R&D program may cut pipeline costs by 50%

Offshore staff

(Scotland)-The Intermediary Technology Institute (ITI) for Energy in Aberdeen, Scotland, launched an R&D program that is expected to cut on- and offshore pipeline costs by up to half.

Successful development of the new pipeline technology would enable Scottish businesses to have access to a world-leading technology with significant sales potential in a number of global markets. Current annual global expenditure on oil and gas pipelines is between $15 and $20 billion.

ITI Energy is behind a $5.5 million project to develop a low-cost, lightweight, high strength pipeline technology capable of being manufactured on site in a continuous process. The resulting technology is expected to have a range of key energy applications, including onshore and offshore pipelines for the oil & gas industry.

The R&D project and the associated commercial development, which will be based in Scotland, involve collaboration between ITI Energy and Helical Pipelines Ltd. Discussions are ongoing with a number of Scotland-based businesses that will be contributing R&D expertise to the project.

Traditionally, the oil and gas industry has specified steel or steel alloys for its pipelines. Engineering improvements in metallurgy, design and construction of pipelines has led to the introduction of high-cost alloys to meet the challenges facing this industry.

The ability to significantly reduce pipe wall thickness, and therefore weight and material costs, while maintaining strength, allows wide application of the technology. Furthermore, easy integration of liners that protect the pipeline makes the solution particularly relevant in aggressive environments such as sour gas gathering lines
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The ability to manufacture on site allows for cost reduction when installing pipelines in remote locations. The benefits of the new technology could lead to potential cost savings of 40-50% compared with current types of oil and gas pipelines.

The initial investment of up to $5.5 million by ITI Energy will be used to develop further the core technology and early applications, such as onshore sour oil and gas flow lines.
Helical will be contributing all its background intellectual property and know-how, together with the expertise of Peter Booth, its managing director.

09/13/05