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A guide to IPC Pipeline coatings The Langeled Pipeline
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Corrosion Costs the Pipeline Industry Over $12 Billion Annually.
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Issue 13 | September 2012
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AROUND THE WORLD

New subsidiary to manage pipelines in Colombia Keystone XL still set for 2013 decision Signed agreements bring TAPI one step closer Gas flows west from Shah Deniz Oil pipeline commissioned in Abu Dhabi Tanzanian pipeline construction inaugurated
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Spotlight on the SSV The Nixon solution: providing long line communications from beginning to end Can the onshore pipeline industry benefit from new design approaches? Overcoming offshore inspection challenges Isolation and weld joint testing of pipelines
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Fuelling the economy: North Americas pipelines Top 5 tips for your IPCE conference experience Future industry prospects: a market outlook on the oil and gas sector
Pipeline risk assessment: controlling the bias Bringing Synergi to integrity management A step-by-step approach to pipeline integrity management
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Pipelines International | September 2012
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from the editor
Editor-in-Chief: John Tiratsoo Managing Editor: Lyndsie Mewett Associate Editor: Sarah Paul Assistant Editor: Stephanie Chan Journalists: Alex York Angus Nice Sales Manager: Tim Thompson Senior Account Manager: David Marsh Sales Representative: David Entringer Creative Director: Michelle Cross Acting Design Manager: Bianca Botter Senior Designers: Susie Monte Katrina Rolfe Designers: Venysia Kurniawan Benjamin Lazaro USA Manager: Luke Rowohlt Publications and Events Co-ordinator: Elizabeth Foster Publisher: Zelda Tupicoff
Construction of natural gas gathering pipelines in the Piceance Basin in northwestern Colorado, US. Photo by Miller Photography. Courtesy of Williams
ISSUE 13
SEPTEMBER 2012
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any will be familiar with Emmental cheese: the cheese from Switzerland with holes. Fewer will be familiar with the fact that the Swiss cheese model is an instructive way of looking at how accidents and disasters occur, and how they can be prevented. The idea of slices of Emmental being lined up and, when the apparently random distribution of holes align, an accident can occur, was first presented in 2000 by James Reason writing in the British Medical Journal, and has since been widely adopted. The holes in the cheese in the model can be seen as representing both active failures such as operating errors and latent failures, or weaknesses in the system that do not in themselves cause an accident, although they fail to prevent one when the active failure calls them into play at a moment in time. Problems arise when latent failures accumulate: maintenance is not undertaken, records are lost, and audits are incomplete. The consequence of a small active failure can then be catastrophic as the protective systems fail to function as expected when the holes line up. What has this got to do with pipelines? Regrettably, quite a lot. In the previous (June) and current (September) issues of the Journal of Pipeline Engineering our sister publication two important papers were published explaining in articulate and disturbing detail how failures occur and how, in the former paper, steps can be taken to prevent them. Writing in the June issue from a pipelineengineering viewpoint, Penspen Integrity Director Dr Phil Hopkins emphasises that learning from failures can help reduce future failures. He points out that failures occur due to a complex mix of problems, which in particular includes deterioration with time and changing conditions, but also includes other factors such as human error. The paper illustrates well-known threats to pipeline systems, but notes that threats such as management failures and the absence of a safety culture also need to be considered, and the paper devotes more time to these lesser-known threats. The paper also considers how adopting best practice can help to reduce failures, but best practice extends beyond best engineering practices: it also includes best staff, best management practices, etc., both in the operators company and in its contractors companies. Dr Jan Hayes and Professor Andrew Hopkins (no relation) examine in the September issue the Deepwater Horizon incident, and the lessons that can be learned from this by the pipeline industry. Both authors are from the Australian National University School of Sociology, and they
therefore are able to examine the problem with a refreshing and interesting perspective. As does Dr Hopkins, the authors highlight the Swiss cheese model as a useful way of introducing the concept of what others might call Murphys Law, paraphrased as if things can go wrong, they will. Dr Hayes and Professor Hopkins point out that social science research shows that high-performing organisations seek opportunities to learn from failures, and Deepwater Horizon provides such an opportunity for the pipeline industry. Whilst the technical details of well-control systems may not be directly relevant, there are broader organisational factors that can provide significant lessons to any organisation that designs, maintains, and/or operates complex and potentially hazardous technology. Accident investigations, including Deepwater Horizon, continue to highlight common organisational failures that can have catastrophic consequences, and it is these lessons that are the subject of this paper. The key question is why accidents continue to occur despite the level of engineering and management system controls that are apparently in place. The authors quote some of the considerable volume of published material available regarding the causes of the Deepwater Horizon blowout, and their paper is based on analysis of that material to emphasise lessons that are relevant to management of pipeline companies, including: managing the cost vs. safety trade-off, the down side of good news, and understanding the difference between personal safety and system integrity. The paper makes some very important points but also asks some far-reaching questions of those responsible for pipeline systems and networks, and is worthy of study by all with responsibilities for operating pipelines.
Welcome to IPCE
The International Pipeline Conference and the accompanying exhibition are being held in Calgary from 2428 September. Pipelines International is at Stand 1301, near the exhibition registration desk. If youre in Calgary during this event, we look forward with pleasure to seeing you at our stand. The stand is shared with Clarion Technical Conferences of Houston, and the Professional Institute of Pipeline Engineers, and there will be plenty to talk about with all our visitors.
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around the world
New subsidiary to manage pipelines in Colombia

Colombian company Ecopetrol S.A. has incorporated Cenit S.A.S., a wholly owned subsidiary company specialised in hydrocarbon transport and logistics in Colombia, in order to manage pipelines in the country.
he purpose of the new company is to serve the strategic transportation and logistic needs of the countrys oil industry resulting from the increase in hydrocarbon production and higher sales of crudes and refined products, both in Colombia as well as in international markets. Furthermore, it will strengthen and expand the network with high standards of industrial safety and reliability, and contribute to environmental preservation, all of which is expected to significantly reduce the damage on roads from truck transportation of hydrocarbons. Ecopetrol said that this decision is a step forward in the growth of the industry, by separating Ecopetrols role as owner, planner, operator and user of transport systems. Cenit will operate with an open model in which all the interested parties will have the possibility of accessing the transport infrastructure.
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Cenit will be incorporated with all of Ecopetrols transportation assets, including the interests held in the Ocensa, Los Llanos, Bicentenario, and Colombian pipelines. Ecopetrols current transportation contracts will be transferred to the new company, maintaining the conditions agreed upon between the parties. Cenit will guarantee Ecopetrol the capacity for transportation and handling of its hydrocarbons. After the transfer of the assets, which will be completed shortly, the contractual and commercial relationships will be established between Cenit and its customers. Furthermore, the commercial conditions of the new contracts or projects for infrastructure expansion will be determined by the new company in accordance with applicable legislation. Ecopetrol will continue to undertake operation and maintenance of the existing transportation infrastructure, for which it will sign the respective contracts with Cenit.
Ecopetrol said that this decision is a step forward in the growth of the industry, by separating Ecopetrols role as owner, planner, operator and user of transport systems.
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Keystone XL still set for 2013 decision

The United States Department of State has reiterated that it expects to make a decision on TransCanadas proposed 2,673 km long, 36 inch Keystone XL crude oil pipeline by the first quarter of 2013.
he decision comes following TransCanadas resubmission of a Presidential Permit application to the United States Department of State (US DoS) for the pipeline section running from the US-Canada border in Montana to Steele City, Nebraska. TransCanada will supplement that application with an alternative route in Nebraska as soon as that route is selected. In acknowledging receipt of the new application, the US DoS said that its responsibility, under Executive Order 13337, is to determine if granting a permit for the proposed pipeline is in the national interest. TransCanada President and Chief Executive Russ Girling said The fact the US DoS has reaffirmed its timeline for making a decision on a Presidential Permit for Keystone XL early next year is an important development and we look forward to the detailed schedule of the steps needed to meet that first quarter 2013 timeframe. It is important to recognise that by the time a final decision on this critical piece of North American energy infrastructure is made, Keystone XL will be well into its fifth year of exhaustive and detailed studies, the most extensive review for a cross-border pipeline ever. The final review should focus solely on the re-aligned route that avoids the Nebraska Sandhills. The rest of the Keystone XL route remains the same. The geology of the route remains the same. The environmental conditions remain the same. Nothing else has changed since the final environmental impact statement was approved. The proposed Keystone XL Pipeline involves a crude oil pipeline stretching from Hardisty, Alberta, and running southeast through Saskatchewan, Montana, South Dakota and Nebraska. It will link up with a portion of the Keystone Pipeline that will be built through Kansas to Cushing, Oklahoma. The pipeline will then continue on through Oklahoma to a delivery point near existing terminals in Nederland, Texas, to serve the Port Arthur marketplace. Supporters of the proposed pipeline point out that its construction, along with the 26 pump stations required, would provide upwards of 7,000 new jobs in a country where unemployment hovers around 910 per cent. The Canadian portion of the Keystone XL Pipeline received approval from Canadas National Energy Board in March 2010. Quintana Capital Group wants to build a 483 km pipeline system from western North Dakota to eastern Montana, where it would meet TransCanadas proposed Keystone XL Pipeline. TransCanada has selected MPS Constructors consisting of three pipeline construction companies: Michels Corporation, Price Gregory Services and Sheehan Pipeline Construction Company to build approximately 1,897 km of the proposed 2,673 km pipeline and related infrastructure from Hardisty, Alberta, to Steele City, Nebraska. TransCanada expects to begin construction of Keystone XL in the first quarter of 2013, with completion scheduled for late 2014 or early 2015.
Signed agreements bring TAPI one step closer

After more than 20 years of negotiations, Indias GAIL and Pakistans Inter State Gas System have signed gas sales and purchase agreements with Turkmenistan, bringing the proposed 1,800 km Turkmenistan Afghanistan Pakistan India natural gas pipeline closer to reality.
fghanistan also signed a memorandum of understanding for a long-term gas co-operation agreement with Turkmenistan. Addressing attendees of the 3rd Turkmenistan Gas Congress and Exhibition in Awaza, where the gas sales and purchase agreement (GSPA) was signed, Indian Minister of Petroleum and Natural Gas Shri S. Jaipal Reddy said that the presence of a strong Indian delegation underlined Indias appreciation of the growing role that natural gas will play in the country. Without a doubt, the economic benefits of the Turkmenistan Afghanistan Pakistan India (TAPI) Gas Pipeline will be immense for our energy-starved economies, said Mr Reddy. The flow of natural gas will bring in its wake industrial and economic development in our countries. The TAPI Pipeline project would transport gas from Turkmenistans gas fields through Afghanistan to Multan in Pakistan, and on to the Indian township of Fazilka. The TAPI Pipeline is expected to transport up to 90 MMcm/d of natural gas, linking one of central Asias largest energy suppliers with south Asian markets. This is a truly historic moment of unparalleled regional co-operation, said Director General of the Central and West Asia Department at the Asian Development Bank (ADB) Klaus Gerhaeusser, who has acted as the TAPI Secretariat since 2002. ADB has played a leading role in co-ordinating and facilitating the TAPI negotiation process over the past ten years. The bulk of exported gas will help meet surging energy demand in India and Pakistan where energy needs are set to double by 2030 while the remainder will alleviate chronic power shortages in Afghanistan. With the TAPI Pipeline in place, Turkmenistans gas will reach a greater range of overland markets, diversifying from its existing markets in Russia, Iran, and China. A GSPA between Afghanistan and Turkmenistan is expected to be finalised shortly. The next step is for the four TAPI nations to attract commercial partners to build, finance, and operate the pipeline, estimated in 2008 to cost at least $US7.6 billion.
While the initial feasibility study of the TAPI Pipeline was conducted in 2004, momentum on project negotiations increased in mid-2010, and by the end of 2010 an intergovernmental agreement, gas pipeline framework agreement and Heads of Agreement were signed in Turkmenistan. Several rounds of bilateral negotiations were held between Turkmenistan and Pakistan on the TAPI gas price, which ended in October 2011. Mr Reddy said that India is currently focused on building LNG infrastructure and expanding gas pipelines across the country, with its natural gas sector projected to grow at a compound annual rate of 1.5 per cent in the five years ahead. Our current gas pipeline network is around 13,000 km long with a capacity of 334 MMcm/d, he said. It is projected to grow by more than double to 31,757 km by 2017 with a capacity of 876 MMcm/d.
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A map of the Keystone Pipeline and proposed pipeline expansion routes.
The fact the US DoS has reaffirmed its timeline for making a decision on a Presidential Permit for Keystone XL early next year is an important development and we look forward to the detailed schedule of the steps needed to meet that first quarter 2013 timeframe.
- TransCanada President and Chief Executive, Russ Girling
Specialist training courses
Background
In April 2012, Turkmenistan and Pakistan signed GSPAs for the proposed TAPI pipeline during a state visit to Pakistan by the Turkmenistan President. The GSPAs were initialled by Turkmen President Gurbanguly Berdimuhamedov and Pakistani Federal Minister for Petroleum and Natural Resources Dr Asim Hussain in Islamabad. Under the agreement, Turkmenistan will provide 3.2 Bcf/d of natural gas from the South Yolotan/Osman and adjacent gas fields through the pipeline.
We look forward to receiving your valued enquiry, please contact us for our extensive range of services and courses Professor David Newman International Pipeline Management Services Ltd Telephone: Telefax: Mobile: Email: Web: +44 (0) 208 371 6962 +44 (0) 208 346 9184 +44 (0) 7584 747 560 info@globalpetroleumgroup.com www.globalpetroleumgroup.com
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around the world
around the world
Gas flows west from Shah Deniz

The proposed Nabucco West Pipeline has been selected by the Shah Deniz consortium, led by BP, as the projects delivery route through central Europe.
he Shah Deniz Stage 2 project will bring gas from the Caspian Sea to markets in Turkey and Europe, opening up the Southern Gas Corridor. The Nabucco West proposal involves a 1,300 km, 48 inch diameter gas pipeline that will transport gas from the vicinity of the Turkish-Bulgarian border through Bulgaria, Romania and Hungary to Austria with offtake stations in each transit country. Nabucco West will follow the same principles as the original Nabucco concept. This means that the pipeline will be designed to be a scalable and multisource natural gas transmission infrastructure. Capacity could be scaled up from 10 Bcm/a to 23 Bcm/a to respond to demand.
Oil pipeline commissioned in Abu Dhabi

The approximately 424 km, 48 inch diameter Abu Dhabi Crude Oil Pipeline, located in the United Arab Emirates, has been commissioned and is now operational.
he project includes both on- and offshore components, and is capable of transporting 75 MMt/a of crude oil. The pipeline extends from the Habshan Oil Field to the Fujairah Port, bypassing the congested Hormuz Strait, and has a 405 km onshore section and a 19 km offshore section, including a 13 km subsea section. The pipelines design rated delivery capacity is 1.5 MMbbl/d, which will be loaded through marine single point moorings. The International Petroleum Investment Company, which was tasked by the Government of Abu Dhabi with the execution of the project, said The scale of the project is immense and encompasses the construction of pumping
BP said that the decision was made on the basis of the publicly communicated selection criteria announced in 2011. In particular, the greater maturity of Nabucco West gave the consortium confidence that this project could be developed and delivered on the same timeline as [Shah Deniz] Stage 2, said BP. The consortium will now co-operate with the Nabucco West project to optimise its scope, its technical studies and its commercial offer. Based on the same criteria, in February 2012, the consortium selected the Trans-Adriatic Pipeline (TAP) as the potential route for export of Stage 2 gas to Italy. Since that decision, the Shah Deniz
consortium has worked closely with TAP, recently concluding a co-operation agreement with this project. The Shah Deniz consortium will continue to work with the owners of the two selected pipeline options. Shah Deniz will make a final decision between these projects, and will conclude related gas sales agreements ahead of the Shah Deniz final investment decision planned for mid-2013. BP said that development of the South East Europe Pipeline project, which had been assembled by Shah Deniz partners in collaboration with Bulgaria, Romania and Hungary, will cease. First gas exports are expected at the end of 2017.
stations, a main oil terminal and offshore loading facilities at Fujairah, in addition to the installation of the main pipeline. In 2008, China National Petroleum Corporation (CNPC) was contracted to provide engineering, procurement and construction services on the project, a contract worth $US3.29 billion. China Petroleum Engineering and Construction Corporation (CPECC) awarded Penspen the contract for carrying out the detailed engineering. CNPC said that during construction, the project registered a local best record with no fatality, no environmental, medical and transportation accidents for 50 million man hours.
Abu Dhabi
The first shipment of exported crude oil was loaded on 5 July 2012, and the pipelines commissioning ceremony was held on 15 July at the pipelines land terminal station at the Fujairah Port.
Tanzanian pipeline construction inaugurated

The Government of the United Republic of Tanzania officially inaugurated the construction of the approximately 532 km long Mnazi Bay to Dar es Salaam Gas Pipeline Project in July 2012.
he project involves approximately 532 km of gas pipeline from Mnazi Bay in the Mtwara region and Songo Songo in the Kilwa District, to Dar es Salaam, with a 36 inch main line and one 24 inch spur line. The pipeline will have a capacity of 784 MMcf/d of gas, to be used for the production of 3,900 MW of electricity. On completion, the project will allow the Mnazi Bay Concession partners and others to transport natural gas to large-scale electricity producers, and other industrial users and major population centres in Tanzania. The start of construction comes after the Tanzanian Finance Minister Dr William Mgimwa outlined funding plans for the Mtwara to Dar es Salaam pipeline in his presentation to the National Assembly on the 201213 budget in June 2012. Dr Mgimwa said that the Government expects to borrow $US746 million worth of external non-concessional loans, which will
The proposed route of the Nabucco West Pipeline from the Turkish-Bulgarian border to Austria.
be used to finance various development projects, including the pipeline. Specifically, Dr Mgimwa said that the Government will implement the construction of the pipeline using a $US1,225.3 million loan from the ExportImport Bank of China, which will be managed by the Tanzania Petroleum Development Corporation. Pipeline proponent Wentworth Resources Limited, an independent oil and gas company with gas production and a committed exploration programme in the Rovuma Basin of southern Tanzania and northern Mozambique, said that, on completion, the project will allow the Mnazi Bay concession partners and others to transport natural gas to large-scale electricity producers, other industrial users, and major population centres in Tanzania. Since the discovery of the Mnazi Bay gas field in 1982, the substantial gas
resources in this concession have been effectively stranded, said the company, adding that gaining access to the greater markets of Tanzania is expected to allow full production from Wentworths existing and future gas wells. The company said that currently three of four existing wells are being worked over to maximise their long-term productivity. The outcome of this work will provide a basis for concluding an immediate Gas Sales Agreement to supply the pipeline and for future development of the Mnazi Bay and Msimbati gas fields. Wentworth Executive Chairman Bob McBean said [The project] is the beginning of Tanzanias future as a significant gas producing country and we are proud to be a partner in this endeavour. Construction began immediately and is expected to take 1214 months to complete.
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world wrap
world wrap
North Sea inspection complete Proposed Mexican pipeline finds new stakeholder
Enags has reached an agreement with Elecnor to be part of the subsidiary that was awarded the Morelos Gas Pipeline construction and operation contract in Mexico. Under the agreement, Enags and Elecnor will each hold 50 per cent of the company owning the 160 km long gas pipeline and will jointly carry out all engineering, construction, and operating functions. Total investment in construction, including finance costs, is estimated at $US270 million. T.D. Williamson (TDW) has successfully completed the in-line inspection of a key North Sea gas pipeline on behalf of Perenco UK. The operation was carried out on the 24 inch diameter gas pipeline that links the Trent Platform with the Bacton Terminal pipeline. TDW conducted this intelligent inspection and associated pipeline service operation as part of Perencos strategic programme to ensure the integrity of its pipelines and assets.
Turkey and Azerbaijan sign agreement for TANAP

Turkish Prime Minister Recep Tayyip Erdogan and Azeri President Ilham Aliyev signed the intergovernmental agreement officially launching the Trans Anatolian Pipeline project (TANAP), accompanied by the energy ministers of both countries. The $US7 billion project will deliver natural gas from Azerbaijans Shah Deniz 2 gas field to Turkey and beyond via a 2,000 km pipeline. TANAP will carry approximately 16 Bcm/a of gas, 6 Bcm/a of which will be used for Turkeys domestic market, while the rest will continue on to Europe. The construction of the pipeline is scheduled to commence in 2013, with the first phase planned to be commissioned in 2016.
Hydrogen pipeline starts construction

Willbros Group was awarded a contract by Praxair Inc. to construct an 84 km, 12 inch diameter hydrogen pipeline in Louisiana. The hydrogen pipeline will originate at Praxairs plant in Geismar, Louisiana, and will terminate at Valeros refinery in Norco, Louisiana. Construction on the project is underway and is scheduled to be completed in September 2012.
Isolating contract awarded

Qatargas awarded pipeline engineering company STATS Group a ten-year contract to provide remote pipeline isolation equipment. STATS will design, manufacture, test and supply a new range of high-integrity Remote Tecno Plugs for 32, 34 and 38 inch pipelines which will become part of Qatargas emergency pipeline repair system for production facilities in the Persian Gulfs North Field, where gas and condensate is transferred by pipelines to Ras Laffan City for export.
Jetting through the pipeline

Horizon Terminals, the wholly-owned subsidiary of Emirates National Oil Company focused on terminal operations, has secured partial funds for a proposed 60 km jet fuel pipeline in Dubai. Horizon Terminals has signed a ten-year Islamic term financing facility of $US100 million with Standard Chartered Bank, Emirates NBD and Noor Islamic Bank which partly finances the construction of a second jet fuel pipeline from the new bulk liquid petroleum terminal in the Jebel Ali Free Zone to the Dubai International Airport, and its associated storage tank farm with 141,000 cubic metres of capacity. The transaction has a dual tranche of United States dollars and United Arab Emirates dirham.
PNGRB approves construction of Indian gas pipeline South American pipeline companies sign co-operation agreements
EP Petroecuador and OCP Ecuador S.A. have signed two co-operation agreements, including one that sees the interconnection of the companies pipelines. The first agreement relates to the interconnection of the SOTE Pipeline and the OCP Pipeline in Lago Agrio to allow for the pumping of oil in each direction in case of emergency. The second agreement aims to establish mutual mechanisms for the support of staff, facilities and equipment owned by OCP Ecuador S.A. and EP Petroecuador in both normal operations and emergency situations. Indias Petroleum and Natural Gas Regulatory Board has given GAIL approval to construct a 1,104 km, 430 inch diameter gas pipeline extending from Kochi to Mangalore. The Kochi Kootanad Bangalore Mangalore gas pipeline, which will have a design capacity of 16 MMcm/d of gas, will be constructed in two phases; the first phase will involve approximately 44 km of pipeline, and the second phase will involve completion of the remaining 1,060 km. The pipeline is expected to be commissioned by March 2013.
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Gas Interconnection Poland Lithuania
Promoter: AB Lietuvos Dujos, Poppy g. 24, LT-03212 Vilnius, Lithuania. Tel: +370 8 5 236 0209. Gaz-System, st. Mszczonowska 4 02-337, Warszawa, Poland. Tel: +48 22 220 18 00. Project scope: The 562 km long Gas Interconnection Poland Lithuania Pipeline would integrate the Baltic States into the European Unions gas market, and would provide access to the global LNG market via the Swinoujuscie LNG terminal. Construction costs are estimated to be approximately $US621.6 million, with 73 per cent of investment to be based in Poland. Project update: ILF Consulting Engineers Polska has been contracted to conduct a feasibility study for a gas pipeline between Poland and Lithuania. The business case analysis and feasibility study on the pipeline are being co-financed by the European Commission within the TransEuropean Energy Network Programme. The feasibility study is expected to be available by the first quarter of 2013. Pipeline length: 562 km Project capacity: 3.2 Bcm/a
Fuelling the economy: North Americas pipelines

by Sarah Paul, Associate Editor
Stretching across approximately 4.8 per cent of the earths surface, North America is home to some of the largest pipeline projects in the world. Here, Pipelines International takes a look at some of the current proposed pipeline projects on the continent. Read on for the opportunities that these projects may present for your company.
Cross-border oil pipelines
Enbridge Energy Partners, through its subsidiary Enbridge Pipelines (Bakken) LLC is currently constructing the Bakken Pipeline Project, which crosses through parts of Montana, North Dakota, United States and Saskatchewan, Canada. The company is proposing to extend an existing pipeline (running from Berthold, North Dakota, to Steelman, Saskatchewan) by constructing a 124 km, 16 inch diameter pipeline from a new terminal near Steelman, Saskatchewan, to the Enbridge Pipelines Inc. mainline Terminal near Cromer, Manitoba. The proposed project scope includes the installation of new pumps and associated equipment, and utility upgrades at the Steelman Terminal. Enbridge will also expand the US portion of Line 26 by constructing two new pumping stations and replacing a 17.7 km segment of the existing 12 inch diameter pipeline between Kenaston and Lignite, North Dakota. The proposed replacement section will be re-routed around the town of Lignite to the east and northeast, generally following an existing railroad right-of-way. The new pump stations will be constructed in Kenaston and Lignite. In addition, the project also calls for an expansion at Enbridges existing terminal and station in Berthold, North Dakota. The timing for completion of the Bakken Pipeline Project is early 2013. TransCanadas Gulf Coast Project is an approximately 780 km, 36 inch diameter crude oil pipeline beginning in Cushing, Oklahoma, and extending south to Nederland, Texas. Proposed in early 2012, construction of the Gulf Coast Project is expected to begin in
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Third West East Gas Pipeline

Promoter: China National Petroleum Corporation (CNPC) 6, Liupukang Jie, Xicheng Dist., Beijing, 100724 China Tel.: +86 10 6209 4114 Fax: +86 10 6209 4806 Project scope: CNPCs proposed Third West East Gas Pipeline, consisting of one trunk, five branch trunks and three branches, will have a total length of over 5,000 km and a design capacity of 30 Bcm/d. The pipeline, which will be supplied with gas from central Asia, will originate at Horgon in Xinjiang and terminate at Fuzhou in Fujian. The pipeline will run in parallel with the Second West East Pipeline as far as Zhongwei in the northern Ningxia region, with the possibility to extend. Project update: CNPC has signed a joint stock and co-operation framework agreement on the proposed Third West East Gas Pipeline in Beijing, securing funding for the project. The agreement was signed with the National Council for Social Security Fund, Urban Infrastructure Construction Investment Fund, Baosteel, and the Industrial and Commercial Bank of China (ICBC). Pipeline length: 5,000 km Pipeline capacity: 30 Bcm/a
Coastal GasLink
Promoter: TransCanada Corporation, 450 - 1 Street SW Calgary, Alberta, Canada, T2P 5H1. Tel: +1 403 920 2000 Project scope: The estimated $US4 billion pipeline will transport in excess of 1.7 Bcf/d of natural gas from the Montney gas-producing region near Dawson Creek, British Columbia (BC), to the recently announced LNG Canada export facility near Kitimat, BC. The pipeline is expected to create 2,0002,500 direct construction jobs over a two- to three-year construction period, and is anticipated to be in service toward the end of the decade, subject to regulatory and corporate approvals. The LNG Canada project is a joint venture led by Shell, with partners Korea Gas Corporation, Mistubishi Corporation and PetroChina. Shell and TransCanada are currently working toward the execution of definitive agreements on the Coastal GasLink Project. Project update: TransCanada has been selected by Shell Canada and its partners to design, build, own and operate the project. Pipeline length: 700 km Project capacity: 1.7 Bcf/d
Pre-salt subsea pipelines project

Promoter: Petrobras, Av. Republica do Chile 65, Centro, Rio de Janeiro, Rio de Janeiro 20031-912, Brazil. Project scope: Petrobras has awarded French oil service company Technip and Brazil company Odebrecht Oil and Gas the contract for the charter and operation of two pipelay vessels. Characterised by their high pipelay tension capacity of 550 tonnes, the twin vessels to be used will be employed principally to install umbilical and flexible flowlines and risers to connect subsea wells to floating production units in waters up to over 2,500 m deep offshore Brazil, including in the pre-salt area. The two identical vessels will be delivered in 2014. Project update: Power and automation technology group ABB has been awarded an order from Daewoo to supply energy efficient propulsion and electrical power systems for two new deep sea pipeline installation vessels that will build the oil transport infrastructure. South Korean shipyard Daewoo Shipbuilding and Marine Engineering will build the vessels. ABB will supply drives, motors and generators, medium voltage switchgear, transformers and softstarters that will provide energy efficient propulsion and a reliable power distribution system on board. In addition, ABB will take full project responsibility and do complete engineering for its own scope of supply.
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mid-2012, pending the necessary permits for specific construction activities, with an anticipated in-service date of mid to late 2013. The pipeline will have the initial capacity to transport 700,000 bbl/d and can be further expanded to transport 830,000 bbl/day to Gulf Coast refineries. In addition, TransCanada is also discussing the route for the 76 km Houston Lateral Project an additional project under development to transport oil to refineries in the Houston area. The proposed route of the pipeline would pass through the counties of Liberty, Chambers and Harris to Houstons refining centre. The proposed facilities would double the US Gulf Coast refining market capacity directly accessible from the Keystone Pipeline System to over 4 MMbbl/d of oil. Associated facilities include the necessary receipt, delivery, pipeline, pumping, monitoring, control and ancillary facilities required to increase capacity. Current plans are for construction activities to begin in the first quarter of 2013 and commercial operation of the Houston Lateral to commence in the first quarter of 2014. Upon completion, the Gulf Coast and Houston Lateral projects will become integrated components of the Keystone Pipeline System. TransCanada is fully committed to the construction of the 1,897 km Keystone XL Pipeline from Hardisty, Alberta, to Steele City, Nebraska. The project is an extension of the 3,460 km Keystone Pipeline System that currently transports crude oil from Hardisty, Alberta, to markets in the American Midwest at Wood River and Patoka, Illinois, and at Cushing, Oklahoma. Following TransCanadas re-application for a Presidential Permit for the project in June 2012, the US Department of State reiterated that it expects to make a decision on the pipeline by the first quarter of 2013. TransCanada anticipates approval of the Presidential Permit application which is required as the pipeline will cross the Canada/US border in the first quarter of 2013, after which construction will quickly begin. The project has an expected in-service date of 2015.
In addition, Enterprise and Enbridge are currently constructing the 804 km, 30 inch diameter Seaway Twinning Pipeline, which is expected to more than double the Seaway Pipelines capacity to 850,000 bbl/d by mid-2014. An additional 137 km lateral is planned as part of the twinning project.
US NGL pipelines
In April 2012, Enterprise Products Partners, Anadarko Petroleum Corporation and DCP Midstream agreed to design and construct the 700 km Front Range Pipeline a natural gas liquids (NGL) pipeline from the DenverJulesburg Basin in Colorado to Skellytown, Texas. The pipeline is expected to begin service in the fourth quarter of 2013. Depending on shipper interest to the binding open commitment period, initial capacity is expected to be approximately 150,000 bbl/d, which can be readily expanded to approximately 230,000 bbl/d. Each party will hold a one-third interest in the pipeline that will connect with both the Mid-America Pipeline system and the proposed Texas Express Pipeline. The 933 km Texas Express Pipeline is planned to originate at Skellytown, Texas, and extend to NGL fractionation and storage facilities in Mont Belvieu, Texas. The pipeline will have an initial capacity of approximately 280,000 bbl/d and will be readily expandable to approximately 400,000 bbl/d. The project is currently in the design and procurement stage. In addition, the Crosstex Energy Partnership received sufficient long-term supply commitments to proceed with the construction of its 209 km, 12 inch diameter Cajun-Sibon NGL Pipeline in Texas. The pipeline will extend the partnerships existing 708 km Cajun-Sibon NGL System and connect Crosstexs NGL fractionation facilities in south central Louisiana to Mont Belvieu supply pipelines in east Texas. The new pipeline is expected to begin operations at or near its initial capacity of 70,000 bbl/d of NGL. The new pipeline and facilities are expected to be operational in the first half of 2013.
are evaluating options for a large-scale LNG export facility from south-central Alaska as an alternative to a natural gas pipeline through Alberta. TransCanada and ExxonMobil are considering two design options for the project. The first option involves construction of a 2,737 km pipeline from Alaskas the North Slope to Alberta, Canada, where gas would enter existing pipeline systems supplying North American market. The second option involves the transportation of gas 1,287 km from North Slope to Valdez, Alaska, where it would be converted into
LNG and be delivered by ship to North American and international markets. Williams Energy and Cabot Oil and Gas, a North American independent natural gas producer, are working together to develop the approximately 194 km, 30 inch diameter Constitution Pipeline to connect abundant Appalachian natural gas supplies in northern Pennsylvania with major north-eastern markets by 2015. The proposed project route will stretch from Susquehanna County, Pennsylvania, into
Construction on a pipeline project in the Piceance Basin. Miller Photography courtesy of Williams.
US oil pipelines
In April 2012, ONEOK Partners announced plans to invest $US1.51.8 billion between 2012 and 2015 to build the 2,092 km Bakken Crude Express Pipeline with the capacity to transport 200,000 bbl/d of crude oil from the Bakken Shale to Cushing, Oklahoma.
The pipeline would transport light, sweet crude oil from the Bakken Shale in the Williston Basin in North Dakota to the Cushing crude oil market hub. Additionally, the proposed pipeline route would be well positioned to transport crude oil production from the Niobrara Shale. The proposed route is expected to parallel more than 80 per cent of ONEOKs existing and planned natural gas liquids pipelines. Following receipt of all necessary permits and compliance with customary regulatory requirements, construction is expected to begin in late 2013 or early 2014, and be completed by early 2015. In May 2012, SemGroup Corporation, Chesapeake Energy Corporation, and Gavilon LLC formed Glass Mountain Pipeline LLC to build a 338 km crude oil pipeline in Oklahoma. The proposed pipeline, which will be constructed by SemGroup, will consist of two laterals. One lateral will originate near the town of Alva in Woods County. The second lateral will originate near the town of Arnett in Ellis County. The new pipeline will have an initial capacity of approximately 140,000 bbl/d and 440,000 bbl/d of intermediate storage. Construction of the pipeline is expected to begin this year and be commissioned in the second half of 2013. Upon completion, SemGroups master limited partnership Rose Rock Midstream will serve as the pipeline operator. Enbridge is currently in the design and procurement stage of its 950 km Flanagan South Pipeline Project a 36 inch diameter interstate crude oil pipeline that will originate in Flanagan, Illinois, and terminate in Cushing, Oklahoma, crossing Illinois,
Missouri, Kansas and Oklahoma. The majority of the pipeline will parallel Enbridges existing Spearhead crude oil pipeline. Enbridge has also proposed to install seven pump stations, including one at the Flanagan terminal and six along the pipeline route. Initial capacity will be 585,000 bbl/d of oil. In February 2012, Plains All American Pipeline (PAA) announced plans to construct a new 274 km pipeline to service the increasing Mississippian Lime crude oil production in northern Oklahoma and southern Kansas. This pipeline in conjunction with the Medford to Cushing Pipeline conversion is designed to provide approximately 175,000 bbl/d of crude oil transportation capacity to the Cushing market and is expected to be completed in mid-2013. Originating in Alfalfa County near Alva, Oklahoma, and terminating at PAAs crude oil storage facility in Cushing, the new pipeline will share approximately 129 km of right-of-way with PAAs Medford to Cushing Pipeline. PAA plans to extend the pipeline from Alva northward into Kansas as demand warrants. The reversal of the 805 km, 20 inch diameter Seaway crude oil pipeline was completed in May 2012, allowing it to transport crude oil from Cushing, Oklahoma, to the Gulf Coast. The pipeline is owned by Seaway Crude Pipeline Company, a 50-50 joint venture owned by affiliates of Enterprise Products Partners and Enbridge. The reversal will initially provide 150,000 bbl/d of capacity, which is expected to increase to more than 400,000 bbl/d in the first quarter of 2013 with additional modifications and increased pumping capabilities.
US natural gas pipelines

TransCanada and ExxonMobil began working together in 2009 to develop the Alaska Pipeline Project (APP). In March 2012, APP and the major Alaska North Slope gas producers (ExxonMobil, ConocoPhillips and BP) agreed to work together on the next generation of resource development in Alaska. The four companies
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Broome County, New York, Chenango County, and Delaware County, before terminating in Schoharie County. Pending environmental approvals, the pipeline is proposed to commence construction in April 2014 with a target in-service date of March 2015. In early June, Williams Energy received approval from Federal Energy Regulatory Commission to enter into the pre-filing process for the proposed approximately 359 km Pacific Connector Gas Pipeline Project (PCGP). The PCGP will provide a link with existing pipeline systems that converge at Malin, Oregon, and the west coast of Coos Bay, Oregon. The project is being proposed to connect this natural gas supply hub, where energy is competitively traded on a daily basis, to a proposed LNG terminal. The PCGP has the potential to give regional natural gas customers in Pacific Northwest market areas better access to domestic Rocky Mountain and Canadian supply basins. Gas will be transported 370 km from interconnects near Malin, Oregon, west and north to the Jordan Cove LNG terminal in Coos Bay, Oregon, where the natural gas will be liquefied for transport via ocean-going tanker to markets on the Pacific Rim. The proposed pipeline route does not need to be changed to accommodate the new east-towest flow direction. Construction is currently planned to commence in the fourth quarter of 2015, with an in-service date scheduled in the fourth quarter of 2017. At the end of March 2012, NET Midstream announced that Eagle Ford Midstream will build an approximately 169 km, 2430 inch diameter extension of its existing gas pipeline that will be anchored by a long-term gas transportation agreement with an affiliate of Anadarko Petroleum Corporation. The extended pipeline will transport residue gas from Western Gas Partners Brasada natural gas processing plant located in LaSalle County, Texas, to interstate and intrastate pipelines at the Agua Dulce Hub in Nueces County, Texas. The first phase of the expansion will be brought into service in December 2012, with completion by April 2013. The Eagle Ford Midstream system currently consists of 88.5 km of 16 inch diameter pipeline anchored by long-term commitments from producers in the LaSalle and McMullen counties, and delivers
Top 5 tips for your IPCE conference experience

With 13 technical tracks, 19 tutorials and an exposition with an anticipated 150 leading brand names in the industry, it is best to make sure you have a plan for the 9th International Pipeline Conference and Exposition. As the official media partner of the event, Pipelines International helps break down your five-day plan of attack with some suggestions to ensure you get the most out of the event.
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Construction on the Athabasca Pipeline.
pipeline-quality gas to NETs LaSalle Pipeline and Transco Pipeline located near Tilden, Texas.
Canadian oil pipelines

Enbridge is currently constructing the Athabasca Capacity Expansion on the existing 540 km line that runs from Fort McMurray to Hardisty, Alberta. This is expected to be in service by the first quarter of 2013. In addition to this, Enbridge is also in the planning stage of twinning the Athabasca pipeline, which would consist of a 345 km pipeline. This is expected to be in service in 2015. In addition, Suncor Energy Oil Sands Ltd Partnership has asked Enbridge Athabasca to progress regulatory approval for a new pipeline between Enbridge Athabascas existing Athabasca and Cheecham terminals to accommodate Suncors increased production rates. The Wood Buffalo (Line 18 Extension) Pipeline Project which is currently under construction includes an approximately 95 km, 30 inch diameter pipeline that will transport a diluted bitumen/synthetic heavy crude oil blend from the Athabasca Terminal to the Cheecham Terminal. From Cheecham, it will directly connect with the existing Line 18 (Waupisoo Pipeline), which extends from the Cheecham Terminal to the Edmonton Terminal. The project is set to be in service in 2012. Also under construction is Enbridges 138 km Woodland Pipeline Extension Project which will run from the existing Enbridge Athabasca Cheecham Terminal to the Edmonton Terminal, effectively extending the Woodland Pipeline, which is currently in development with a planned in-service date of September 2012.
In June 2012, TransCanada was selected by Shell Canada Ltd and its LNG Canada Project joint venture partners to develop an approximately 700 km natural gas pipeline from the Montney gas-producing region, near Dawson Creek, British Columbia (BC), to LNG Canadas proposed LNG facility near Kitimat. As it is early in the project planning process, a specific route has not yet been selected. Before a route can be defined, TransCanada will engage with Aboriginal and local communities near the conceptual route and continue with the stakeholder engagement throughout the life cycle of the project. The company plans to file a project description with the BC Environmental Assessment Office in the second half of 2012 and file the environmental assessment application in early 2014. Pending all required regulatory and project approvals, construction of the proposed pipeline is expected to begin in the summer of 2015 with pipeline operations beginning in time to meet the in-service requirements of the proposed LNG Canada facility.
he major industry event is held every two years in Calgary, Alberta, and as a not-for-profit conference its proceeds support educational initiatives and research in the pipeline industry. Held from 2428 September at the Hyatt Regency Hotel and the TELUS Convention Centre, the International Pipeline Conference and Exposition (IPCE) attracts major pipeline industry representatives from all over the world. The conference is managed by the International Pipeline Conference Foundation on behalf of the American Society of Mechanical Engineers (ASME) Pipeline Systems Division and is designed to inform, enlighten and motivate all those that attend. The exposition is organised by dmg::events and will showcase some of the industrys most recognised brands as well as the latest pipeline technologies, products and services.
Know the layout

With the events and activities being held in two locations the Hyatt and TELUS Convention Centre it is a good idea to familiarise yourself with the layout when you register so you can make sure you dont get lost and miss one of your many planned activities. With the conference sessions held at the Hyatt and the exposition located at the TELUS Convention Centre, a test run is the best way to find out how long it takes to move between the two so you can time your sessions and exposition time accordingly. Maps of the conference and exposition layout will be provided when you register, and there will be volunteers on site if you have any other questions so dont be afraid to ask for help.
Mexicos natural gas pipelines

In February 2012, TransCanada announced plans to build the 235 km Tamazunchale Pipeline in east-central Mexico to connect the facilities of Mexicos state-owned petroleum company to natural gas power-generation plants near Tamazunchale, Mexico. TransCanada expects to invest approximately $US500 million in the pipeline and anticipates an in-service date in the first quarter of 2014. The project will have a contracted capacity of 630 MMcf/d and use a combination of 30 and 36 inch diameter pipe with 37 MW of installed compression.
Plan sessions in advance

Attracting some of the most experienced and respected members in the pipeline community, the International Pipeline Conference will have many papers for you to choose from. Kicking off on Monday 24 September, conference registration will open at 9:00am and 14 tutorials will run. The streamed technical sessions will begin on Tuesday 25 September after the plenary
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Future industry prospects: a market outlook on the oil and gas sector
It is no secret that since the global financial crisis, areas of the world have been working diligently to increase growth and strengthen economies. Pipelines International secured an exclusive interview with Bank of Montreal Managing Director of Economic Research Earl Sweet to discuss the future outlook on North Americas position in the industry and where it can aid in economic growth.
ssociate Editor Sarah Paul caught up with Mr Sweet after his recent keynote presentation at the Bank of Montreal (BMO) Capital Markets North American Pipelines & Utilities Conference on 27 June 2012, where he addressed investors on global economic prospects and risks. Mr Sweet has more than 25 years experience applying economics to the business planning and strategy development processes at large financial institutions. Looking at the current state of the industry, Mr Sweet speaks about the rapid development of oil from tight formations, such as those found in the Bakken Shale in North Dakota. He outlined that a major
sessions, and run through to Friday 28 September. The 13 technical sessions will cover a wide range of topics, allowing you to learn from some of the top industry professionals and participate in discussions and lessons learned.
Exploring the exposition

With over 150 exhibitors in the exposition hall you will want to make sure you leave enough time to visit all the exhibitors relevant to your business. The International Pipeline Exposition showcases some of the leading companies and their new developments, products and services. Leave time between activities to fully explore the exposition floor, meet some new faces and get a hands-on experience with some new technology. The 2012 exposition will open at noon on Tuesday 25 September and close on Friday 28 September, providing the opportunity for an unmatched overview of the latest developments in the oil and gas pipeline industry, as well as associated sectors. While learning about some of the latest developments, the exposition floor is also a great way to catch up with friends and colleagues as well as network with some new clients. Companies from around the world will be exhibiting including: C-FER Technologies Clock Spring Company Direct Horizontal Drilling DNV Energy Enduro Pipeline Services IBP Brazilian Petroleum Gas and Biofuels Institute Keymay Industries Michels Canada NDT Systems & Services (Canada Inc.) Pigging Products & Services Association Stats Group International Inc. T.D. Williamson Inc. Vermeer And many more!
Attracting some of the most experienced and respected members in the pipeline community, the International Pipeline Conference will have many papers for you to choose from.
issue for mainly Canadian producers, and some United States (US) producers, is that there is currently not enough pipeline capacity to meet the increased oil production. This is causing a midcontinent glut of oil, with inventories bottlenecked at Cushing, Oklahoma, where West Texas Intermediate (WTI) is priced on the New York Mercantile Exchange (NYMEX), says Mr Sweet.
Piping for extra capacity

There have been efforts made to help relieve the build up of oil, one of which being the reversal of the Seaway Pipeline.
Bank of Montreal Managing Director of Economic Research Earl Sweet.
There are an expected 3,500 members of the pipeline industry and community attending which provides an unparallel opportunity to expand your business network. A number of networking events are taking place during the five-day conference such as: A Monday evening Conference Ice Breaker Reception sponsored by ASME Pipeline Systems Division and the Canadian Energy Pipeline Association On Tuesday there will be both an Industry Reception and the ASME Members Award dinner On Wednesday there will be the International Pipeline Exposition Cocktail Reception as well as the IPC Networking Reception supported by IPE at Mavericks in the Glenbow Museum. Be sure to check your programme for all the details on these events. Take advantage of having so many industry professionals under one roof and say hello to someone new new business is just around the corner.
Drop by the Pipelines International stand

As the official media partner of IPCE, Pipelines International is back again to bring you the latest on the conference and exposition as it happens in the daily event newsletter, the 2012 IPCE Update, and your event photographs. Make sure you drop by stand 1301 and say hello to John Tiratsoo, Lyndsie Mewett, Sarah Paul and David Entringer who take pride in bringing you all the latest in industry news. Pick up your copy of Pipelines International and declare your love for the industry with an I love Pipelines sticker. We look forward to seeing you there!
Great networking opportunities

Planning out your sessions and time in the exposition is important, but make sure to leave time for some of the great networking opportunities.
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meet the company
The reversal of Seaway will help alleviate the glut of oil building up at Cushing, although this year it will only bring an additional 150,000 bbl/d to the Gulf Coast, while incremental production in Alberta and North Dakota is in the vicinity of 500,000 bbl/d, says Mr Sweet. Mr Sweet notes of Enbridges efforts to invest in pumping stations to raise the capacity of Seaway to 400,000 bbl/d next year. This increase will help, but there will be even more growth in Alberta and North Dakota and so there needs to be additional pipeline capacity from Cushing to the Gulf Coast. There are plans to increase the pipelines capacity even further to 850,000 bbl/d in 2014. Mr Sweet says that the proposed Keystone XL Pipeline would also aid in the throughput of oil, and help with the double discount of oil prices i.e., reducing the discount of WTI from Brent and the discount of Canadian oil from WTI. While there is a strong need for additional pipeline projects south, it is also important for Canadian producers that pipelines be developed to the west or east coasts to ensure market diversification and bring Canadian prices up to the global benchmarks. Mr Sweet notes that US oil production is now rising again after two decades of decline. This has led to a reversal of a 20-year trend of a rising requirement for net imports. Production gains in tight formations in Texas have been even stronger than North Dakota and may eventually compete with southbound oil.This reinforces the need in Canada for westward market diversification. There has also been discussion around oil going east in Canada from Alberta to eastern Canada using TransCanadas 14,101 km Canadian Mainline Pipeline. The Mainline is currently in limited use due to a decline in natural gas production.
prices fall, demand rises as users substitute more expensive alternatives with natural gas or natural gas products. More important, Mr Sweet says, is the impressive increase in the reliability of the resource base and its wider distribution across the continent, which has actually lead to a positive shift in the whole demand curve as gas is used in new ways. For instance, base-load power generation has become more popular and chemical and petrochemical companies are bringing mothballed plants back into production. Mr Sweet says that while it will take time for the demand and supply adjustments to deal with the current glut, on an annual basis 2012 is expected to see the bottom of the price curve.
proposals for LNG projects in 201516 that could help reconnect North American gas prices with much higher international gas prices, although this wont likely be a major driver of prices until after mid-decade. Clearly, a refocusing on unconventional gas will have to go hand-in-hand with the development of LNG export facilities and related pipelines. This is something that is essential for Canadian producers diversifying their markets by opening up exports to Asia.
Dependable across the continent: an in-depth look at TransCanada

For more than 60 years, leading energy infrastructure company TransCanada has safely and reliably operated pipelines across North America. Continuing to do so today, Pipelines International speaks with President and CEO Russ Girling about the companys operations and future growth.
Pipelines to help economy

With the current state of oil build-up in North America and the need for more capacity, pipelines could be a lifeline for the economy. When asked what the economic benefits are of constructing pipelines, Mr Sweet says The real benefit is that it provides high-quality construction jobs at a time in which it is not easy to generate new jobs. There has been a lot of disappointment at the pace of job creation in the US recently, with businesses being more cautious in the hiring process. The pipeline construction industry has also provided good quality jobs in supplying industries such as steel manufacturers, welders and materials that come with the construction of a pipeline.
Current challenges for the industry

Speaking on the current challenges and concerns for oil and gas companies, Mr Sweet outlines the sharp decline in prices. One of the biggest risks to oil, Mr Sweet says, is that European policies does not take sufficient steps to hold the Eurozone together. Another concern for the industry is the slowing growth in China. While the authorities there are already taking steps to stimulate their economy there is still concern about a hard landing and how that would negatively impact a wide range of commodities, especially oil. The all-in cost of bringing the most expensive oil to market runs in the $US80$US90 range, says Mr Sweet. In addition, as discussed above with the current natural gas state, Canada has been late to the game in unconventional natural gas. Output peaked approximately a decade ago and has been on a decline since 2008. The current challenge or concern with this is that given the reduced US requirements for net imports of natural gas, Canadian exports also have been dropping since 2008, Mr Sweet explains. One of the reasons for a decline this year is due to unusually large US inventories resulting from the warm winter and continued steep production growth. There is a concern that by August inventories in the US and Canada will be close to full capacity, which could lead to shut-ins and increased recycling. This could see prices weaken notably at that time, albeit temporarily. However, with the blazing hot summer and ramped-up demand for power for air conditioning and increased use of natural gas for power generation, the supply/demand picture is gradually improving. While this will be the lowest year for average prices, they are not likely to rise quickly. Mr Sweet says that there are many
Keeping investors in the loop

Mr Sweet says that there has been much structural change in the energy production industry, particularly with regard to technological changes, and an awareness of this is important. The technological advances have really changed the whole paradigm in the US and Canada, requiring changes in energy transportation. The prolific natural gas fields in eastern US have important implications for west-toeast pipelines. Significant changes in technology and the location of production of natural gas will require substantial adjustments to pipeline infrastructure to manage the new production paradigm. Investors are able to gain insight by attending conferences both on the economy and the current standing of some of the major companies involved in keeping the industry moving. With these insights they are able to invest and help keep the pipeline industry moving.
ransCanada plays a vital role in connecting energy supplies to key North American markets with operations in Canada, the United States and Mexico. Operating one of the largest natural gas transmission networks in North America with 68,500 km of pipelines, the company is tapping into virtually every major gas supply basin in North America. The company delivers 20 per cent of the natural gas consumed in North America each day. TransCanada is also one of the continents largest providers of natural gas storage and related services with approximately 380 Bcf of storage capacity. President and CEO of TransCanada Russ Girling says the companys mission is to provide reliable supplies of energy across the continent, both safely and responsibly, and we are proud that millions of North Americans can depend on us for the energy they need.
Not just about gas

In the summer of 2010, TransCanada broadened its asset base to include a highly significant entrance into the oil transportation business with the start of commercial operations of the 3,467 km Keystone Oil Pipeline from Alberta to refineries in the United States in July 2010. Mr Girling says This area of our business is expected to grow substantially with the development of our proposed Keystone XL and Gulf Coast Project pipelines that will enhance North Americas energy security by providing a safe and reliable source of crude oil for American refinery markets. The planned expansion of our Keystone system will make us a leader in transporting Canadian and US growing oil production in the coming decades. Our expanded Keystone system is expected to move approximately one-third of total Canadian oil exported to the US, or 10 per cent of total US imports, by 2025. In addition to its oil and gas business, TransCanada owns or has interests in approximately 10,900 megawatts (MW) of power (electricity) generation from 20 facilities in Canada and US through its energy business. This equates to enough power to meet the needs of nearly 11 million homes. The company is Canadas largest private sector power generator and approximately one-third of the power generated comes from alternative and renewable sources (nuclear, wind, hydro and solar).
From the beginning

TransCanada was borne out of the development of the TransCanada pipeline, the massive natural gas line that opened in 1958 to connect Albertas natural gas supplies with the high-population markets in Ontario and Quebec. Now known as the Canadian Mainline, this 14,101 km pipeline remains a critical piece of North American natural gas infrastructure, and is the largest gas transportation system on the continent, Mr Girling says. The company has grown steadily through new development and acquisitions of natural gas pipeline infrastructure, eventually merging with NOVA Corp in 1998. This merger brought together NOVAs extensive Alberta natural gas gathering system with TransCanadas long-distance Mainline, making TransCanada the major transporter of Canadian natural gas within the Western Canadian Sedimentary Basin and across the continent.
Current state of natural gas

While natural gas is on a decline in Canada, the US has seen a boom in its natural gas resources, especially in the eastern states where more unconventional gas is being found. Natural gas has bucked the trend for most commodities recently, given its continental rather than global nature, and the fact that prices cant go much lower on a sustained basis. Very low prices, however, are increasing demand and will eventually lead to slower production growth. Mr Sweet discusses how the demand is being increased in two ways. The first being that given the nature of the demand curve, as
Continually improving business

TransCanada continually looks for ways to improve its business and reduce its environmental impact. Mr Girling says In our power business, for example, we use highly efficient cogeneration technology whenever possible, and strive to reduce energy consumption. In 2010 we spent more than $CDN6 million (approximately $US5.9 million) on
technological research and development to reduce environmental impacts. One programme involves the testing of a supersonic injector that captures methane emissions from dry gas seals. This captured gas is used to power turbines that drive gas through the pipeline. This builds on previous dry gas seal technology pioneered by TransCanada that improved the efficiency of the seal, reducing gas leaks and eliminating oil and grease spills. We have been recognised for these efforts. For the tenth year in a row, TransCanada was named to the Dow Jones Sustainability Index, a global index that tracks the performance of the leading sustainability driven companies. We are also listed among Canadas 50 best corporate citizens by Corporate Knights magazine, Mr Girling says. TransCanadas success is a reflection of its exceptional team of over 4,400 employees across North America who bring skill, experience, energy and knowledge to the work they do every day. TransCanadas people are the heart of our competitive advantage. Our path forward lies in committed and motivated people who demonstrate our values of integrity, collaboration, responsibility and innovation. Our Matching Gifts Programme matches the fundraising efforts of our employees who are involved in community volunteer efforts. We also support a wide range of professional development opportunities and leadership development and have been named one of Canadas Top 100 Employers, Mr Girling says.
Keeping integrity in safety

With one of the best pipeline safety and operating records in the industry, TransCanada monitors its oil pipeline system through a centralised high-tech Operations Control Centre 24 hours a day, 365 days a year. Using satellite technology
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projects
data are sent every five seconds from thousands of data points to its monitoring centre in Calgary. TransCanadas safety programme begins before construction with the selection of high-quality materials and pipelines are built using industry best practices. Pipe is inspected and pressure-tested for integrity before it ever goes into service. TransCanadas ongoing integrity management programme includes regular maintenance, monitoring by trained operators 24 hours a day, routine aerial patrol, ground surveys, cathodic protection against corrosion and internal inspections using devices like smart pigs.
Heading upstate: NY gets Constitutional

Natural gas will be heading upstate with Williams Energys proposed Constitution Pipeline Project, which will transport natural gas produced in Pennsylvania. Once in service, the project will have enough natural gas to serve approximately 3 million homes in the New York State area.
he approximately 195 km, 30 inch proposed Constitution Pipeline is planned to extend from Susquehanna County, Pennsylvania (Pa), to the Iroquois Gas Transmission and Tennessee Gas Pipeline systems in Schoharie County, New York (NY). The proposed project route generally follows the Interstate 88 highway, stretching from Susquehanna County, into Broome County, NY, Chenango County, NY, Delaware County, NY, and terminating in Schoharie County. Williams spokesperson Chris Stockton said The pipeline is not dependent upon, nor does it require the development of, new natural gas wells along the projects proposed path, because it is already fully contracted with long-term commitments from established natural gas producers currently operating in Pennsylvania. The pipeline has been designed with a capacity to transport 650 MMcf/d of natural gas.
Strategising for the future

Our strategic vision is to become the leading energy infrastructure company in North America. In pursuing this goal, we strive to deliver strong financial performance, execute on our large portfolio of attractive, low-risk projects and continue to create and cultivate a high-quality portfolio of future growth opportunities, Mr Girling says. TransCanadas financial performance continues to build on its strong track record of delivering strong and sustainable earnings and cash flow. Over the past ten years, TransCanada has made significant investments in high quality energy infrastructure assets, which have allowed the company to move forward in achieving its vision. We are in the advanced stages of a $CDN23 billion (approximately $US23.1 billion) growth programme that has seen $CDN10 billion (approximately $US9.85 million) in new pipeline and power projects placed into service since 2010. These new operating assets are critical North American infrastructure and have become an important part of our growing asset base, Mr Girling says. The company has key projects under development, including the Keystone XL and Gulf Coast Project. Once complete, the expanded Keystone system will have the capacity to move 1.4 million bbl/d of crude oil from Canada and northern US to refinery markets on the Gulf Coast and Illinois. Mr Girling says We are also exploring the opportunity of converting some of the Canadian Mainline to crude oil transportation from Alberta to Eastern Canada. This could help Canadian refineries in Ontario and Quebec reduce their reliance in more expensive oil imported from overseas and also allow for increased market diversification through access to international markets, including India, China, and Europe. This would allow
Permitting process
Natural gas pipeline construction GTN System Oregon.
Before the pipeline can be constructed, the Constitution Pipeline Company, a joint Like many forms of necessary infrastructure, TransCanada has noticed that pipeline construction has become more challenging due to less willingness of the public to accept the possible impacts of development. Pipeline companies have to focus more time and resources on building their social licence to operate, and earning the support necessary to operate across vast distances and through communities, Mr Girling says. We have to be very proactive with communicating our intentions and the benefits of our projects, while also being committed to listening and working with communities to address their concerns.
venture between Williams Partners and Cabot Oil & Gas Corporation, must first obtain a federal Certificate of Public Convenience and Necessity from the Federal Energy Regulatory Commission (FERC), in addition to various state and local permits. In April 2012, Constitution Pipeline Company requested that FERC initiate a pre-filing environmental review of the proposed pipeline route and the project was assigned docket number PF12-9, which can be accessed via the FERC website. The FERC pre-filing process is intended to solicit early input from citizens, governmental entities and other interested parties to identify and address issues with potential facility locations. The company will host a series of public open houses in the affected areas to formally introduce the proposal to the public and solicit feedback. Public input is important to the project and can help shape the final project route, Mr Stockton said. Following the pre-filing period, Constitution Pipeline Company would file an application with FERC in early 2013 seeking approval to construct the pipeline.
The route selection

The proposed route is part of a study corridor and is subject to change. It attempts to maximise opportunities to co-locate with existing corridors (power transmission lines, road right-of-way, Interstate 88 corridor and existing pipeline corridors), while avoiding watersheds and aqueduct tunnels. The proposed route avoids populated areas where possible, while minimising impacts to wetland, riparian and other high value wildlife habitat areas. The route also minimises river and stream crossings to reduce environmental impact, Mr Stockton said.
Surveying
Ground surveys are a preliminary first step in gathering critical information that can be used in developing a pipeline proposal. Initial ground surveys (environmental, cultural and civil surveys) began in the spring of 2012. After receiving permission from the landowner, each property will be visited by various specialists in land, engineering and environmental sciences.
Canadian producers to receive a better price for the countrys resources, something all Canadians would benefit from in terms of jobs and taxation revenues from royalties. TransCanada is also involved in the emerging LNG market after the company was selected by Shell Canada Limited and its joint venture partners in the LNG Canada project to develop an approximately 700 km pipeline to transport gas across northern British Columbia (BC) to LNG Canadas proposed export terminal near Kitimat, BC.
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Earning community support

The energy sector is under an enormous amount of scrutiny these days, and pipelines in particular have become targets for environmental activists and others whose goal is to shut down fossil fuel development, Mr Girling says.
For more information visit www.transcanada.com
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All information collected will be used to help determine the best location of the proposed pipeline facilities.
Benefitting the economy

Mr Stockton said that the presence of a natural gas transmission pipeline creates a backbone for future economic growth in the region. There will be significant short-term
Constitution Pipeline projected schedule April 2012 Pre-filing process begins June 2012 Ground surveys begin July 2012 Open Houses and Informational Meetings Autumn 2012 Begin easement negotiations January 2013 Submit 7(c) application to FERC April 2014 Proposed construction start March 2015 Target in-service.
economic impacts during the construction phase of the project. Restaurants, hotels/ motels and retailers will experience increased activity from construction crews. Mr Stockton said The state and local community will benefit economically through state and local sales and also taxes paid for the materials and equipment purchased to be installed at the job sites. Local communities will also benefit from property taxes that Constitution Pipeline Company will pay during the ongoing operation of the pipeline. In addition, the pipeline would be considered an open access pipeline meaning that local municipalities or public utilities could potentially tap the line in the future to provide residential, commercial and industrial natural gas service.
Working with the community

Constitution Pipeline Company is committed to working with landowners, as well as local, state and federal agencies, to design and construct the project in a manner that minimises environmental and landowner impacts. The company is
committed to extensive public outreach in advance of submitting its application to the FERC. The companys goals are to: Generate a broad awareness of the project, its purposes and value to the regions economy and to meeting the future energy needs of the state and region; Ensure that community residents and a broad range of stakeholders have ample opportunity to understand the process and their rights, ask questions, voice concerns and present ideas about the project; and, Create an atmosphere of openness, disclosure and public dialogue in which it can respond to questions, concerns and suggestions presented by the community and other stakeholders. The pipeline is expected to being construction in April 2014 with March 2015 as a proposed in-service date. Williams Partners will own 75 per cent of the Constitution Pipeline and, through its affiliates, will provide construction, operation and maintenance services for the new pipeline. Cabot will own the remaining 25 per cent.
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A map of the proposed Constitution Pipeline System.
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terrain review
An aerial view of the PNG LNG pipeline.
terrain review
Pipelines in the mighty jungle

Characterised by dense forest, a prevalence of wild animals and difficult hydrological conditions, jungle terrain is by no means an easy feat when it comes to constructing pipelines. Construction contractor Punj Lloyd and PNG LNG Project operator ExxonMobil discuss steps that can be taken to ensure a successful pipeline project in the jungle.
unj Lloyd has constructed several projects in India that traverse difficult jungle terrain. These include the 303 km East West Pipeline, the approximately 1,000 km Dabhol to Bangalore Pipeline and the 25 km pipeline from Mangalore to Bangalore, which traversed through difficult jungle terrain. The Bhivpuri Ghat section of the East West Pipeline, located in the State of Maharashtra, India, consists of jungle terrain. This pipeline was laid in the dense forests in 2009 at a steep slope ranging from 4580, says the Punj Lloyd Pipeline Team. Pipelay for the Dabhol to Bangalore Pipeline was through the forests of the Western Ghats in Maharashtra. The Mangalore to Bangalore Pipeline was also laid in the dense forests of Karnataka, which contained vulnerable species. In its experience with jungle terrain, the Punj Lloyd Pipeline Team faces a great challenge in preserving as many trees as possible, which can result in a severely restricted right-of-way (RoW) and a difficult construction spread. Other challenges include climatic challenges, such as heavy rains, the presence of wild animals in forested areas, and the general protection of rare flora and fauna. Another issue associated with jungle terrain is steep slopes, which can be tackled through use of specialised equipment, says the team. Only experienced and trained staff get selected to construct pipelines in jungle terrain, says the Punj Lloyd Pipeline Team. Specialised operators and manpower have to be deployed on steep slopes, and special protection techniques are required to avoid any damage to the environment in these areas. One of these special techniques includes use of an erosion control blanket, which is known as a reno mattress. The reno mattress is a special type of gabion with a large plan area to thickness ratio with double twist-woven mesh, explains the Punj Lloyd Pipeline Team.
It is used in mountainous and jungle terrain for erosion control and embankment stability. The base section is divided into 1 m wide compartments with the help of diaphragms to restrict the movement of stone and reinforce the structure. All panel edges are selvedge with a wire of larger diameter than that used for the mesh, so as to strengthen the structure. Reno mattress protections are able to integrate with the surrounding environment, permitting the preservation or restoration of nature. The filtering capability of the rock fill allows the soil, water, air and plant life to interact naturally. Reno mattresses offer long-term erosion protection, providing shear resistance which is twice that of rip-rap for the same sized stone. A polymer coated and galvanised woven reno mattress can also be used in aggressive environments. Another innovation that has been developed to tackle the challenge of steep slopes is the cable crane system. When pipelaying in jungle terrain, where obstacles come one after the other, the RoW is often blocked. The cable crane system is used for further movement of heavy equipment and material including pipes, to achieve direct routes traversing through the difficult terrains. Since it is an environmentally friendly system it does not harm the surroundings in which it operates. Punj Lloyd used the cable crane system for the first time in India on the Bhivpuri Ghat section of the East West Gas Pipeline for transporting equipment, and laying pipe in steep slopes ranging from 4580, the team said.
Case study: the PNG LNG Project

The PNG LNG Project, which is currently under construction in Papua New Guinea (PNG), involves a two-train, 6.6 MMt/a LNG processing facility, envisaging the integrated development of the Hides, Angore and Juha gas fields, as well as associated gas from the Kutubu, Agogo, Gobe and Moran oil fields. Joint venture participants include Esso Highlands as operator (33.2 per cent), Oil
Search (29 per cent), PNG Government (16.6 per cent), Santos (13.5 per cent), Nippon Oil and Gas Exploration (4.7 per cent), Mineral Resources Development Company (2.8 per cent), and Petromin PNG Holdings Ltd (0.2 per cent). Gas will be transported to the LNG plant near Port Moresby through approximately 850 km of large diameter pipeline. At the time of writing, the offshore component of the pipeline had been completed and over 180 km of the onshore pipeline welded, trenched and buried. The 292 km, 3234 inch diameter onshore component of the pipeline traverses densely forested terrain, including steep slopes, narrow razorback ridges, liquefiable soils, complex karst formations, sinkhole and subterranean streams, wetlands and swamps. Additionally, difficult hydrological conditions including heavy rainfall and localised flooding, as well as the presence of geohazards such as seismic faults, pose challenges to pipeline construction. The PNG LNG onshore pipeline crosses seismic faults that have the potential of displacing several metres during the lifetime of the project, says Esso Highlands Ltd Onshore Pipeline Manager Suresh Batra. To overcome this challenge, we conducted a significant research and testing programme that looked at both the demand side of the equation (how the PNG soils apply load to the pipe during fault movement) as well as the capacity side (how the pipeline material reacts to the soil load). On the demand side, we conducted pipe-soil interaction tests to measure how much pressure various types of soil apply to the pipe as the soil moves around it during fault movement. On the capacity side, we first teamed with highly qualified line pipe mills to fabricate the pipe to the unique specifications. Then, full-scale strain tests under operating conditions were conducted on samples of the pipe to verify the strain capacity of the pipeline during a
seismic event. Furthermore, we worked with the pipeline installation contractor to ensure that the tight construction specifications were transferred from the lab to the work site in PNG. Developing monitoring and mitigation plans for the long-term operation of the project was key to overcoming the construction challenges in PNG, adds Mr Batra. Constructions challenges were overcome through: Establishing strict route selection criteria; Engineering processes pipeline surveys (aerial and ground), mapping tools and field work; Evaluating geohazards and implementing appropriate risk mitigation measures; and, People leveraging ExxonMobils experience, industry experts and multiple organisations and disciplines. The pipeline routeing was the single and largest environmental impact of the project. The physical, construction, as well as environmental and social factors also had to be considered in routing and construction of the pipeline.
Welded pipe for the PNG LNG Pipeline ready to be lowered in.
The pipeline route was optimally chosen in areas of reduced ecological value or risk such as brownfield sites (cleared areas), previously logged forest, secondary regrowth forests adjacent to existing infrastructure, minimised waterway crossings and terrain with stable soils. ExxonMobil says it is actively managing these challenges and remains on track to deliver first gas in 2014.
Anchoring a reno mattress along the RoW, with a cable crane in the background.
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coatings
Industry need for mobile pipe coating technologies

by Vlad Popovici, Marketing Manager, Bredero Shaw, Toronto, Canada
Most of the worlds gathering and transmission pipelines are built using steel pipe and the industry has dedicated a lot of resources to protect the pipe against any potential causes that could lead to pipeline failure. Various types of external coatings with multiple functional roles anti-corrosion protection, mechanical protection, thermal insulation, buoyancy control have thus been developed.
hereas these coatings were traditionally applied in fixed pipe coating facilities, recent structural changes in the global oil and gas sector have created strong incentives for operators, contractors and coating suppliers to use mobile pipe coating technologies and facilities. As these structural changes could remain in place for the foreseeable future, the pipe coating sector will probably move fast toward a mixed model using both fixed and mobile pipe coating facilities.
The fixed coating plant model

The traditional model for coating steel pipe uses a fixed, specialised coating facility often located at, or close to, a steel pipe mill. Most of the steel pipe mills tend to be relatively close to traditional oil and gas producing regions where most of the gathering and transmission pipelines used to be installed. Some of the pipe mills added basic pipe coating services usually simple anti-corrosion coatings to their steel pipe offering, directly competing against specialised independent pipe coaters. The pipe mills that did not offer pipe coating services partnered with a specialised independent pipe coating supplier for coating the pipe before transporting to the project right-of-way or to a temporary storage yard in preparation for onshore or offshore installation. For more specialised coatings, such as concrete-weight coatings or thermal insulation coatings, the fixed coating plant model meant that the coating facility was installed as close as possible to the main traditional oil and gas production regions, such as the North Sea, the Gulf of Mexico or western Canada, betting on clusters of pipeline coating projects able to sustain a fixed facility for decades. The fixed coating plant model works well as long as there are a lot of pipeline projects in the area covered by the fixed facility.
The Brigden facility installed for a flow-assurance coating project.
However, the recent structural changes in the oil and gas industry have uncovered the limitations of this model. As in many industrial markets, the traditional oil and gas production regions have attracted a lot of pipe mills and independent coating suppliers, creating pipe coating overcapacity situations in some regions that are maturing, such as the North Sea. This has increased the level of competition in these regions and forced some coating suppliers to under utilise their regional fixed facilities, idle them with significant fixed costs or, in some cases, shut them down entirely. Some coating suppliers have turned to exports to increase the utilisation rate of their fixed plants. However, the specialised coatings mentioned above do not travel well over long distances, as they significantly increase the overall logistic costs of the pipeline project. This opens a pipe coating supply gap in the new oil and gas production
frontiers, where the pipe coating volumes do not yet justify the investment in a new fixed pipe coating facility. Although these regions can be covered by importing pipe and coatings, the added project cost is significant, especially as new production frontiers are further and further away from the traditional production regions.
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Anti-corrosion and ow assurance Brigden is our innovative modular, mobile plant capable of applying our full range of anti-corrosion and ow assurance coatings.
Protection and weight We can set up our mobile concrete coating plants close to your project, signicantly reducing logistics cost associated with heavy concrete coated pipe.
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Main drivers for increased plant mobility

As discussed above, the traditional fixed pipe coating plant has limitations that can create supply gaps and/or significant project cost increases. This has created a favourable context for developing mobile pipe coating technologies to complement the existing and future fixed pipe coating facilities. This context is expected to continue for the foreseeable future due to the following two major drivers:
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coatings
coatings
Using mobile coating plants to serve some of these frontier regions makes economic sense for both the pipeline operators and for the pipe coating suppliers.
Pipe coated with concrete in a mobile plant.
1. Remote frontier regions become increasingly important oil and gas supply regions Oil and gas fields are discovered and developed further and further away from the maturing production regions. These new frontier regions, such as onshore and offshore East Africa, United States shale plays and some parts of the Arctic, do not yet have and might never have enough pipeline construction activity to justify the investment in a fixed pipe coating plant. Using mobile coating plants to serve some of these frontier regions makes economic sense for both the pipeline operators and for the pipe coating suppliers. Thick and heavy coatings mostly thermal insulation and concrete-weight coatings reduce the quantity of pipe that can be transported from the pipe mill to the project location in one trip and thus significantly increase the logistic costs of the project. 2. Increasingly challenging production environments increase the need for specialised pipe coatings that can significantly increase the pipe transportation costs For example, offshore oil and gas pipelines have to be coated with heavy concrete to control the pipelines buoyancy in shallow waters, while the ongoing drive to deeper water exploration and production increases the need for thermal insulation pipe coatings. These specialised coatings do not travel well, as they are either thick and/or heavy, thus increasing the pipe transportation costs. Moreover, the number of projects that require buoyancy control or thermal insulation pipe coatings in one region does not usually justify the investment in a fixed coating plant, creating an incentive for both pipeline operators and pipe coating suppliers to use a mobile coating plant to execute these projects.
Pipes coated in a portable plant with a multi-layer flow assurance system.
Other secondary drivers, such as the strict local content requirements for oil and gas projects in certain countries in South America or west Africa, are creating further incentives for using mobile pipe coating technologies.
Mobilising specialised pipe coatings

Concrete-weight coatings and thermal insulation coatings benefit most from being applied in mobile pipe coating facilities. Concrete-weight coatings have been developed and used during the last four decades to control the buoyancy of offshore pipelines installed in shallow waters. To address the high transportation costs and complex logistics of concrete coated
pipe, Bredero Shaw has continuously improved its side wrap concrete coating process and developed the first portable plant for concrete coatings. Today, the equipment of a mobile concrete coating plant can be loaded in 812 standard 6 m containers and the mobile plant can be up and running within two weeks of arrival onsite. It can be configured for applying concrete-weight coatings for offshore pipelines on a wide range of pipe from 1681,200 mm outer diameter. After being demobilised, every component of the plant is repaired and refurbished in a centre of excellence located in Texas, US, to exacting standards. Bredero Shaws mobile concrete coating plants have
successfully completed more than 200 projects with concrete-weight coatings for more than 150 customers. The mobile concrete coating plants have been mobilised in over 50 locations around the world and the list continues to grow. Addressing the high transportation costs and complex logistics of thermally insulated pipe, Brigden is an innovative modular portable plant concept developed by Bredero Shaw for applying a wide range of anticorrosion and flow-assurance pipe coatings using proven, best in class process technology while delivering the same quality and output as a fixed plant. The plants innovative design also includes automatedend finishing using advanced robotics. Brigden is a turnkey coating facility assembled from process modules delivered in specially-designed shipping containers that are ISO certified. The plant can be assembled onsite in approximately eight weeks. While the standard plant configuration includes fusion-bonded epoxy and three-layer anti-corrosion coatings, as well as extruded side wrap insulation coatings, additional modules can also be added to facilitate the application of any flow-assurance and anti-corrosion pipe coating system. A Brigden mobile plant has the same production capability as a fixed plant. Brigden is capable of coating pipe with an outer diameter of 2201,066 mm and lengths of 10.424.4 m. The plant comes fully equipped with integrated facilities for raw materials storage, facility maintenance, and quality control and testing. All phases of the Brigden coating operation, including surface preparation, pre-heat, coating application and final inspection can be conducted in an enclosed area of 1,700 sq m. A total area of 1.2 ha is needed to setup the entire facility, excluding pipe storage requirements.
simplifying the project logistics, avoiding significant additional logistic costs for pipe transportation, and increasing the local content of the project. The communities where the mobile coating plants are mobilised benefit as local people are hired to operate the plants, and the auxiliary rolling stock required for the coating operations cranes, trucks and front-end loaders are sourced locally. Finally, mobile coating facilities allow the pipe coating suppliers to optimise the utilisation of their asset base by increasing the utilisation rate of the coating plants. A mobile coating plant can be easily moved to a new location in case no more coating projects are available in the region where the plant was initially installed. To provide a better understanding of the benefits of using mobile pipe coating plants, below are some recent projects. A pipeline operator wanted to install a mechanical protection concrete-based coating system on more than 100 km of a pipeline project in the Asia-Pacific region. The closest fixed coating facility offering that type of specialised coating was in western Canada, approximately 11,500 km away, and far from any ocean port. Bredero Shaw
therefore mobilised two mobile concrete plants that could apply the required coating in the Asia-Pacific region, significantly reducing the pipe transportation costs and simplifying the project logistics. In another recent example, concreteweight coatings were required on a pipeline to be installed offshore eastern Canada to control the pipelines buoyancy. The 14,000 joints of pipe with 560 mm outer diameter needed an average of 80 mm of heavy concrete coating. However, the closest fixed concrete coating plant was located 4,500 km from the pipeline installation location. A mobile concrete coating plant was mobilised only 250 km from the installation location, providing multiple benefits to the pipeline operator such as simplified pipe logistics and significantly lower pipe transportation costs. Finally, a recent project in the Gulf of Mexico required the coating of 50 mm thermal insulation coating for 8,000 pipe joints with a 273.1 mm outer diameter. Although the closest fixed coating plant offering the required thermal insulation coating was only 400 km away from the pipe mill that produced the pipe in Europe, coated pipe would have taken 37 per cent more space on the ship than bare pipe and costs would have increased quickly over the 9,000 km to the pipe destination in the US, as less pipe would have been transported in one trip. Instead, pipe was shipped from Europe uncoated and insulated by a Bredero Shaw mobile coating plant located very close to the pipes final destination.
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Benefits of mobile coating facilities

Using mobile pipe coating facilities for new pipeline projects offers benefits for all stakeholder categories. The pipeline operators get the same guaranteed coating quality anywhere in the world while
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coatings
Coatings come alive: first sprays in a live LNG plant

by Lau Hong Kit, Wasco Corrosion Services Sdn Bhd
In November 2011, a major milestone was reached for the coating industry and Wasco, as the companys corrosion protection subsidiary, Wasco Lindung Sdn Bhd, successfully completed the first thermal spray aluminum coating project in a live plant. It is believed that this is the first of its kind in the world.
asco has over 15 years of thermal spray aluminum (TSA) coating application experience, specifically within the oil and gas sector. The company is also one of the leading Shell International approved TSA vendors. For years, oil and gas engineers have been contemplating the application of TSA coating in a live plant, and now arc spraying inside a live plant has been proven possible with Wascos recent success. The asset owner, Brunei LNG (BLNG), and Wasco partnered in applying the TSA coating onto one unit of the external surface of a stainless steel vessel. The equipment, installed and insulated in 1960, has been in service for 41 years. Site visits and inspections showed that after the insulation materials were removed the paint started flaking off. Some of the challenges the engineering team faced included safety and project execution issues. The team of skilled TSA applicators was led by Wascos Senior Project Manager and BGAS-CSWIP certified coating inspector, Lau Hong Kit. The coating system selected was with reference to BLNGs TSA standard and was carried out in accordance to BLNGs stringent safety rules and regulations. Wascos TSA applicator En. Zulkefli said I am honoured to be part of such a challenging project, and despite the difficulties we faced, we successfully applied TSA coating on a live vessel containing LNG. Mr Lau, also an Accredited NACE Senior Corrosion Technologist, shared his experience working on this project. I was informed by BLNG that the vessel was located at a high-risk area. This further emphasised the importance of carrying out a thorough risk assessment in order to ensure the safety of all parties.
Upon resuming operations, the vessel had a cyclic temperature ranging from -170C to 50C. The coated surface was inspected before and after the icing process and no coating defects were found. The TSA coating bonded well onto the vessels external surface. Wasco and BLNG are proud to have collaborated on this project and its successful on schedule delivery while adhering to stringent safety procedures. The success of this project was attributed to a few factors that included being in full compliance with stringent HSE standards, close teamwork with the client to understand the risk, defining mitigations and having proper site control during execution. With the success of this first project, Wasco is geared to take on similar TSA projects globally. This milestone has opened up a lot of potential for Wasco. The company is committed to working on the advancement and development of TSA coating expertise.
The live thermal spray aluminum coating.
Upon resuming operations, the vessel had a cyclic temperature ranging from -170C to 50C. The coated surface was inspected before and after the icing process and no coating defects were found. The TSA coating bonded well onto the vessels external surface.
For more information visit www.wascoenergy.com
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Get your pipe fix in Berlin

Dont miss the unparalleled opportunity to expand your pipeline knowledge by attending the Fixing Pipeline Problems Conference and Exhibition, to be held from 1518 October 2012, at the Estrel Hotel, Berlin, Germany.
rganised by Tiratsoo Technical a division of Great Southern Press and Houston-based Clarion Technical Conferences, this new international conference and exhibition will cover a variety of topics ranging from initial evaluation to rehabilitation of pipelines. These topics will give you the knowledge of the steps needed from the initial stages of evaluation of a pipelines condition, to the steps required to undertake rehabilitation of the structure to ensure its continued fitness-for-purpose and prolong its economic life. Incorporating aspects of the Evaluation Rehabilitation and Repair of Pipelines Conference, the event will not only provide a forum to discuss the latest developments in the industry, but also showcase some of the industrys latest achievements, providing an unmatched opportunity for delegates to network and learn.
Developing an effective in-service welding programme

by William A. Bruce and Bradley C. Etheridge, Det Norske Veritas, OH, USA
The programme
The conference programme will address key issues in oil and gas pipeline rehabilitation technologies and practical applications for pipeline inspection, evaluation and inspection methodologies, cathodic and anodic protection, coatings and linings, chemical treatment, coating repair, and recoating procedures. Registration opens on Wednesday 17 October with a great line up of speakers following. Leading professionals from all over Europe, North America, South America and Saudi Arabia will be addressing problems in the industry as well as providing successful project insights and case studies.
The programme will be divided into the following broad areas of interest: Inspection internal and external Integrity assessment Repair and rehabilitation practices and technologies Internal issues including black powder, microbial corrosion External issues including coatings, DCVG, direct assessment. The scope of covered technologies and best-practices includes: Pipeline rehabilitation project experiences and case studies Fitness-for-service assessments and methodologies Use of in-line inspection surveys to determine rehabilitation approaches New coating materials Coating rehabilitation and re-coating procedures Sectional replacements Pipe repair and physical rehabilitation practices In-service welding procedures and inspection methodology. This is a chance for you to take away lessons learned from case studies and apply them to your projects for successful completions.
A company-specific standard for in-service welding, along with other documents, such as welding procedure specifications and procedure qualification records, make up an in-service welding programme. The purpose of this article is to bring attention to commonly overlooked or misunderstood in-service welding programme elements.
elding onto an in-service pipeline is advantageous in that it allows cost-effective installation of branch connections (hot taps) and pressurecontaining repair sleeves (Figure 1) by avoiding the loss of pipeline throughput and contents. However, two primary concerns need to be considered. The first is for welder safety, since there is a chance that the welding arc could cause the pipe wall to be penetrated and allow the contents to escape. The second is for the
The exhibition
The intimate exhibition area will provide you the chance to network with some of the industrys leading companies while they showcase some of the latest in technology and developments in the field. Having the conference and the exhibition side-by-side also allows you to learn about the different technologies, get hands on experience and have the opportunity to ask questions. In addition, it provides a great opportunity to network and create new business opportunities. Spots may still be available so make sure to contact David Entringer at dentringer@gs-press.com to see if your company can take advantage of this great opportunity.
integrity of the pipeline following welding, since welds made in-service tend to cool at an accelerated rate as the result of the ability of the flowing contents to remove heat from the pipe wall. These welds, therefore, are likely to have hard heat-affected zones (HAZs) and a subsequent susceptibility to hydrogen-assisted cracking. While there are concerns that need to be considered, welding onto an in-service pipeline can be relatively straightforward, provided that well-established guidance
is followed. The development and careful execution of an effective in-service welding programme will allow the potential economic benefits of in-service welding to be safely realised. A burnthrough or blowout as it is sometimes referred will occur when welding onto a pressurised pipeline if the un-melted ligament beneath the weld pool has been heated to an extent that it can no longer contain the internal pressure. A burnthrough typically results in a small pin-hole in the
Pre-event courses
Get more out of your conference experience and sign up for the pre-event courses which will give you an in-depth look at different repair methods. Running from 1516 October, two courses will be offered this year: Pipeline repair, hot tapping and in-service welding: Director of DNV Columbus Welding Technology Bill Bruce will cover the various aspects of pipeline repair using weld and non-weld methods as well as the concerns for welding onto in-service pipelines and the approaches used to address them. Performing pipeline rehabilitation: President of Incal Pipeline Rehabilitation Inc Sidney A. Taylor will cover practical aspects of pipeline rehabilitation on both internal and external rehabilitation. The course will be go into depth on how to safely rehabilitate operation pipelines using manual and automated equipment.
Networking with the best

Make sure to leave time to attend the great networking opportunity on the evening of Wednesday 17 October. The reception, which will be held in the exhibition area, is the highlight of the networking programme as it brings all conference attendees together in a relaxed setting, enabling an unprecedented networking opportunity. The reception provides an opportunity for all those involved in the European pipeline rehabilitation sector to be in the same room at once, allowing you to meet some of the industrys finest. Catch up with old colleagues or friends and introduce yourself to someone new you never know when a business opportunity will pop up.
The event will not only provide a forum to discuss the latest developments in the industry, but also showcase some of the industrys latest achievements.
For more information and to register visit www.clarion.org
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bottom of what was the weld pool (Figure 2). The risk of a burnthrough will increase as the pipe wall thickness decreases and the weld penetration increases. Hydrogen cracking requires that three primary, independent conditions be satisfied simultaneously hydrogen in the weld, a susceptible weld microstructure, and a tensile stress acting on the weld. To prevent hydrogen cracking, one of the three conditions necessary for its occurrence must be eliminated or reduced to below a threshold value.
INTERNATIONAL PIPELINE CONFERENCE & EXPOSITION

September 24 28, 2012 Calgary, Alberta, Canada
Elements to consider
Listed below are some commonly overlooked or misunderstood elements that need to be considered when developing an effective in-service welding programme. Wall thickness limits to prevent burnthrough Some companies have wall thickness limits below which in-service welding is prohibited. For a given wall thickness, the risk of burnthrough is a balance between the amount of heat that is being introduced by the welding process and the amount of heat being removed by the flow of the contents. Previous work concluded that a burnthrough will not occur if the wall thickness is 6.4 mm (0.250 inches) or greater, provided that low hydrogen electrodes (AWS EXX18-type) and normal welding practices are used. Welding onto thinner wall materials is possible and considered routine by many companies, although the use of a welding procedure that limits heat input is often specified. Pressure limits/pressure reduction requirements Some companies have pressure limits above which in-service welding is prohibited; either absolute pressure limits or formulas for calculating a required pressure reduction. It is a common misconception that pressure must always be reduced to
Figure 1: Installation of a pressure-containing full-encirclement repair sleeve.
MEETING THE CHALLENGES

The international pipeline industry will come together for the International Pipeline Conference & Exposition 2012 to share leading edge information which provides the industry with the tools to meet the evolving challenges of pipelining in todays world.
Welding onto an in-service pipeline can be relatively straightforward, provided that well-established guidance is followed.
THE CONFERENCE
prevent burnthrough. The previous work mentioned above concluded that burnthrough will not occur under the conditions described regardless of the internal pressure. While a pressure reduction may be justified to prevent the defect being repaired from rupturing during the installation of a full encirclement sleeve, previous work concluded that stress levels in the pipe wall has a relatively small effect on the risk of burnthrough. The size of the area heated by the welding arc is small, and the stress in
THE EXPOSITION
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Figure 2: Burnthrough on 0.125 inch (3.2 mm) thick pipe.
the pipe wall can redistribute itself around the heated area. Pressure reductions are, therefore, relatively ineffective at preventing burnthrough, and the use of formulas for calculating a safe pressure level for welding onto in-service pipelines is generally unnecessary. Many companies use in-service welding to install hot taps without reducing pressure.
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17th International Conference & Exhibition on Liquefied Natural Gas (LNG 17)
Barking up the right tree with an innovative pipeline leak detection method
by Brian Kerrigan, Senior Pipeline Integrity Engineer, Penspen Integrity, Newcastle upon Tyne, UK
For the past five years, the Penspen Group, in conjunction with Manchester Jetline and Newcastle University, has been conducting pipeline integrity research that has now resulted in mans best friend becoming a recognised service in pipeline leak detection.
ipelines are widely accepted as being the safest and most economical means of transporting hydrocarbons over long distances. However, as they age, they can corrode, fatigue, or become damaged in service, leading to product leakage. Consequently, leak detection methods are important to pipeline operators. Most operators use sophisticated online detection systems, but these systems are limited to a detection tolerance of approximately 1 per cent of pipeline flow anything less may go unnoticed. Other leak detection methods aerial surveys, optic fibres, acoustic monitoring, etc. complement the online systems, but they also have significant drawbacks, including high retrofit costs and poor location accuracy. In-line inspection (ILI) using smart pigs can provide early warnings of leaks, by detecting damage before it leaks, but smart pigs can struggle to detect very small pinhole defects or accurately size defects with a depth greater than 80 per cent of the pipe wall thickness. According to a May 2007 CONCAWE report, these limitations are reflected in the fact that 51 per cent of leaks in liquid pipelines, and 42 per cent of leaks in gas pipelines, are presently first detected by third parties, such as passers-by, and not by the industrys leak detection methods. As an industry, our task is to improve these statistics and ensure leaks are detected more rapidly and effectively by technologies. One solution Penspen has identified is the use of dogs.
A recent 2012 leak detection inspection along a live pipeline.
The Biggest Global Gas Event in 2013

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a pipeline. The results confirmed that trained dogs can be deployed along pipelines as a reliable and accurate leak detection tool; a dog is 96 per cent reliable in detecting leaks as small as 0.07 ml.
How it works
Each dog is initially trained for six weeks to become a professional pipeline sniffer dog. The training is based around a single target scent (for example, jet fuel). The ability to detect this scent is forever imprinted on the dog, but they have the ability to detect multiple scents: training the dog to detect another scent (for example, diesel) takes another two weeks. This means a pipeline operator can send samples of its product to a specialist trainer who would teach a dog to detect the target scents, confirming the dogs reliability and accuracy in locating the product before it is deployed by the operator.
LNG 17 DELEGATE REGISTRATION NOW OPEN!

On the trail: Blitzen performs a line walk, sniffing for pinhole leaks.
Secure your place at the largest conference and exhibition for the LNG industry and save $300 per delegate with our Early Bird Discount FIND OUT MORE AND REGISTER AT
www.LNG17.org
More high level speakers than ever before
Research to date
Since 2007, Penspen, Manchester Jetline, and Newcastle University have been researching the feasibility of using dogs for leak detection. The results gathered during the research verified and quantified the dogs accuracy and reliability in locating a leak on
The actual field work is simple: the sniffer dog and handler conduct an aboveground survey along a pipeline right-of-way, similar to a line walk. The location of any escaping, or stagnant product is quickly pinpointed by the dog.
5,000 international delegates
Record-setting exhibition of 200,000 sq ft
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INTERNATIONAL ORGANIZERS:
HOST ASSOCIATION:
industry news
Recent industry success

Recently, a United Kingdom pipeline operator wanted to re-use a pipeline that had been out of service for a number of years. The pipeline had been in-line inspected 18 years ago, and deep corrosion had been reported. Consequently, there was a high probability of pinhole leaks being present in the pipeline after these 18 years. The operator wanted to conduct an ILI before bringing the pipeline back into service, but decided it was prudent to check that there were no leaks using sniffer dogs. The operator recognised that ILI tools cannot detect pinhole leaks reliably, but a dog can. The preferred dog, Blitzen, was quickly trained and calibrated by its owners, Dog Detectives, on the scent of the product, and confirmed that there were no leaks along the pipeline. Furthermore, the ILI tool reported that there were no throughwall defects along the pipeline (i.e. no leaks). This case study has confirmed that trained dogs can be deployed as a routine inspection method, or run in parallel to any scheduled ILI to fully evaluate and confirm the integrity of any pipeline.
The specifications
Penspens results have identified that a single trained dog has the ability to:
Spotlight on the SSV

ShawCor Ltds Simulated Service Vessel one of the industrys largest and most advanced deepwater test chambers for end-to-end thermal insulation systems has been awarded the 2012 Spotlight on New Technology Award at the Offshore Technology Conference, held from 30 April to 3 May 2012 in Houston, Texas.
he Simulated Service Vessel (SSV) accommodates pipe samples up to 6 m long with a 910 mm external diameter, and simulates water depths to 3,000 m and temperatures up to 180C. The award recognises innovative new products that are capable of revolutionising the offshore exploration and production industry. This builds on the precedent created by the Thermotite ULTRA novel thermal insulation coating, which was awarded the OTC 2010 Spotlight on New Technology Award. ShawCor said that these awards demonstrate the companys continuous commitment to innovation.
Locate small quantities of lost product up to 0.07 ml which will not be detected by current leak detection methods
Detect escaping product buried up to 31 inches below the surface
To find out more visit www.shawcor.com
The Simulated Service Vessel in action.
Other applications
Pipeline sniffer dogs could have a major role to play in the integrity management of onshore pipelines, particularly in the following areas: Routine inspection, as part of an integrity management plan Cases where deep corrosion has been identified by ILI, and a verification of no leak is needed Cases where coating problems have been identified by above-ground surveys Unpiggable pipelines Direct assessment Locations with poor cathodic protection coverage Cases where there are suspected illegal taps and theft Following a hydrotest (where water has been scented and the dog can locate any leak). Penspens on-going research with Newcastle University and recent work within the oil and gas industry has shown that dogs can be successfully implemented as a reliable and accurate leak detection tool. They can detect very small leaks both during operation (and hydrotest), and can be used to detect illegal taps. Finally, they are highly cost effective, environmentally-friendly, and remarkably easy to train and deploy.
Be trained to detect multiple target scents
5 km
Quickly pinpoint the area of highest concentration and therefore the approximate leak location,
Inspect up to of pipeline per day
GLOBAL EXPERTISE. LOCAL STRENGTH.

PIPELINE AND FACILITIES SOLUTIONS
Providing integrated engineering, procurement, and construction management services to help our clients develop and deliver energy safely, efficiently, and responsibly. Learn more about our services by visiting stantec.com/oilandgas
AD-DA-EDM-2012JUL19-P1V1
A dog can be trained and tested to these standards to give the pipeline operator confidence in the method.
Pipelines International | September 2012 Pipelines International | September 2012
0.1 m
One Team. Integrated Solutions.
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industry news
The Nixon solution: providing long line communications from beginning to end
Nixon Communications, a subsidiary of global communications leader Mine Site Technologies, designs, manufactures and provides turnkey solutions for long line communication requirements. The Nixon solution is ideal for construction and maintenance of pipelines, railroads and other projects where clear radio and data communications are required along the entire length of the project.
ixon is experienced in surveying the target alignment, designing the communications system, deploying towers and fixed/mobile equipment, and commissioning the system. The Nixon communication system is ideal for construction work where a line of communications may be required for up to 1,000 km. The company provides all of the equipment and deployment along with field technicians who are experienced in dealing with the most difficult installations, in any terrain. Once deployed, Nixon continues to support the on-going operation of the communications system by providing technical support and on-site repairs and maintenance when needed. A huge advantage of the Nixon solution is in providing the customer with seamless communications services along the pipeline alignment, allowing the construction crews to focus on building the pipeline in the fastest and safest possible manner.
A huge advantage of the Nixon solution is in providing the customer with seamless communications services along the pipeline alignment, allowing the construction crews to focus on building the pipeline in the fastest and safest possible manner.
In addition to long line communications systems Nixon can rapidly deploy a suite of communications services such as internet, television and camp communications to support construction crews in remote locations. Nixon's customers have the surety of knowing that the systems they receive are produced under the internationally accredited standard, ISO9001:2008 (Sci-Qual International No. 435). The third-party
audited accreditation covers the design, supply, manufacture, installation and maintenance of communication equipment and systems. With hundreds of successful product installation in various industries and in some of the worlds most difficult environments, Nixon Communications provides a single communications solution for all long line and pipeline applications.
For additional information about the Nixon system or to contact Nixon Communications, visit www.nixon.com.au
Pipeline Testing & Maintenance

PRESSURE PUMPS STRAINERS
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Pig Launchers and Receivers from 6 to 42 diameter.
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industry news
industry news
Can the onshore pipeline industry benefit from new design approaches?
by Maher Nessim, PhD, PEng Chief Engineer & Senior Consultant, C-FER Technologies, Edmonton, AB, Canada
existing design standards, nor is it amenable to the elastic stress-based design approach. To withstand bending loads, line pipe capacity is best represented by its tolerance to longitudinal deformations or strains. Safe strain limits have shown to exceed the material yield point by a significant margin.
The primary design condition in conventional onshore oil and gas pipeline standards is based on limiting the hoop stress under the maximum operating pressure to a fraction of the material specified minimum yield strength. This fraction is referred to as the utilisation factor and is varied as a function of location, temperature and joint type to achieve a level of conservatism consistent with the failure susceptibility and failure impact of the pipeline.
hile this methodology has served the industry well for many decades, recent industry trends have created a need to consider other design methods. For example, the current utilisation factors are not necessarily applicable to the high steel grades (X100 and above) being considered for large diameter pipelines. For these grades, the utilisation factor results in thinner pipe walls, and since susceptibility to major failure threats, such as corrosion and equipment impact, is more influenced by
The RBDA approach

The common theme in these examples is the large degree of uncertainty resulting from limited precedent. This uncertainty can be addressed using a class of design approaches called reliability based design and assessment (RBDA), in which safety is measured by the reliability, defined as the probability that the pipeline will not fail within a specified period of time. The pipeline is then designed and operated to meet a specified reliability target considering all applicable threats. In addition to allowing systematic consideration of uncertainty, the RBDA approach addresses the key limitations of the traditional hoop stress design approach, offering significant advantages. By directly addressing the expected loads and failure threats, resources are targeted where they are most effective in preventing failures.
wall thickness than hoop stress, lower overall reliability may result. This indicates that the utilisation factor is not always the best safety control parameter, and that it cannot be used with confidence outside the conventional range of design parameters for which it has been empirically proven. Another example is the design of pipelines subject to high bending loads caused by soil deformations due to frost heave and thaw settlement. This type of loading is not adequately addressed in
Maher Nessim.
As reliability is defined as a lifetime requirement, design and maintenance decisions can be considered in combination, leading to more optimal overall solutions. Failure threats are also analysed from basic principles, providing the flexibility to deal with unique loads, new technologies and unconventional design conditions. Recognising these benefits, the Pipeline Research Council International sponsored the development of a comprehensive RBDA methodology for natural gas pipelines, which is now incorporated as a non-mandatory Annex in the Canadian Standard CSA Z662. Early applications of the methodology have demonstrated the challenges associated with full acceptance and wide application. To start with, the reliability targets are defined in terms of a calculated failure probability and although these targets are intended to help approach the goal of eliminating all incidents, some see the mere acknowledgment of a failure probability as contradictory to this goal. The probabilistic calculations needed to apply the approach are complex and unfamiliar to many pipeline engineers, resulting in the methodology being thought of as a black box and viewed with skepticism.
Most of these challenges can be addressed by developing a simplified version of the RBDA approach, often referred to as the limit states approach. In this approach, deterministic design and assessment rules are developed that meet the reliability targets underlying the RBDA methodology. This creates a simple and transparent methodology that capitalises on the main benefits of RBDA while addressing most of its limitations. The simplified methodology is adequate for many situations, but full RBDA is still required for specialised and high impact applications. Reliability based and limit states methods have been successfully used in many industries and have become the exclusive basis for codified design of such systems as buildings, bridges and nuclear structures. The limit states approach has also been used as a basis for API and DNV codes for offshore pipelines. Given these precedents and the potential for RBDA to help the onshore pipeline industry address key design and assessment issues, the author believes that the challenges associated with adopting the methodology will be overcome and that it will gain wider acceptance over the coming years.
software for making better integrity management decisions
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industry news
industry news
Overcoming offshore inspection challenges

Offshore pipelines can be challenging to inspect due to limited launcher/receiver facilities or limited accessibility. Quest Integrity Group offers a solution for these historically difficult to inspect, or unpiggable pipelines, with its InVista in-line inspection tool.
ecently the company was contracted to inspect a 6 inch, 2.5 km offshore pipeline using its InVista tool. The line had limited access on the wellhead and production platform for traditional inspection tools and had no pig traps. In addition, the line had not been in use for approximately two-and-a-half years and the client needed to reinstate it quickly due to a planned drilling expansion. Quest Integrity was able to quickly mobilise to deliver the inspection and assessment results for the client.
Isolation and weld joint testing of pipelines

by Peter Mahoney, Engineering & Contracts Manager IK-PEI Ltd
Equipment that can satisfactorily seal and isolate pipelines is important as this function is a major requirement during any inspection, maintenance, alteration or repair programme. While the primary function is to test welds, it can also be necessary to carry out hot work and the isolation of systems that are no longer required.
Using the InVista tool, Quest Integrity overcame challenges faced in this inspection project, including no available access for a receiver and special spool arrangements to connect to the flange on the vertical section of the riser. The launcher connection was also located at an unbarred tee. Because the tool is lightweight at 25 kg and 1,200 mm in length, temporary traps were installed in the limited space available. This meant no hot work or permanent alterations were needed. This benefit, as well as the geometry and wall-thickness data
Because the tool is lightweight at 25 kg and 1,200 mm in length, temporary traps were installed in the limited space available. This meant no hot work or permanent alterations were needed.
For more information visit www.questintegrity.com
being provided in a single run, resulted in a significant cost saving for the operator. The InVista tool has superior navigational capabilities, such as short radius back-to-back bends, which also aided the ease of access (reducing the space needed for traps), unbarred off-takes and pipe schedule changes including heavy wall. The tool is bi-directional and can run in low-flow/low-pressure environments. The total project turnaround was three days; however the actual run time was only a few hours. Due to a high tool tolerance, 99.6 per cent of wall-thickness data were collected after only two foam cleaning runs. The inspection included a fully integrated API579 compliant Level 2 fitness-for-service assessment as a standard deliverable. InVista identified the actual wall-thickness measurement as 10.3 mm (as-built drawings indicated 104.3 mm). There were also two external defects with 41 per cent wall loss and three internal corrosion points the maximum at 25.9 per cent wall loss. In addition, three dents were identified with a maximum of 3.2 per cent of the outside diameter of the pipe.
he requisite tool must be reliable, simple-to-use, economic and above all safe in delivering positive and continued isolation while the hot work is carried out. Ideally, as in the case of tyred multi-plugs, it is also capable of hydrostatically testing any new welds afterwards. IK-PEI Ltd, a specialist engineering company based in the UK, is an established designer and supplier of such pipeline isolation and testing equipment.
Flange weld testers and internal weld testers

Weld testers enable operators to perform localised pressure testing of new or existing flange welds, negating the often labourious and time consuming need to flood and de-water the entire system. Two main styles of tool are available; these are the flange weld tester (see Figure 1) and the internal weld tester. These tools are easy to use and can be operational within minutes with no additional specialist tools or equipment required. The main safety feature of the flange weld tester is that a central by-pass port allows the operator to monitor the downstream conditions. Specially designed polyurethane seals allow greater radial clearance where the weld bead is excessive, a feature that also allows the unit to seal in pipes suffering from pitting. Standard test pressures of up to 230 barg can easily be achieved and equipment that can test at higher pressures is also available, as well as hydraulically operated versions of these testers for the testing of larger diameter pipes.
The tester can be mechanically locked onto the internal bore of the pipe whilst simultaneously compressing the polyurethane seal with the addition of metallic gripper pads. The pipe can now be filled with water through a centre by-pass port on the plug, and when used in pairs, the by-pass port on the second plug will allow the venting of air from the pipe. An added safety feature with this design is that it is self-energising. Hydraulically operated versions are also available.
Twin-tyre multi-plugs
In the past, achieving positive isolation before commencing any hot work on pipeline systems that carry hydrocarbon resources have proven to be problematical, with the use of air bags and compression plugs being common practice. Unfortunately, such methods have a history of unreliability with little guarantee of successfully creating a safe working environment. The twin tyred multi-plug is a variation on an established theme that boasts a double isolation feature through the efficient use of two inflatable tyres. Incorporating some of the features of weld testers, these tools allow the operator to create an effective seal, which allows hot work to proceed. The same tools also facilitate efficient hydrostatic testing of the weld or repair work.
Figure 1: Flange weld tester.
plugs that have been specifically designed for the permanent sealing and isolation of both dormant and decommissioned pipelines with sub-sea versions specifically designed to be used by divers or remotely operated underwater vehicles. A variation of the high pressure pipe plug can also be used during temporary pigging operations.
Summary
The safe and reliable sealing and isolation of pipework is of extremely high importance when undertaking any work on pipeline systems. The correct choice of safe, effective and economical equipment must be subject to rigorous and informed evaluation. IK-PEI Ltd has significant expertise in both the design and provision of sealing and isolation solutions, both standard and custom built, that satisfy the tough demands of the modern pipeline industry. A wide range of plugs and testers are available to suit most requirements ranging from atmospheric to high pressure applications.
Recent developments in isolation equipment

Flange weld testers and internal weld testers are now available and allow the isolation and testing of welds in 90 degree elbows. Also available are abandonment
High-pressure pipe plugs

High-pressure pipe plugs can be used when a weld or joint needs to be hydrostatically tested on an open pipe or vessel. As the need to weld caps or flanges to the pipe is eliminated, considerable time and cost savings can be made.
For more detailed information on pipeline isolation and testing visit www.ik-pei.com IK-PEI Limited is a member of the Pipeline Pigging Products and Services Association (PPSA). To find out more on PPSA visit www.ppsa-online.com
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risk management
Pipeline risk assessment: controlling the bias

by W. Kent Muhlbauer, WKM Consultancy, LLC, Houston, TX, USA
In the first installment of this column, published in the March 2012 edition of Pipelines International, the concept of pipeline risk assessment essential elements was introduced. This is a list of ingredients that arguably must be included in any pipeline risk assessment. In the June edition, we covered one of these essential elementsthe need for measurements. This time, we address another essential element, closely related to the use of measurementscontrolling the bias.
Bias
The meaning behind the phrase controlling the bias can be less succinctly described as: identify, understand and manage the uncertainty, conservatism and subjectivity of the assessment. Much has been written about uncertainty, quantifications of uncertainty using statistical theory and philosophical implications of knowledge types and lack of knowledge. This article will focus on the more practical aspects of handling uncertainty in our pipeline risk assessments. Controlling is a deliberate word choice. We recognise that some bias is intentional and useful, so we are not trying to avoid all bias the right amount of bias applied at the right points in the process, is key. Therefore, the intent is bias control. Uncertainty is always present in risk assessments because we have incomplete knowledge of true values we dont know the exact material properties at every point along every pipeline; we dont know how many times an excavator will actually be digging near this segment next year; we dont know where coating deterioration may have occurred, etc. Even where we have values, we know that no measurement is perfect and all measurements are actually estimates. Measurements sometimes do not even involve the use of a measuring tool. For example, an estimate of four excavations per km-year is a measurement of the future activity level near the pipeline. We estimate or measure things in full recognition that there is an inaccuracy associated with either. We often measure samples to infer values of all members of the population. We understand that the real world involves distributions of possible values, not point values. The nominal wall thickness we record is 0.250 inches but we know that, at various points along the pipeline, the wall thickness may actually range from 0.231 inches to 0.267 inches. We estimate the average risk (expected loss) for a segment of pipeline to be $US220/a but we understand that there can be a multi-million dollar incident here next year, and again the year after. We cannot eliminate uncertainty, but we can manage it. This exactly mirrors risk: we cannot eliminate that either, but can manage it.
PXX
It is important that a risk assessment identifies the role of uncertainty in its calculations. Each assessment should be performed with a pre-determined target level of conservatism, which includes the handling of uncertainty for our purposes here. Depending on the intended use of the risk assessment results, various levels of conservatism might be appropriate. As an aid to communication of conservatism level, a PXX designation can be used to show a level of confidence that actual experience will be no worse than estimated. For instance, P90 is the point where 90 per cent of future performance is expected to be better than this valueone would be negatively surprised 10 per cent of the time or once out of every ten episodes. P99.9 is very conservativea negative surprise occurs only once out of every 1,000 episodes. The risk modeller should determine the level of conservatism appropriate to his audience (normally the users are decisionmakers) needs. The PXX designation communicates this to the user of the risk assessment. PXX can refer to various aspects such as the conservatism in each input value or the conservatism in the final estimate.
W. Kent Muhlbauer.
Kent Muhlbauers Future Column Topics: The troubles with weightings Threat interactiona case of confusing terminology Damage vs failurean important distinction Measuring damage potential what is attacking? How effective are defenses? Consequences of failureID the scenarios The perfect storm chain of events What if I dont have much data? How do I handle non-pipe assets?
P90+
A P90+ assessment (P99, P99.9, etc.) intentionally contains layers of conservatism. A P90+ risk model assumes that things are bad until proven otherwise.
This is often done to encourage future data collection as a means of risk reduction and, more importantly, to ensure that risks are not underestimated. An underlying theme in a P90+ assessment is that uncertainty shows as increased risk. This conservative approach requires that, in the absence of meaningful data or the opportunity to assimilate all available data, risk should be over-estimated rather than underestimated.
Riskier values are generally assigned, reflecting the assumption of poor conditions, in order to accommodate the uncertainty. This results in a more conservative overall risk assessment. A P90+ level of conservatism encourages and quantifies the value of data collection via inspections and testing. It also avoids a discrediting of the model that would occur if, through the discovery of non-conservative estimates, it becomes apparent that the model is awarding the benefit of the doubt, thereby concealing possible risks. So, a P90+ assessment is done to encourage data collection as a means of risk reduction as well as to protect the models credibility. Some pipeline-specific examples of high conservatism include: Assigning high rates to various potential exposures, for example, using very aggressive corrosion rates, even when very rare; Assuming poor performance of older coatings and coatings of a certain type, even though, in the vast majority of cases, most coatings continue to perform very well; Use of worst-case potential consequences, even when potential for larger consequence events is extremely small; Assuming weaknesses in pipe strength, even if no direct evidence suggests their presence; and, Underestimating the likely benefit of mitigations. Note that when a number of P90+ inputs are used, they lead to final estimates that are much more conservative perhaps P99.99 or higher. The P90+ assessment produces a point estimate for an extreme portion of the assumed distribution of actual values. It suggests a very unlikely but plausible level of risk. Therefore, the P90+ assessment is more appropriate for use in risk management of individual pipeline segments. With negative surprises only 10 per cent of the time a P90 level or higher, is often warranted for risk management of specific pipeline segments. More conservative assessments may also be appropriate when supporting new projects or for presentations in public forums.
the true risks for individual segments. This is because the P50, as a point estimate for the mode or mean of the assumed distribution for the population, ignores the extreme values in that distribution. In addition to its use in calibration, a P50 to P70 level of analysis might be appropriate for budget setting or long range planning. The future behaviour of whole pipeline systems is better understood via P50 assessments. However, P50 estimates must be used very cautiously since they are designed to better measure the performance of populations rather than individual segments. They are
often inappropriate for use in risk management of specific portions of a pipeline.
Essential
This idea of bias-control might at first appear as a rather obscure, highly technical issue only. However, it is actually an essential element and critical to proper risk assessment. It is essential to an understanding of the risk assessment and the subsequent use of the risk estimates. If not already defined, one of the first questions to ask when viewing a risk assessment is: what is the level of conservatism in this assessment?
Welding products and solutions that meet the most demanding requirementsYours.
P50
A P50 level of assessment represents the best estimates the most likely values that will occur. A P50 assessment best describes the anticipated behaviour of the entire population of pipeline segments. Such estimates are often used to calibrate the risk model. However, P50 values will misrepresent
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www.lincolnelectric.com/pipeline
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risk management
Bringing Synergi to integrity management

DNV Software is launching the 2012 version of Synergi Pipeline (formerly SilverPipe), the integrity management system for offshore and onshore gas and liquid pipelines.
A step-by-step approach to pipeline integrity management

by Karine Kutrowski, Murielle Bouchardy, Audrey Le Mercier, Rodolphe Jamo, and Jean-Charles Andraud, Bureau Veritas, Paris, France
s the focus on pipeline safety increases, stricter regulations demand better solutions for integrity management. In addition to full compliance, operators are also seeing the benefits of systems that increase efficiency and extend the lifetime of ageing assets. DNV Softwares Synergi Pipeline software suite is a proven solution. The software is a web-based solution with some advanced planning and engineering analysis tools on the desktop as add-on features. Login is secure and access rights can be defined for different users. Interfaces for GIS, DOC and ERP systems are supported. Synergi Pipeline is a company-wide risk and integrity management system that improves pipeline safety and reliability, maximises availability and extends operational lifetime. It features support for international codes (e.g. ASME, DNV, BS), extensive risk assessment capabilities, coupled with tools to support the entire integrity and risk management process. At the heart of the pipeline integrity lifecycle is a robust data management system that makes seamless movement between all stages of the lifecycle possible. The software offers this in a comprehensive data management package. Head of Section Integrity Management at DNV Software Gro Oftedal said Synergi Pipeline is more complete than before. With its sound data management capabilities, coupled with optimal tools and support for the total integrity management process, Synergi Pipeline can contribute to even better pipeline integrity management.
Some of the new features in the 2012 release include: A highly functional new in-line inspection (ILI) assessment tool, the Anomaly Tracker, for identifying and prioritising anomalies for mitigative action and to determine when the pipeline needs re-inspection. Extended risk assessment capabilities that allow for a general ranking of all pipelines, so higher risk lines can be identified faster. The new Data Aligner tool, which allows for the alignment of ILI data with the pipeline route. The new Integrity Planning tool with capabilities that support the entire integrity wheel, integrated with pipeline risk and analysis tools.
As a testing, inspection and certification company acting in the field of asset integrity management, Bureau Veritas is in contact with many different operators. In the oil and gas market, all operators are preoccupied by the availability and integrity of their assets (structure, pressure vessels, rotating machinery, pipelines). This article explains the importance of implementing an integrity management system using a step-by-step approach.
The 360 view
In the early 1990s asset integrity management was addressed by increasing inspection programmes. In the late 1990s, increasingly sophisticated IT tools were developed, and today a complex mix of strategies, IT solutions and inspections are often employed. This can potentially lead to client dissatisfaction, since from an operators point of view it costs a lot, its complicated and were not sure we really need it. Bureau Veritas attended a conference where an operator presented on the issues involved in implementing a highly sophisticated integrity management system. In particular the issue of anticipating difficulties related to methodologies, data, management of change, etc. In response, Bureau Veritas explained the difficulties of taking on such a wide scope at once. The operator immediately replied: Guys, you have the 360 view, we dont. You should teach us all that and warn us!
No revolution but simply common sense

There are many different definitions of pipeline integrity management (PIM), including those listed within API 1160 and ASME B31.8S.
One common database

Synergi Pipeline provides high-quality data management over the entire life cycle of an asset, making data easily accessible.
Consolidating all data into one database has many advantages. It leads to more efficient handling of information, saving time and money and ensures company-wide access to valid pipeline information. The software system also has the ability to track change in data, view multiple data sets graphically and link data to applicable documents. Synergi Pipeline is used at different levels and positions in the company, including the executive level. Decisionmakers concerned about issues, such as compliance and outstanding high-risk areas, are able to get an oversight of all pipelines. Integrity managers can use the system to track budgets and schedules, manage overall planning, and schedule ongoing and planned activities, which can be reviewed and approved. Operations managers can keep track of inspections and repair work so theyre aware of any operational impact to the pipelines, while integrity engineers are able to do risk assessment analysis, analyse survey results, perform calculations and propose mitigation. Users have control of all pipeline activities and are able to optimise inspection activities, thereby reducing inspection costs. Production can continue as normal during the implementation of Synergi Pipeline.
consider that NRI has the most pros.

NRI has professional engineers on staff who evaluate hundreds of elements to determine the precise composite solution to guarantee your pipelines integrity. We invite you to speak to one of our engineers today and see why NRIs innovative composite solutions and engineering know-how are recognized as the best in the industry.
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DNV Software is a leading provider of software for managing risk, offering solutions for design, engineering, strength assessment, risk and reliability, quality health safety and environment and asset integrity management. It has delivered software to the oil and gas industry for more than 40 years. It is part of the independent foundation Det Norske Veritas (DNV), safeguarding life, property and the environment since 1864. DNV has more than 300 offices in 100 countries. For more information call +47 67 57 99 00, or email dnv.marketing@dnv.com or visit DNV's website at http://www.dnvsoftware/pi
561.683.6992 | sales@neptuneresearch.com | neptuneresearch.com

18172_NRI_Print_Pipeline Int_September 2012 issue.indd Pipelines International | September 2012 1
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As a simple and understood-by-all definition, the following is proposed: a system to ensure that a pipeline network is safe, reliable, sustainable and optimised. Bureau Veritas PIM step-by-step approach is comprised of the following six stages: 1. Policy and strategy: where are you now, where do you want to go and what should you put in place to reach your target? 2. Methodology: do you want/need to use a risk-based, threat-based or consequencebased approach or something else? 3. Data: start thinking about data collection and modelling only once the policy and strategy, and methodology have been identified. 4. Systems and tools: once policy and strategy have been defined, methodology has been selected and data gathered, select the most appropriate tool to use (simple or sophisticated software). 5. Study and analysis: the tools will enable an assessment of the pipeline network and definition of your inspection plans. 6. Inspection and expertise: after implementing the inspection plans, specific expertise should be used to analyse the inspection results. The knowledge gained will then be used during the regular PIM review.
Figure 1: An example of a threat-based methodology.
As a first step, it is important to properly define the roots of the PIM approach chosen. Local constraints, in-house specific requirements, international guidelines and adequacy will help set up the basis of the methodology to be developed.
CM
MY
CY
Company policy and methodology is key

As a first step, it is important to properly define the roots of the PIM approach chosen. Local constraints, in-house specific requirements, international guidelines and adequacy will help set up the basis of the methodology to be developed. The most appropriate approach will be found by referencing the local regulatory bodys policy (safety/inspections-oriented or risk/threat mitigation-oriented) along with common practices and existing procedures, the assets typology and age, the existing international best practices, and the level of in-house expertise. Several approaches may be considered, such as qualitative versus quantitative, threat-based versus damagebased, and probabilistic versus deterministic. The identification of expected results (primary target) should be properly specified: restricted impact on the environment, corrosion-related failure prevention, inspection strategy, and means of mitigation. This will ensure that the PIM is set up in-line with the project targets.
The PIM methodology can then be chosen and tailored to the specific case. A PIM approach that may be suitable for one operator may not be acceptable for another operator. Only once the methodology is developed and understood by all project stakeholders can the data and tool issues be properly addressed.
Data and tools: you dont need a video game

Data management is a crucial task within the PIM process. It should provide a complete system capable of delivering the right data in the right shape, at the right place and for the right purpose. This requires very organised and step-wise work. By defining the PIM strategy, key performance indicators can be identified and data requirements can be defined. This refers to the format, accuracy, and frequency requirements of the data. It is also beneficial to think mid-term about PIM requirements, for example, consider the tools that will be used and any modifications that might be planned to the asset. Finally, it is advised that data quality control/quality assurance is performed to
obtain the green light before processing data into the PIM process. The same applies to the tools to be used. While there is a temptation to use a very high tech tool, the most important consideration is for an easy-to-use tool that will monitor the health of the pipeline network and point out pipeline segments which require mitigation or inspection due to their threat or risk levels. Depending on the pipelines length, a Microsoft Excel macro could be sufficient. However, an automated and integrated tool is necessary for longer pipelines or complicated networks.
CMY
Study and analysis: from integrity assessment to inspection plans

Now with an operational and clear pipeline database along with a PIM tool, the chosen PIM methodology can be implemented. The PIM tool will enable the first integrity assessment to be carried out first because PIM is a continuous loop where previous results are used to improve the following assessments. Following this, a pipeline prioritisation can be obtained,
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The in-line inspection provider should be selected very carefully, evaluating their qualification by referring to the specific requirements of the project.
which will form the basis to analyse and understand the pipeline network's condition. Frrom here, the PIM can be expanded to include a mitigation plan plus inspection plan. Here an important question arises: what actions should be performed in order to reduce the threat/risk level on the pipeline? Should the inspection frequency be increased, a mitigation action applied, or both? The decision should rely on the inspection and mitigation policies defined in the first step of the PIM process.
Inspection and expertise: method qualification and trustworthy results

Undoubtedly, one of the most visible steps of the PIM process is the inspection itself. There are many inspection techniques for pipelines but the most widely used are magnetic-flux leakage and ultrasonic testing. The in-line inspection provider should be selected very carefully, evaluating their qualification by referring to the specific requirements of the project. The most critical part of this process is the analysis of results and the expertise
Figure 2: PIM continuously improving loop. An example of threat-based methodology.
About Bureau Veritas Established in 1828, Bureau Veritas is a global leader in conformity assessment and certification services. The company is a trusted partner to its clients, offering services and developing innovative solutions to reduce risk, improve performance and promote sustainable development whatever the asset, product or business sector. Bureau Veritas assists its customers in managing the integrity of their assets notably equipment, pipelines and industrial facilities in order to keep them safe, reliable and in the best operating conditions.
required to obtain crucial information on the actual condition of the pipeline. An effective PIM should be comparable to a high-quality management system. This article started by outlining that a PIM is a system allowing operators to ensure that their pipeline networks operate in a safe, reliable, sustainable and optimised way. If neglected and unused, even the most expensive and high tech PIM solution will fail to be beneficial. A PIM needs to be accepted and embedded into the companys processes. Therefore, as a conclusion, Bureau Veritas would advise operators to keep in mind that a PIM, like a quality management system, is a continuous process. Therefore it is important to break down the PIM plan into manageable steps.
g ducin IntroThe PPIM YOUNG ACHIEVEMENT AWARD 2013

Do you know a colleague or employee of a pipeline operating, service or supply company who has demonstrated a valuable and original contribution to the field of pipeline integrity? Nominate them now for the PPIM Young Achievement Award. For more information on award criteria or to nominate a colleague visit
www.clarion.org
Acknowledgements
The author and co-authors of this article would like to express their gratitude to their customers, in particular TOTAL (Worldwide), CuuLong Joint Operating Company (CLJOC Vietnam) and KazTransOil (KTO Kazakhstan) who have fed Bureau Veritass thoughts about PIM and asset integrity management (AIM) in general. Not only have those successful and friendly collaborations inspired Bureau Veritas to develop its AIM step-by-step approach but have also allowed a deeper knowledge of AIM which, we trust, will be useful to other pipeline operators.
The international gathering of the global pigging industry!
Organized by
Figure 3: Bureau Veritas' network.
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history
The Acergy Piper laying pipe for the Langeled Pipeline in the Sleipner East Field. Image courtesy of Kim Laland, Statoil.
The Langeled Pipeline

As the 1,224 km Nord Stream Pipeline nears completion and prepares to transport gas through its second line, Pipelines International pays tribute the Langeled Pipeline by looking at what went into the construction of what was once the longest subsea pipeline in the world.
etween 2003 and 2007, a dedicated large diameter export pipeline called the Langeled was installed to transport dry gas from Nyhamna to the east coast of England in order to supply gas to the United Kingdom as part of the Ormen Lange gas development project. The Ormen Lange Field, discovered in 1997, is located 120 km off the northwest coast of Norway in water depths of between 800 and 1,100 m. The field is the second largest gas field in on the Norwegian Continental Shelf, with recoverable gas estimated at 397 Bcm. At the time of its construction, the Langeled development project was
15 18 October 2012 Berlin, Germany
managed by Statoil on behalf of Hydro. As of 1 September 2006, Gassco took over the operatorship of Langeled. The Langeled is a 1,200 km gas pipeline that extends from Nyhamna on the west coast of Norway to Easington on the east coast of England, and which is tied into the Sleipner Gas Field approximately halfway across the North Sea. The northern half of the pipeline consists of a 42 inch diameter, 250/215 bar pipeline, whilst the southern half from Sleipner to the UK comprises a 44 inch diameter, 157 bar pipeline. Gassco Project Manager Leif Solberg, who was formerly employed by Statoil as the Langeled Project Manager, said that the
sheer size of the pipeline project made it a unique project to work on not only in terms of length, but also in diameter. The pipelay barge needed to be upgraded to be able to lay 44 inch diameter pipe, and the 1,200 km length of the pipeline required pigging over long distance, he said. The pipeline project began in 2003, with pipelay taking place in 2005 and 2006. The project was engineered by Snamproggetti, with Acergy and Allseas contracted for pipelay, and Subsea Seven and Technip undertaking the tie-in work.
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Construction of the Langeled Pipeline. Image courtesy of Rune Johansen, Statoil.
Pipelay of the Langeled from the Solitaire vessel. Image courtesy of Kjetil Alsvik, Statoil.
At peak, approximately 4,0005,000 workers were employed for the project, with a total of 7080 vessels involved, including three laybarges. Mr Solberg said There were 25 different nationalities represented on the laybarges. We focused on good co-operation and introduced a common goal in health, safety and environment (HSE) throughout the construction work, which resulted in good and efficient team work. Mr Solberg said that regular meetings with stakeholders were held throughout the entire project period. We maintained an open atmosphere to relay the challenges we experienced and the actions taken to solve them. Safety for personnel at all levels was a major focus from day one, with particular attention paid towards lifting, coating, marine and diving operations. Mr Solberg said The Langeled HSE programme spelled out some ground rules for the work, such as to always work closely with the contractors, and be proactive. Employees
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Large-diameter pipe used for the Langeled. Image courtesy of Marit Hommedal, Statoil.
were encouraged to work with the long-term goal in mind, but to focus on action plans up to six months ahead. Both Statoil and the contractors were also required to use visible and hands-on leadership. Mr Solberg also outlined some of the other challenges faced during construction. The connection to Sleipner, in order to supply gas from Sleipner and Troll, was a challenge. So, too, were the landfall in Easington, which required a 380 m tunnel from 7 m below sea level, as well as all the diving work. We also had to execute a crossing at the Norwegion trench in around 300 m-deep water, with a riser tie-in at the Sleipner riser platform and a landfall at Easington, and had a number
of subsea tie-ins, with eleven hyperbaric welds that required 900 dives and approximately 6,000 man hours in saturation. The commissioning of the 44 inch diameter southern part of the Langeled was completed in 2006, along with the Easington receiving facility and the tie-in at Sleipner; the pipeline was delivering gas from the Sleipner and Troll fields by October 2006. The 42 inch diameter northern section of the pipeline was completed and in operational by 2007. The pipeline is still in operation today, providing a versatile transport solution with gas deliveries to Britain as well as continental Europe via the Sleipner riser platform and Gassleds existing transport network.
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events
The world unites for CO2 pipelines

World leaders who specialise in the field of CO2 pipelines converged in Newcastle, United Kingdom, from 2021 June to take part in the Third International Forum on the Transportation of CO2 by Pipeline.
rganised by Tiratsoo Technical, a division of Great Southern Press, and Houston-based Clarion Technical Conferences, and held in conjunction with Newcastle University, the Forum set out to address the ample technical, scientific, regulatory and social issues pertaining to the transportation of impure CO2 by pipeline during the increasingly critical process of carbon capture and storage (CCS).
The new online information service that unlocks the secrets of the global pipeline industry
Short course
This year, the Forum was preceded by a two-day short course that focused on the pipeline transportation of CO2 containing impurities. The course covered the entire spectrum of technical issues and requirements for the design, construction, operation, maintenance, and risk and integrity assessment of pipelines for this purpose. Presented by experts Dr Mo Mohitpour and Brian Rothwell, the course proved popular among industry professionals, serving as the perfect foray into the topic for the majority of attendees who stayed on later to participate in the conference. Professor Shawn Kenny from Memorial University, Canada said The course met my goals and expectations. A thank you to the presenters for such a difficult task, and similar very-positive comments were received from many other delegates. Carbon dioxide is a combustion by-product of fossil fuels (oil, natural gas, coal) that are used for electricity production, transportation, heating and industrial applications. It is also released when solid waste, wood, and wood particles or products are burned, and is widely considered an important anthropogenic (i.e. man-made) greenhouse gas. CCS is a process for reducing such greenhouse-gas emissions by extracting CO2 from effluent flue stacks, and transporting it for storage purposes and sequestration. Pipelines are the safest and the most efficient means of transporting such an anthropogenic gas; as well as sequestration, the gas can be used under certain circumstances for injection and enhanced oil recovery, or for natural gas storage cushioning. In the past four decades, CO2 transportation has been focused on gathering, processing, pipeline transportation and the injection of relatively pure CO2 (from naturally occurring sources) into depleted gas and oil storage and fields. CO2 from such sources generally does not contain impurities that are incompatible with the reservoir conditions. However, the CO2 streams that are generally available from flue stacks are contaminated by other effluent gases such as hydrogen sulphide (H2S), carbon monoxide (CO), oxygen (O2), and oxides of nitrogen and sulphur that can be described as NOx and SOx. Gathering from industrial processes and locations, and transportation by pipeline for subsequent use or sequestration, will require different treatment of the CO2 than for CO2 obtained from naturally occurring sources.
Pipelines International Premium is the international oil and gas pipeline industrys foremost in-depth source of information, comprising a digest of high-quality papers covering the latest technology and reviews of the pipeline industry worldwide, and a comprehensive project database. It is comprised of: Pipelines International Digest which provides a monthly update of papers covering all areas of the industry from key projects, and engineering and construction issues, to environmental, regulatory, legal and nancial issues. Pipelines International Projects which allows subscribers to access a searchable database of completed and current projects.
Subscribe or get a free 14 day trial now at www.pipelinesinternational.com/premium

Delegates taking advantage of the great networking opportunities.
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The wide-ranging content of the course was based on the recent book on the subject which the two presenters have co-authored with Dr Patricia Seevam, Kamal Botros, and Claire Ennis, and reviews the entire spectrum of design and operating requirements for pipelines and network facilities that would be needed to transport carbon dioxide containing impurities safely, and without adverse impact on people and the environment.
The Forum
The Forum kicked off on Wednesday morning with an introduction from Dr Julia Race of Newcastle University. In her address to the 100-strong audience of pipeline engineers, designers, regulators, health and safety inspectors, and environmental specialists, Dr Race welcomed everyone on behalf of the University, and set the scene for the event by pointing out that in the UK there is already significant activity in CCS. There are both planned and pilot plants under way, and it is hoped that by at least 2016 there will be an operational CCS unit. To this end, Dr Race said that the UK Government has recently announced its intent to invest 1 billion ($US1.5 billion) of capital funding and additional support in a competition for a project that will demonstrate the full CCS chain with the capture facility in the UK and storage offshore. In addition, the UK government has also announced 125 million ($US195 million) funding for research and development (R&D) in CCS, including a new 13 million ($US 20.3 million) UK CCS Research Centre, through the Research Councils. Later in the Forum, Professor Jon Gibbins, the principal investigator for this new Centre, outlined the role of the Centre in CCS and transportation research in the UK. Dr Race continued by saying that many of the UKs current CCS activities are concentrated in the north east of England: there is a pilot capture plant at Ferrybridge, and proposed projects at Eston Grange, Killingholme, Don Valley, and Drax. Dr Race pointed out that some of the participants in these projects were at the Forum, and she hoped that the discussions would benefit from their experiences. She finished by saying that the Drax project holds a personal interest for her, as she was part of the group of apprentices who did the commissioning tests on the turbines at Drax, around 40 years ago. In 2010, the 25 tonne 660 MW turbine was moved to a museum in Newcastle, and is believed to be the first of its size to go on display anywhere in the world. Following on was a comprehensive programme that included 28 presentations
technical
Delegates listen to the comprehensive programme.
Following on was a comprehensive programme that included 28 presentations from a range of world-acclaimed researchers and academics, government representatives, pipeline operators and consulting engineers.
PIPELINE
ENGINEERING
If you are a pipeline engineer, The Journal of Pipeline Engineering is a vital tool that will keep you up-to-date on the latest technical research around the world. Published four times a year, it stands alone as the premier technical publication for the pipeline industry. As a peer-reviewed journal it provides quality information to keep you at the forefront of industry developments. Subscription is just $US350 per year and also includes access to the electronic archive. Visit the website to subscribe today.
JOURNAL OF
from a range of world-acclaimed researchers and academics, government representatives, pipeline operators and consulting engineers. A notable mention must be given to National Grid, the UKs largest pipeline operator, who presented or sponsored a number of papers covering the extensive research into the transportation of anthropogenic CO2 in which the company is currently investing. National Grids 8 million ($US 12.5 million) CO2 Liquid pipeline TRANSportation (COOLTRANS) research programme has been designed to address and resolve the key issues relating to the safe routeing, design, and construction of onshore pipelines for the transportation of anthropogenic, high-pressure, dense-phase, CO2. The programme has brought together major technical capabilities in academic and industry organisations in the UK, and is co-ordinating research studies carried out by these organisations in order to provide a fast track for the identification and application of key learning to pipeline projects. An overview of the COOLTRANS research programme was given at the 2011 Forum, which explained the integrated analysis strategy combining state-of-the art numerical modelling of pipeline decompression, near- and
far-field-dispersion studies being conducted by three university groups, and the use of full-scale experimental tests carried out at GL Noble Dentons Spadeadam test site. The COOLTRANS programme is now over half complete, and has generated significant knowledge from the results of the advanced analyses and the large-scale experiments. Russell Cooper of National Grid gave a wide-ranging overview and provided a detailed description of the programme, and its strategy, organisation and progress. In his paper, Mr Cooper described the extensive experimental programme and the programme of case studies which have been designed to confirm that the independently conducted theoretical studies can be efficiently integrated to allow validation by experimental data. The paper went on to outline the key learning obtained to date from the research programme and the application of this to pipeline project studies, and ended with a discussion of the challenges posed by the transport of dense-phase CO2 by pipeline compared with the conventional design of pipelines to transport natural or rich gas, or hydrocarbon liquids.
www.j-pipe-eng.com
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The following morning it was back into it with three papers on the subject of CO2 properties and specification, which is a critical issue because the design of an anthropogenic-CO2 pipeline will depend very precisely on the types and levels of impurities in the mixture. Other topics discussed on the second day included corrosion in CO2 pipelines (Arne Dugstads paper on what do we know and what do we need to know? was particularly apposite), risk assessment and routeing, and dispersion modelling and environmental impact. As well as Russell Coopers, the seven papers at the Forum describing various aspects of the COOLTRANS research included those presented by Dr Race; Dr Andrew Cosham of Atkins; Dr Phil Cleaver and Harry Hopkins of GL Noble Denton and HH Risk, respectively; Dr Simon Gant of the Health & Safety Laboratory; Dr Janice Lake of Nottingham University; and Daniel Sandana of Macaw Engineering. These are being published in full in a special September issue of the Journal of Pipeline Engineering this month.
Solving the unpiggable puzzle

he 2013 Unpiggable Pipeline Solutions Forum addresses the capabilities and guidance concerning tools for corrosion and mechanical damage inspection of unpiggable oil, gas and hazardous liquids pipelines. This unique event, organised by Tiratsoo Technical a division of Great Southern Press and Houston based Clarion Techncial Conferences, has returned following the success of the first Forum in March 2011.
1516 May 2013
How do you solve the problem of dealing with unpiggable pipelines? Attend the 2nd Unpiggable Pipeline Solutions Forum, to be held from 1516 May 2013 in Houston Texas, to find the answers to your pipeline integrity problems.
Meals provided a chance for delegates to catch up with old colleagues and meet new people.
What is unpiggable?
Industry expert Keith Leewis says that the term unpiggable suggests one of several perceptions. The simplest explanation considers the obvious barriers to pigging a single pipeline: Access a free swimming tool cant be introduced or removed Low pressure, low flow there is insufficient flow to overcome friction and drive a pig Multi-diameter making high velocity excursions and the accompanying loss of data normal Physical barriers the tool cant navigate past internal obstacles or barriers Inconvenience the customers cant tolerate any reduced product flow and access is curtailed.
A CO2 network
At the close of day one, and in keeping with the tradition of the previous two Forums, delegates gathered at Newcastles Quayside to unwind and network over some food and drinks on board the MV Fortuna as it sailed along the River Tyne. With the weather behaving itself, guests were treated to a rare opportunity to take in Newcastles historic riverside scenery, this year complete with an Olympic rings display on the Tyne Bridge. Organised by the Professional Institute of Pipeline Engineers (PIPE), the setting offered the ideal space for attendees to network and discuss the proceedings of the day, as well as relax and socialise amongst good company. Further networking opportunities were made available throughout the conference during coffee and lunch breaks when delegates were able to chat and exchange business cards as well as peruse the intimate exhibition space. On show were products and services from National Grid, Newcastle University, Pipelines International and PIPE.
The Forum will focus on existing technologies as well as those in research and development. Advances and best practices in aboveground remote assessments, guided wave technologies, and internal corrosion direct assessment methods will form a significant part of the programme. This one-of-a-kind programme will include information on live-line access techniques, combined with low-flow restriction robotic and wire-line powered internal inspection tools, which is important for pipeline segments that cannot be taken out of service when further integrity inspections are required. The Forum will attract project managers, engineering consultants, pipeline owners and operators, giving you an unprecedented opportunity to network
with the people that need your services to keep their projects moving.
Exhibiting
If your company is on the forefront of technological solutions for unpiggable pipelines make sure you book your space today. The Forum will attract top decisionmakers from the industry who will need your tools to make sure their pipeline systems can operate safely and effectively. With the reception, all lunches, morning and afternoon breaks held in the exhibition hall you have a unique opportunity to place yourself in the midst of these decision makers to discuss and showcase your products and services. Make sure to book your exhibition spaced with David Entringer at dentringer@gs-press.com
The Forum will focus on existing technologies as well as those in research and development.
With participants from UK, Europe, Canada, and as far afield as Malaysia, Brazil, South Korea, and Australia, it is increasingly clear that the subject of CO2 pipelines is of worldwide concern and, with the continued expansion and government focus on CCS for the mitigation of climate change, it must not be ignored. As the worlds only meeting focused on CO2 pipelines, the Forum is proving to be the one-stop annual event for those professionals engaged in the industry and those who wish to know more about the subject and the expanding technology of transportation for CCS.
Find out more at www.clarion.org
Dr Andrew Cosham of Atkins, Newcastle.
Dont miss your opportunity to stay ahead in this rapidly evolving industry and put 1920 June 2013 into your event calendar for the Fourth Annual Forum on the Transportation of CO2 by Pipeline. The preceding short course will be held on 1718 June, and the venue for both will again be the Hilton Hotel, Gateshead, adjacent to Newcastle upon Tyne, UK. For more information visit www.clarion.org
Conference Convenor BJ Lowe of Clarion addresses the 2011 event.
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WGC2012: sustaining future global growth

by Barbara Jinks, Global Business Leader, CSG GHD Engineering
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The 25th World Gas Conference was held in Kuala Lumpur, Malaysia, from 59 June 2012. Every three years the event is held to share findings from the previous research triennium and bring world leaders, executives and specialists together. In 2012 its theme was Gas: Sustaining Future Global Growth.
ince 1931 the International Gas Union (IGU) has promoted the technical and economic progress of the gas industry all over the world and is regarded as the most influential independent non-profit organisation serving as spokesman for the global gas industry. The World Gas Conference (WGC) presented a staggering collection of ideas, experience and networking, and was attended by 5,300 people from 90 countries representing over 95 per cent of the global gas market. In addition, over 13,800 people visited the exhibition to meet 220 exhibiting companies. Walking through the exhibition provided an overview of each companys capabilities and projects, amongst the largest in the world, as well as their national customs. One of the most valuable aspects of the conference was the chance to meet senior players in the gas industry, including representatives from some of the largest gas operators in the world such as the Petronas, Shell, Exxon Mobil, Gazprom, Chevron, Qatargas, BP, Total, Statoil, Petrochina and GDFSuez, and other organisations such as the United Nations Industrial Development Organisation and national gas associations. Additionally, novelties enjoyed by delegates included Flamenco at the Spanish
Fixing Pipeline Problems 29 30 Conference and Exhibition Estrel Hotel, Berlin, Germany www.clarion.org
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Gas Fenosa stand and gymnastics at the Russian Gazprom stand. Approximately 450 speakers participated in the conference proceedings, and provided key findings from the IGUs 70 research groups on topics on the entire gas supply chain from exploration and production, transmission via pipelines and LNG tanker, as well as distribution, combustion, geopolitics and marketing. Over 52 senior panellists participated in strategic panel discussions on current topics including winning the race for talent, magic of the young generation, and unconventional gas game changer or a global bubble?. A highlight of the conference programme included listening to Daniel Yergin, Chairman, IHS CERA and Pulitzer Prize-winning author of The Prize and The Quest, summarise his views of the gas industry on the last day. He talked about the unforeseen seismic shift from shale gas and growing demand for clean, more efficient and cost-effective energy to fuel the demands from economic growth, rising population and urbanisation, particularly in emerging and developing economies. He also warned of increasing social and environmental challenges to developing gas, in particular shale. The social side of the conference was spectacular, with welcome/farewell
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*Selected pipeline training courses are available on these dates. Make sure your team stays up to date with the latest technologies. For a full list of courses and details on how to register, visit www.clarion.org
One of the most valuable aspects of the conference was the chance to meet senior players in the gas industry, including representatives from some of the largest gas operators in the world.
ceremonies, parties for thousands of delegates, and company and consular events each evening. The Energy Delta Institute conducted interviews at the conference with a number of prominent gas leaders. Questions were asked on the three main challenges and opportunities facing the gas industry and what the percentage of gas in the global fuel mix will be in 2020. Results from these surveys can be viewed at www.energydelta.org At the closing ceremony the outgoing Malaysian President Dr Datuk Abdul Rahim Hashim handed over to Mr Jerome Ferrier for the French presidency which will continue until June 2015, before leading a spectacular musical show by the WGC2012 organising team.
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Pipeline Pigging and Integrity Management Conference 24 and 25 Exhibition 26 27 28 Marriott Westchase Hotel, Houston, Texas, USA www.clarion.org
Papers can be found at www.igu.org
Dont forget theSE events for 2013: LNG 17, Houston, Texas, USA, 1619 April 2013 Unpiggable Pipeline Solutions Forum in Houston, Texas, USA, 1516 May 2013 Rio Pipelines in Rio de Janeiro, Brazil, 2326 September 2013 Best Practices in Pipeline Operation and Integrity Management in Manama, Bahrain, 1923 October 2013 For more information about Clarion and Tiratsoo Technicals training courses and events visit
www.clarion.org or www.tiratsootechnical.com
Pipelines International | September 2012 Pipelines International | September 2012
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Contact +61 3 9248 5100 cdechalain@gs-press.com.au pipelinesinternational.com/services
Coming in future issues

December 2012 Region Review
South East Asia
MARCH 2013
Sub-Saharan Africa
JUNE 2013
Western Europe
SEPTEMBER 2013
South America
Features
Safety Pipelayers and sidebooms
Trenchless technology CO2 pipelines
Compressors Pigging and inspection Machinery and equipment
Coatings Rehabilitation and repair Trenchers and earthmoving equipment
Terrain Review DEADLINE
Arctic
Desert
Offshore
Forest
19 October 2012
1 February 2013
26 April 2013
5 July 2013
72
Safeguarding life, property and the environment
Synergi Pipeline
As the focus on pipeline safety increases, stricter regulations demand better solutions for integrity management. Do you have control?
In addition to full compliance, operators are also seeing the benefits of systems that increase efficiency and extend the lifetime of ageing assets. Synergi Pipeline is a company-wide risk and integrity management system that improves pipeline safety and reliability, maximises availability and extends operational lifetime. It features support for international codes, extensive risk assessment capabilities, coupled with tools to support the entire integrity and risk management process. Learn how you can benefit from using Synergi Pipeline.
Responsible and efficient integrity management
Watch the video on www.dnvsoftware.com/PI

Complete solutions Most user friendly Most value for money Professional service
iStock photo
Modernizing pipelines with industry-leading exible, composite solutions

Flexpipe Systems is your answer for pipeline reliability with our suite of proven products including FlexPipe Linepipe, FlexCord Linepipe and FlexPipe HT Linepipe. Over 15 million metres of our patented technologies and 60,000 ttings have been successfully installed throughout North America, Latin America and Australia. Our product dependability is a result of a three-layer principle: a thermoplastic liner, a helically wound reinforcement layer and an external thermoplastic jacket. All of our products are corrosionresistant and easily deployed in the eld, reducing your installation and pipeline life-cycle costs. We have the experience, expertise and resources to be the solution for your next pipeline project.
Product information
expipesystems.com
shawcor.com

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ISSUE 13

A guide to IPC Pipeline coatings The Langeled Pipeline

Advanced, eld-applied pipeline protection coatings

ShawCor when you need to be sure

Corrosion Costs the Pipeline Industry Over $12 Billion Annually.

We can help you change that.

Issue 13 | September 2012

AROUND THE WORLD

Enroll today in one of our programs:

MEET THE COMPANY

The Langeled Pipeline

Dependable across the continent: an in-depth look at TransCanada

Heading upstate: NY gets Constitutional

Pipelines in the mighty jungle

Photo courtesy of CSI Services.

Learn more about the courses within these programs at www.nace.org/education.

Think Pipeline Integrity - Data Acquisition & Analysis

*Graphs and reports vary depending on project and pipeline conditions.

Enduro - The Thinking Mans Pig

from the editor

A guide to IPC Pipeline coatings The Langeled Pipeline

Follow us on Twitter @Pipelines

The latest news, events and job listings emailed fortnightly

Remember to email your news, views and article ideas to query@pipelinesinternational.com

This is where The name on The machine maTTers mosT.

John Tiratsoo Editor-in-Chief

Pipelines International | September 2012

around the world

New subsidiary to manage pipelines in Colombia

The new NDT

The new NDT Moving into the fast lane.

Pipelines International | September 2012

around the world

around the world

Keystone XL still set for 2013 decision

Signed agreements bring TAPI one step closer

International Pipeline Management Services Ltd

A map of the Keystone Pipeline and proposed pipeline expansion routes.

Specialist training courses

Pipelines International | September 2012

Pipelines International | September 2012

around the world

around the world

Gas flows west from Shah Deniz

Oil pipeline commissioned in Abu Dhabi

Tanzanian pipeline construction inaugurated

Pipelines International | September 2012

Pipelines International | September 2012

Turkey and Azerbaijan sign agreement for TANAP

Hydrogen pipeline starts construction

Isolating contract awarded

Jetting through the pipeline

Pipelines International | September 2012

Sign up for a free 14-day trial at www.pipelinesinternational.com/projects

Fuelling the economy: North Americas pipelines

Third West East Gas Pipeline

Pre-salt subsea pipelines project

Pipelines International | September 2012

Pipelines International | September 2012

US natural gas pipelines

Pipelines International | September 2012

Pipelines International | September 2012

Continued FROM page 19