Westwood releases latest annual subsea vessel report
Published by Elizabeth Corner,
Senior Editor
World Pipelines,
Westwood’s World Subsea Vessel Operations & Hardware Market Forecast analyses the factors influencing the global subsea market, with detailed insight on both the subsea hardware and vessel operations demand and supply trends. Hardware expenditure, vessel-day demand and expenditure are analysed, with commentary on segmented regional outputs.
Westwood is forecasting subsea vessel operations and hardware expenditure to total US$141.1 billion over the 2018 - 2022 period. Following three weak years of order activity, the industry appears to be past the bottom of the cycle and has seen a 108% increase in greenfield project sanctioning offshore compared with 2016. This is supported by positive macro drivers in the near and long-term, albeit the recovery remains fragile and dependent on OPEC discipline.
Key conclusions
- Over the forecast period, 62% of expenditure will be focused on subsea hardware, with subsea vessels operations accounting for the remaining 38% of forecast expenditure.
- Subsea tree installation is forecast to grow at a 3% CAGR over the 2018 - 2022 period, driven by an expected increase in the number of projects passing FID over the next 18 months.
- The pipeline and pipelay sectors will account for 28% of total expenditure over the forecast.
- Westwood anticipates a significant volume of IMR activity to return to the market, with vessel-related IMR activity spend expected to total US$19.8 billion over the forecast, increasing at a 5% CAGR over 2018 - 2022.
- Total forecast vessel operations expenditure over 2018 - 2022 is expected to decline by 4% relative to the 2013 - 2017 period, while vessel day demand will increase by 7%, a function of supressed vessel day rates since 2014 levels.
- Overall, Westwood expects to see a gradual market recovery over the next five years, with an increase in FEED and tendering activities. However, a competitive pricing structure is expected to remain in the near-term, which will limit Capex growth.
Image: Global Subsea Vessel Operations & Hardware Expenditure and Vessel Day Demand 2013 – 2022.
Click here to access the latest Subsea Vessels Operations & Hardware databook or to arrange a review call with the analyst team.Read the article online at: https://www.worldpipelines.com/business-news/08122017/westwood-releases-latest-annual-subsea-vessel-report/
You might also like
World Pipelines Podcast: Going global with IPLOCA
In this episode, Elizabeth Corner speaks to Georges Hage, Executive Secretary at IPLOCA, about IPLOCA's insights on the culture and characteristics of the pipeline contractor community, and how it works to support sustainable energy infrastructure.
Eni and the UK Government reach financial close for the Liverpool Bay CCS project
The project foresees the efficient repurposing of part of the offshore platforms as well as 149 km of onshore and offshore pipelines, and the construction of 35 km of new pipelines to connect industrial emitters to the Liverpool Bay CCS network.