Pipeline, control expenditures to exceed $265 billion

Offshore staff

LONDON -- Infield Systems forecasts the total pipelines and control lines capital expenditure to exceed $265 billion over the next four years in the company’s Global Perspectives Pipelines & Control Lines Update Report 2009/13. This equates to 103,435 km (64,272 mi) of lines being installed, of which 81,293 km (50,513 mi) will be pipelines and 22,142 km (13,758 mi) will be control lines. Combined, these represent an increase of 68% in installations on the previous five years. The forecasted increase will be dominated by growth in the pipelines market, with a significantly slower growth in the control lines market. A considerable percentage of the forecast pipeline expenditure is related to advanced trunklines, many un-connected to specific field development projects and as such key infrastructure development, the report says.

The next five years indicate a change in market demographics, in which all pipeline segments will hold fairly equal shares of the installation market. This follows a period in which conventional pipelines dominated the installation market; highlighting the industry’s historically favored shallow water developments. However, as shallow water production rates fall, the industry has sought to discover and develop deeper water reserves. As a consequence, SURF installations have grown in the previous five-year period, and are set to continue increasing in the forecast period, Infield says. The largest pipeline installation growth is expected in the trunk/export lines sector, further characterizing the increasing demand to secure a diversified mix of future energy supplies.

While the report predicts growth in the control line market, it points to a decline in communication line installations and slower growth in the power line sector compared to the previous five-year period. The overall control line growth will predominantly be driven by an increase in umbilical and bundled pipeline installations. Both of which imply the continuing trend to replace installation of single control lines with combined multiple line installations.

The future for the pipeline and control line industry is expected to be strong with a variety of water depths, project sizes, and locations expected over the next five years, Infield says.

07/15/2009