The challenge; delivering 33,190 lengths of line pipe for Jemena’s Northern Gas Pipeline to a relatively remote area in North East Australia. The solution; engaging MRC Global to oversee and manage the procurement, inspection, logistics, delivery and storage of the project’s line pipe.
The Northern Gas Pipeline is currently being constructed between the towns of Tennant Creek in Australia’s Northern Territory and Mt Isa in the neighboring state of Queensland, Australia. This new pipeline section would link Tennant Creek to Mount Isa, unlocking the next phase of economic growth for the Northern Territory and helping to build a stronger Northern Australia.
Construction of the $800 million project began in July 2017. Gas for this project is scheduled to flow in late 2018. A majority of the project’s line pipe is DN300 API 5L X70 PSL2 with a 6.4mm wall thickness and a small portion is made up of heavier wall 7.9mm wall thickness. The pipe and induction bends required DFBE coating then internal lining with thin film liquid epoxy. In addition, 1,648 meters of the project’s line pipe required an added concrete weight coating (CWC) to be applied. The order execution from cradle to grave required approximately two years of planning and execution for MRC Global’s experienced midstream team.
MRC Global delivers Jemena Pipeline order to Tennant Creek staging site.
TOP: A final photo of the PCK production, MRC Global and SGS inspection teams in front of the PCK production office.
The Australian line pipe market entered a new phase in 2012 following the closure of the last API mill in Wollongong. To overcome the gap in the local market, MRC Global partnered with overseas manufacturers to provide continuity of service to an industry that we have been supporting for decades. Panyu Chu Kong Steel Pipe Ltd (PCK) has prevailed as one of a few mills that has risen to the challenge of the stringent Australian standards (AS 2885.1) and demonstrated the logistical flexibility required for a fully integrated solution for Jemena.
Together with PCK and Qube Energy, MRC Global orchestrated and executed a plan to produce the pipe at PCK’s mill in Lianyungang, China and then transport it in four shipments to Darwin, Australia, where it then traveled by rail to the laydown area at Tennant Creek, a journey of some 6,360 km (3,952 miles).
LEFT: Bare pipe is cut by the flying saw at the PCK Lianyungang production office.
TOP RIGHT: Coated pipe is inspected. Production continues for nearly a year under constant MRC Global supervision.
BOTTOM RIGHT: The first ship being loaded to leave Lianyungang on 29 September, 2016 with 8,538 pieces of pipe aboard.
During the 358 days of production, at least one member of the MRC Global midstream projects team was present at PCK, overseeing the manufacturing, laboratory testing, production scheduling, logistics interface and all technical and commercial matters. The team worked collaboratively with PCK to arrange for longer triple random pipe lengths, which is significantly reducing construction time and costs for this project.
TOP LEFT: Port Darwin, out of the stockyard and on to the train for the long journey to Tennant Creek.
TOP RIGHT: Port Darwin, off the ship, and into temporary stockyard.
BOTTOM: The complete order of pipe staged at the Tennant Creek site. The grey pipe is 3M FBE, the black pipe is Valspar Pipeclad 2000. The site is one of the largest pipe stockyards of any project thus far in Australia.
Over the course of the next eight months, four vessel shipments loaded with approximately 8,500 lengths of pipe each were manufactured, shipped and transported to Tennent Creek. Every single length of pipe was delivered to the customer’s specification within the contracted timeframe. It was a complete success.
One thing is clear, from the pre-planning to the final execution and documentation, MRC Global has the expertise to make your capital project run smoothly.
Put our expertise to work for you. Contact MRC Global today.