Keep the pipes flowing
by ArabianBusiness.com staff writer on Tuesday, 08 January 2008
The need to renew existing oil and gas pipelines around the world, as well as high levels of new infrastructure to be installed over the next few years, means pipeline security issues have come to the fore.
The Middle East, for example, will need to invest around US $18 billion in the next five years in new pipelines and associated infrastructure, according to the International Energy Agency. Globally there are around 2 million km of oil and gas pipelines. UK energy research group Douglas Westwood expects a 28% increase in total capital expenditure (capex) on pipelines in 2007-2011 compared to the previous years. It also says the Middle East and Asia Pacific are driving this growth, with an estimated 56% of total capex over the period.
Today, thanks to the introduction of new technologies, effective maintenance management is increasing operators' ability to increase the efficiency pipeline transportation. By way of example Saudi Aramco has around 1.4 million items of equipment across its 17 000 km of pipelines.
However, challenges remain not least due to the inherent unpredictability of many of the events that can undermine a pipeline's efficient operation. Firstly, there is sabotage or terrorism carried out either simply for economic need (fuel poverty in Nigeria, for example) or in protest at a particular company's operations or as part of a politically motivated action campaign.
The UK, for example announced in January 2007 that it was to use military police to guard the important Bacton gas terminal against a terrorist attack, while Saudi Arabia said in May 2007 that it had arrested over 150 militants who were alleged to have been conspiring to attack the Kingdom's energy installations specifically pipelines.
Also, in July 2006, Russia's Gazprom was permitted by the government to set up armed forces to protect its pipelines. Last September Mexico's Pemex announced that it had increased security measures at strategic installations in the country following a series of bombings at some of its fuel pipelines across the country.
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