Abstract

  1. Gas is becoming increasingly important as a reliable, affordable source of energy - and its share of the energy mix is expected to grow.

  2. Gas resources and gas consumers are, however, often far apart. The close/readily available resources were produced first, and more distant reservoirs must now be brought to market.

  3. Dry gas pipelines and vessel transport with liquefied gas are two ways to bring gas to market. The rapid increase of LNG capacities - liquefaction and transport tonnage - has been impressive.

  4. Pipeline transported gas has - however - been remarkably resilient and stable, has in places even been growing. This proves that new transport solutions, instead of cannibalizing the market, have expanded the overall market for gas.

  5. The longer distances we now see put some challenges to pipeline projects, as long pipelines cross multiple national borders, while national regulations mainly have a domestic focus.

  6. The industry has taken mitigating measures to overcome this, including:

    • Form international ownership consortia to broaden the ownership, financing pool, and competence pool.

    • Apply internationally accepted technical standards for safety & integrity - to secure overall system integrity also when the systems crosses national borders.

    • Work with suppliers across the world, to make sure that the best technologies are mobilized.

  7. Blue Stream (2 * 24" gas pipelines to Turkey from Russia across the Black Sea) and Nord Stream (2 * 48" gas pipelines to Germany from Russia across the Baltic Sea) are two examples of this trend in international capital intensive pipeline projects.

  8. DNV GL will in this paper review recent industry mitigating trends to tackle this risk of the lack of crossnational regulations, and propose lessons for the future.

This content is only available via PDF.
You can access this article if you purchase or spend a download.