Pipeline & Gas Journal's 2003 International Pipeline Construction Report

Pipeline & Gas Journal, August, 2003

Middle East

War and conflict in the Middle East continue to negatively impact pipeline construction activity throughout the region. The Middle East accounts for only 3,235 miles of new pipelines under construction and planned at this time. Nevertheless, the area accounts for several significant developments that involve new pipeline construction.

The region's most significant project is Dolphin Energy Ltd.'s natural gas project in Qatar's North Field. Development drilling commenced here last year and Dolphin expects to begin construction on upstream facilities and pipeline infrastructure this year. The project, requiring several pipelines, calls for two 48-mile subsea lines to transport North Field gas to a processing facility in Ras Laffa. Also, a $1.5 million, 260-mile, 48-inch diameter subsea line is to be built from the processing facility in Qatar to Abu Dhabi, UAE. Project completion is slated in 2006.

In another North Field project off Qatar, ExxonMobil Middle East Gas Marketing Ltd. began work around mid-year to develop the Al Khaleej Gas Project. J. Ray McDermott is charged with the construction and installation of a 1,300-ton jacket, 2,100-ton deck structure and a 60-mile, 38-inch diameter pipeline that will extend from the field to an onshore terminal in Qatar. Pipeline construction is scheduled for completion in the fall of 2005 with production to follow a short time later.

This year should see the start of construction of Oman Refinery Company's 161-mile, 24-inch diameter pipeline to transport mixed feedstock from its Mina al Fahal facility to the new Sohar refinery. The $80 million project is expected to be operational by 2006.

A planned project in the region involves the Turkish gas company Botas and the Greek Natural Gas Corporation D.E.P.A. The two plan to build a 170-mile pipeline that will connect Bursa, Turkey with Komotini, Greece. Some 124 miles of the pipeline will be constructed in Turkey and 53 miles in Greece. Sofregaz of France is the engineering contractor for the $300 million project that is scheduled to begin transporting 500 million cubic meters of gas by 2005.

Africa

Currently accounting for almost 8,179 miles of new and planned pipeline projects, Africa is one of the few regions to increase pipeline construction and plans for new pipelines over the past two years. The area now accounts for several world-class construction projects. The most significant is the Chad/Cameroon development by Esso Exploration Chad Inc., in its capacity as operator on behalf of the Tchad Oil Transportation Company and the Cameroon oil Transportation Company.

Pipeline work began last year shortly after Willbros West Africa, a division of the Willbros Group, and Spie Capag (Jersey) won a contract to construct the 650-mile Chad-Cameroon pipeline Project. The project will develop landlocked oilfields in southern Chad and transport crude to the coast of Cameroon for export to world markets. Drilling of the first 300 wells began in 2001 and will continue through startup later this year.