‘Crude Awakening’ on New Oil Pipelines

A report by Global Energy Monitor (GEM) says more than 24,000 kilometres of crude oil pipelines are in development, with 40% already under construction. The projected cost of these pipelines could reach US$75.4 billion, with many risking becoming stranded assets as the transition to renewables continues. These plans have been backed by state-owned companies including the China National Petroleum Corporation, Indian Oil Corporation, Government of Zambia and Iraq Ministry of Oil, as well as private firms such as TotalEnergies, ConocoPhillips and Tullow Oil. Sub-Saharan Africa is leading the world in planned pipeline developments in terms of length, which GEM sites as a “cause for concern” due to the fact the region has not been a major contributor to global emissions, but faces significant energy access challenges. On the oil pipeline developments, GEM warns that “either it is allowed to go ahead, and the world’s chances of meeting the Paris Agreement’s temperature limits are dashed, or developers will face billions of dollars of losses through stranded assets if stronger climate policies and direct action prevent build-out.” 

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