The Southern Gas Corridor (SGC) includes some of the most ambitious transnational natural gas pipeline projects undertaken. Its interconnected onshore and offshore pipelines – SCPX, TANAP and TAP – will transport gas 3,500 kilometres (km) to Europe from the BP-operated Shah Deniz field in the Caspian Sea.[1]
The three projects in the SGC could benefit from learnings on pipelines with similar characteristics, such as Los Ramones-Frontera (‘Los Ramones’) and Nord Stream. Each crosses or interconnects at important borders, and is regionally strategic.
The 856km Los Ramones system – three onshore pipelines – will supply Mexico’s growing industries with economic and abundant US shale gas. Its already operational Phase I uses 48-inch diameter pipes; the next phases will be 42-inch. Nord Stream’s offshore section of 1,224km, 48-inch diameter, twin lines beneath the Baltic Sea, exports Russian gas directly to Germany. This strengthens the European Union’s internal market in gas while renewable energy develops.
The SGC is also of great importance to BP. It is a high value project that will be key to underpinning the company’s growth “to 2020 and beyond”, according to Emily Olson, the company’s vice president (VP), communications and external affairs, Southern Corridor.
“Experience on Los Ramones, Nord Stream and other large projects may be useful in the Southern Gas Corridor’s development,” suggested Tobias Rosenbaum, regional manager for Continental Europe & North Africa, DNV GL - Oil & Gas.
“Such projects are challenging as the investors’ project teams are often assembled for the duration of the project and things need to be right from the start. Shared learnings between projects, coupled with use of joint industry projects, help to minimize risk. Smart application of this know-how can have a very positive effect on capital expenditure (capex), operational expenditure (opex) and schedule risk.”
He continued: “In-depth knowledge of codes and standards, coupled with the use of
DNV GL’s service specifications, can lead to capex savings and reduced technical uncertainty. Ensuring that the right pipeline materials are selected and that fabrication and installation is up to standard can also reduce the probability of delayed first gas and costly repairs during operation.”
The consequences of pipeline failure are unthinkable. “Typically, a major incident involving a gas pipeline can cost around USD20 million (m), and an offshore repair USD100m, while loss of a subsea pipeline could be substantially more,” said Rosenbaum. “For big strategic projects, the impact on business through loss of revenue and increased operational expenditure could be huge.”
TAP will run high in Albania’s mountains and deep in the Adriatic Sea. Its 36-inch diameter, a large dimension for deepwater, creates challenges during installation. Los Ramones’ Phase II North section also crosses steep mountains.
Geohazards such as landslides and earthquakes can damage or rupture pipelines. TANAP and TAP, for example, will cross areas of heightened earthquake risk. Repairs in remote areas may be lengthy and costly, particularly during winter when snow hinders access to the pipeline. Damage or a rupture could halt production for months. By monitoring pipelines continuously, operators can assess the need for immediate action to reduce the risk and consequences of failure.
