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2015 International Pipeline Report.

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Underground Construction, Pipeline & Gas Journal and Pipeline News' 2015 international pipeline survey indicates 70,308 miles of pipeline are in various stages of construction or planned. Of these, 32,013 miles account for projects in the planning and engineering phase, while 38,295 miles are in various stages of construction.

The following reflect new and planned pipelines miles in the six basic geopolitical regions used in this report (see accompanying map). Asia Pacific--31,250; Former Soviet Union and Eastern European Countries--15,110 ; South-Central America and the Caribbean--6,036; Middle East--8,841; Africa--3,406; and Western Europe and European Union countries -5,665.

For information on these and other pipeline projects, see Underground Construction's sister publication, Pipeline News.

Energy outlook

The 2015 edition of the BP Statistical Review of World Energy highlights the continuing importance of the U.S. shale revolution, noting the U.S. surpassed Saudi Arabia as the world's biggest oil producer and Russia as the world's largest producer of oil and gas.

On the consumption side, the Review records primary energy consumption slowing markedly, with growth of just 0.9 percent in 2014, a lower rate than at any time since the late 1990s (other than in the immediate aftermath of the last decade's financial crisis). Also, Chinese growth in consumption slowed to its lowest level since 1998 as its economy rebalances away from energy intensive sectors, though China remained the world's largest growth market for energy.

Also noted is that oil remained the world's leading fuel, with 32.6 percent of global energy consumption, but lost market share for the fifteenth consecutive year.

As to gas prices, the Review pointed out that world natural gas consumption grew by just 0.4 percent, well below the 10-year average of 2.4 percent.

Global natural gas production grew by 1.6 percent in 2014, below its 10-year average of 2.5 percent. Growth was below average in all regions except North America. The U.S. (+6.1 percent) recorded the world's largest increase, accounting for 77 percent of net global growth. The largest volumetric declines were seen in Russia (-4.3 percent) and the Netherlands (-18.7 percent).

The Review shows pipeline shipments also showed a decline of 6.2 percent, the largest decline on record, driven by falls in net pipeline exports from Russia (-11.8 percent) and The Netherlands (-29.9 percent).

Africa

Penspen has been awarded a contract to undertake a feasibility study for the Kampala-Kigali segment of the 487-mile Eldoret-Kampala-Kigali pipeline. An initiative of the Kenyan, Ugandan and Rwandan governments, the pipeline will deliver refined petroleum products from Kampala, Uganda to Kigali, Rwanda, eliminating the need for current tanker transportation methods. Completion is scheduled in 2017.

Caribbean, South & Central America

Tipiel S.A., Technip's subsidiary in Colombia, was awarded a contract by Consorcio Constructor Ductos del Sur that covers the development of a pipeline to transport gas from the Camisea field to Southern Peru. Launched by the Peruvian government, the project consists of more than 1,056 miles of 32-inch gas pipeline.

In Brazil, Fluor Corporation's Brazil unit was part of a consortium awarded a contract by Parnaiba Gas Natural (PGN) for engineering, procurement and construction (EPC) of a natural gas field development project in the state of Maranhao. The Brazilbased consortium includes Fluor, Construcap CCPS Engenharia e Comercio and CFPS Engenharia e Projetos S.A. (CFPS).

The consortium will be responsible for the EPC of an 8.5 MMcf/d gas-gathering system in the Gaviao Branco field as well as a pipeline that will transport the gas to an existing production and treatment facility located at the Gaviao Real field.

Western Europe, European Union

On the Norwegian shelf, development of the Johan Sverdrup discovery is one of the largest oil discoveries ever and is projected to prolong the life of the Norwegian oil industry for several decades. The discovery is being developed to reach first oil at the end of 2019.

Field development is being undertaken in several phases and with multiple fixed platform installations. Oil and gas production will be transported to shore via dedicated oil and gas pipelines. A 170mile, 36-inch diameter oil pipeline will be installed and connected to the Mongstad oil terminal on the west coast of Norway. A 103-mile, 18-inch diameter gas pipeline will be installed and connected to the Karsto gas terminal for processing and onward transportation.

Slovak pipeline operator Eustream was scheduled to begin operations last month of the Hungarian-Slovakia gas pipeline. The reverse-flow pipeline will have an annual capacity of 155 Bcf on flows from Slovakia to Hungary and of 56.5 Bcf/yr the other way. The aim of the project is to widen options for gas flows in central Europe, making the region more resilient to potential disruptions of Russian gas supplies via Ukraine, and ease reverse-flow gas supplies to Ukraine.

Asia Pacific

China National Petroleum Corp.'s third West-to-East natural gas pipeline is slated for completion later this year. The pipeline will run from Horgos in western Xinjiang to Fuzhou in Fujian. It will cross 10 provinces and have a total length of 4,584 miles, including 3,240 miles of trunkline and eight branches. In addition, the project includes three gas storages and a LNG plant. It will have a capacity of 30 billion cubic meters per annum (bcma). The pipeline will be supplied with gas from central Asia.

CNPC has proposed the fourth and fifth West-to-East Gas pipelines and reports indicate the projects are in their planning stages. Both are anticipated to have a capacity of 45 bcma.

India's Oil and Natural Gas Corp. has announced a $6.51 billion spending program to develop new oil and gas fields and increase its petroleum production.

Australia

With four operating LNG developments, six more under construction and other projects being considered, LNG continues to be the focus in Australia where Bechtel is constructing the state's first three LNG plants to convert commercial quantities of coal seam gas into liquid form ready for export. When complete, the operators of the plants--Queensland Curtis LNG (BG Group), GLNG Plant Project (Santos, PETRONAS, Total & KOGAS) and Australia Pacific LNG (ConocoPhillips)--will produce the commodity for export to their global customers.

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Former Soviet Union, Eastern Europe

The United States supports Azerbaijan's goal of establishing a Southern Corridor for natural gas exports to Europe through the construction of the Shah Deniz 2 project in Caspian. The project involves one of the world's largest gas projects and will increase the production capacity of the Shaah Deniz field by an additional bcma and condensate capacity by a further 120,000 bpd.

BP operates the field with a 28.8 percent share, while the other development partners include SOCAR (16.7 percent), Statoil (15.5 percent), Total (10 percent), Lukoil (10 percent), NICO (10 percent) and TPAO (9 percent).

The Shah Deniz full field development is being implemented in conjunction with the expansion of the 429 mile South Caucasus pipeline. The total investment for the development of the two components is estimated to reach $28 billion.

First gas from the field to Georgia and Turkey is targeted in late 2018. Gas deliveries to Europe are expected just over a year after first gas.

Construction also began in March on the Trans-Anatolian Natural Gas Pipeline (TANAP) from Azerbaijan that will travel through Georgia and Turkey to Europe. The pipeline will be a central part of the Southern Gas Corridor, which will connect the giant Shah Deniz gas field in Azerbaijan to Europe through the South Caucasus Pipeline (SCP) and Trans Adriatic Pipeline (TAP).

Gazprom recently announced the construction start of the Turkish Stream pipeline that replaces the cancelled South Stream project. As proposed, Turkish Stream would start at the Russkaya compressor station near Anapa and terminate in Kiyikoy, a village in the district of Vize in Kirklareli Province at northwestern Turkey. The planned capacity of the pipeline is 2.2 Tcf a year of natural gas, with Turkey taking 490 Bcf a year of the gas and the rest being exported to Europe. The project is scheduled to be completed by 2019.

Also according to Gazprom, work is under way on the Power of Serbia pipeline that will deliver up to 38 bcma of Russian gas to China. The first joint of pipe for the Chinese sector of the project was recently welded near the city of Heibe in the northern Heilongjiang Province bordering Russia. Russia started building its section of the 2,500-mile eastern route last year. The pipeline is due to become fully operational in 2018.

Work is also scheduled to begin soon on a second Power of Serbia pipeline scheduled for completion in 2018.

Both Serbian projects could be delayed due to Western sanctions on Russia over Ukraine.

In the Arctic region, Transneft has started construction of the 435-mile long Kuyumba-Taishet pipeline that will run from Siberia's northern fields and transport oil to China. The pipeline will have an initial transportation capacity of 15 mtpa.

Still in the early planning phase is the proposed 1,137-mile, 56-inch diameter pipeline that will run from Turkmenistan's giant Galkynysh gas field, to serve energy markets in Afghanistan, Pakistan and India. Penspen was awarded a contract in late 2014 by the Asian Development Bank (ADB) to carry out a technical feasibility study for the project.

Middle East

Petrofac is working on the first phase of Kuwait Oil Co.'s Lower Fars heavy oil development, located in the north of the country. The scope of work covers greenfield and brownfield facilities, EPC services, commissioning, start-up and operations and maintenance for the main central processing facility and associated infrastructure. Also included is a pipeline of almost 100 miles, which will transport the heavy crude from the central procession facility to a tank farm in Ahmadi. When fully operational the project will produce 60,000 bopd.

In Abu Dhabi, Gasco has launched construction on the Habshan-Maqta-Taweelah gas pipeline project. The project calls for two 52-inch diameter pipelines from Habshan to Maqta and a 52-inch and 42-inch diameter pipeline from Maqta to Taweelah. Completion is slated for 2016.
Under Construction   38,295
Planned              32,013
Total                70,308

(Note: all figures are in miles)
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Publication:Underground Construction
Geographic Code:4E0WE
Date:Nov 1, 2015
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