Norwegian pipeline gas from an asset management perspective: present and future

Abstract

With the growth of demand for new energy, natural gas was predicted to be in a golden age, where the energy commodity would act as a transitional energy source (due to its low emission) towards greener energy goals within EU countries. This prediction is losing ground, especially in the short term, where low American coal prices and EU recovering from financial turmoil is affecting the predicted demand for the natural gas, which is relatively expensive under the current pricing policies and practices. Norway is one of the leading natural gas exporters in the world, serving a large portion of Europe’s energy demand through its subsea gas pipeline infrastructure. In light of not only global uncertainty, but also with respect to the potential market position, a major question of commercial interest is that what types of challenges are present in a specific critical downstream asset such as a subsea natural gas pipeline when striving to uphold the position as leading gas supplier to Europe. This is also a question of future opportunities in the ongoing energy debate despite the current economic conditions. This thesis, based on a Case study on a section of the large gas transportation infrastructure, examines a wide range of multiple challenges ranging from conflicts of interests between owners and other stakeholders, to the physical third party damages, all of which could possibly challenge and pose a risk for the reliability and future demand for Norwegian gas. It elaborates on the current and future threats/challenges when striving for optimal asset availability.