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100% >1499 1000-1499 500-999 100-499 0-99 90% 28% 51% 80% 45% 21% 70% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 34%

Pipelines

Pipeline market to grow in Europe, Asia, and Africa

By Catarina Podevyn, investment. Historically, the Asian region toward conventional pipeline develop- has been predominantly driven by con- ment is expected to decrease by 8%,

Infeld Systems Ltd. ince the turn of the millennium, ventional shallow-water developments compared with 2008-2012, while both global pipeline investment has associated with fxed infrastructure. Over the SURF (subsea, umbilical, riser and

S undergone sustained and, in recent 2008-2012, Southeast Asia led this con- fowline) line and export line sectors are years, robust growth as a result of favor- ventional shallow-water market. Going anticipated to hold a larger share of total able market conditions and industry forward, conventional activity is expected regional capex over the period, Fig. 2. trends, including: the continued high to focus on Mumbai High redevelopment Key developments are expected levels of investment in offshore devel- offshore India, the Bongkot and Arthit to include the PTT-operated Erawan opment, and the increasing focus on expansion projects in Thailand, and the Gas export pipeline development deepwater production and the develop- Bao Vang feld, Vietnam. off Thailand, and the Shell-operated ment of remote felds. The pipeline sector Across the entire pipeline market, Kasawari project, Malaysia. Within the is expected to account for a 39% share of Malaysian developments are expected deepwater market, ONGC and Reliance total offshore capex for 2013, while 2014 to require the largest expenditure over are expected to account for the largest is expected to witness the number of the next fve years. The Indian pipeline investments as a result of the Krishna- kilometers installed return to levels not sector is also expected to remain robust Godavari and Dhirubhai projects. seen since 2006. Although key devel- to 2017, with Mumbai High forecast to Operators Chevron, Shell, and Murphy opments for 2013 are led by the ultra- require the greatest investment from are also expected to direct substantial deepwater Gulf of Mexico (GOM), going 2013-2015. Domestic frm Punj Lloyd expenditure toward deepwater pipeline toward 2017, Infeld Systems (Infeld) was confrmed as the subsea pipeline and installations over the next fve years.

expects pipeline development offshore platform topside contractor in May 2013.

Europe

Europe and Asia to become the largest Over the next fve years, Infeld markets for global demand, Fig. 1. expects development across this region Over the 2013-2017 timeframe, Asia’s to become increasingly polarized as share of the global pipeline market is

Asia new areas of deepwater activity emerge expected to decrease, while Europe,

During 2008-2012, Asia accounted for the and remote prospects become viable driven by a number of large export line largest share of pipeline capital expendi- for production. As such, the propor- projects, is anticipated to account for ture, with China leading regional pipeline tion of regional expenditure directed the largest share of global expenditure.

During the previous fve years, European

Fig 1. Global pipeline capital expenditure pipeline expenditure was dominated by (%) 2008-2017 by region the development of the Gazprom-led con- 100% sortia’s Nord Stream 1 and 2 lines. Going forward to 2017, European demand is 90% expected to continue to be dominated 80% by these long-distance export lines, with substantial investment also expected on 70% possible Nord Stream extensions to the 60%

Netherlands, and the South Stream; the latter saw construction commence in 50%

December 2012. Statoil’s Aasta Hansteen 40% and Johan Sverdrup felds are anticipated to require some of the highest levels 30% of investment over the next fve years, 20% with the latter development seeing feld appraisal completed during June 2013. 10%

In the longer term, with increasing 0% global energy demand and improvements 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 in technology, the economic viability of

Africa Asia Australasia Europe Latin America developing remote prospects far from

Middle East & Caspian Sea North America shore is increasing. With this, SURF

Source: .Ofshore Pipelines & Control Lines Market Report to 2017 line activity is expected to become an

November 2013 oedigital.com 44 000_OE1113_Pipelines2.indd 44 10/28/13 1:50 AM