Global offshore pipeline market by region ... the expansion will require $53.6 billion

Almost 50,000 km of pipeline is forecast to be installed globally, over the next five years according to the new second edition of The World Offshore Pipelines and Umbilicals Report 2002-2006, published by offshore analysts Douglas-Westwood and offshore data specialists Infield Systems.

There are four principal trends within the offshore sector that can be expected to contribute strongly to growth in the pipeline and umbilical sectors, remarks Dr Roger Knight, Infield Systems data manager.

"These trends are: the increased uptake of subsea production technology; the industry's move into deep waters; the growth in long-distance gas transmission projects; and the establishment of long-distance power and communications links to offshore recast at almost $5.4 billion for facilities,''

Dominic Harbinson of Douglas-Westwood, the report's lead author, comments that the forecasted pipeline kilometre represents an increase of 44 per cent over the previous five-year period, and will require a global capital expenditure of almost $53.6 billion.

"Three regions dominate the market, he says, "accounting for almost 60 per cent of forecast pipeline lengths and more than half of forecast global capex.'' The three are North West Europe (with a forecast spend of $11.4 billion), Asia Pacific ($9.5 billion) and the US Gulf of Mexico ($8.2 billion).

''Our perception is that the potential for 'upside' is particularly strong in the US Gulf region. We estimate that this could boost pipeline capex there to just over $9.9 billion,'' Harbinson adds.

The report also forecasts a total of 13,560 km of umbilical installations over the 2002 to 2006 period, representing a potential 70 per cent increase on lengths installed in 1997-2001.

Total capex for the umbilical sector over the 2002 to 2006 period is forecast at almost $2.9 billion, almost double the $1.5 billion estimated spend over the 1997-2001 period.

North West Europe is expected to maintain its position as the leading umbilical market, spending more than $1.2 billion, an increase of almost 80 per cent on the previous five-year period.

The US Gulf of Mexico is the second most significant market, with a 16 per cent share of forecast capex, followed by the Asia Pacific region with 11 per cent.

In the flexible pipe segment, a total of just over 2,300 km of pipe is forecast for installation worldwide over the 2002-2006 period, 11 per cent up on the previous five-year period. Brazil continues to be an important regional market, accounting for almost 60 per cent of the global total.

An expected decline in demand in North West Europe, the second major flexpipe region, it is expected to be offset by increases not just in Brazil but also in the Asia Pacific and West Africa regions. Capex in the flexpipe segment is forecast at almost $5.4 billion for the period.

The report provides an overview of the various stages of the project process in the pipeline and umbilical sectors, ranging from route selection and design, through production, installation, operations and decommissioning and examines historic, planned and possible activity over the 1997-2006 period in both global and regional contexts.