operations are still continued against the terrorist groups during which 16 Iranian workers were killed by the terrorists.
In February, Iran started the construction of a second gas pipeline to Iraq’s southern city of Basra scheduled for operation in 2016. Once operational, Iran will export 5 million m3/d of gas to Basra to rise to 30 million m3/d within six years.
IraqIraq Pipeline through Saudi Arabia (IPSA): In February, Iraq oil minister Adil Abdul-Mahdi expressed an interest in reopening the 780 km IPSA connecting the southern Iraqi Rumaila oil field to Yanbu on the Saudi Arabian Red Sea, completed in January 1990, but remained idle since 1991 (first Persian Gulf War). Subject to improved ties between the two neighbours, its reopening will enable Iraq to increase its oil exports.
Iraq-Jordan Pipeline: In March, Assem Jihad, a spokesperson for Iraq’s Ministry of Oil, announced Iraq’s interest in building
16 World Pipelines / MAY 2015
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