IRGANIZED BY

. .

June 7-8,2007

LecturerProfessor Phil Hopkins

SUPPORTED BY

,..

Defect Assessment in Pipelines

June 7-N, 2007, Houston

Organized byClarion Technical Conferences3401 Lo uisiana Street, Houston, Te xas 77002 , USATel. 7 13.52 1.5929 .Web: www.clarion.org

and

Global Pipeline Mo nthlyPO Rox 21, Beaco nsfield, Bucks HP9 INS, UKTel. 44 1494675139Web: www.pipcmag.com

Co pyright 2007 Pcnspcn Group. All rights reserved. This publicat ion may not bereproduced in any form wi thout pe rmi ssion of the copyright ow ners. For informationcontact Clarion Techn ical Conferences .

De fect As se s sment in Pipelines

Course Progra m

1. Course In t rod uct ion

2. Introduction to Oil , Ga s, a nd Pipeli nes

3. In t rod uct ion to Pipeline Design, Construction , a nd Op eration

4. How Safe Are Pipeli nes a nd Why Do Th ey Fail ?

5. In t roduction to Fracture Mechanics (notes only)

6. How to Assess Fatigue (notes only)

7. How to Assess Defects

8. Assessment of Corrosion

9. Assessment of Gouges

10. Assessment of Dents

11. Assessment of Cracks

12. Assessment of Weld Defects

13. Fracture Propa gat ion and Arrest (not es only)

1,1. Intelligent Pig Inspection

15. Pipeli ne Repair a nd Rehabi lita t ion

16. Risk Managem ent

17. Respon sibilities , Morals and Ethics

18. Tutoria ls

Defect Assessment Course Schedule

Day 1

8.00 Introduction, lectures

9.15 Coffee

s.ao Lectures

10.45 Coffee

12.00 Lunch

LOO Lectu res

2.15 Coffee

2.30 Lectu res

3.4 5 Coffee

5.00 End of Day 1

Day 2

8.00 Lectures

9.15 Coffee

9.30 Lectu res

10.45 Coffee

12.00 Lunch

LOO Lectu re s

2.15 Coffee

2.30 Lectu res

3,.15 Coffee

4.45 End of course

Lecturer

Professor Phil Hopkins has more than 26 years' experience in pipeline and marineengineering, and is Technical Director with Penspen In tegrity and Visiting Professor ofEngineering at the University of Newcastle-upon.Tyne. Phil has worked with most of themajor oil and gas companies and pipeline companies around the world, providing consultancyon management, business, design, maintenance, inspection, risk analysis and safety, andfailure investigations . He is the current chairman of the Executive Committee of the AS),IEPipeline Systems Division and has served on many other professional committees , includingthe Bri tish Standards Institution, European Pipeline Research Group, the American GasAssociation's P ipeline Research Committee, and the DNV Pipeline Committee. Ph il hasextensive experience in both lecturing and training, and he regularly presents on manyaspects of pipeline engineering at international industry meetings and seminars. More than1500 engineers and technica l personnel around the world have attended his Pipeline DefectAssessment and Pipeline Integrity-related courses .

PIPELINE DEFECT ASSESSMENTCOURSE

PDAC

A Course by:PENSPEN,UK

World Leaders in Pipeline Integrity Training

COPYRIGHT AND DISCLAIMER

Copyr ight 20 07 by Penspen Gro~pAll righ t s reserved . No pa'-t 01 t t ess c ourse n o te s may be rep roduced ,d i st r i but ed o r stored or. a.ny for", o r b y a ny mea ns without the pr i or writ ts r.au t hor isat ion o f the Penspen Group .Some of t he i mag es i n t l:e s e course not e s l ave been s upp l i ed con rt esy o f ot ter

org~r. j s~t ;ons or i nd i viduals , ~nd t he s e ~re acknowl edge d Some o f thei n ~o rma t ionima t e r ial i~ t a k en from t he l itera tu r e / int e rne t and i s fu ll yre~erenced . Th e litera ture ! 'Nebsite s ho u l d be c onsul ted t or t he ~ opyrigh t t e r ms.T~e copyrigh t of e hese mat:e ,-ials re"a i:l s ~it r. t h e origina l co pyright ho l der .T~e 5e course hotes ha ve b een prepared by penspen I nt eg r i t y Ipart at t he Peh spe~Gro~p : based On i~

ACKNOWLEDGEMENTS

The c au , s e ~o~e8 a nd ove r~eads hAve been pre~red by pe~spen. UK. 7he a u t ho rsaC kn o wl ed g e the i r coll e ag ~ e s . a r:d .,r",, ' ous cou r s e a~tendee~. f o r tLeir' manycornme n t s and Buggestior.s f or irr.proving t~.1! co urse non",. ':"he authors also t ha r.kthose i n ctividuala a nd compa n i e s ~'ho h,;v" sUl'pl ie1 some 0 1 t he i mag" " in th.. "eCO"ree n o t e s .

Defect Assessment in PipelinesHouston, USA. June 2007

Phil Hopkins

PENSPEN INTEGRITYWorld Leaders in Pipeline

Integrity Training

Hav.' bom Sun"LOlL' ?&: k. Terrac:e w 'e!Sf Peter. WharfSt. Pc""" '$ Ba""

~.... ca'tle upon Tyno: "F~ 1rzOKTel H (/)) IV! 2.l X 1201!f,n 44 ((Ii 19/ .'Jj 97x6~",,,i l "'Ngril,tI~lt

Welcome::J Welcome ... to the Pipel ine Defect

Asse ssment Course

::J Penspen is a UK based pipe line engineeringconsultancy company.

::J Part of our business is training pipelineeng ineers allover the world, and we welcomeany comments, or feed back, on this cou rseprogramme.

:J Please contact us with your commentsu Contact details are on the front cover of this

presentation.

ClP..,.".., It'. 2001

Penspen Group

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Unipen

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D A ~ AL - HA N DAS A Hrr Penspen is owned by Dar AI-

Handasa h - 'House of Engineers'o 4,500 employee company

[J Penspen has >1200 employees.u HQ is in Richmond, UK, but has

offices around the world .o Works in oil, gas, water

pipelines, and fac ilitieseng ineering.

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..,. ; . , "'"'::":,.. ... ~~ j;;~ - c . . .-..----:c",e-C"'h"'R~e-PU~. HUn~ary.

Austria, UK, Netherlands,Romania

C P...- UO 2007

Introductiono Introduce lecturers ... [ 4l

u and attendees """:IiIIIIII~.IIIIo Domestics la

u Help and Assistance j ~o Interactiono Course Timetableo Objective of Courseo Reasons for Courseo General Guidance Notes

O_l kl 2001

Domestics and InteractionDomesticso Tea/Coffeeo Lunch Breakso Assistance;:J Fire exits/procedures

Interactiono It is YOUR course - interact!o Ask questions. pass comments, share your experienceso Vis it our website for more papers and articles on defect

assessment:

www.penspenintegrity Qcom

Course Timetable

Day 1: 08.00 17.00

Day 2: 08.00 16.45

Worked Examples(during course)

Bring a calculator!

C_UO 2001 ..

Course Timetableor Introduction and Welcome

or Introduction to Basi cs Pipel ine Engineeringor Why Pipelines Fail

... Introduction to Fracture Mech an ics & Fat igu e (no tes on ly)or Fundamental Pipel ine Defect Fail ure Relat ionsh ips

or How to Assess Corros ion Defect s

or How to Assess Gouges & Dents

or How to Assess Weld Defects

or How to Assess Cracks

or Fracture Propagati on and Arrest (time permitt ing).... Setting Inte lligent Pig Inspectio n Levels

or Pipel ine Repa ir

.... Pipeli ne Risk and Integrity Management & Tutorial

"

Objectives of the CourseOBJECTIVEto understand the :reason for;behaviour or.'assessment of;consequences of;defect s in t ransmissionpipelines

----_......

AIMto give course attendees a sound . holisticI'comptete') understanding of defects in

transmission pipelines, and the knowledge toallow asses sment

"

Reason for the Course

Pipelines can cause fatalities:Ghis leng ien, Belgium, July 2004

failure in a gas pipe line due to mechanicaldamage, ca us ing 23 fata lities

Reason for the Course

Car lsbad, NewMexico, August 2000fail ure in a gas pipe l ine

due to microb ial interna lco rros io n, caus ing 12

fata lit ies

"

Reason for the CoursePipelines can cause. ..

Environmental damage

Reason for Training: Safetyrt A study conducted at the Swiss Federal lnslit ute of Techn ology in Zurich

analyzed 800 cases of structural failure in which 504 people were killed,592 people injured, and millions of dollars of damage incurred

o When engineers were at fault . the causes of failure were classified as:

Insufficient knowledge 36%Underestimation of influence 16%Ignorance, carelessness, negligence 14%Forgetfulness, error 13%Relying upo n othe rs with ou t sufficient control 9%Object ively unknown sit uation

""Impreci se definition of responsib ili ties 1%Cho ice of bad quality 1/.Oth er 3%

ODES YOUR COMPANY HAVE A STRUCTURED AND DOCUMENTED 'INTEGRITY' TRAINING PROGRAM?

"

Reason for Training: Business'INTELLECTUAL CAPITA L':J The market value of a person(s) is a combination of the knowledge the

person creates and owns IIG A company's worth is an accumulation of its employee's knowledge.D The market value of a company is determined. in a large part, by the

intellectual capital , as perce ived by the investing public >-?1:1 Exxon 's intellectual capital estimated to be 72% of its market value.c Coca Cola 's is estimated to be 96% ~-_- ..... 1

LOSS OF CAP ITA L ,_ __ jn Intellectual capital of the oil and gas business continues to "leak into other

industries at an alarming rate "D In the UK, across all industries. 25,000 engineers retire annually and only

12,000 graduates replace themCOMPANY RESTRUCTURINGfREORGANISATION:::J The industry is continuing to make mistakes. As we 'downsize' ,

we are forc ing staff , with critical knowledge and corporate memory, toleave, and companies leam too late that such knowledge is irreplaceable.

0 _ .... _ '"

Reason for Training: Staffn A USA survey by The Gallup Organization

concluded :o Employer -sponsored training and education is a

major attraction for young staff looking for jobs.Q Worker s say they are more likely to remain with

companies that invest in training programs .

.:J A survey by the American Management Associationconcluded:

:J Investing in employees skills through training is amore effective tool for retaining staff than purelyfinancial incentives.

'"

Reason f or Training: We are old

..654520

CJ W e are an old workforce!o Average age in oil and gas industry is 49

1:1 a 'young' worker being 43 andu an 'old' worker being 55

o Early retirement is still popular:J Could lose half of our experienced workforce by 2007:J 50% of She ll's E&P workforce will retire ove r the next

12 years"n In one major contractor the average age of senior staff is

now 49 years and increasing by about one yea",r~;~n~e~v~e~ryL ---,tNo. 25~

o OUf age profile should be this, 20l'but.. III 15,:l 10

5o

Reason for Training: We are old.

5

l'~ 10U- - - - -~

o The effe ct of agedemographi cs is'tighter' intellectu alcapital in com panies

o We need to preserve 15U- - - - - - -Iand grow ourintellectualcapital

:J This can be partlyachi eved by havingwell-trained staff,under continuous and I e::accelerated 0....develo pment .~ ~ 20 25 30- 35- 40 45 50- 55- 60- 65+programs .~ \'f~ 24 29 34 39 44 49 54 59 64

.' ' (~\ age of staff..., I

O_Ll

Reason for Training: The Future.:1 This cent ury..

u OUf limitations will not be computersand communication capabilities(they will rapidl y advance), butrather. ..

a O Uf limitations will be learning ,experience, values and information.

:J These will be how oil and gascompanies will succeed in ourindustry in the future.

rOO' ,"""", ofm'''''''''''' '... "_ !Q< ~. 0"'.l,",""P , >'opk;os,'Tho 0.''''''''oIl~ C"ongo',Joc"" '" 1"""' ~ ' 0"V 'Y.1i)(l 2 , A pri l , 2OOOP,_ os, 'P.,..... _ t- r' H>"'fIO

What is Pipeline Integrity?

Risk .. ndRel ia bility

o Pipeline integrity is theprocess of ensuring that apipeline is safe and secure . Itinvolves all aspects of pipel inedesign , operation, inspection ,maintenance and managem ent.

LI This presents an operator with acomplex 'j ig s aw'to solve if theyare to maintain high integr ity.

o Pipeline integritymanagement is themanagement of all the elementsof this complex jigsaw .

o The management brings allthese pieces of the jigsawtogether.

What is Pipeline Integrity?o The USA's DOT considers .. ..

::J The term "integrity" means that a pipeline system mainta ins itsstructural integrity and does not leak or rup ture.

IJ "Integr ity management" encompasses the many activities pipelineoperators mus t undertake 10 ensure that releases do not occ ur,

::t lntegrity' will have differentmeanings in differen t sectors of thepetroleum business ; for example:

arca customer, it may mean'billable quality' of product;nrc a control room it may mean'operational stability'.

' ,- _-...~ .......--_...-

Pipelines Fail - Why?

Therefore , engineers maintain the safety ofa pipeline by prevention, or elimination, of

defects that can cause failure .

o Pipelines carry hazardous products.[l The products are hazardous, not the pipelines.[1 A pipeline will have high rel iability if it is correctly designed, maintained

and operated.n Pipelines can fai l due to:

i. natural diaste rs.ii. gross human error,iii. sabotage/warsiv. existing defects in a new pipeline, orv, defects introduced during operation

n Enginee rs can do little to preven t (i) to (iii).

() ~.OspOn l td . 200 '

Important Notes

r:

Course Notes and Guidance, 1

Ll The defe ct assessment course and the noteshave been de....eloped over many years

Ll They are updated and imp roved after everycou rse, based on:

1. course feedback, and2, changes in the methods reported in the

literature ,

o The notes and recommended practices areconsidered best industry practice, based on::J the authors' experiencesQ industry practice around the world"Q literature reviews and the Pipeline Defect

Assessment Manual, a joint industryproject supported by 16 companies.

POAMTHE PIPELINE DEFECTASSE SSMENT MANUAL

Course Notes and Guidance, 2

o Your company and your work will be limited byboth company codes and practic es, and yournation al and state legislation and regulations .o For example.we will recommend a dent is

'acceptable' under static loading, if it is less than7 percentof the pipe diameter.

o This is a technical limit, based on fitness forpurpose.

!'J You must always check other engineeringaspects and the consequencesof yourconclusion (e.q. a 7% dent may restrict productflow and pigs).

n Your cooesneqrstauorvetc. may not allow such adeep dent.~ You MUST always check local and national limits and legislation, before

applying fitness for purpose:1. can I apply it, and2. can I use the results?

o_uo2001

Course Notes and Guidance, 3

o Fitness-for- Purpose in this course means that: a particular structure iscon sidered to be adequate for its purpose, provided the conditionsto reach failure are not reached (see 8$ 7910 or API 579) .

o Note that 'fitness- for-purpose' may have a legal and contractual meaningin your country:

1. CONSULTANT'S OBLIGATIONn For example, in the UK, a consultant engineer is

expected to exercise 'reasonable skill and care ' intheir work.

2. CONSTRUCTOR'S OBLIGATIONo However, a contracto r carrying out a construction has

a fundamentally different obligat ion, they are obliged~by law to warrant that the comp leted works will be fitfor their intended purpose . '

o This will be implied in the contract ; it does not have tobe staled explicitly

Course Notes and Guidance, 3 (contd.)::J Therefore, if a consultan t gives a warranty for fitness-for-purpose (on the

completed works) and they are not, they will be liable even if they haveused all reasonable skill and care

o The damages that can flow from a breach of warran ty are different fromthose of negligence:1. Warra nty - you pay the costs of making the works fit for purpose2. Negligence - you pay for anything that could have reasonab ly been

foreseeable.

o Therefore, check with your professional indemnityinsurance

o What are you covered for as a company orprofessional?

C1 Usually, professionals and consultants are NOTcovered for warranties

Course Notes and Guidance, 4

:J We have to be careful with 'definitions'...:J New standards (e.g. API 1163) now consider...':J a 'defect' as an anomaly" for which an analysis

indicates that the pipe is approach ing failure asthe nominal hoop stress approaches the specifiedminimum yield strength of the pipe material. Thismeans an anomaly with dimensio ns orcharacteristics that exceed acceptable limits

o an 'imperfect ion' as an anomaly in the pipe thatwill not result in pipe failure at pressures belowthose that produce nominal hoop stress equal tospecified minimum yield strength of the pipematerial. That means an anomaly withcharacteristics that do not exceed accep tablelimils.

c These definitions are consistent with API 5Ldefinitions,

c _ .... :IOO."

Course Notes and Guidance, 5

o SAFETY is ALWAYS our prime considerat ion inany calculation

rt It is YOUR RESPONSIBILITY to ensure that anyfitness for purpose assessment is correct.

Always understand the cause of any defect you're assess ing,o Try and use the bes t possible practices available,e Check calculations, inputs and assumpions.!,;! Use all relevant data, e.q. pig data, operations record s, maps, etc.

.:J Always appreciate the CONSEQUENCES of your assessment.!';J If there is an error, e q. if the defec t measu rements are wrong, and the

pipe line fails, what are the consequences?~ Consequences will dictate your safety margin on your calculations

:::J 'Rules of Thumb ' are fine , but limited to past experience , and rememberthe origin of a 'Rule of Thumb' is ...

~

ANY QUESTIONS BEFORE WE START?

?

C_110 2001

Introduction to Pipel ine Design

PenspenIntegrity

PIPELI NES DESIGN: Legislat ion

.Pipe line l eg al/St atutory Positi on_The ope ration of tran smission pipelines is usuallycon trolled by national regulations or laws._ The selection of a design stand ard , or designcalculations, are often limited by these regulalionsllaws.

a t.aws ('statu tes') are created by Governments (e.g . theUSA Cong ress)._ Regulations are 'rules ' based on an interpretation ofthese laws, usually written by Federal Departments.

_They are standards to implement. interpret, or makespecific the law enforced or adminis tered._ Regulations have the same effect as Laws: both areenforceable.

_ Failure to comply with either the laws or regulationscould result in legal proceedings.

,

PIPELINES DESIGN: Legislation in USA & UK

,

_e_e-.._ In the USA. the Department ofTransportation issues a range of PipelineSafety Regulations.

e 'rhese Regulations rely heavily on theA$ME 831 standards._Any pipeline design in the USA would beto ASME 83 1, and additionally satisfythese Regulations.

_ In the UK, the Pipelines Safety Regulationscover all transmission (of 'hazard ous fluids' )pipelines in the UK.

e 'Tbese Regulations are not prescr iptive,but goal setting but Regulators wouldexpect existing standards to be thestarting point of any pipeline design.

PIPELINE DESIGN: We use 'Standards'

........ ..- """. ...... 1~"'...G!lllAN&MIS~UI ' .~~~'

IXU UlllBIBI/lIUI ~~~~\PW~GrtSllMS \~*~ ,06~

..- .... ....~,.....

_A pipeline owner will expect a designer to produce apipeline to a recognised pipeline standard._U sually, there will be a recognised (by both the pipelineowner & the regulatory authority) standard already in usein the cou ntry where the pipeli ne is 10 operate .

PIPELI NE DESIGN: Fundamental Issues

. Any pipeline standard used must address four key issues:

Safety - the system must pose an acceptably low risk to thesurrounding population/environment

Security of Supply - the system must deliver its product in a constantmanner to satisfy the owners of the product (the 'shippers') and theshippers ' custom ers (the 'end users'), and have low risk of supply failure

Regulatory & Legal comonmce- Some pipeline systems areregulated, and all pipelines must satisfy all legal requirements

Cost Effectiveness - the system must deliver the product at anattractive mark et price, and minimise risk of losing business

PIPELINE DESIGN: Fundamental Elements

Pipeline design includes:

conduct eng ineering economicana lysis and a market ana lysis Satisfyto determin e the optim um ,~e9 11 l a tJ0t'l5>fLawssystem based on '~designs. " I Se l'ecr~'h~'signRoute select route, Standard/Code

determi ne through put & Iveloc ity , and pipe diameter Permits 'conceptual'

ca lcu late pressuredesign or 'FEED'

gradient,

se lect of pumps/ .J)e~lkldDeiStgi1compressors/other & Routeequipment, Construct and

dete rmine pipe th ickn ess andtest

grade ,_NB - A pipeline code is not a complete guide to a good design. A

I:>P..,.".., 2006 Ro,&'1 design might meet a code requirements, but it may be a 6unnecessarily costly,dangerous to construct, or ugly

PIPELINE DESIGN: The First Standards

_ Steel Pipel ine Des ign Standards wereoriginally developed in the USA_ The first oil and gas piperine stand ards were:

_ ASMElANSI 8 31.4 Liqu id PetroleumTransportation_ ASME/ANSt 831.8 Gas Transmission &Distribution Pipe line System

'-' " .. ,-'-"- , , .

GAS TRANSMISSIONAND DISTRIBUTION

PIPING SYSTEMS

UlIDIJ-1IIl_ .

..._.

r

PIPELINE DESIGN: History of Standards andRegulations_ Gas: ASME 831 .8 was first developed in 1955.

_ In 1955, industry/cod e concerns were 0 ) b 31.8main taini ng the safety of the pipeline system while 1955economically trans port ing natural gas. Liquid : ASME 831. 4 was first published in 1955.

_ The primary purpose of the standard was to 0 ) B31.4esta blish requirements for safe design . 1955construction, inspection, testing, ope ration andmaintenance of liquid pipeline systems

_ ASME 831 was quoted in the USA Pipeline 0 1969 } Law,Safety Regul ations, first issued in late 1960sa

PIPELINE DESIGN: ASME standards werepopular _ As oil & gas was discovered around the world ,coun tries developed their own standards , butused ASME as a 'good pract ice' bas is:

_ ego the fi rst ed ition of CSA Stan da rd 2183, 'Oi lPipe Line Transportation', was pub lished inCa nada in 1967, and in 1968, CSA Z184 , 'GasTransmission & Distribution Piping Systems', waspublished .

_Most developed nations have their ownstandards/gu idelines, e.g. the UK uses BSI PO80 10, Netherl ands uses NEN 3650 ._ New internationa l (ISO) and European ('EN')standards are ava ilable :

_ ISO 13623 - standa rd cove ring oil and gas lines_ EN 1594 and EN 14161 (equivalentlo ISO13623) for gas and liquid lines.

Cud . Qr p ,"ct;'" rQ'pi""li,,'. _

851

PIPELINE DESIGN: Key ASME standards

_ A SM E has 500+ codes and stand ards ._ Here are some pipe lin e sta ndards :

_ ASME 831.3:_ ASME 831.4:_ ASME 831.8:

_ASME 831 .8S:_ ASME 831 .11:_ ASME 831.12:

_ASME 831Q:

Process Pip ingLiquid Petroleum TransportationGas Transm ission & Distribution PipelineSystemManaging System Integ rity of Gas LinesSlurry Trans portation Piping SystemsHydrogen Pipe lines and Pip ing(in deve lopment, due 2007)Remaining Strength ofCor roded PipelinesQua lification of PipelineOperato rs (underdeve lopment)

10

PIPELINE DESIGN: Standards for Offshore Lines

_ Most standards cove r both onshore and offshore lines_ ONV as Fl 0 1 is specifically for offshore lines, and is becoming themost popular offshore design standard

'~I"" '" 'I."''''''""~"'...."'s\: nSH ~ IN l l' l rfUNt SYSTt MS

I.' " .

"

PIPELINE DESIGN: The 'Hydrotest'

Water

Product

Hydrotest 0= 90-100% SMYS

( )II I I.~ "' --

PIPELINE DESIGN: Oil & Gas Standards Differ

. Pipeline standards treat oil and gas pipelinesdifferently:

_ For oil pipelines:a no account is taken of population density in theirlocation (but note new movement in USA)_ there is no specified limit on density of (occupi ed)buildings around the pipeline. you can generally build an oi l pipeline with a highstress ('des ign factor' (0.72) in most locations)

_ For gas pipelines:a account is taken of population (building) density_ minimum distance from buildings may be speci fied

_ Stress ('design faclor' is lowered in populatedareas (design factor is 0.3 in UK, 0.4 in USA)_gas pipe line standards limit popu lation by'location classifications'

PIPELINE DESIGN: 'Right of Way"

_Our pipeline is laid in a 'right of way' (ROW)_The pipeline owner usually leases this land_The ROW is usually about 8 to 50m wide containing the pipeline.

_The ROW is kept clear to allow the pipeline to be safely operated, aeriallysurveyed and maintained.

_ Pipeline companies are responsible for maintaining their rights-of-wayto protect the public and environment

CI ............ 2IlOII ......'

PIPELINE DESIGN: ' Right of Way'

"

..

-ROW

:~...:..

,

_ The pipelin e operator retainsaccess rights for the ROW for thelife of the pipel ine . This :

e enabtes workers to gainaccess for inspection,maintenance, testing oremergencies_ maintains an uno bstructedview for frequent aerialsurveillance_ identifies an area thatres tricts certain activities toprotect the landowner, thecommunity, and the pipelineitself.

PIPELINE DESIGN: 'Working Width'

_ We will temporarily need a larger width that the right of way, 10allow usto construct our pipeline_This is our 'working width '

I

In the USA . the Offi ceof Pipel ine Safety hasno authority over landuse practices outsideof the pipeline rights-of-way.

PIPELINE DESIGN: 'Boundaries' for a gas line

'Locat ion classification' for as lines

Wo rking width ~ill~ill

CLASS 1

~ill

220yards

coPeospeo 2006 Rev6!1

~ill1 mile

~ill220yards

PIPELINE DESIGN: Location Classification

No restriction In this zone

Limil buildingin this zone

Prevent, or severely limit,ROW - no building allowed here

ROWPrevent, or severely limit,

" ..",..""..",.""..."".."..p.l!l!rJ.JngJ'1 ,(fJf~"~Q(JfiJ ,, ..

Limit buildingin this zone

No restriction In this zonca

PI PELINE DESIGN: 'Lo c a tion Classification' inASME

CLASS 1: 10 or less living units. CLA SS 2: >10 & 46

220yards

220yards

ClASS 1

1 mile

Pipelines in Class 1 location can operate at high design factors.Classes 24 operate at lower design factors than Class 1.

I'Living units'

PIPELINE DESIGN: 'Lo c a t ion Classification' i nASME

CLASSIFICATION AREA

Class 1 (Oiv 1)Class 1 (Oiv 2) 0-10 bu ild ings (rural)Class 2 11-45 bu ild ing s (areas around towns )Class 3 46+ dwellings (e.g. suburban), etc ".Class 4 MUlt i-storey-type buildings

e r nese locations Originate In work In 1955. Aena l photographs of exrstmq pipelinesand their surrounding buildings were ana lysed and 4 location ctasses wereestablished that close ly resembled current practices in the design of pipelines. Originally, a 'cornoor wio th' of 0.5 mile wide , with the pipe line at the centre (thisfigure was the same as the width of aerial photographs at that time.. .), was used todetermine the population density at risk._ 0.25 mile was later introduced by OPS as more appropriate (as it did not affectsafety to people' or risk to pipeline): therefore, the location class is defined by anarea that extends 220 yards on either side of the center line of any continuous t -mnelength of pipeline.

.. ..__._...-.....- ... ......... . .-__,_ ....._ .. .. 0...,

ts

PIPELINE DESIGN: Location Classification inUSA during operation

ClASSIFICAnON No. of buildings No. of bultdings Max imum Allowable Operating Pressure-N_ -Operation

ConstructionClass 1 (Oiv 1) 11-25 PfOWlolAOP bill nol gr..-tt>an IlO'lIo SUYSClass 1 (Div 2) 0-' 0 11-25 ~1,Uo()P buInot~~ 72'1lo SMYS

26-45 (l 8_pr-... but not~ ""'" 7Z"fos""'s

' 6-05 (I 61.-1'fftOU'e but not~_~ 60"4 SMYS

66' II67_P'ft*" buI no! gnNI* lI>an60'4 SUYSIolIA-SlOIy~ 1I.SS__ bu1 _V-lI>an~ SMY5

Class 2 11-45 ,6-5 "'-WAOP 1M noI grNIoW hn 6O"Jlo SINS

66' 067___ bul ...~ .....""'

"""UoIIi.slOry~ oS6-..c pan 5O'Il. SMY S

Class 3 & 4 46. _-s\Ory~ ,..- __ bill noll ....... "., """"". _ .... _ ... _ _ ... __...-_,.,..... "\1 __

.\SWE8J1 . ~_ _ .,.. _"'...,,_.....-.

PIPELINE DESIGN: Liquid Lines and'S afe ty Zone'? *_ Research conducted in the USA during the19805 on liqu ids pipelines showed that:

_T wo third s of deaths and damage, andthree-fourths of injuries occurred within150 feet of the point of discharge;_8 percent of deaths, none of the injuries .and 6 percent of property damageextended as far as 1.2 mile from thepipel ine

rRB '!lea ~ROW'!l'~P_._~Sofl' lWt>o9oP

PIPELINE DESIGN: Design Stresses

We want to ensure that our pipeline doesnot fail due 10: Burst Structural collapse (buckling) Fatigue Fracture

And we don't want our pipeline tobecome 'unserviceable' due to: Ovalisation Displacements

Therefore, we control our stresses belowa specified stress level or ... a 'design level' or 'design factor' .

These factors vary in codes.

A 30" pipeline with aninternal pressure of 15 MPais loaded by a tota l fo rce of1.1 MN (1,100 lannes)-This force tries to separateeach metre length of line, sothat each metre of wall hasto carry a hoop force of 5.5MN.

r

PIPELINE DESIGN: Key Parameters in StandardsPressure, Stress, Design Factor.Pressure (p) in a pipeline causes Pressurea 'hoop' stress in the pipe wall. The F'o"'" \higher the pressure the higher thehoop stress..Pipeline design codes limit the

Hoop stress

level of hoop stress in a pipelineusing 'design factors'. This will \effect D and t.. 'Design factor' is:hoop stress/SMYS Design Factor =Hoop stressSMYS

_Hence, the higher the design fac tor,the higher the stress in a pipeline.

II:I p"""",", ]006 R..6/ 1 26

PIPELINE DESIGN: Pressure to Stress

'.;,""

-:/ ..../....,.

_ When we put pressure into apipeline. the pipe wallexperiences a load or a 'force'thai attempts to expand the pipe_ The 'force ' is from the pressu rein the pipe .

Stress =Force/Area. 'Area' is a function ofDiameter and WallTh ickness

_ The internal pressure causesa 'hoop' stress ._ The higher the pressure thehigher the hoop stress.

c __""""_.

,

./~~""""""""'"~ ".

...,........././

. ./\~(

&&

Interna :"pressure

.....

PIPELINE DESIGN: Hoop Stress

. The hoop stress tries to expandthe circumference of the pipe in the'hoop' direction

hoopstress

.'

"-'-.

/ ' -",

.,- "'...'

.

hOOpstress

za

PIPELINE DESIGN: Calculating 'Design' Hoop Stress

- '-r - - - - - - - - , - ,It,

o

The hoop stress is calculated by:

pD2t-'-'---------~

hoop

(Yo hoop stressp internal pressureo diameter(use outside diam. /0 be conservative)

wall thickness

29

PIPELINE DESIGN: Hoop Stress to Design Factor

_Usually the most important stress weneed to ca lcu late is the hoop stress .

Hoop Stress, CT~::: PD!2.t

.Pipeline design codes limit the level ofhoop stress in a pipeline - hence thecodes limit the pressure and size ofpipeline. Pipeline design codes refer to 'de signfactors'.

_ This design factor is hoop stress/SMYS_ Hence, the higher the design factor, thehigher the stress and pressure in a pipeline.

hoop

Design Factor (9)= Hoop stressSMYS

30

PIPELINE DESIGN: Stress & Design Factor

Hoop Stress = ao = pDcode.:

< SAfYS < dxr'I' y

(}" = stress. ; = design factor,8 = hoop, t = wa ll thic kness.D = diameter, p = internal pressure,OJ.= yield strength,code = as specified in the code

Design Factor =Hoop stressSMYS

Design Factor = 1/Safety Factor

_ Usually, codes use outside diameter,a c ooee can use either nom inal or minimum wallthickness

_ Minimum wall is typically -8% nomi nal wall in welded line pipe._ The highest design factors (0.8) are in the USA and Canada. Most other codeshave 0.72 as highest design factor

DESIGN FACTOR: Is a Safety Factor

a r here are uncertainties in the design, construction, operationa c cnsequenuy designers use 'safely factors' in their calculations

_ The Design Factor is the inverse of 'safety factor' , It allows Ior":. Variability in materials._Variability in construction practicesauncertaintres in loading conditionse uncertamnes in in-service conditions

_ When we cannot 'prove' the condition of a new stru cture we have a lowdesign factor (high safety factor ):

_bridges, ships have a design factor -0.6._if the structure may buckle, we'll reduce this to -0.5.

_ If we can 'prove' the structure prior to service, or if we have high' redundancy ' in the structure, we can tolerate higher des ign factors

_ We can proof test pipelines, therefore we have higher design factors.

"

)..... ,_ Tn..- '-__ ~_"_r .... _..".__ ~""'T"".~_ .....'."""'._,__"'C.,_...... """

Water

az

DESIGN FACTOR: Is a Safety Factor

_ When decid ing on a safety factor we need to consider many details, forexample"Safety Factor Appl ication?1.25 to 2 0 We are confident about materials and loads... we are

going to perform regu lar maintenance and inspection...we have condu cted a proof load ... .

2.0 to 2.5 As above, but no proof load2.510 3 Less-tried materials, perhaps brittle , under 'average'

loadings...>3 Untried materials, uncertain environments. uncertai n

loads, etc._ We need to increase our safety factor further If the consequence offailu re is high. e.g. cas ualties

II the teeter of safety is too big. performance/cost are an tssues!If the factor of safety is too small, sa fely is an issue!

PIPELINE DESIGN: 'Design Factor' and 'Lo c at ionClass' in ASME B31.8

ASME AREA Maximum Desig n FaetorCLASSIFICATION (hoop stress/SMYS)

Class 1 {Div 1) 0.80Cla ss 1 (Div 2) 010 bu ildings (rural) 0.72Class 2 11-45 buildin gs (areas arou nd towns) 0.60Class 3 46+ dwellings (e.g. suburban), etc'; 0.50Class 4 Multi -storeytype building s 0.40

_ There will be high numbers of activities in the higher class areas (Classes 2-4) ,because there are more buildings (people) in these classes. Most design standa rds require reduced design factors in these high locationclassese o peretors usually cannot reduce pressure; therefore, operators maintain thepressure and diameter, and increase wall thickness. Increasing wall thickness ensures more resistance to external interference

o-..-au_,

33

DESIGN FACTOR: Wall thickness

Size (inches) Type of Tolerance (% Specifi ed Wall Thicknesspipe Grade B or lower Grade X42 or higher

2.8 75 and 20 Welded +17 .5, -12.5 +19.5, -8

>20 Seam less +15, -12.5 +17.5, -10

I -

ASME Stalldards use 'specifi ed ' wall thickn ess when calculating design factor : some othe rstandards use mimmum

35"

MAXIMUM DESIGN FACTORS (HOOP):International Comparison

STANDARD Hoop stress Hoop Stress Hoop Stre ss(0"1/) equauoncu Design Factor Design Factor

(using t~ode) (using tnom)ASME 831.4 uo=PD/2tnom 0.72 0.72AsME 831.8 O"e=PD12toom 0.80 0.80858010-1 utrP D12tJtlltl O.72l1 ) 0.65CsAZ662 uq==PDl2tnom 0.80 0.80

AS 2885 .1 utT'PD12tnom 0.72(2) 0.72ISO CD 13623 a'=p(D-t)l2t~ 0.77 to 0.83 0.76EN 1594 aq=pDI2t""" 0.72 0.65

""" -""BS_ UI( .

CSA_ CClI'acIa150 __ loS _ Austra haEN-E_an.

....-..-.,._--...-...._-'-' ...__.-,. _"'.._._--.._--..-~..," _._"'...._,_..._-_.,,-,,--' ~

DESIGN HOOP STRESS: Offshore Examples

pD6 0 = - -2t

_Offshore pipeline codes have various equations and conditionsfor calculating hoop stress ._For example, DNV as F101 uses:

_Hoop stress = (pi - Po)(D - tnom)/2tnom.where tnom is the nominal wall thickness less fabricationto lerance, less any corrosion allowa nce , p is internal pressu reand Po is exte rnal press ure

Po

_The international pipeline standard , ISO 13623 uses a similarformula:

.Hoop stress = {pi - Po)(D - tmin )f2tminewhere t",n is minimum wallthickness which will includefabricat ion to lerances and any cor rosion allowa nce

DESIGN HOOP STRESS: Offshore Codes

('Usage') DesignFactor*

~, -..~( ) ?\....~Design Factor - Hoop stress

SMYS

STANDARD

Risers Line pipeDNV 0.5 0.72

ASME 631.4 05 0.72

ASME 631.8 0.6 0.726S PD 8010-2 0.6 0.72

(C'p.""",":1006Rw4&"

The 'usage' (design) factors are the same, but the codes have different definit ions of Im e and l oom38

DESIGN FACTOR: Why '0.72' in most standards?0.72

0.72 = Design Factor= Hoop stress

SMYS

DESIGN FACTOR: Why '0 .72'1

39

_ Most pipelines around the world have amaximum design facto r of 0.72 , although the reare some pipelines operating at higher factors.

_ This 0.72 design rector originates in NorthAmerica , from lheAmerican Pipeline StandardASME 831 .

_ The 72% SMYS limit originates from the19305 in the USA. It was based on the milltesting of tine pipe

_ The mill (water ) test was typically 90% SMY$.e o oerators agreed that a 1.25 safety factor onthis was reasonable, therefore the 72% SMYSlimit was created, and appeared in the AmericanCode ASM E 8 31.8 in the 196Os._ It has no structural significance

_ It is an historica l limit.

0.72 = Design Factor= Hoop stress

SMYS

90% SMYS 0-=:i.~

90% SMY$/l.25 =72% SMYS

DESIGN FACTOR: 1935 '0 .7 2'

_ The first '0.72' design factor pipeline was the Natural Gas PipelineCompany of America in the 1930s: thought to be the world 's first allelectric girth welded pipeline . This was needed as no other all weldedpipeline had been put in use, so the 80% of the manufacturer 's mill lest(typically 90% SMYS) was introduced._ A 72% stress level first appeared in the 1935 Am erican TentativeStandard Cod e for Pressure Piping._ This is the first record of using a pressure test to set maxim um operatingpressure/stress, and the pressure tes t is st ill used today to set maximumpressure, although the fie ld test is used today._ But note ... the line pipe standard in use in 1935 (API 5L ) did not requirehne pipe to be tested to this 90% SMYS; for example. Grade B line pipe(SMYS of 35,000 Ibfl in2 ) was required to be tested between 16.000 and18.0001bflin2 (about 50% SMYS)

"

DESIGN FACTOR: Why '0.72'1

90% SMYS

,

t '

I' 0%, II

I '--..-

_ Another explanat ion of '0.72 ' is:_ The 90% SMYS mill tes t..a was reduced by 12.5% to allowfor tole rances (under-thickness')in the line pipe wall thickness .. ._ And then divided by 1.1 toallow for 110% overpressureallowance (as was commonpractice in the water industry)

_ 90% SMYS x 0.875/1.1 =0.72 SMYS

0.72 SMYS

DESIGN FACTOR: Why 0.8 in some standards?

_The 0.72 design facto r was based on a safety margin of 1.25 on awate r test in the pipe mill to 90% SMYS . Using the same log ic (i.e. a safety factor of 1.25), pipelines hydrotesledin the field pre-s ervice to 100% SMYS would be able to operate at 80%SMYS.

_In the 19805, the ASME 831.8 committee considered >72% SMYSpipelines, and a 1990 addenda to the 1989 ASME 831.8 Editionincluded provisions for the operation of pipelines up 10 80% SMYS.

_ 0.72 _ 0.8

) \ . ~ ) \ ~0.72 = Design Factor 0.80 - Design Factor

=90% SMYS (mill test )= 100% SMYS (field lest)

1.25 1.25C_2OCIi"-"6;'

"

DESIGN FACTOR: Why are USA lines still limitedto 0.72?s u s Regulations restrict the maxi mum des ign factor in oil and gas lines to72% SMY S.

_ This restr iction was a prob lem for some lines: some were operating>72% , and in som e cases 80% SMYS, when they came into force,. 'Grandfather' lines (old lines operating above code) were givenconcessions to operate - in some cases - up to 85% SMYS

AS ME allows 0.8

C _1OOIl Ra.ll. ,

USA Regs =0.72 'Grandfather' >0.72

Introduction to Oil and Gas, &Pipel ines

We must understan dbasic pipeline concep tsbefore we understa nddefect beh avio ur

_Outline of this lecture :eon, Gas, Energy.Pipelines - History, Economics

~.,P~n e ft Ud. 200Tn \tI D

1

ENERGY: Where does it come from?

The Sun provides 99.8 percent of the energy input to the earth'ssurface, but:

there are ove r 1 mi llion tonnes of oil cons umed every hour arou nd thewor ld' , and

250 mi llion cu metres of gas are consumed every hour around the world USA cons umes 20 million barrels (360,000 ,000 gallons) of oil per day! Wo rld energy consumption wi ll increas e by 2%/annum from 2003 to 2030 '

World Use of Primary Fuels is*:Oil = 34%Coa l = 24%Gas = 21%Nuclear = 7%Hydro = 2%'Other' = 12%

World Supply of Primary Fuels is :Gas - 60 yearsCoal - 200 yea rsOil - 40 yea rs(all proven andrecoverab le)

2.[ t>. 0.,. _ 2003AJ_ w co'""",,", 0, o.r>d u_. o.>:du(""'il.'&ct"C'1y"" ",,>oo,' g "' n.'flI "'""" "' '"' ...'OCO"e" I ,;.,. "'9""""" OCOnQ Iy

THE PETROLEUM INDUSTRY, Modern History

. 1859: 2 oil wells in the USA, withvalue of 540,000 produced 2.000barrels of crude oil.. Now, in the USA alone. billions ofbarre ls of oil are produced, with avalue of $bill ions.

_ The first commerciallysuccessful wells were inPennsylvania ._ The first well was drilled to59.5 feel.

PETROLEUM: What is it?

. 'Petroleum' is a complex mixture of 'hydrocarbons'_ Hydrocarbons are made up of hydrogen & carbon

e penoiocm occurs in the earth in liquid (crude oil),gaseous (natural gas), or solid (bitumen) forms.

_ The term is usua lly restricted 10the liquid form_ But as a technical term it also includes gas, andthe viscous or solid form known as 'bitumen'

. Petroleum' is also call ed 'oil'._ Oil in the ground is call ed 'crude' oil

_ It was formed millions of years ago, from the effects of heat andtemperature on dead, ancient sea life and plants (fossils')

Downstr eam'. Refers to refining, market ing. supply and transportation operations.Upstream Refers to exploration, production , natural gas and gas products.

..... .~...... "".. .._-"'.". ........_.""""""'-5

'OIL': What is it?

_ The liquid (crude oil) and gaseous (natural gas)phases of petroleum const itute the most important ofthe prima ry fossil fuels_ Oil is a mineral oil of natural origin_ It is in underground reservoirs._ It is a combi nation of:

. Iiquids ('hydrocarbons'):

. other liquids (e.g. water ); and

. gases (e.g. 'natural gas')_ Oil som etimes naturally seeps to the Earth'ssurface along fault lines and cracks in rocks, where itcan contaminate wate r as bitumen (tar, asphalt )deposits.

Bitumen

Typic al USA crud e 011 has a carbon content of 83 1087%, a hyd rogen content of 11 to 14%, and minoramounts of oxygen, nitrogen, and sul phur e

'CRUDE' OIL: What is it?

_ Oil in the ground is ca lled 'crude oil'_ It is oil that has not been processed into'products' such as qasotene.a c rude oil ranges in colour from almos tclear 10green, amber, brown or black. II mayflow like water, or creep like molasses.a c ruoe quality is defined by its density andsulphur content.

_ Density is given in deg rees API (Ame ricanPetroleum Institute): the higher numbe rsrecresentuqhter oils, and are ca lled 'light'crudes l ow numbers are 'heavy' oils ._ It is described as "sour" or "sweet' ?"depending on the presence (sour) orabsence (sweet) of sulphur and other sulphurcompounds .

Brent oil is light and sweet.Dubai oi l is heavy and sou r.Light, sweet oil is easier to refine.and produces greater QuantitIes ofhigh value (e .g. gasoline) products

C _ UO :lOC'

CRUDE OIL: Refining

8

Refine ...

Produ cts .. CHJt

_ 'Refining' is the process ofconverting a raw material (crudeoil) into 'finished' productssuitable for use by consumers.

_ These products aregasoline (petrol), kerosene,gasoil (heating oil) , etc..

_ A typical large refinery costsSmillions to build and Smuhonsmore 10maintain and upgrade

_ It runs every hour of theday, all year

.. Per..- l.I

OIL: What You Obtain From a Barrel of Crude Oil

What Does A Barrel (42 gallons) Of Crude Oil Make?Productgasolinedistillate fuel oil(Includes both home heating 011 and diesel fuel)ke rosene-type jet fue lresidu al fuel cu(Heavy oils used as fuels In Industry, marinetransportation and for electric power generation)l iquefied refinery gassesst ill gascokeasphalt and road oilpe trochemica l feedst oc kslubricantskerose neother

Gallons per barrel19.59.2

4.12.3

1.91.91.81.31.20.50.20.3

aWe measure oil bythe 'barrel' as oil wasor iginally transportedin wooden barrels,aFigures are basedon 1995 averageyield5 for U.S.refineries.aOne barrel contains42 US gallons ofcrude oil. (=35imperial gallons '"159 Iitres)aThe tota l vo lume ofproducts made is 2.2gallons greater thanthe original 42gallons of crude oil. This represents"processing gain ."

Ethane:

GAS: What is in 'Nat ura l Gas'?

Natural gas comprises gases, occurring underground,consisting mainly of methane(CH4 ) .

Typical natural gas is: Hydrocarbons:

Methane: 70 to 98% Ethane : 1 tolO% Propane: trace to 5%, Butane : trace to 2%,

Pentane: trace t01%, Hexane: trace to 0.5% ,Heptane-: none to trace

Non- Hydrocarbons: Nitrogen: trace t015%, Carbon dioxide: trace t01% , Hydrogen sulphide: trace to occasionally

e PenSW' ltd . 2007

Abou t 1/3 ofAlberta (Canada)

Natural Gas issour

Definitions of'sour' vary.-e.q . in Canada,'sour' natural gasis gas containingmore than 10moles of hydrogensulphide (H25 ) perkilomole or naturalgas ; is sometimesexpressed as 1per cent H2S

Typi cal 'm idcontinent' USA natu ral gas has 88%meth ane, 5% et hane, 2% pr opane and 1% butane

GAS: What is in 'S o ur' and 'Sweet'Natural Gas? Natural gas can contain hydrogen

sulphide Sour gas contai ns hydrogen sulphide,

or sulphides and/or carbon dioxi~~======~ Sour is often defined as >1% H2S Sour gas will usually need purifying

Sweet gas is low (e.g.

ENERGY: Supply and Demand

-..

_...-

Supply and demand locations differ. Therefore :i. We"11 need pipelines for transportation,ii . Economics & Politics will play big roles .. ..

OIL >60% of proven oil reserves are in Middle

East -20% of these reserves are in Saudi Arabi a

Main oil produce rs and exporters are Saud iArabi a , then Russia

GAS 80% of proven gas reserves lie in 10

countries 40% of wor1d reserves are in CIS 30% of world reserves are in Middle East

Largest consumers of gas (34% of tota l) isCIS'

USA and West Europe collectivelyconsume the most. but they col lectively r.::-.,--:-:--,.,.--,.,...--,"'"--:::----;- ---,only possess 11% of prov en reserves

O_llO 2001-e-_ ..---._ ~ 'T"'-"'d d .... _ _ ... ....... _

OIL: The Political Dimension

Oil & W ars have been linked manyt imes:_ The Trojans used catapults to hurlflaming pitch , gathered from oilsee ps, at Greek sh ipsewmston Churchill in 1911controversially decided that theBritish Navy should change from(British co al) steam power to(Persian) oil power to assure thecou ntry's mastery of the seas. 1990-91 Gulf W ar. Etc ....

'Control energy and you control the nations 'Henry Kissinger

ENERGY - Oil Reserves are Increasing

1000 m illion barrels

120 0

100 0

800

600

400

200

o

R",.tWorldI!l USA S&C Amer icaD F.S o v.Union~ . M_ Ea,.t----

19 73 -8 6 19 86-9 8

15 Countries have oil supplies> 10 billion barrels":"USA (22 billion)-ueaco (12)"Venezuela (78)"Norway (10)-Russie (60) [I-Cenede (180"")~1 . , t"Libya (30)"Nigen'a (24)' Iraq (113)'Iran (89)'Kuwait (97)'UAE (98)'Saudi Arabia (261)"China (18)"Qatar (15)

'F IA, XIO' I ,", lA.eo.... d.. """""" ""'" .-"'"""" ' '''''' , too ,2002110 ' ''' ",",00 '.'003 ' "'''

THE PRICE OF EXPLORATION AND DEVELOPMENT

Middle EastEasy E&P, good size fieldsDeepwater( 'mean' depths are 100m)Vast reservoirs in deep water (>300m)UK North Sea

$4/barrelGI$8/barrel 8

$10-12/barrelShallow water fields are being dep leted. Large E&P costs

There are various definitioosof'd" " pwate, ' The US Mineral Management Servicesconsiders 'deep" 10 be >400m (13 121t), .s this dept h requires deepwater t",,~nology andtraditional fixed plall"""" begin to oocma uneCOnOfTOC The largest ~xed platform IS~elrs

Bullwi~k le ) is in 1353ft of water in the Guff 01M". ico 'Ullradeep' lS now (2001) generallycons idered >5000ft ofw3ter

Deep water :1950 5m depth1970 100m1990 686m1994 1QOOm2004 2300m

H

Introduction to Pipelines

~C>I'e~.p.n Ltd. 2001~ II !I t. \

18

PIPELINES: The Start (1859 to 1879)The early oil rush

Trans port by water

19

Wooden stor age tanks

Transport by rail1',... ..,..""" O' S"""."'O" e-",,"f . ' ''' T."",'...... "IW'/ '''':heSl", "",'

PIPELINES: The Start...

20

19 15: Ca liforn ia . Shell Oil line

THE PETROLEUM INDUSTRY: Going Offshore

_ The early years of the petroleumbusiness was ons hore-ba sed

_ the oil was plentiful onshore. and thetechnology was not ava ilable to go'offshore'. in the late 18005, engineers inCalifornia erec led wharfs to tap oil &ga s reserves close to shore, but. .._ the first oi l well structu res to be builtin open waters were in the Gulf ofMexico

O _UI:I 2OO'1'

los Ange les od fl~ l d . 18900. Iwww con s"'. ca. ~ov)

!';on all coa5I '"c._

PIPELINES & LINE PIPE

PIPELINES: What Are They Made From?

2J

-,-~" ",,,,,,

_ Our pipelines are usually made from steel._T he steel we use in pipelines is called'line pipe' steel, as it is spec ifically madefor pipeline purposes._ It is bought from a steel manufacturer. toa specification.

C> P__ l .. 2001

PIPELINES: What A re They Made From?

- 99% of all gas pipelines in the USAare made from steel line pipe".The most-used specification in theworld is the American PetroleumInstitute's 'API 5L'

e we can also buy line pipe to European('EN') or International ('ISO') standa rds

=::=

API5L2S

.l'.... ~........_"" ,,_.. l&\!AGoOoG'lDooo. '9''

LINE PIPE: Types

_The three types of modern line pipe are:_ double submerged arc welded (DSAW).

_ This type of line pipe contains either:_ a longitudinal weld; and_ a spira l weld.

_ high frequency welded (HFW)._ This line pipe has a longitudinal weld ._ There are two methods used:

. high frequency induction (HFJ): and_ electric resistance welded (ERW) .

seamless._ This line pipe has no weld long its length . -

CP

LINE PIPE: Welded Line Pipe

_ Our larger diameter pipelines are made bybending a steel plate or strip into a tubular andwelded the ends together_ The plate is shaped CU' and '0' ) before welding

'0''U'

~

vOPLATE

27

LINE PIPE: 'Expansion' and 'Mill Testing'

_ Most large diameter line pipe is cold' expanded ('E') diametrically in thepipe mi ll.

_The line pipe is strained to at least 0.3%, and usually 0.5-1.5%, togive an increased yield strength , and the correct diameter androundness.

If the line pipe is expanded ('E') and has been made from shaping plate ('U' and'E') it is called 'UOE'

28

LINE PIPE: 'Expansion' and 'Mill Testing'

_ Each leng th of line pipe is thensubjected to a 'hydrostatic test': plugsare inserted into the end of eachlength, and the section of line pipefilled with water and pressurised up 10a hoop stress of 90% SMYS for ashort time (seconce').

_ This internal pressure and endplugging will cau se a compressive ~c .J.~\ ")-axial stress and hence a biaxial ax ial hoopstress state exists in the line pipe. .

_ If the line pipe section wasmade into a pressure vessel, withthe ends free to move, the tensi leaxial stress = 50% the hoopstress .

API 5L spec ifies 5 to 10 seconds, depending on pipe

LINE PIPE: Mechanical properties

30

Specimen

STRAIN 'Plastic''Elastic'

Proport ionallimit

_ The tensile testi ng of material gives us basic mechanical properties_We generate a 'stress stra in' curve

_ This is a graphical representation of the materials basic mechan icalproperti es

Ultimate stress--- - - - - o_--~~

LINE PIPE: Y ield strength, UTS Specimen

_ We cut our specimens from our line pipe for mechanical testing ,a s eamress pipe uses transverse specimens, as seamless pipe is'isotropic'._ Small diameter 80/.0 inch) welded pipe use transverse and largediameter (

LINE PIPE: 'SMYS' and 'SMUTS'

The Pipe Manufacturer ensures the strength of our pipe is abovecertain 'specified' minimum levels: specified minimum yield strengths (SMYS), and spec ified minimum ultimate tensile strengths (SMUTS*)

Historically,SMY$ has beenmeas ured in 'old'units of Ibf/in2

tim8'te tensile s reoot

,!. 200

SMYS ~..~ - ..... Yield

Load ;,

.oo~~~SMUTS ... , f :~:~:-.-::~.- :-.-=

Examplestre ss-strain curve

0.10\ ~oo;-----------""-----~

Elonga tion

of 'SMT$'

LINE PIPE: 'SMYS' and 'SMUTS'

Our actua l yield strength and tensile strength are usually above $MY$and SMUTS

ftimate tensile s reng Ii1

Examplestress-strain curve

' 00SMUTS

... " .. .......

SMYS soc...... Yield

,Load " zooa

!"

' 00

0000

SI "' in0.10

Elongation

o P"""",o lt a . 2007

LINE PIPE: 'SMYS' and 'SMUTS' & Design Stresses

Our design stresses (often quoted as a percent of the SMYS) arealways well below the SMYS, to give us a safety margin.

SMUTS

Ultimate tensi le strength

Safety margin

- YIeld

~ -oo----~c---------,-~---\c-_.J

..300..

~ 200j

SMYS

Load

0:_""200'We 'design' our structures in this region, but they "fail' in thisregion. at much higher stresses & strains This gives us asafely factor on both stress and strain

35

LINE PI PE: 'SMYS' and ' SM UT S' & Design Stresses

The SMYS will be below the actual yield strength in most pipeline spools

60.000Ibf/in2

I '""",--! .....

- "'"c:: ~ ~ ~.e> ~'" :::l '" ::!;; ~ 9 ::!;;Ql H,Q CI) 0," CI) o ~~>- ~ "

J6

LINE PIPE: 'Grade'

API 5L specifies the requ ired yie ld strength of a pipel ine. 'Grade' It is trad itionally measured in un its of Ibfli n< =

We normally know line pipe by its 'grade' SMYS (/1000 Ibflin2) Line pipe with an SMYS of 52,000 Ibf/in~ is known as grade X52. 60,000 Iblt in' is known as X60, etc.

Some lower 'grade' steels are known by letters (Grade B or A) These have SMYSs of :$35,000 Ibll in'

:i [~lc.This mat erial has yielded 70 Ial->52,OOOIbllin' . 60Therefore it has an SMYS 0 Ultimate tensile strengthof 52,000 Ibllin' . 40

--We will ca ll this line pipe 30 Yield strengthmaler ial'X52" 20 Failure

10

2 4 6 e 10 12cp",,_ , UO. 200 7

St ress Units : 1 h i 11lO0ps i 1000 1Win' 6 69 MP~ 689 MNim' - 6 89Ninm'

LINE PIPE: API 5L Grades, Strengths

'SMTS' is specifred minimum tensile strong lh.==_==__==---, 38

.'-APl5L EN10208-2 and ISO 31832 We ooy om line

Grade SMYS SMTS Grade SMYS SMTSpipe fromsupplief",oOO

Nfmm2 N/mm2 N/mm2 N/mm2 ,pecity ilsdiameler, wollB 241 413 L245 245 415 Il l ick,,~ss, and'grade' The grade

dic1ales howX42 289 413 L290 290 415 sl rooglhe line

pipe will beX46 317 434 . . .X52 358 455 L360 360 460

T iler, re1ers 10Ihe yield WOflg1h

X56 386 489 . . . of Ihe line p ipe inIbfl in' . For

X60 413 517 L415 415 520 e.o~l o. 'X42' islino pipn wi1h oX65 448 530 L450 450 535 specifiC'drninirr

LINE PIPE: Diameter and Wall Thickness

_ We buy our line pipe from suppliers , and specify itsdiameter. wall thickness. and 'grade'.

_ The diameter and wa ll th ickness we need for ourpipeline are determined duri ng its design ,_ If we have large oil and gas rese rves , at very highpressures, or if we want to transport large amounts ofproduct. we will need large diameter line pipe ._ If we are transporting prod ucts al high pressures , we willneed th ick wa ll line pipe . to resis t the stresses caused bythe high pressures .

"_l.. 200'wthickness 39

PIPELINES: Are Coated on the Outside to PreventCorrosion

polyethylene tape and extrudedpo lyethylene jacket materialhas been used for 50 yearsfusion bond epoxy "FBE) wasand is being used

asphalts were used

coa l tar, wax , and vinyl tape

19505 -present day

1940's and50's1960's

1970's -present day

_Buried pipe is coaled to protect it from thesurrounding envi ronment.

_We've been coa ting most of our pipes sincethe 19405

_A breakdown in the coating will result inpipeline metal being exposed.

_Ttle materia l used for coa ling pipes varied overthe years as tech nolog y evolved :

Cl~ "d 2001- "' . .......,..~ .'-~ "'""' "'" .....~...."*'-c..-.-.. "-., ,.......... _,... "" =, ", ' Ho '

PIPELINES: Coating Examples: 'FB E' & '3 layer'

_ 3 LAYE R: The first layer of the coating(e.q . 150 microns), app lied above the steelsurface of the pipe, is made from FBEPrimer.

_ The second layer (e.q. 250 microns)is a copolymer or spray ap pliedimmediately after the FBE application .This layer allows the FBE 10 bondwith .._ The top layer (e.q. 2.5mm) consistsof either po lyethylene (low, medium orhigh density ) or po lypropylene

_ FUSION BONDED EPOXY (FBE): - - - - - :::;;....'C!"'!I!II!~"..""Powder is sprayed onto the hot (220 to24()OC) pipe

_ Coaling is typically 400 to 600microns (0 .4 to O.6mm) thick

C _ UO 2001

PIPELINES: 'Fie ld ' Coatings on Welds

_ We will weld our sections ofline pipe 'in the field'e c onsecuenuv the ends ofeach sectio n of line pipe doesnot contain coal ing (3" to 6")._ After welding we coat theweld area ._ The 'field' coating we will usedepends on the main coatingon the line , designtemperature, etc ..

'MO ' 0 19611 11 7D

~Iy n"

I _OhM ....I c__. ylpoty.._

1910 1_ 200f

'Cut-back' area to be field coaled

() -Shook s.leeves. rea type ofWfllp.ll.ape . but weheat the seeve upand add adhesnre

C~lkl 2001... .......... _0:.0-...... ....,_ ,"__.,...... _G.. _ .',- e--"",,~~ .. .... .20

PIPELINES: Internal Coatings

_ Some pipelines have internalcoatings

a s omenmes we need internal coatingson some lines due to aggressive product_ Sut on most pipelines we haveinterna l coatings to improv e flowand intern al coatings are often ca lled 'flow coats 0___ Coat ings can increas e flow by several percent '

_ Internal coatings can:_ give increased pipeline efficiency, due to increased flow rates and reducedcompresso r/pump costs . protect aga inst co rrosion during trans port and storage.areouce incidence of 'black dust' in gas lines

a u so of internal coatings is usually based on a cost benefit using flowanalyses. etc., but some com panies apply internal coatings as 'goodpractice'

0_1... 2001

PIPELINES: Concrete Coating

_ Some larger diameter sub- sea pipelines arecoated in concrete (concrete weight coat ing')to prevent them floating back to the surface

_ This coating (incidentally) also givesprotection

Concrete coating

Example of a line pipeccanrq below theconcrete .

PIPELINES: Are made from welding line pipe

PIPELINES: What Types?

FLOWLINES & GATHERING LINES - Pipelinesserving wells and facilities in the upst ream arereferred to as flowlines and gathering systems.These lines trave l short distances within an area.They gathe r products and move them toprocessing facilities,

Flow1ines are usua lly sma ll, e.g . 2-410 diameter, andga thering lines bigger (say 4-12 " )

They carry many products. ofte n mixed together.

FEEDER LINES - These pipelines moveproduct from processing facilities , storage ,etc., to the main transmission lines.

Typically 6-20io diameter Carry variety of products, somet imes 'belched '.

PIPELINES: WHAT TYPES ARE THEY?

TRANSMISSION LINES - Pipe lines linking theupstream and downstream sectors are calledtransmission systems , The se are Ihe maincon duits of oil and gas transportation.

These lines can be very large diameter(Russia has 56" diam eter lines)

Natural gas transmission lines deliver toindustry or 'distribut ion' system. ~~~~::=~iR' "'1iiOl!.

erode Oil transmission lines carry rdifferent types of product . sometimebetched. to refirenes Of storage

PRODUCT LINES Pipelines carryingrefined petroleum products fromrefineri es to drstnbcncn cen tres

DISTRIBUTION LINES - These allow loca ldist ribut ion from the 9

PIPELINES: World Summary

"00

10 00

50.i' .

~ i' 00 -

'"o " 400

'00

0

C_ue7lfJtl,

USA( l999 - CPS Dala ):Onshore Gas TransmISSIon - 295 .000 mile sOffshore Gas TraO$lllISS'on - 6.000 mile sOnshore Gas Gathering . 21.000 milesOffshore Gas Gathering . 6.000 miles

Onshore D,sln'bulion 1.007,000 miles

Liquid Transmission lines 157,000 miles

II you laid Canad ian pipeline system,end to end, it would eJctend 17 timesarccro the wodd.

There are >3.5million km of pipelinesUK Western Europe USA Rest of the Worl d in the world tod ay .

"--_.'---------'- -" __,:-_"""" ",,,,- ,,-, -"-- ....-,-

.,"-"- LIO. 2007

PIPELINES ARE GETTING OLD

_ 96000 km of pipelines in the USA in 1942._ After World War II, big and long pipelines wereconstructed , due to increasing energy demand

_ In 2005, >50% of the 700,000 km USA gas pipeline systemis >50 years old . The liquid system is older._ 50 years of proven oil & gas supplies in the world.

_ In man y cases oil & gas field infrast ructure is at the end of its des ign lifebut they still have 25 or even 50 years of production left.

_ E.g. -20% of Russia 's oil and gas pipeline infrastructure is nearing the end ofits design life . In 15 years time , 50% will be at the end of its design life ._ Many 1,DaDs of km of lines are being replaced , repaired or reha bilitated in theUSA every year.

_ The US Department of Transportation estimates that 80.000 km ofpipel ines will require rehabilitation in the next 10 years ._ Some operators are already replacing their pipelines for the 3rd time .

50

A Marna n would dcscnbe lilt: 'normal'earth person as non-white, non-Cbnsnan.

poor, malnourished, and illiterate

PIPELINES ARE GLOBAL AND THE WORLD is notwhat you thinkIF WE COULD SHRINK THE WORLD INTO 100 PEOPLE. WITH ALLPOPULATION RATIOS REMAINING THE SAME.. ..

l'EOPlE P1cOPlE

""""""a" """'O

General Information

CI _ l.OI 21X)1 53

'OPEC' . Organization of Petroleum Exporting Countrie

_c........ . ......_. --- __ l 'Oou. ... _.-..... ..-.....,-1 '- _

plaItS- -

2

HYDROCARBONS

. Hydrocarbons - natu ral chem ical compounds based on hydrogen and ca rbon -are a rema rkab le source of energy.

_ When the bonds holding the hydroge n and carbon molecules together arebroke n, usually under heal, the energy that went into the bond is released.

_ Machines such as generators . boilers and engines harness this releasedenergy to create useful powe r.

_Although sma ll amounts of oil and natural gas seep through the Earth's crust ontheir own , most deposits are located deep under the surface_ Oil as it comes from the Earth is called " c rud e o il" beca use it contains valuablehydrocarbons - natural chemical compounds based on hydrogen and carbon tha icontain store d energy - as well as oxyge n and other impurities._ A ref ine ry takes the crude oil and processes it into a variety of hydrocarboncategories, either fuels such as gasoline or petrochemicals (i.e. chemica ls der ivedfrom petro leum) used 10prod uce an imp ress ive array of useful products that werely on every day.

55Visit""""'.APl.otg fot roore facts

WELLS

_ The first we ll in an area is known as an 'exploration' we ll._ If oil is discovered, further wells, known as 'appraisa l' wells, are drilled to estab lishthe limits of the fie ld._ If the field is deve loped, some of thes e appraisal wells may be used as 'prod uctionwells'_The depth of an oil or gas well can range from a few hundred to more than 20,000feet._A well is made by drilli ng a hole, ca lled a "well bore" , into the earth .

_A rock drill carves a hole into the ground. As the hole gets deeper, it is enclosed by metalpiping ('casing') to keep its sides from collapsing and to keep water and other impuritiesfrom entering,e Cement is pumped through the hole , When the cement reaches the bottom of the casing,it is forced out around the end , and pushed to the surface between the outs ide of thecas ing and the well bore,

_ This crit ical layer of cement bonds the cas ing to the well bore . It protects oil,gas and underground water resources, keeping them from moving freely intoand out of the well to mix with -- and contaminate -- each other_The diameter of the hole decreases with depth, ranging from about 2 feet atthe top to about 8 inches at the bottom . The casing is extended to the bottom ofthe gas pool The drill is withdrawn, and the casi ng is pierced by an explosivelowered into the shaft .

o p..,,,,,,,, Ud 2001

OIL AND GAS Where does it come from?

_ How does the oil and gas move up thro'a well bore?_Fluids move from high to lowpressure areas. The crushing layers ofrock around the hydroc arbon put highpressure on it, and 'push' it out thro' thewell bore,_The water below the oil and gas maypush the hydrocarbon upwards ('waterdrive'). The gas can act in a similar way -if the well bore is into the oil, the gaswill expand to fill in the space left bythe extracted oil , so maintain ingpressure ('gas drive')

57

EXAMPLE NATURAL GAS SPECIFICATION

_ We control the content of our natural gas. Example specification":

Hydrogen sulfi de ",025 grains per 100 fI' 01gasMercaptans ,; 0.25 grains of mercaptans per 100 ft' of gas

Tot al su lfur (inc. mercaptans and HIS ) S 2 grains per 100 It' of gasOxygen s; 0.1"4 by volumeCarbon dioxide s 2 % by volumeNitrogen s 3 'f. by volumeHydrogen no carbon monoxide. halogens. or unsafuraled h)'drocatboos allowed. and no

more than 400 ppm of hydfogef'IIsopenta ne+ s 0 .20 galons of i$0gefl\aOe or heaVIerhydrocarbonsllQOO n' .L iquid free of water and otr'Ief Objectoooilble liquids

gas must no! contain any h)":lrocarbons which might condense 10liquidsWater in no event, can con tain water vapor > 7 pounds per 1 million It'.O u st/g ums/s o lids must be corntnefCialty free of these

H eating value >975 aro::l40 OF aro::l

Energy Demand 2050

, __ E""7\' Aqorq< - -00;12 ... _ E_CcvooI. - ~ 59

ENERGY Gas Reserves are Increasing*

-- - ---- - - - BTrill ion m3

600

500 ProvenO U lt im a t e?

6,000 Trillion ft3OtherCIS Am ericaAsiaAfricaN America

400Middle East

3 0 0

200

100 U ---:C:-::1o

rsu

1970 2 0 01 Reserves60

Future Energy Demand 2050

- us Geological Survey estimates that - at current rate ofconsumption - the world's entire oil supply will last for 60-70yea rs_Total world consumption of primary energy in 2000':

- 10,000 Mtoe_ Estimated future world demand in 2050':

a t.ow 14,000 Mtoe_ Med 20,000 Mtoe_ High 25,000 Mtoe

_Energy demand is likely to double

O_Ud 2001

I __ E__~_"'''''lI

2 W.... E...... Ca

THE ENERGY FUTURE Summary

TIME

DOMINANT EN ERGY

..... 0

O_UlllO)'

.....2000. .

G

.... 2050

63

OIL AND GAS PROJECTS

O_Ull;'..

OIL AND GAS PROJECTS - Influence on ProjectExpenditures and Concepts

Uz3 F 'h~ l_ ng (FEr~z

,"on' en

PIPELINES - Types of 'Line Pipe' and Coatings

Pipe Manufacture

67

seamtese pipe

H$

PIPELINES - Longitudinally weldedline pipe*- 'S AW'

QIf t

WELDING ,FOLLOWED BYINSPECTION ANDTESTING

CRIMP

'0 '

+

'U

STEE LPLATE

_ A popular we lding process weuse is ca lled 'submerg ed arcwelding', so we often refe r to thistype of line pipe as SAW line pipe ._ If I pass a high current throughand between two metals, I crea te acontinuous spark (arc) and heat inthe gap,_ If I put meta l into th is arc, it willmelt and join (w eld) the meta lstogether. A we lder has a metal rod(electrode) and a workpiece (line "pipe)._ I can surround my arc with agranular material or a gas('submerge' the arc). This givesme a better weld

69S()JT)() ollho graphics me Illlen from M"fl"esma M . Gerrno,' y, litera ture

PIPELINES - Longitudinally weldedLine pipe 'ERW'*

Another weldi ngprocess we use forlongitudinally weldedline pipe is 'ERW ' -electric resistancewelding'

ROLLIl\G PROCESS

-

WE I.DING & IJ\SPITTIOJ\

HEAT TREAT M ENT WATER TEST FC\AL Il\SPECTIO~

e PO' SI>6'1 Ltd. 2007

VISUAL INSPE~

-~1WATER i"'f4...EST '-.1

~,

WELD

-~1

PIPELINES - Spirally welded line pipe'

PLATE

X RAY INSPECT

PIPELINES - Seamless line pipe '

CAST ROU:'\f) BlLI.ETSROLLERS GR IPREHEATEDBILLET, AS IT ISPIERCEDA LOl\GFULL LEM jTII

REHE,\TED & CLEASEDPIPE IS SENT TIIRO'A STRETCH REDt:CI\:G\lILI. TO REDlX E TOFThl SHED SIZE

I :-.lSPECT A \"O WATER TE ST.......' ,....~ , ..... ,' '''tL ..,...." ...... ,,,,' .. lAO' ,,..

GAS PIPELINES IN USA What Are They MadeFrom?

Prior to 1949, II PI covered GradesA,B,C, but C (yield = 4 0,OOOI~flin') W>lS stoppco in1930" therefore Gfade B ;'\oQule produced

Materials of Construction"Steel ('Line pipe' - API 5L)PlasticOther

%98.71.2 b

PIPELINES - Are Coated on the Outside to PreventCorrosion_ TEMPERATURE The temperature of the soil, as well as the temperature of thepipe may create favourable conditions for attack on pipeline materia ls

_ l iquid and gas lines have slightly diff erent opet

PIPELINES - Concrete Coating on site

e p""..,., Uo. 2001

PIPELINES A QUICK HISTORY

e Pon""", ltd . 200 7

PIPELINES - The Old Days

4QObc BAMBOO PIPE - The Chinese used bamboo pipe to transmit natural gas tolight their capita l, Peking, as early as 400 Be.

18DOs Wood, iron lead and tin pipes were common in the 1800s to transport water, &in 1821 wood pipe transported natural gas in New York state.

1859 RIVERS/RA IL TRANSPORTATION - From 1859, in Pennsylvania, 0;oil was transported In barrels on rive" by horse drawn barnes. '~This was dangerous - weather & labour disputes often disrupted flow.The railway relieved this , but the oil was now controlled by rail _c-bosses and their lOoos of 'teams ters'. .

1861- Short cast iron oil l ines laid with pumps in USA. Teamsters reported to63 have sabotaged or du g up and de stroyed some of these l ines. 1863 wa s

start of 'w ar' between p ipe lines and teamsters.1864 Proposed long oil line in Penns ylvania opposed beca use it wou ld 'affect local

prosperity' (probably teamsters opposition).1865 6" gravity (no pumps) oil line, 7000 barrelsfday, built in Pennsyl vania.

PIPELINES - The first one?

.....

1865 :Partial view of theBenninghcff Run(farm) oilfield. Thefield consisted of 87we lls . most withde rricks. The righ t.of-way 01Harley's1865-66Be nning hoff Run -

Sha ffer Farm oilpipeline is seen as astraight wh ite streakon the hill (seearrow). A pump-station for the line isindi cated.

80

PIPELINES Recent History

1879: PIPELINE -In 1879 a 108 mile, 6in line was built in Pennsylvaniato transport crude, to tank cars for the New York market.

12 years later the first high pressure, long distance pipeline was bu ilt.They reduced the transport cost of oil from $3 to $1 per barre l.

Initially, all steel pipes had to be threaded together. This was difficultto do for large pipes. and they were apt to leak under high pressure.

1920s: WELDING - In the 19205 stee l pipe and welding became popularin USA This made it possible to construct leakproof, high-pressure, large-

diameter pipelines. 19405: LONG DISTANCE PIP ELINES - Long distance pipe lines were

pioneered in the USA in the 19405 due to the demands of the Secon dWorld War.

PIPELINES T h e H istory (1800 .) Summarise dMI LESTO NES INOfVHOPMENl Of PIPElI NE INOUSTRY

" ,..."_" UM UjIlio. OO.! '/2 .. H......,

\"" us_., eo..0.0, .... ,...

' ''I, lotI", ... ,.1... fl .. , 10oo."",,,,G"'__ I" \ .n.,I, .. ,;p.t_IOOi.,......" 1...~..,I. G..: l........ T.....

fin' US ! ~..,...,.'.'. , ." " ... .... f " .

M ..." .. ';......~

/

PIPELINES The History (1800) SummarisedMILESTONES IN DEVELOPMENT OF PIPELINE INDUSTRY F. ,

...,

Fil'$' US long-distance pipeline

1110miles. 6 in.Tidewater Pipeline)

18'; (

, ... 2000

\First use ofhigh-pressure

(2.200 psi)X-70 pipe

First natural gastransportation in the US(2 in. 00. sln miles long)

\

'925Introduction of firstx-an pipetor natural gas uensmisslen

in North America Composile pipe(NOVA GasTransmission) developme nt for

I /high-prO$~ll ~e gasI~nsmlss lon,,,.

1938

US CleanAirActher.lding clnn fuelsources IOf pow"

''"\',...

1811 US Nat ural Gas Ac t 1843 185.')regula ting gas prices First long-distance

Garpromfirst gas \ all steel gas pipelinemain}n Russia (Magnolia G~; Icuistene-Iexes!

19100

"'16USSupreme Courtregulating ofwellhead gas prices/

19'58 1~

First majorcross border pipeline

/(Canada-US-Alberta toCalifornia gas pipeline)

1961 tntroducticn ofhigh -gUide sleellAPI X701

./ to North Ame rica for./ natural gas transmission

First gas main laid in london. . _manufactured in lead Iron pipe Introduced (or

\

First gas work install ed in natural gas serviceFirst commercial New World, i\"Baltimore. Md. '\use of natural gas

'"

filSl crossbor~~pressure. larger diameter. )-- __ North Sea development

high -grade steel marking the offshore(IGAT 1-lran to pipeline industry

Azerbaijan pipeline)First Russian gos delivery

to Europe (via Poland)

-, ' 8112TransCanade Pipelines

completed 2.000milegas transmiss ion line \

(Alberta.Ontario)IF"';\===f.========f=====";j======9========'R:=;r{189~ First high-pressure

long distance gas linelIndiana fields 10 Chicago)

Penspen Ltd . 2007

Figure from - M. Mohilpour, Alan Glover, Bill Trefanenko: Pipeline Repor1: Technology advances k~worldwide gas pipeline developments ', Oil and Gas Journal. Nov 26, 200 1. tl2

PIPELINES - What are they?

:1 1 - -

i

P>p. lmu

I . "-,-It. 'I '"',00_. ' ''' 0~. .Jtt'liit

.........~+--'--'--

I

'---+f-""':"~

'i j" \, ,Pro dU Cl ion Trans pon arion

5.".,1'",,_,__PI~"_.

loIot_. E.. u 'c..."....;.n S .5"...,. E,,_ '

- PI.....

OiSlr lbu(l on l."5"'-0 _ ...... SUo,....On _ notr...

L "'... Moil_.h"""_$"" E..,p"'_ c . ... , s"ofI.noSor_E _

O_llO 2007

~ ..----_._-......------_..._------..__.__._.__._--_._-~......--_._.__.-...~._-_.~_._-----------..._.._--~--_._,_._-- -_.__.._- 83

PIPELINES - are part of a 'system'

(Receiving fecllities]

Operational support Q gJl\.~g

WyesTeesHot taps land pipelines:transmasoaC-,~~-- Shore approaches

CrossingsFlowlinesCables

] -tubesRisers[Process equ ipment]

ManifoldsProtection structures Tr k lines

Distribution Lines

..

PIPELINES IN CANADA AND THE USA

OIL GAS

85

PIPELINES - are relatively cheap

5 MILES19 MILES45 MILES200 MILES238 MILES

_ AIR_ ROAD_ RAIL_ SHIP_ PIPELINE

A few years ago, $1 would move one ton ofpetrochemical:

In the USA , the cost to transport a barrel of petroleumprod ucts from Houston to the New York harbour is aboutS1, or about 2.5 per gallon at your local gasoline station(2002 figure s).

O_U02Oll 'B6

ENERGY Oil and Gas pipelines are growing

_Pipelines underway/planned/proposed (km):-Europe (FSU) 23000_Middle East (Iran) 13000 _Africa (Libya) 8000-S Pacific (Aus!.) 9000_Far East (India) 17000_S America (Brazil) 15000

Largest developments are in the countries in brackets

87

PIPELINES - Facts on Cost

88(> Poe,,,,," Ltd. 2007

PIPELINES ARE COST EFFICIENT

In the USA petroleum pipelines depend on a relatively smallnational workforce of about 16,000 skilled men and women This work force transports over 600 billion ton-miles of

product each year. These workers accomplish this job so efficiently that

America 's oil pipelines transport 17% of all U.S. freight But cost only 2% of the nation 's freight bill.

89

PIPELINES - are relatively safe

Road Truck accidents result in deaths at least 87 times more often thanpipeline accidents . Additionally, truck accidents result in fires and/orexplosions about 35 times more frequently per barrel of oil transported permile. These figures include only acciden ts involving petroleum shipments ,

not all accidents for a given transportation mode

2.30.10.13.1

DEATH FIREI INJURYEXPLOSION

34. 78.64.01.2

87.32.7024 0

TRUCKRAILBARGETANK SHIPValues I",sslmore than 1.0 indicate nsk of accident is lowe rig'e a ~e r th ~ n pipeline transponalion,Compansons based on calculated rates per ton-mile. (Source: Allegro Energy Group)

90." Pon ,.,.n Ltd 2007

PIPELINE ECONOMICS

.Pipelines - can cost typically $1 million/km to build, and compressor stationscan cost $30 million .

_Therefore, usually one operator supplies a region/industrye 'Ihere must be a detailed economic study prior to any pipeline build

_Relative Transportation costs (1997, Canada):_Oil - Typically, the cost of moving oil amounts 10 aboul10 per cent of theactua l cost of a barrel of oil which in 1997 averaged $27 Canadian dollars._ Gas Shipping natural gas costs two to three times the actual cost of thegas itself which in 1997 averaged $1.90 Canadian per thousand cubic feet.

_Specific costs - Canadian (1999 - Canadian S) costs for moving oil/gas:.$10.38 to move a cubic metre of light crude oil across Canada

_A cubic metre would fill 1000 one-li tre milk cartons_$1.1110 move a gigajoule of natural gas

_A gigajoule is enough gas 10 heat a house on a cold winters day91

PIPELINES ARE COST EFFECT IV E

_ Replacing even a modest-sized pipeline, which mighttransport 150,000 barrels per day, would require 750 tankertruck loads per day That's a load delivered every two minutes around the

clock._ Replacing the same pipeline with a railroad train of tank

cars carry ing 2,000 barrels each would require a 75-cartrain to arrive and be unloaded every day.

e h."""", uo. 2001j o< m".. 'act, 92

ENERGY MEASURES

ENERGY MEASURES

_C alori es are de fi ned as the amount of heat needed to raise one gram of water 1 C._Food Calo ries actua ll y refer to kil ocalori es, or 1,000 calori es

_A co mmon ene rgy heat unit is the British Therm al Unit (Btu) .e one Btu is the amo unt of energy required to ra ise th e heat in one po und ofwater by 1 F. 100,000 Btu is ca lled a Therma one Btu is equal to 252 ca lories or 1055 j oules.

_ One ki lowatthour is equal to 3,412 a tus. 859 ,824 ca lories , or 3,599,660 joules_The average American adu lt uses 3,500 k iloca lories of energy per day, active andresting . Th is is roughly the thermal energy needed tor one tub full of hot bath water

A MATCHRUNNING A TV FOR 100 hoursGALLON OF GASOLIN EHIROSHIMA ATOMIC BOMB

Btu,

28.000125.00060,000 .000.000

Calorie2527,056,00031,500 ,00020,160,000,000 ,000

DESIGN STANDARDS: 'Overpressures'

I

~ 08i.;."i1...,

\ S FETYSMYS oH'"",,,,,, SAFETY ' M RGIN

.....,. I MARGIN.....I ON AlLuREtv

Hy

DES IGN HOOP STRESS: 'Ov e rp re ss u re'ComparisonCODE Hoop Stress Factor Maximum Inc idental Always check(using te-l Pressure how the cod eASME 831.4 0.72 10% allows for Ihese

overpressures.ASME 831 .8 0.80 10% (::>0.72) ASME allows

4% (>0.72) theseasPO 8010-1 0.72'" 10% pressuresto be

oyer the designpressure. This

GSA 2662 0.80 10% means thatmax imum

AS 2885.1 0.72 10% 'surge' or'incidental'

{SO CD 13623 0.77 to 0.83 10% pressurecangille1 .1xdesignin liQuid lines.

EN 1594 0.72 15% This is high!

,,, ' ,, _ _ ~ ,,_ .oc~ ,....... .-.~ ....,_, .n_..__ ~ _ ~,.-_._.....__.------ _--.. ~... ..--- -_._-

DESIGN PRESSURE

_ The design pressure, p, is the maximum pressure permitted by a code_ It is obtained using the hoop stress equation:

_ hoop stress = pD/2t, or P = 2t(hoop stress)/D, and ensuring this stressdoes not go above yield. by using design factors (

PIPELINE DESIGN STANDARDS: In t e rna l pressureca use s 'Ax ia l' Stress

intern alpressure

: ..

I ..l~ ~ ~~

"

PIPELINE DESIGN STANDARDS: Calculating 'A x ial'Stress caused by Internal Pressure

hoop

...:;: ) 2:\ )-_ The pressure also causes an 'axial' stress ,that tries to elongate the pipeline.e vts canse a long thin balloon being blownup - its diame ter and length expands._ The magnitude of this axia l stress is:

_ O.3xhoop stress if expansion of the pipe is restricted , e.q it is buried andrestrained by the surrounding soil.. O.511.hOOp stress jf the pipe is capped and free to expand . e.q at bends.

axial stre ss , V eTo

~.-.-+......~, ~

axial stress, -0.50"0

f~ ..-..-....-..-+ --,:+ ..:

v is Poisson's rate and isapproximately equal to 0.3

50

PIPELINE DESIGN STANDARDS: 'Ra d ia l' Stress

Axia l stress

Codes g ive gu idance on eombl nlngthese three stresses to give'equivalent', or 'comb ined' stresses

_ We are assuming that our pipelinehas only two stresses: axial andhoop.

..' .

Actually. we have three principal .~ ..... ....

stresses in the pipewau. For internal ./ -,pressure (p) only loading' / .../'.../ R,di,' stress ....\

::~~;~:'t ../// /,/./ ._ We usually Ignore radial stress, as .it is sma ll (=p) com pared to the axialand hoop princ ipal stres ses._ This is reasonable, as pipelineshave high Olt ratios, and hence the'radial' stress is small

C_ 2006_'

OTHER STRESSES AND FAILURE LOCATIONS

ax ialload

b end ingmomon! to" lo"

i "t~rn~ 1P"'UUrtl

Potennar Ifarlure -'---I'location

What if we have acomb ination of theseother stresses?

OTHER STRESSES: 'Equivalent' Stresses

Radia l stress

Ax ial 51 55

......

......i ..........

t-"-- ,.. /\

...

_ We can have a complex three dimensional(tri-ax ial) stress field acting on our pipeline_ But our material properties (e.g. yieldstrength) and our failu re criteria (e.g.ultimate tensile strength) are all 'uni-axial'parameters_ To assess these complex stresses, wegroup them all into an 'equivalent' stress_T his equivalent stress can then be relatedback to 'uni-axial' stresses and uni-axialfailu re

-ln many engineering situations stresses exist in mor e than one direction.The direction and magn itude of these stresses influence the onset of yielding.

For exam ple, in tri-axial compression, a material cannot yield because it has"nowhere to go' until there is a breakdown in the atomic structure of the crystals atseverat orders of magnitude of stress greater than the uniaxial yie ld stress.

53

/

COMBINI NG STRESSES: 'Equivalent' Stresses

_ We have to combine all the stresses in our pipeline, toobtain an 'equivalent' stress to compare it with our yield._ We have two theories that help us:

e'Fresca" and 'von Mises'

........

,.'

...... ""..

.......

.....

Radial

I~ Hoop 0equivalent < 0 yield' T,es ca gives ~igher stress es than von MISCS

54

COMBINING STRESSES: 'Equ iv a lent' Stresses

--

....

) .,../ .

.........]---. -,r7"'-/_.~ /// r< 2- a yiek:l

_ 12 - 0"10"2 + crl:s cr/. crhoop2 - O"hoopO"axiar + O"axia?

_ We can calcu late the equivalent stress:. Forthree principal stresses (von Mises):

. 0.5[(0"1 - CT2)2 + (0"2 - 0'3)2 + (0"3 - 0" ,)2) :s 0/_ If the third principal stress is negligib le (we call this'plane stress'), as is the case in a pipe line for radialstress, we have:

Pipeline des ign standa rds require these calculations on equivalentstresses to be calculated.The stand ards then list limits on the se equivalent stresses

C_~I\.'of> 1

LIMITS ON EQUIVALENT STRESSES: Example forOffshore Lines. Pipeline standards limit the level of all stresses in a pipeline, usually by'des ign factor' .

_We have already covered limits on hoop stress (usually a limit of 72% ofSMYS is specified, or a design factor of 0.72))._ Axial (longitudinal) stresses and 'combined' or 'equivalent' stresses are alsolimited by using design factors._ For example, ASME 831.8 and 83 1.4 have limits for hoop, longitudina l, andcombined stresses in offshore pipelines and risers:

location Des ign Des ign Factor, F2 Design Factor,Factor, F, F,Hoop stress longitudinal stress Combined

stressPipeli ne 0.72 0.80 0.90Platform pip ing 0.60 (831.4) 0.80 0.90and risers 0.50 (831.8)

LIMITS ON EQUIVALENT STRESSES: Example forOnshore Lines. Pipeline standards limit the level of all stresses_ A$ ME 83 1 gives the following limits for onshore lines:

Stress Limit

Maximum hoop stress 72 or 80% SMYS

Maximum stress due to pipeline expansion, a" 72% SMYS

Maximum bending stress O"b plus axial stress due 75% SMYSto pressu re loads, e,Maximum (Je plus 0 b plus O"a 100 % SMYS

OTHER LIM ITS IN PIPELINE CODES

57

. Pipeline codes will specify other limits. For example, AS 2885.1:

. Product: Appl icable to gas, crude oil, LPG.. . Pressure/Stress: MAOP>1050kPa or >20%SMYS. Temperature: Tempe rature range is +200C 10 -30e_ Depth of cover' :

. T1. T2 = 900mm (normal), 600mm (rockexcavation)_ R1, R2 = 750mm (normal), 450mm (rockexcavation)

MAOP

TEMP.

COVER

ETC .

'MAXIMUM ALLOWABLE OPERATING PRESSURE'

_ Always check 'des ign' and 'maximum' pressure [CODE]definitions in the relevant standard and/or regulat ion. ( Y DESIGN ). Design pressure (DP) is that obtain ed from anational or international design code._ Maximum allowable operating pressure (MAOP)* IREGULATIONl

_ MAOP' is in gas pipeline standards and regulations inthe USA. ( r MAOP )

_ It is a rating indicating the maximum pressure atwhich a pipeline or segment of a pipel ine may beoperate d under the nationa l or state regulations in IOPERATOR ]normal conditions._ InASME 831 .8, MAOP is also based on the ( Y M( P ~)level of the pre-service lest

_Th e 'actual' operating pressure or 'maximum'opera t