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PROJECT FORECAST BENCHMARK Gas Pipeline Construction Duration PR-EN-PL-10 Revision 3, July 2013

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PROJECT FORECAST BENCHMARK

Gas Pipeline Construction Duration

PR-EN-PL-10 Revision 3, July 2013

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Report: Project Forecast Benchmark for Gas Pipeline Construction Duration

Revision Date Description

0 Mar-12 Original Issue

1 Jun-12 Updated with comparison chart

2 Aug-12 Updated with corrected comparison chart

3 May-13 Updated with additional records and regional comparison

Disclaimer: The Project Forecast Benchmark Duration is generic and is unlikely to consider all of the factors influencing your

project. We suggest you engage a project professional or specialist project planner before acting on any of these metrics or

advice. Project Forecast, its employees and/or related entities, are not liable for any loss, damage, disruption related to this and

other related documents.

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Table of Contents

Table of Contents ............................................................................................................................................. 3 List of Figures ................................................................................................................................................... 3 List of Tables .................................................................................................................................................... 3 How long does it take to build a Gas Pipeline? ............................................................................................... 4 How is the Project Forecast Benchmark Established? ................................................................................... 4 Construction Duration based on Pipeline Length ........................................................................................... 6

Construction Duration based on Kilometre Length .................................................................................... 7 Construction Duration based on Mile Length ............................................................................................. 9

Changes to Construction Duration over Time ............................................................................................... 11 Regional Variability on Construction Durations ............................................................................................ 11 Other Influences on Construction Durations ................................................................................................. 12 About Project Forecast ................................................................................................................................... 12 Attachments ................................................................................................................................................... 13

Attachment A: List of Projects .................................................................................................................... 14 Attachment B: Comparison of Construction Duration against Pipeline Length ....................................... 17 Attachment C: Comparison of Construction Rate (Weeks per Pipeline Length (km/mi) against Time .. 18

List of Figures

Figure 1 Distribution of Records by Region ..................................................................................................... 4 Figure 2 Regional Variability on Average Construction Rate for Onshore Gas Pipelines ............................ 11 Figure 3 Regional Variability on Average Construction Rate for Offshore Gas Pipelines ............................ 11 Figure 3 Comparison of Construction Duration against Pipeline Length ..................................................... 17 Figure 4 Comparison of Construction Rate against Time ............................................................................. 18

List of Tables

Table 1 List of Regions and Countries represented by the Records .............................................................. 5 Table 2 Construction Duration Benchmark Rate (in kilometres) ................................................................... 7 Table 3 Construction Duration Benchmark Rate (in miles) ............................................................................ 9 Table 4 List of Projects................................................................................................................................... 14

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How long does it take to build a Gas Pipeline?

The time it will take to construct a gas pipeline will depend on, amongst other things, the length of the

pipeline, its diameter, the terrain it passes through, its location and capacity.

The Project Forecast Benchmark for Gas Pipeline Construction helps professionals establish a

benchmark for the likely duration it will take to construct a gas pipeline based on its length.

Project teams can use the Project Forecast Benchmark to compare the construction duration of their

project against other similar projects that are being planned, being executed or are complete. This

comparison can then be used to help validate the optimistic, likely and pessimistic duration for the

construction of the facility.

Due to the unique nature of individual projects, Project Forecasts suggests that a professional planner

be engaged to prepare and provide advice with respect to project timeframes, programmes and

schedules.

How is the Project Forecast Benchmark Established?

The Project Forecast Benchmark is based on the records of historical, current and planned projects.

Project Forecast collects information on projects from media releases, promotion material such as

capability statements, and other public records. This information is then collated, reviewed and

incorporated into the Project Forecast database for comparison against similar projects.

The dataset used to calculate the benchmark duration in this report comprises over 110 records from

projects developed in Oceania, South East Asia, South Asia, East Asia, North Asia, Western Asia, Western

Europe, Southern Europe, Northern Europe, Eastern Europe, North America, South America and Africa.

The distribution of the records in the dataset is shown in the figure below.

Figure 1 Distribution of Records by Region

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Project Forecast records the country in which the project was carried out. The records that were used to

establish the rates contained in the report are from projects carried out in the countries listed in the

table below.

Table 1 List of Regions and Countries represented by the Records

Region Sub-Region Countries

Africa - Algeria, Libya, Morocco, Nigeria, Tunisia

America North America Canada, United States of America

America South America Argentina, Brazil, Uruguay

Asia East Asia China

Asia North Asia Russia

Asia South Asia India, Iran

Asia South East Asia Malaysia, Thailand

Asia Western Asia Qatar, Saudi Arabia, Turkey, United Arab Emirates

Europe Eastern Europe Belarus, Poland

Europe Northern Europe Norway, United Kingdom

Europe Southern Europe Italy, Portugal, Spain

Europe Western Europe Germany, The Netherlands

Oceania - Australia

Regional variability in the rates included in this report is discussed under the section “Regional Variability

on Construction Durations” of this report.

A full list of the projects that make up the records used to establish the Project Forecast Benchmark are

attached to this report.

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Construction Duration based on Pipeline Length

The information in this report can be used to establish the benchmark duration for construction a gas

pipeline based on the design length of the pipeline.

This duration does not include engineering, design, documentation and procurement activities and

additional time should be allowed should be made to complete these front-end activities.

Table 2 Construction Duration Benchmark Rate (in kilometres) identifies the nominal number of weeks it

takes to construct per kilometre (km) of pipeline. The table identifies the minimum rate (fastest time),

minimum rate less the fastest 10% of records, average rate, mean rate, highest rate less the slowest

10% and the maximum rate (slowest time).

Table 3 Construction Duration Benchmark Rate (in miles) identifies the nominal number of weeks it

takes to construct per mile of pipeline. The table identifies the minimum rate (fastest time), minimum

rate less the fastest 10% of records, average rate, mean rate, highest rate less the slowest 10% and the

maximum rate (slowest time).

The construction duration of a gas pipeline can be established by using the rates contained in the

following tables and the formula A x B = C, where:

A is the length of the pipeline

B is the one of the rates below, and

C is the construction duration in weeks

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Construction Duration based on Kilometre Length

The table below identifies the rate to construct a pipeline based on the design length of the pipeline in

kilometres, based on other projects.

Table 2 Construction Duration Benchmark Rate (in kilometres)

Number of Weeks per Kilometre to

Construct a Gas Pipeline (wks/km) Unit Average

Min.

(fastest)

Min. less

lowest

10%

Mean

Max.

less

highest

10%

Max.

(slowest)

… note, the construction duration generally does not make provision for the period to undertake and complete design,

documentation, procurement, head contracting activities, permitting, and government approvals. Additional provision

should be allowed.

… to calculate the duration, use the formula A x B = C, where;

A is the pipeline length in kilometres (km)

B is the one of the rates below, and

C is the construction duration in weeks

Construction of an onshore gas pipeline …

… with length less than 200km wks/km 0.65 0.26 0.35 0.55 1.08 1.18

… … and dia. 10 inches or less wks/km 0.55 0.54 0.54 0.55 0.55 0.55

… … and dia. between 10 and 25 inches wks/km 0.41 0.26 0.29 0.41 0.52 0.55

… … and dia. between 25 and 40 inches wks/km 0.39 0.39 0.39 0.39 0.39 0.39

… … and dia. greater than 40 inches wks/km 0.98 0.73 0.79 1.03 1.15 1.18

… with length between 200 and 1,000km wks/km 0.42 0.09 0.10 0.32 0.90 1.08

… … and dia. 10 inches or less wks/km 0.19 0.14 0.14 0.14 0.25 0.28

… … and dia. between 10 and 25 inches wks/km 0.15 0.10 0.10 0.11 0.26 0.28

… … and dia. between 25 and 40 inches wks/km 0.51 0.09 0.14 0.51 0.90 0.90

… … and dia. greater than 40 inches wks/km 0.60 0.16 0.27 0.57 0.90 1.08

… with length greater than 1,000km wks/km 0.08 0.03 0.03 0.07 0.14 0.30

… … and dia. 10 inches or less - - - - - -

… … and dia. between 10 and 25 inches - - - - - -

… … and dia. between 25 and 40 inches wks/km 0.07 0.07 0.07 0.07 0.07 0.07

… … and dia. greater than 40 inches wks/km 0.08 0.03 0.03 0.07 0.18 0.20

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Number of Weeks per Kilometre to

Construct a Gas Pipeline (wks/km) Unit Average

Min.

(fastest)

Min. less

lowest

10%

Mean

Max.

less

highest

10%

Max.

(slowest)

Construction of an offshore gas pipeline …

… with length less than 200km wks/km 1.76 0.25 0.25 2.17 2.76 2.76

… … and dia. 10 inches or less wks/km 1.92 0.25 0.25 2.76 2.76 2.76

… … and dia. between 10 and 25 inches wks/km 1.80 0.25 0.25 2.17 2.76 2.76

… … and dia. between 25 and 40 inches - - - - - -

… … and dia. greater than 40 inches wks/km 1.11 1.11 1.11 1.11 1.11 1.11

… with length between 200 and 1,000km wks/km 0.30 0.09 0.11 0.29 0.49 0.66

… … and dia. 10 inches or less - - - - - -

… … and dia. between 10 and 25 inches wks/km 0.34 0.33 0.33 0.34 0.36 0.37

… … and dia. between 25 and 40 inches wks/km 0.34 0.09 0.09 0.29 0.60 0.66

… … and dia. greater than 40 inches wks/km 0.20 0.15 0.16 0.18 0.26 0.29

… with length greater than 1,000km wks/km 0.14 0.07 0.07 0.17 0.21 0.21

… … and dia. 10 inches or less - - - - - -

… … and dia. between 10 and 25 inches wks/km 0.21 0.21 0.21 0.21 0.21 0.21

… … and dia. between 25 and 40 inches - - - - - -

… … and dia. greater than 40 inches wks/km 0.13 0.07 0.07 0.17 0.17 0.17

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Construction Duration based on Mile Length

The table below identifies the rate to construct a pipeline based on the design length of the pipeline in

miles, based on other projects.

Table 3 Construction Duration Benchmark Rate (in miles)

Number of Weeks per Mile to Construct a

Gas Pipeline (wks/mi) Unit Average

Min.

(Fastest)

Min. less

lowest

10%

Mean

Max.

less

highest

10%

Max.

(Slowest

)

… note, the construction duration generally does not make provision for the period to undertake and complete design,

documentation, procurement, head contracting activities, permitting, and government approvals. Additional provision

should be allowed.

… to calculate the duration, use the formula A x B = C, where;

A is the pipeline length in Miles (mi)

B is the one of the rates below, and

C is the construction duration in weeks

Construction of an onshore gas pipeline …

… with length less than 124mi wks/mi 1.05 0.42 0.57 0.89 1.73 1.89

… … and dia. 10 inches or less wks/mi 0.88 0.87 0.87 0.88 0.89 0.89

… … and dia. between 10 and 25 inches wks/mi 0.66 0.42 0.47 0.66 0.84 0.89

… … and dia. between 25 and 40 inches wks/mi 0.63 0.63 0.63 0.63 0.63 0.63

… … and dia. greater than 40 inches wks/mi 1.57 1.17 1.27 1.66 1.85 1.89

… with length between 124 and 620mi wks/mi 0.67 0.14 0.15 0.51 1.46 1.74

… … and dia. 10 inches or less wks/mi 0.30 0.23 0.23 0.23 0.41 0.45

… … and dia. between 10 and 25 inches wks/mi 0.24 0.15 0.15 0.17 0.42 0.45

… … and dia. between 25 and 40 inches wks/mi 0.82 0.14 0.23 0.81 1.46 1.46

… … and dia. greater than 40 inches wks/mi 0.97 0.25 0.44 0.91 1.46 1.74

… with length greater than 620mi wks/mi 0.13 0.05 0.06 0.11 0.22 0.49

… … and dia. 10 inches or less - - - - - -

… … and dia. between 10 and 25 inches - - - - - -

… … and dia. between 25 and 40 inches wks/mi 0.11 0.11 0.11 0.11 0.11 0.11

… … and dia. greater than 40 inches wks/mi 0.13 0.05 0.05 0.11 0.30 0.32

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Number of Weeks per Mile to Construct a

Gas Pipeline (wks/mi) Unit Average

Min.

(Fastest)

Min. less

lowest

10%

Mean

Max.

less

highest

10%

Max.

(Slowest

)

Construction of an offshore gas pipeline …

… with length less than 124mi wks/mi 2.84 0.40 0.40 3.50 4.44 4.44

… … and dia. 10 inches or less wks/mi 3.10 0.40 0.40 4.44 4.44 4.44

… … and dia. between 10 and 25 inches wks/mi 2.90 0.40 0.40 3.50 4.44 4.44

… … and dia. between 25 and 40 inches - - - - - -

… … and dia. greater than 40 inches wks/mi 1.79 1.79 1.79 1.79 1.79 1.79

… with length between 124 and 620mi wks/mi 0.49 0.14 0.18 0.47 0.78 1.06

… … and dia. 10 inches or less - - - - - -

… … and dia. between 10 and 25 inches wks/mi 0.55 0.53 0.53 0.54 0.58 0.59

… … and dia. between 25 and 40 inches wks/mi 0.54 0.14 0.14 0.47 0.97 1.06

… … and dia. greater than 40 inches wks/mi 0.32 0.25 0.25 0.29 0.42 0.47

… with length greater than 620mi wks/mi 0.23 0.11 0.11 0.27 0.34 0.34

… … and dia. 10 inches or less - - - - - -

… … and dia. between 10 and 25 inches wks/mi 0.34 0.34 0.34 0.34 0.34 0.34

… … and dia. between 25 and 40 inches - - - - - -

… … and dia. greater than 40 inches wks/mi 0.22 0.11 0.11 0.27 0.27 0.27

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Changes to Construction Duration over Time

Project Forecast has undertaken an analysis to understand if the construction rate of gas pipelines has

been getting faster or slower over time.

The analysis shows that generally the construction rate generally remains the same, however from late

2006 onwards for almost 50% of the records the construction rate is halved (that is slower by almost

100%) when compared to the normal historical range. It is not clear why this trend is occurring.

The comparison between the construction rate and the construction duration over time can be found

attached to this report.

Regional Variability on Construction Durations

Project Forecast has undertaken an analysis to understand if there is any regional variability in the

construction rate.

The analysis, while not definitive, shows generally works in Oceania and North America are generally

slower than the average construction rate and works in Europe and Asia are generally faster. This is

represented in the chart below.

Figure 2 Regional Variability on Average Construction Rate for Onshore Gas Pipelines

Figure 3 Regional Variability on Average Construction Rate for Offshore Gas Pipelines

Faster Slower

Faster Slower

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Other Influences on Construction Durations

No one project is the same. Each project is unique and there are a number of factors that may influence

the duration of a project. A project professional or specialist project planner should be able to assist you

with the detailed planning of your project.

Some of the influences that can impact on project durations include:

The subsurface conditions and geotechnical requirements

The extent of the built-up (urban) environment

Number of crossings

The type of contract and services required to be provide under the contract

The definition of completion in the construction contract

Local terrain and typography

Local environmental factors, specifically weather

Local legislative requirements and obligations

The experience and expertise of the project team and contractors

The type of construction and materials used

Project Forecast maintains a list of online reference material that can be used to understand other

influences on project durations, including those for specific project types. To view visit

http://www.projectforecast.com.au/links/ .

About Project Forecast

Project Forecast is a specialist project planning organisation that assists others with the planning of

major projects. The Project Forecast Benchmarks have been developed to assist project teams plan and

assess the performance of their project against other projects. To find out more about Project Forecast

at www.projectforecast.com.au .

Disclaimer: The Project Forecast Benchmark Duration is generic and is unlikely to consider all of the factors influencing your

project. We suggest you engage a project professional or specialist project planner before acting on any of these metrics or

advice. Project Forecast, its employees and/or related entities, are not liable for any loss, damage, disruption related to this and

other related documents.

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Attachments

List of Projects

Comparison of Construction Duration against Pipeline Length

Comparison of Construction Duration Rate over Time

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Attachment A: List of Projects

Following is a list of the projects used to establish the Project Forecast Benchmark. The information for

each project has been sourced from media releases, corporate marketing material including capability

statements and websites and other public sources such as Wikipedia (www.wikipedia.org).

Identified in the table below is the project, its location, the number of records identified and used to

establish the Project Forecast Benchmark and the average construction duration in weeks established

for that project, based on the identified records.

Table 4 List of Projects

Project Region Diameter

Pipeline Length No. of

Recor

ds

Avg.

Constructio

n Duration

(Weeks) km mi

Onshore Projects

West African Gas Pipeline Africa 10” to 25” 678 421 1 175.43

Shaan - Jing Pipeline East Asia 25” to 40” 918 570 1 79.71

Jonah Pipeline Extension North Amercia 10” or less 167 104 3 47.30

Sakhalin II Onshore Oil and Gas

Pipelines North Asia 40” or more 787 489 1 360.86

CATS Pipeline Northern

Europe 25” to 40” 404 251 1 204.29

South Wales Gas Pipeline Northern

Europe 40” or more 317 197 2 179.65

Midwest Pipeline Oceania 10” or less 365 227 2 52.00

SEA Gas Pipeline Oceania 10” to 25” 686 426 4 65.29

Wheatstone Pipeline Oceania 40” or more 225 140 1 243.57

Parana-Uruguayan Pipeline South America 10” to 25” 451 280 2 47.86

Yabog Pipeline South America 10” to 25” 710 441 1 152.14

Cruz de Sur Pipeline South America - 215 134 2 91.14

Trans-Thailand-Malaysia Gas Pipeline South East Asia 40” or more 255 158 8 204.50

AY-1 Oil and Gas Western Asia 40” or more 975 606 1 152.00

Taweelah - Fujairah Gas Pipeline Western Asia 40” or more 244 152 1 61.57

STEGAL Western Europe 25” to 40” 314 195 1 100.00

Trans Europa Naturgas Pipeline Western Europe 25” to 40” 968 601 1 152.14

JAGAL Western Europe 40” or more 338 210 1 152.14

WEDAL Western Europe 40” or more 319 198 1 152.14

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Project Region Diameter

Pipeline Length No. of

Recor

ds

Avg.

Constructio

n Duration

(Weeks) km mi

Maghreb - Europe Gas Pipeline Africa 40” or more 1620 1007 12 107.43

West-East Gas Pipeline East Asia 40” or more 4000 2485 2 117.57

West - East Gas Pipeline East Asia - 4000 2485 2 150.00

Yamal - Europe Pipeline Eastern Europe 40” or more 4196 2607 5 295.57

PGT - PG&E Pipeline North Amercia 40” or more 1300 808 2 256.29

Ruby Pipeline North Amercia 40” or more 1090 680 1 43.57

Tabriz - Ankara Pipeline South Asia - 2577 1601 2 256.14

Peninsula Gas Utilization South East Asia - 1700 1056 1 517.43

South Wales Gas Pipeline - Felindre -

Tirley section

Northern

Europe 40” or more 197 122 1 203.30

South Wales Gas Pipeline - Milford

Haven to Aberdulais section

Northern

Europe 40” or more 120 75 1 87.14

Berri to Mildura Pipeline Oceania 10” or less 185 115 1 100.00

Roma to Brisbane Looping - Stage 4 Oceania 10” to 25” 49 30 1 12.90

Roma to Brisbane Looping - Stage 5 Oceania 10” to 25” 181 112 2 100.29

Rehden - Hamburg gas pipeline Western Europe 25” to 40” 132 82 1 52.00

STER Project Western Europe 40” or more 26 16 1 30.57

Offshore Projects

LGTS Libya Gas Transmission System Africa 25” to 40” 516 321 1 152.14

Blue Stream Project North Asia 10” to 25” 760 472 4 256.43

BBL (Balgzand Bacton Line) Pipeline Northern

Europe 25” to 40” 235 146 2 20.00

Frigg UK Pipeline Northern

Europe 25” to 40” 362 225 1 204.29

Europipe I Northern

Europe 40” or more 600 373 2 113.79

Europipe II Northern

Europe 40” or more 310 193 1 47.71

Transmed (1) Southern

Europe 10” to 25” 466 290 1 152.14

Transmed (2) Southern 10” to 25” 413 257 2 152.14

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Project Region Diameter

Pipeline Length No. of

Recor

ds

Avg.

Constructio

n Duration

(Weeks) km mi

Europe

Dolphin Export Pipeline Project Western Asia 25” to 40” 521 323 2 152.14

BBL Pipeline Balgzand - Bacton Western Europe 25” to 40” 230 143 1 152.14

Europipe I Western Europe 40” or more 670 416 2 113.79

Langeled Pipeline Northern

Europe 40” or more 1166 725 4 195.57

East-West Gas Pipeline South Asia - 1380 857 3 78.43

Bahr Essalam Africa 10” to 25” 74 46 8 204.29

Gibraltar Strait Crossing Africa 10” to 25” 90 56 2 99.86

Hasdrubal Offshore Pipeline Africa 10” to 25” 106 66 1 100.00

Gorgon DOMGAS Pipeline Installation Oceania 10” to 25” 90 56 1 104.43

Chevron 2008 Pipelay Works South East Asia 10” or less 70 43 4 17.57

Third Transmission Pipeline & JDA

TTM A-18 / B-17 South East Asia 40” or more 137 85 2 152.14

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Attachment B: Comparison of Construction Duration against Pipeline Length Figure 4 Comparison of Construction Duration against Pipeline Length

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Attachment C: Comparison of Construction Rate (Weeks per Pipeline Length (km/mi) against Time Figure 5 Comparison of Construction Rate against Time