Future trends for the European energy pipeline industry

Future challenges for the oil and gas industry include new regulations management, legal implications, cost control, initiatives compliance and key safety initiatives, such as integrity management. 

Safety and reliability for the pipeline system

Pipeline safety and energy security are becoming increasingly important judicial areas. The 8^th Pipeline Technology Conference 2013, which took place in Hannover on 18 - 20 March 2013, featured many different topics and industry-wide issues, such as:

• Operational improvements.
• Integrity management.
• Planning and construction.
• Steel line pipes.
• Stations and components.
• Inline inspection.
• Special requirements for product pipelines.
• Corrosion protection/rehabilitation.
• Monitoring.

The conference speakers discussed the trend of global major investments in pipe construction services (47% of total US$ 216 billion expenditure over next the five years) and line pipe (27%), station (6%), right-of-way (ROW) cost (6%) and associate fitting (3%).

The challenges facing the pipeline industry create uncertainty and impact project planning and new construction.

In data presented by TransCanada, the number of operational accidents decreased from around 270 accidents in 2001 to around 110 incidents to 2009. Causes for accidents include: corrosion, third-party interference including illegal tapping, equipment failure, and operator failure. As TÜV Nord reported, risks and safety concerns in the technology factor stem from overconfidence in automation, and there is a need for software optimisation, ergonomics and also the optimisation of procedures and screen parameters. Regarding the human factor – the decision-making challenge is based on understanding of the defect detection and defect characterisation process.

Figure 1. Number of leaks from 1978 to 2011 (TREMPTO Conference materials).

The key areas of safety and reliability requirements incorporate energy policy; process planning including functioning infrastructure; huge selection of materials and components properties of pipeline (material properties, pipe specification, coating quality); design and construction (seam weal quality, coating inspection, pressure testing) and operations (surveillance intervals, component inspection and energy preparedness) that must meet technical rules and standards. Not only laws and regulations ensuring safety of pipeline, but also reliable energy partners and people, i.e., engineers – their knowledge and communication possibilities being important.

Standardisation

Standardisation, especially the lack of an overarching international authority or jurisdiction for transnational pipelines, is another vital challenge causing significant delays in the approval process. There are more than 18 000 standards (ISO, IEC, EN, national standards including DVGW, Energy Act, High Pressure Gas Pipeline Regulations etc.). Attendees at the PTC were invited to discuss questions such as: ‘What is the development trend of these standards?’, ‘Which can be used in the field of natural gas and pipeline?’ and ‘How to control the consistency of these standard application?’ According to the research presented in Figure 2, four development trends of oil and gas pipelines standards have been established: the test, design, safety, and electrical equipment are major hot point fields of standard development.

Figure 2. General development trend of standards (Conference materials).

More networks

Looking forward, more gas transport options in Europe are forecasted. The next five years will see the realisation of a considerable number of ambitious interregional projects, including new supply routes: West Nabucco, Trans-Saharan Gas Pipeline, TAPI and Russia-South Korea, which could be possible route alternatives for Gazprom’s South Stream.

Figure 3. Alternative southern corridors (source: Gazprom).

Europe-wide concept

The trend towards greater European integration ramps up the enforcement to overcome national boundaries and focus to a greater extent on a Europe-wide network.

Intensifying operation co-operation to ensure supply security, sustainability and competitiveness for the entire continent is a key challenge in pipeline project planning. However, geopolitical complications and public opposition remain a key threat to transnational projects – it is one of the primary challenges causing significant delay in construction commencement or indeed leading to project cancellation.

Awareness and communication with stakeholders

Raising awareness and communication with stakeholders was discussed in detail at the conference.  An example was given from Open Grid Europe (OGE) regarding safety distances between pipeline and residential areas. It can be a challenge to find new, safe pipeline routes in densely populated areas. As an example, OGE discussed one pipeline project on the Germany-Holland border (300 m distance in Germany, 5 m in Holland), where a new route for the pipeline had to be found, following opposition from local residents. 

In consequence, the German government and regulatory authorities have had to reassess the regulatory environment to ensure legal security and predictability and also provide incentives for enterprises to invest.

As OGE pointed out, despite the massive increase in pipeline safety (reduction of frequency of pipeline accidents by approximately 90% in transport and distribution pipelines from 1980 - 2010), operators are facing a decreasing level of social acceptance for pipeline projects. The industry needs to engage all parties from the local community to the national level so they understand and can participate in reducing risk.

Gas and power grids

In a general outlook of the European energy market, the global move towards gas marks a key trend in the onshore pipeline sector. Gas pipelines will maintain their role against liquid pipelines in the global onshore pipeline systems, assuming continual increase in energy demand.

In northern Germany, the conference attendees learned, a huge amount of electricity is produced from wind farms but this green energy can still only be limitedly stored. One solution to store green electricity is synthetic natural gas (SNG), which is obtained from wind power or photovoltaic by means of electrolysis and mechanisation.

Infrastructure for electricity and natural gas is a key challenge for gas pipeline industry. OGE reports that through innovative production technologies and newly discovered gas fields, natural gas will become the most important fossil fuel, growing its market share up to 50% in 2080.

Acknowledgements

The author acknowledges the organisers, exhibitors and participants of the 8th Pipeline Technology Conference in Hannover, who support and serve to highlight the crucial importance of regulation and safety in oil and gas pipelines and also provide useful and relevant materials.

Written by Hanna Kubacka, Process Engineer, Poznan University of Economics, and edited in-house by Cecilia Rehn.

Read the article online at: https://www.worldpipelines.com/business-news/15042013/future_trends_for_the_european_energy_pipeline_industry-342/