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North America Leads Global Crude Oil Pipeline Additions


Construction of new crude oil pipelines in North America will account for the majority of the planned oil pipeline length additions globally between 2019 and 2023, data and analytics company GlobalData said in a new report on Thursday.  

North America will contribute some 51 percent to all new crude oil trunk or transmission pipeline additions through 2023, with expected combined new-build crude oil pipeline length of 14,344 kilometers (8,913 miles) by that year.

In North America alone, as many as 29 new-build crude oil pipelines are expected to begin operation by 2023. Of those, 16 pipelines are planned projects and 13 are in early-stage announcement, Varun Ette, Oil and Gas Analyst at GlobalData, said.

“The Liberty Oil Project is the longest upcoming announced pipeline in the region with a length of 2,172.2km,” Ette noted.

A lot of crude oil pipelines are also planned in the Permian in the U.S., where crude oil production outpaced takeaway capacity in 2018.

A total of nine intrastate crude oil pipeline projects have been announced or are under construction in the Permian with in-service dates between 2019 and 2021, the EIA said last year. The pipelines are expected to ease the Permian takeaway capacity constraints as they move crude oil throughout Texas and Louisiana.

In terms of combined length of announced and planned new oil pipelines in the world, Asia comes second after North America, followed by the Middle East, Africa, the former Soviet Union (FSU), South America, and Europe, according to GlobalData.

Asia will account for 16 percent of the global new crude oil pipeline length over the next three years, with six oil pipelines expected to come on line by 2023. The Gwadar–Kashgar pipeline between Pakistan and China will be the largest in the Asian region in the next three years. 

In the Middle East—the third-biggest contributor to the new-build pipelines globally—the Basra–Aqaba Oil pipeline will be the longest pipeline in the region.  

By Tsvetana Paraskova for Oilprice.com

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