PIPELINE PROJECTS OFF EUROPE TO FOCUS ON GAS

Aug. 31, 1992
Pipeline construction in the North Sea and Mediterranean for the next 5 years will focus almost exclusively on natural gas systems. The next 5 years will be "generally active," but there will be adequate lay barge capacity every year with the possible exception of 1995. Those are the forecasts of Smith Rea Energy Associates Ltd., Canterbury, England, presented at last week's Offshore Northern Seas (ONS) conference in Stavanger, Norway, by N.J. Smith.

Pipeline construction in the North Sea and Mediterranean for the next 5 years will focus almost exclusively on natural gas systems.

The next 5 years will be "generally active," but there will be adequate lay barge capacity every year with the possible exception of 1995.

Those are the forecasts of Smith Rea Energy Associates Ltd., Canterbury, England, presented at last week's Offshore Northern Seas (ONS) conference in Stavanger, Norway, by N.J. Smith.

Smith said there are now five third generation "North Sea" vessels, with a combined pipelay capacity under normal North Sea conditions of about 2,000 km/year. Capacity is heavily concentrated in the hands of two contractors as a result of consolidation following the 1986 oil price collapse.

The five vessels work during a lay season from April to October without the need to lay down and pick up pipe when bad weather intervenes.

Capacity can be increased by mobilizing some of the secondary capacity in lay vessels of an earlier generation.

Smith cited four significant gas pipeline projects in sight for 1993: the 193 km Ireland-U.K. interconnector, the 167 km Murdoch-Caister field line, and the 80 km Harald-Tyra line. A Finland-Sweden link of about 200 km, although included in current plans, seems to have an indeterminate future, Smith said.

He said 1993 and 1994 seem to be poorer years for pipeline contractors despite the 630 km Europipe lines to Emden, Germany, and a North Africa-Spain gas line of 84 km.

There could be a recovery in 1995, with the Zeepipe Phase II lines as fairly secure projects. An additional, if more remote possibility for the same year, is a 300 km line from the Norwegian coast to Sweden.

Beyond that, 1996 and 1997 are into "fairly speculative territory," Smith said. The 245 km Haltenpipe project from Heidrun field off Norway to shore is committed and probably will be undertaken in this period.

Other possibilities, the last two of which could be mutually exclusive, include:

  • An export line from Britannia field, maximum 60 km.

  • A Bacton-Zeepipe link, maximum 120 km.

  • A gas line across the English Channel, 250 km.

Smith said the cost of pipeline construction fell significantly during the 1980s because of long periods of excess capacity, technical progress, and, most important, a move to fixed price contracts instead of day rates.

It seems unlikely prices will fall as much in the 1990s, Smith said.

PIPELAY VESSEL

Plans were announced at ONS for construction of a pipelay vessel that will add to industry capacity beginning in late 1994.

Allseas Group of Switzerland will build a pipelay vessel specifically suited for medium and large diameter lines. Edward P. Heerema, president of the group, said the vessel, to be named Solitaire, will be the result of a major conversion of a bulk carrier and will become operational in autumn 1994.

With a length of 285 m, excluding stinger, the ship will be the largest pipelay vessel in the world, according to Heerema, capable of laying oil and gas pipelines as large as 60 in.

The dynamically positioned vessel will feature an automatic welding system designed and built by Allseas. Designed to operate in the northern North Sea and elsewhere, the vessel is expected to cost $300 million. Conversion of an existing vessel will reduce construction time, Heerema said.

The pipelay vessel will offer the advantages of large pipe carrying capacity-14,600 tons in its hold-and fast transit time-14 knots-between operating regions. Seven double joint welding stations are part of a system that will allow continuous pipelaying.

Allseas also operates Lorelay, a dynamically positioned pipelay vessel, and Trenchsetter, a dynamically positioned trenching support vessel.

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