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  • Enabling reliable and cost efficient offshore pipelines

    23 Feb 2018 | Trade News

    Structural changes in the energy market over the last four years led to a supply and demand imbalance and reduced revenues from oil.

    And, although there were previous cost pressures in the market even in times of higher commodity prices, the recent imbalance meant that the number of oil and gas projects moving forward was reduced. The general response to this cyclical challenge was for the industry to consolidate to mitigate risk.

                                                                                

    However, 2018 gives us more reasons than at any time in the last four years to be optimistic. The global battle between U.S. shale and OPEC appears to be abating, with OPEC planning production cuts through 2018. This, and a combination of other market effects, has led to an increase in the price of oil.

     

    As a result, we continue to see practical evidence of a recovering market, including an increasing number of projects either on the desk or on the horizon. However, the commercial situation remains sensitive.

     

    As an industry, much has been done to improve our fitness in recent years. But this has often been carried out by companies in isolation. The real question is, how can we get fit together, specifically to create reliable and cost efficient pipelines?

     

    The current market, which has forced many to review and revise their business models, provides an excellent opportunity for operators and the supply chain to work in collaboration. Introducing this partnership approach as early as possible in the project lifecycle will be mutually beneficial for both sides and can achieve significant results. Suppliers will be able to help operators identify the most cost effective solutions at the outset, while they, in turn, can capitalise on the opportunities to deliver reliable cost efficient pipelines.

     

    A key area in the drive towards greater cost efficiency is ensuring that our risk profile is not compromised. This is done by adopting a lifecycle approach to projects with a focus on getting solutions consistently right first time at every stage. Critical to this process can be for the operator to align with an experienced supply chain partner who can manage risk in complex and challenging environments and therefore help to mitigate it.

     

    Tata Steel has a long history of providing total project solutions to solve industry challenges. We have supplied more than one million tonnes of pipeline for oil and gas projects in the North Sea over 23 years, including in excess of 4 million metres of welded pipe, 500,000 meters of reel installed pipe and more than £250 million invested in subcontracts for North Sea projects.

     

    We are the 11th largest global steel producer with an annual crude steel capacity of more than 28 million tonnes. We have manufacturing operations in 26 countries and a comprehensive range of steel products and related services.

     

    Our focus is on creating quality products that fulfil technical requirements while delivering commercial value through an efficient supply chain that is vastly experienced and socially responsible yet is still willing to learn and improve.

     

    We’ve introduced three new high strength pipeline steels for both on and offshore, which deliver performance at lower temperatures. And we’ve worked to optimise existing pipeline steels to improve performance. This has led to significant uplifts in toughness at some 20 to 30oC lower test temperatures.

     

    We continue to invest in our processes – from digital metrology to steel making – and in research and development. For example, last year we announced significant investments at our 20” high frequency induction (HFI) pipe mill in Hartlepool for the new higher strength grades.

     

    By working together more closely with our partners, we will leverage our investments to deliver more reliable and cost efficient pipelines for our industry. In today’s oil and gas industry, early collaboration between operators and suppliers is one area that can lead to real benefits.