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Half of oil pipelines under construction are in Africa and Middle East

Published by , Editorial Assistant
World Pipelines,

Africa and the Middle East are home to 49% of all oil transmission pipelines under construction globally at a cost of US$25.3 billion, according to new data from Global Energy Monitor. The 2023 annual survey of data in the Global Oil Infrastructure Tracker shows that these regions together are building 4400 km of crude oil transmission pipelines at an estimated CAPEX of US$14.4 billion. An additional 10 800 km are proposed in these regions at an estimated cost of US$59.8 billion.

Globally, there are 9100 km of oil transmission pipelines under construction and an additional 21 900 km of proposed pipelines. These pipelines in development are estimated to cost US$131.9 billion in CAPEX.

Key points:

  • The total 31 000 km of oil pipelines in development globally represents an increase of nearly 30% from this time last year.
  • The leading five countries in terms of in-development pipelines (proposed and under construction) are the US, India, Iraq, Iran, and Tanzania.
  • The top five parent companies developing oil pipelines are state-owned enterprises and private companies, including Iran’s Ministry of Petroleum, the China National Petroleum Corporation, Iraq’s Ministry of Oil, India’s Numaligarh Refinery Limited, and France’s TotalEnergies.
  • The longest pipeline projects under construction are the 1950 km Niger–Benin Oil Pipeline and the Paradip Numaligarh Crude Pipeline (PNCPL) in India, both slated to start operating in 2024. Canada is home to the third-largest pipeline project under construction, the 980 km Trans Mountain Expansion (TMX), expected to start in 2023 as an expansion to the existing Trans Mountain Oil Pipeline.

Baird Langenbrunner, Project Manager for the Global Oil Infrastructure Tracker, said: “The crude expansion in Africa and the Middle East is pumped as a panacea to the chaos of global energy demand, which is driven in large part by Europe's scramble for oil and gas outside of Russia. But the approach might entrench these regions to costly infrastructure that will in time need phasing out, saddling them with stranded assets. The solution is not to build more crude oil pipelines but to use that money and plan reliable, low-carbon energy systems and transmission networks.”

 

Read the latest issue of World Pipelines magazine for pipeline news, project stories, industry insight and technical articles.

World Pipelines’ May 2023 issue

The May 2023 issue of World Pipelines includes a special section on pipeline design and operation in extreme environments. Also featured are technical articles on field joint coatings, pipeline steels, and safety and risk management for pipeline networks.

Read the article online at: https://www.worldpipelines.com/special-reports/15052023/half-of-oil-pipelines-under-construction-are-in-africa-and-middle-east/

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