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Offshore

Trenchless TechnologyMiddle East

MARCH 2010ISSUE 003

Sakhalin


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2 PIPELINES INTERNATIONAL | MARC H 2010

ISSUE 003 | MARCH 2010

The publishers welcome editorial contributions from interested

parties. However, the publishers do not accept responsibility

for the content of these contributions and the views contained

therein which will not necessarily be the views of the publish-

ers. The publishers do not accept responsibility for any claims

made by advertisers.

Unless explicitly stated otherwise in writing, by providing edito-

rial material to Great Southern Press (GSP), including text and

images you are providing permission for that material to be sub-

sequently used by GSP, whole or in part, edited or un changed,

alone or in combination with other material in any publication

or format in print or online or howsoever distributed, whether

produced by GSP and its agents and associates or another party

to whom GSP has provided permission.

[email protected]

www.pipelinesinternational.com

REGULARS

4 From the Editor21 Pipes & People64 Advertisers Index Subscriptionform Comingin future issues

AROUND THE WORLD

6 Petrobras tunnels its wayto Brazils largest gas pipeline

8 Ruby Pipeline has green credentials10 APLNG pipeline contract awarded12 Durban Gauteng to secure

South Africas energy future

14 Croatia modernises its gastransmission system

16 Shaybah Abqaiq Pipelinenears completion

18 World Wrap20 Project briefs

REGION REVIEW: MIDDLE EAST

23 Pipeline projects in the Middle East

PROJECTS

28 Heating up in India:the Mangala to Salaya oil pipeline

30 Constructing Sakhalin Islandspipeline network

OFFSHORE TERRAIN REVIEW

34 Delving to the bottom of theMediterranean: Galsi Pipeline

36 Subsea pipelinecommunication challenges

TRENCHLESS TECHNOLOGY

37 Analysing Alberta HDD39 Crossings on the great

pipeline of China

SAFETY

41 Oil Search: achieving safety in PNG

TECHNICAL

44 In-line with the latest inspection issues

INDUSTRY NEWS

46 Pipelayer safety made simple

MEET THE ASSOCIATION

49 CEPA: addressingCanadas pipeline issues

INTEGRITY

50 European oil pipeline integrity:third-party up, corrosion down

POLICY & OPINION

52 Transport of CO2 forcarbon capture and storage

STANDARDS

54 Unified approach increases level ofsubmarine pipeline integrity

HISTORY

56 PLUTO Pipeline

ENVIRONMENT

58 Vision in green: carbon budgetingon the South Wales Gas Pipeline

EVENTS

59 PPIM puts pigs on show in Texas

61 PPIM heads to Asia!62 Industry gears up for IPCE62 Events list

PRODUCTS & SERVICES

63 BJ Services announces Gemini tool63 Telvent assists regulatory

compliance in Canada

63 Smartpipe launches ProSCANlaser profile scanner

63 GL Noble goes with the flow

23 34 59

CONTENTS

UNITED KINGDOM

(Editorial and Technical)PO Box 21Beaconsfield, Bucks HP9 1NSUnited KingdomTel: +44 1494 675139Fax: +44 1494 670155

UNITED STATES

(Sales)11111 Katy Freeway, Suite 910Houston, Texas 77079United States of AmericaTel: +1 713 973 5773Fax: +1 713 973 5777

AUSTRALIA

(Sales and Subscriptions)GPO Box 4967Melbourne, Victoria 3001AustraliaTel: +61 3 9248 5100

Fax: +61 3 9602 2708


5/37


During recent factory and site visits

Pipelines Internationalhas had

the opportunity of talking with

various key people in the oil and gas

pipeline industry about the technology

used on pipeline construction and pipeline

maintenance.

The amount of new high-quality, state-

of-the-art technology currently available

allows pipeline owners and operators to

realise the full potential of modern advances

in both materials and technology. With

investment in new oil and gas pipeline

projects at an all-time high, it is important

that the industry takes advantage of the best

technology currently available. Research

bodies around the world are continuously

making breakthroughs with new materials

and techniques and, in many cases, it istaking far too long for these to be accepted.

An example of a major risk factor that the

pipeline industry regularly faces is the use

of outdated coating and cathodic protection

(CP) systems. Companies invest millions of

dollars on new pipeline projects in which

the cost of the CP system is less than

0.5 per cent of the total investment, an

almost negligible amount. CP is a valuable

tool and, if installed correctly, will protect

and extend the lifetime of the pipeline, as

well as other infrastructures to which it is

applied.

If we look at who the decision makers

are and their involvement in preparing

the tender documents for the purchase

of a CP system, there appears to be three

main levels, with two different objectives.

A companys Board is looking for a good

reliable product, while relying on its CP

engineers advice; the companys CP

engineer wants the best product available,

irrespective of price; finally, the finance

department looks at obtaining the cheapest

option, and is willing to compromise on

quality. The result is that, in many cases,the lowest tender is taken, irrespective of

effectiveness and reliability.

The difference in the quality of CP

equipment is perfectly apparent, and the

results can be seen on many projects. One

of the basic elements of a CP system is the

anode; despite their importance, anodes are

produced to many varying qualities and from

various sources around the world. Anodes

with very short lifespans (of only three or

four years) are being produced in the worlds

less-regulated developing markets. At the

other end of the scale, companies such as

German Cathodic Protection (which has been

producing and installing anodes for over two

decades) can quote instances in the North

African oil fields and elsewhere where its

anodes were installed in the 1980s and are

still satisfactorily working today. A recent

survey of some of these anodes showed that

they had only used 5060 per cent of their

potential lifespan, which means that they

will probably still be working upwards of

30 years after installation.

If one looks at the original cost of these

anodes and compares their expected lifetime

with cheaper, though shorter-lived units,

there should be no discussion as to which

sort should be installed.

The same comments can be applied to

pipeline coatings. While it is accepted that

there is always a creative tension betweenbest quality and best price, choosing the

cheapest option is often choosing the worst

option. In a recent report, the European

Pipeline Research Group (EPRG) points out

that there are nine generally-used coatings

suitable for pipeline protection, ranging

from hot-applied bitumen to three-layer

polyethylene and three-layer polypropylene.

EPRG further lists the ideal properties

for a pipeline coating, which include

impermeability, resistance to cathodic

disbondment, delamination, cracking, and

the ability to withstand wet/dry soil cycles

and stone penetration.

As with CP systems, there are products

available to suit all budgets, but only a few

will actually meet the long-term needs of the

pipeline operator who wants to avoid the

costly effects of external corrosion. Among

these products is the polyisobutene-based

wrapping tape produced by Stopaq of the

Netherlands, which the company says

meets all of the EPRG criteria, and which is

designed to provide a long-term molecular

bond to the pipelines external surface. This

material is now being widely used in newconstruction projects by Dutch pipeline

operators Gasunie and NAM, as well as in

China and elsewhere, and as we will be

reporting in the next issue on the Gasunie

North-South Pipeline, which is currently

under construction.

John Tiratsoo

Editor-in-Chief

FROM THE EDITOR

Cover shows workers onthe Sakhalin 2 Pipeline

Project, located on

Russias Sakhalin Island,

checking the integrity

of an induction-heat

applied field-joint

coating.

Editor-in-Chief: John TiratsooAssociate Editor: Lyndsie Mewett

Product Manager: Scott Pearce

Journalists: Stephanie Clancy

Julia Cooke

Anne Rees

Sales Manager: Tim Thompson

Sales Representative: David Entringer

Design Manager: Michelle Bottger

Designers: Sandra Noke

Stephanie Rose

Venysia Kurniawan

Benjamin Lazaro

Publisher: Chris Bland

ISSN: 1837-1167

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June 7-9 Risk-based Management of Pipeline Integrity and Safety (Houston)

June 8-10 Pipeline Repair Methods / In-Service Welding (Houston)

June 9-10 Introduction to Excavation Inspection & Applied NDE for Pipeline IntegrityAssessment (Houston)

June 9-11 Defect Assessment in Pipelines (Houston)

Ju ne 9- 11 ILI D at a Int er pr et at ion (Hou st on )

June 15-18 Subsea Production Systems Engineering (Bergen)

August 30-September 3

Practical Pigging Training (Rio de Janeiro)

September 20-24 Deepwater Riser Engineering Course (Houston)

September 20-24 Subsea Pipeline Engineering Course (Houston)

September 21-24 Subsea Pipeline Engineering Course (Houston)

October 18-19 Performing Pipeline Rehabilitation (Berlin)October 18-19 Pipeline Repair Methods / In-Service Welding (Berlin)

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6/37


With a transportation capacity of

40 MMcm/d, the 38 inch diameter

Gasduc III project is South

Americas largest diameter and Brazils

largest capacity gas pipeline surpassing

the 32 inch diameter Gasbol Pipeline, which

runs from Bolivia to Brazil and has a capacity

of 30 MMcm/d of gas.The 179 km Gasduc III Pipeline runs

through eight municipalities in Rio de

Janeiro and construction required 73 water

crossings, 56 road, railway and existing

pipe crossings, as well as the drilling of two

horizontal directional drills.

Engineering challengesTo avoid vegetation suppression in the

Atlantic Forest and preserve the habitat

of animals under the threat of extinction,

Petrobras decided that a tunnel would be

constructed under the Santana Mountain in

the municipality of Cachoeiras de Macacu in

the Sao Joao River Basin.

The tunnel measures 3,758 m long, 6.2 m

in height and 7.2 m wide. All of the material

removed during the construction of the

tunnel was used to reinstate areas that had

already been cleared before work had begun.

A 25 MMcm/d capacity compressor

station was constructed at one end of the

pipeline, in the city of Duque de Caxias,

while capacity was increased to 40 MMcm/d

at the Cabinas Terminal in Macae at theopposite end.

In August 2008, Odetech a joint venture

of Odebrecht and Techint Engenharia

signed a contract with Petrobras subsidiary

Transportadora Associada de Gs (TAG),

to build and install the trunk line and fibre

optic system for the pipeline.

At the peak of the project, between

August and September 2009, there were

2,800 people working on the pipeline.

Connecting BrazilThe Gasduc III Pipeline is an important

project for Brazil, designed to boost both

supply flexibility and transportation capacity

of natural gas to meet the increasing

demands of the southeastern markets, the

nations biggest gas consuming region.

Gasduc III interconnects Brazils main

natural gas processing terminal at Cabinas,

to natural gas Hub 2, located in Duque de

Caxias.

Hub 2 operates as a gas pipeline

interconnection point for the Japeri Reduc,

Reduc Volta Redonda, and Reduc BeloHorizonte gas pipelines, as well as a gas

pipeline to an LNG terminal in Guanabara

Bay, allowing greater flexibility in the supply

of southeastern Brazils gas market.

Petrobras has inaugurated Brazils largest capacity pipeline, the 179 km Cabinas Reduc III(Gasduc III) gas pipeline, after tunnelling 3,758 m through Santana Mountain.

AROUND THE WORLD

Petrobras tunnels its wayto Brazils largest gas pipeline

The Gasduc III Pipeline.

Workers stand next to the large diameter pipe.

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Only one regulatory hurdle remains before Ruby Pipeline LLC can begin construction on its 1,078 km

Ruby Pipeline after Federal Energy Regulatory Commission staff in the United States concluded that

adverse environmental affects could be kept to a minimum.

Staff from the US Federal Energy

Regulatory Commission (FERC)

have issued the final environmental

impact statement (EIS) for the project. FERC

staff found that although the pipelines

construction would have adverse impacts

on the environment, most of these would be

reduced to less-than-significant levels with

the implementation of Ruby Pipeline LLCs

proposed mitigation measures; additionalmeasures and agreements being discussed

by Ruby and other agencies related to

permitting conservation agreements; and,

the additional measures that the FERC

recommend in the EIS.

According to Ruby, the need for the

project arises from a growing demand for

natural gas in Nevada and on the West Coast,

coupled with a decrease in supply from

foreign sources and an increase in supply

from the Rocky Mountains.

The project is designed to transport

up to 1.5 Bcf/d of gas through a 42 inch

diameter pipeline beginning at the Opal

Hub in Wyoming and terminating at an

interconnect, located at Malin, Oregon,

near Californias northern border.

Finding the best way throughThe proposed Ruby Pipeline route

traverses southwest through Wyoming

before entering Utah, passing near the

town of Woodruff, and crossing through the

Cache National Forest and Wasatch Front

at Brigham City. From there, the pipeline

will continue north of the Great Salt Lake

before entering Nevada, where it will cross

the state south of the Humboldt National

Forest and north of the Black Rock

Wilderness before heading northwest intoOregon near the California/Nevada border.

The pipeline will then cross the Fremont

National Forest and Bryant Mountain

before ending east of Malin.

Delivery interconnects are anticipated

with the Paiute Pipeline, Tuscarora Gas

Pipeline, Gas Transmission Northwest

Pipeline and Pacific Gas & Electrics assets,

each of which transport gas to local utlilties

in Nevada, California and Oregon.

Ruby has said that the route was selected

based on terrain and constructibility

requirements, and follows existing rights-of-

way to minimise impacts on environmentally

sensitive areas where possible. During the

mapping phase, wetlands and culturally

important sites were identified. The company

has engaged Ecology & Environment Inc to

monitor environmentally sensitive areas, and

Environmental Planning Group and Pacific

Legacy to monitor culturally sensitive areas

during the construction process.

Ruby expects FERC approval in April

2010 and construction of the pipeline is

scheduled to begin in May or June 2010.

Constructing from east to westUS Pipeline, based in Houston, is to

construct the Wyoming portion of the

pipeline and a portion of the eastern Utahspread, to Milepost 60; Associated Pipeline

Contractors will construct the Cache segment

and a portion of the Box Elder spread in Utah

from mileposts 60112.

US Pipeline will then construct the

remaining spread mileage in Utah and extend

into Nevada to Milepost 294, north of Elko.

Precision has been contracted for

the portion of the pipeline that begins at

Milepost 294, and extends to a point in

Washoe County, Nevada, to Milepost 549.

From there, Rockford Corporation will

construct the final spread to the terminus at

Malin, Oregon.

All work on the spreads will be

conducted simultaneously. During the

projects peak, Ruby will be employing more

than 4,000 workers.

The pipeline is scheduled to be in

commercial operation by 1 March 2011.

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8/37

Australia Pacific LNG (APLNG) joint venture partners Origin Energy and ConocoPhillips have awardeda consortium of McConnell Dowell and Consolidated Contractors a contract to build the 450 km gastransmission pipeline for the APLNG Project, to be located in Queensland, Australia.

The APLNG Project is designed to

transport coal seam gas (CSG) from

Australias largest reserves in the

Surat and Bowen basins, Queensland, to a

proposed 14 MMt/a LNG processing plant

to be constructed at Laird Point on Curtis

Island, Gladstone. CSG will be piped to the

LNG plant, where it will then be exported to

Asia Pacific and other international markets.

The scope of the works for the APLNGPipeline includes the design, engineering

and construction of the pipeline.

The pipeline is proposed to start near

Miles, in South East Queensland, and

continue north through the Banana Shire

before turning east toward Gladstone,

located on the states coast.

A number of alternative pipeline routes

have been examined, with the final pipeline

route to be made in consultation with

landowners and local communities, and

involve a thorough constraints analysis.

The minimum burial depth for the

pipeline is 900 mm under normal conditions,

1,200 mm under road crossing and 2,000mm

under both railway crossings and water

courses and creeks.

The pipeline will have a design

pressure of 15.3 MPa with a capacity of

1,250 TJ/d of gas.

The diameter of the pipeline will be

42 inches, and a final decision is expected to

be made during the detail design phase.

Subject to a final i nvestment decision,

scheduled for the end of 2010, construction

on the pipeline will start in late 2011 withcompletion by the end of 2013.

Upstream operator Origin Energy

Executive General Manager Paul Zealand

said that the design studies for the upstream

facilities and pipeline had been undertaken,

and detailed engineering and preparatory

works will continue.

Both the pipeline and the upstream

contracts are scalable to include the

entire 450 km gas transmission pipeline

construction and a portion of the gas

production facilities for the project,

Mr Zealand said.

AROUND THE WORLD

APLNG pipeline contract awarded

Coal seam gas compressor station located at SpringGully in the Surat Basin. Image courtesy of OriginEnergy.

APLNG proposed pipeline route. Image courtesy of Origin Energy.



9/37


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Following the completion of the 300 km Vodnjan Umag gas pipeline, Croatia has entered into thefinal stage of the construction and modernisation of its gas transmission system.

Croatias gas transmission system

operator Plinacro adopted a ten-year

development plan to construct and

modernise its gas transmission system, to

be undertaken in three phases from 2002

to 2011. The second phase involved the

construction of gas pipelines across threeseparate regions central and eastern

Croatia, the Pula Karlovac region, and the

Lika and Dalmazia regions.

The 113 km Pula Karlovac section

was constructed in 2006 and connects

the north Adriatic gas fields to Croatias

gas pipeline system. The new pipeline

enables the supply of Adriatic gas to

the Croatian market, and opens up the

possibility of gasification of the Istarska,

Primorso-Goranska, and Karlovacka areas.

A connection to the proposed Lika and

Dalmazia gas pipeline is also planned.

Italian pipeline construction company

Ghizzoni completed construction works on

the Vodnjan Umag pipeline, in the Pula

Karlovac region, in late January, and has

now commenced construction works in the

Lika and Dalmazia region, while the pipeline

activities in the central and eastern region

are currently in the development phase.

Vodnjan Umag gas pipelineGhizzoni had to overcome challenging

engineering conditions including the

crossing of the Limski canal, which

extends 15 km inland from the Adriatic Sea.

The crossing point, with a width

of 860 m and a maximum depth of36 m, was chosen to have the minimum

environmental and technical impact, and

the crossing was undertaken using a towed

plough to bury the prefabricated pipe as it

was pulled across the canal. Three parallel

pipeline sections, each approximately

300 m long, were initially set on rollers

on one bank of the canal at spacings of

between 10 and 18 m.

The pipeline pull-back was carried out

using a Tesmec CO 3543 electric-powered

winch with 40 tonne pull-back capacity.

At the conclusion of pull-back operations,

Ghizzoni carried out non-destructive tests

on the welded joints and the coating, a

preliminary hydraulic test, and a caliper pig

run, to ensure the integrity of the installed

pipeline.

Construction commences onLika and Dalmazia tranmissionsystems

Ghizzoni commenced construction on

sections 2 and 3 of the Lika and Dalmazia

gas transmission system on 1 November

2009, comprising 175 km of transmissionpipeline to be constructed in the region.

Sections 2 and 3 will allow the Lika-Senj

area to be connected to the main Croatian

pipeline system, enabling gasification of a

large part of the region and a subsequent

decrease in its reliance on electric power.

Construction of these sections is scheduled

to be completed by 31 October 2010.

AROUND THE WORLD

Croatia modernises its gastransmission system

Above and right: Pipeline pull-back operations for the Limski canal crossing.

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critical element in CCS the transportation ofCO2from its source to its storage location.While there is significant experience with CO 2transportation, CO2from anthropogenicsources, such as power stations, has a widearray of issues that must be solved. Theseissues will be discussed. If y ou are interestedin the rapidly expanding area of CO2pipelines,you cannot afford to miss this forum.

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11/37


Construction work to expand the second Shaybah Abqaiq oil pipeline (SHBAB-2) at Saudi ArabiasShaybah Oil Field is nearing completion.

The 217 km Shaybah Abqaiq Pipeline

will connect a new plant, which

separates gas and oil at Shaybah, to

an existing pipeline that carries crude oil to a

processing facility at Abqaiq.

The existing 640 km SHBAB-1 pipeline

transports crude to Abqaiq from the other

three gas and oil separation plants located in

Shaybah.In 2007, Saudi Aramco awarded the

contract to construct the SHBAB-2 pipeline to

Stroytransgaz, the first Russian company to

win a contract from Saudi Aramco.

Under the agreement, Stroytranzgaz has

been building and engineering the pipeline,

averaging a welding rate of up to 2 km of

pipeline per day. Construction management

is being carried out from an office in Shaybah.

A number of environmental challenges

have been faced during the construction

process. Stroytranzgaz has been executing

the contract under extreme desert conditions,

which have required the use of a full

mobilisation schedule to navigate through

3 m deep sand dunes and sand storms.

According to Stroytranzgaz, executing

this project has required the company to

adapt to complicated work conditionsand intricate local legislation. Project

administration and quality management

had to be developed in order to meet

Saudi Aramcos standards, maintain high

productivity and ensure environmental

protection.

In order to provide accommodation

for its team of multi-national workers,

Stroytranzgaz constructed four villages along

the pipeline route.

Shaybah Abqaiq Pipelinenears completion

AROUND THE WORLD

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The SHBAB 2 pipeline project under construction.


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PIPELINES INTERNATIONAL | MARCH 2010 21

PROJECT BRIEFS


Project briefsDzhubga Lazarevskoye Sochi Pipeline

PROPONENT: OAO Gazprom, 16 Nametkina Street, Moscow, GSP-7, Russian Federation. Tel: +7 495 719 30 01

PROJECT SCOPE: The 177 km Dzhubga Lazarevskoye Sochi Pipeline will run along the Black Sea coastal

line, approximately 4.5 km away from the shore, to the Kudepsta gas distribution station near Sochi. The

pipeline is designed to meet the increased energy demands of Sochi the host city of the 2014 Olympic

Games.

PROJECT UPDATE: Pre-construction operations for the offshore section of the pipeline are nearing

completion and approximately half of the onshore section of pipeline has been welded, trenched, and

backfilled.

PIPELINE LENGTH: 177 km including a 159.5 km offshore section

PIPELINE CAPACITY: 3.8 Bcm/a of gas

EXPECTED COMPLETION DATE: Second quarter 2010

Tamazunchale-San Luis de la Paz Pipeline

PROPONENT: Pemex Gas y Petroqumica Bsica, Marina

Nacional, 329 Torre Ejecutiva Piso 17, Col. Huasteca, C.P.

11311, Mxico. Tel: +52 55 1944 5005.

PROJECT SCOPE: The proposed pipeline will transport gas

from the Chicontepec Gas Field, located in Veracruz and

Puebla, the Altamira terminal and/or the Burgos Basin to

central and western Mexico.

PROJECT UPDATE: A public bidding for the construction

and operation of the pipeline is scheduled for 2010

according to a gas sector forecast released by Mexicos

energy ministry.

PIPELINE LENGTH: Approxi mately 300 km

PIPELINE CAPACITY: 400 cm/d of gas

EXPECTED COMPLETION DATE: 2012

Elba Express Pipeline

PROPONENT: El Paso Corporation, 1001 Louisiana Street,

Houston, Texas, 77002, United States. Tel: +1 713 420 2600.

PROJECT SCOPE: The Elba Express Pipeline transports natural

gas supplies from the 1.75 Bcf/d capacity Elba Island LNG terminal

to markets in the southeastern and eastern United States.

PROJECT UPDATE: The pipeline was put into service on 1 March

2010 along with the expansion of the Elba Island LNG receiving

terminal near Savannah, Georgia.

PIPELINE LENGTH: 306 km

PIPELINE CAPACITY: 945 MMcf/d

COMPLETION DATE: 1 March 2010

Managerfor OSDCanada MartinAxelby(left)

andPresident andCEOofGemini Corporation

DougLautermilch.

PIPES AND PEOPLE

Mumbai High Field PipelineReplacement Project (PRP-2)

PROPONENT: Oil and Natural Gas Corporation (ONGC), Tel

Bhavan, Dehradun 248 003, India. Tel: +91 35 275 9561

PROJECT SCOPE: The $US750 million Pipeline Replacement

Project 2 (PRP-2) requires the installation of over 220 km of

624 inch diameter pipelines, both rigid and flexible, along

with pipeline crossings, risers, topsides modifications and

testing and pre-commissioning activities in the Mumbai High

field.

PROJECT UPDATE: In February 2010, Leighton

Internationals 130 m long pipelay vessel, theLeighton

Eclipse, finished laying the final lines of an 80 km pipeline

section for PRP-2.

PIPELINE LENGTH: Approxim ately 220 km

EXPECTED COMPLETION DATE: 2012

Pipes & People

David Entringer.

CORRECTION:In the September, 2009, edition ofPipelines International, a picture in the Nord Stream Pipeline article was run with an incorrect

caption. The picture, which featured on page 36, does not depict the inspection of welded sections of automatic ultrasonic equipment as the caption

suggests. Instead, it features submerged-arc double-joint welding.

OSD and Gemini signTeaming AgreementOSD PIPELINES HAS announced a Teaming

Agreement with Gemini Corporation in

Calgary, Canada. Established in Australia

in 1998, OSD specialises in all aspects of

pipeline and pipeline facilities development

and operation, and has been operating in

Calgary since 2007.

Gemini is based in Calgary and has

27 years of experience in the Canadian oil

and gas industry. This agreement will allow

the two companies to work together on a

number of projects, providing OSD with a

stronger base of operations in Canada and

offering clients an experienced team to deliver

combined pipeline and facilities projects.

Flexlife opens Kuala Lumpur baseSCOTTISH FLEXIBLE PIPE company

Flexlife has opened an international base

in Kuala Lumpur, as part of its programme

to expand into key locations for the oil

and gas industry. Azmir Ahmed, who has

an extensive background in flexible pipe

manufacturing, has been appointed the

Business Development Manager for the

new office.

Flexlife specialises in the manufacture

of flexible pipe products and subsea

integrity management. Since being

established in 2007, the company has

completed work for Apache North Sea,

Hess, Statoil, and Maersk in the North Sea

and international locations. It is intended

that a second international base will be

opened in Brazil by mi d-2010.

New Marketing Director at GAILSHRI PRABHAT SINGH has been appointed

the Director (Marketing) of GAIL. A past

General Manager of GAILs Exploration and

Production Department, since April 2006

Shri Singh has been leading the Upstream

Business Development and Strategy

Divisions in British Gas.

He has 29 years of experience in the

hydrocarbon industry, and in his previous

position at GAIL made a major contribution

to the execution of the worlds longest LPG

pipeline project, from Jamnagar to Loni,

which traverses the Indian states of Gujarat,

Rajasthan, Haryana, Delhi and Uttar Pradesh.

BJ Services appoints newGulf Coast Area ManagerKYLE RUZICK HAS been appointed the

new Gulf Coast Area Manager of BJ Services

Company Mr Ruzick, who has worked in the

process and pipeline sector for 20 years, joined

BJ Services as West Africa Operations Manager

in 2003, and later acted as Area Manager for

the Northern North Sea and Nigeria.

Mr Ruzick will be responsible for all

process and pipeline service operations,

business development initiatives and financial

management throughout the Gulf of Mexico

region. He intends to relocate to the companys

headquarters to Houston, Texas, in mid-2010.

For further information, contact Process and

Pipeline Services General Manager Lindsay

Link via email [email protected]

Pipelines International

opens Houston officeGREAT SOUTHERN PRESS, publishers of

Pipelines Internationalhave opened a new

office in Houston, Texas.

Headed up by David Entringer (pictured),

the Houston office will allow us to serve

the needs of US-based customers with even

greater efficiency. David will also work with

clients from rest of North America, South

America and Europe.

David is a lifelong Houston local and

graduate of Texas A&M. He has previously

worked in procurement in the energy

industry and looks forward to getting to

know all our North American-based readers

and advertisers.

David will be at a range of upcoming

events including IPC in Calgary and can be

contacted on +1 713 973 5773 or via email

[email protected]

With offices in London, UK; Melbourne,

Australia, and now Houston, USA; Great

Southern Press brings a truly global

perspective to the pipeline industry and

Pipeline Internationalmagazine.

New President atWillbros US ConstructionKEVIN FOX HAS been appointed the new

President of Willbros US Construction, a

branch of the Willbros Group that provides

construction, maintenance and speciality

services to the US pipeline industry.

Prior to this appointment, Mr Fox served

as President of Willbros Engineering, and has

23 years of engineering, project management

and integrated service delivery experience. He

joined Willbros in 1991 as an engineer.

Shri Prabhat Singh.


14/37


Shifting sands, salt marshes, extreme heat, storms, and complexintergovernmental relations, are some of the challenges

confronting the pipeline industry in the Middle East. Despitethese challenges, a wealth of significant pipeline projects areproposed or currently underway in the region. Here, Pipelines

Internationalprovides a snapshot of industry activity.

Pipeline projectsin the Middle East

By Stephanie Clancy

CONTINUED ON PAGE 24

The 640 km SHBAB-1 oil pipeline, shown under construction, is cur-rently being extended via the Shaybah Abqaiq 2 oil pipeline project,due for completion this year. Image courtesy of Saudi Aramco.

8-11 NOVEMBER 2010CROWNE PLAZA HOTEL KUALA LUMPUR, MALAYSIA

The world renowned Pipeline Pigging and Integrity Management Conference will come to Asia for the very first

time in 2010. Building upon the many years of success in Houston, the Asia Pacific Pipeline Pigging and Integrity

Management Conference will allow pipeline professionals in the region access to an exciting program of papers, great

networking events and the latest technology on display at the exhibition.

If you are responsible for the management of oil and gas pipelines, make sure you dont miss this event.

Plan to be there: www.clarion.org or call us at +1 713 521 5929

ORGANIZED BY SUPPORTED BY

CONFERENCE TRAINING COURSES EXHIBITION

AS IA -PAC I FIC

REGION REVIEW


15/37

24 P IPEL IN ES IN TERN AT IONAL | M ARCH 2010 P IPEL IN ES INT ERNAT IONAL | M ARCH 2010 25

while Germanys ILF Consulting Engineers is

managing the project. Trial operation of the

pipeline is estimated to start by the end of

2010, while the whole project is expected to

be completed in August 2011.

BJ Process and Pipeline Services has

successfully completed a pipeline pre-

commissioning operation for the Atlantis

development, which comprises a wellhead

platform that feeds a stand-alone pipeline

extending 75 km to shore. The contract

was completed for Global Industries, the

installation contractor for the offshore

section of the development.

OmanOman and India are examining the

possibility of constructing a 28 inch

diameter, 1,100 km subsea gas pipeline that

could significantly boost Indias energy

industry. The pipeline would be constructed

at a maximum depth of 3,500 m, and i s

expected to have a capacity of 20 Bcm/a.

IranIran and Pakistan have signed the final

agreement to launch the construction of

the $US3.2 billion Iran Pakistan (IP)

onshore gas pipeline. The two countries

signed an Operational Agreement and a

Heads of Agreement (HoA), which includes a

provision for Indias possible participation in

the project at a later date, in March 2010.

Saudi Arabia

Saudi Aramco has awarded an

engineering, procurement,

construction (EPC) and commissioning

contract to the Nacap-Suedrohrbau joint

venture to construct the 506 km, 30 inch

diameterRas Tanura Riyadh multi-

product pipeline from refineries in Ras

Tanura to Riyadh in central Saudi Arabia,

as well as install three pump stations,

metering systems, substation buildings and

maintenance. The project is expected to be

completed by December 2011.

Saudi Aramco has also awarded Jacobs

Engineering Group a contract to develop the

associated pipelines as part of the Arabiyah

Gas Development Programme, which will

facilitate the production and processing of

up to 2.5 Bcf/d of gas from the Arabiyah andHasbah offshore sour gas fields.

There are four associated pipelines:

two offshore pipelines connecting the gas

platforms to the tie-in platform of 24 km

and 36 km, a 110 km offshore pipeline to

transport gas to the Manifa processing

facility, and a 100 km onshore pipeline

carrying gas to the Berri gas plant. The

project is expected to be completed in 2015.

J Ray McDermott is undertaking pipeline

construction at Saudi Aramcos offshore

Karan gas field, in the Khuff region. The gas

field development involves a 110 km subsea

pipeline from the field to onshore processing

facilities at the Khursaniyah gas plant. The

project is expected to be complete by the

fourth quarter of 2011.

Meanwhile Stroytransgaz is nearing

completion of construction works to expand

the second Shaybah Abqaiq oil pipeline

(SHBAB-2).

The 217 km pipeline will connect a

new plant, which separates gas and oil at

Shaybah, to an existing pipeline that carries

crude oil to a processing facility at Abqaiq.

The existing 640 km SHBAB-1 pipelinetransports crude oil to Abqaiq from three gas

and oil separation plants located in Shaybah.

BahrainBahrain and Saudi Aramco are

discussing the construction of a new oil

pipeline between Bahrain and Saudi Arabia.

Exceeding 100 km in length, the projected

$US350 million pipeline project was

expected to commence construction by the

end of 2009; it has, however, been delayed

until later this year.

QatarTurkey is in negotiations to discuss

the development of the Qatar Turkey

pipeline. The pipeline would run from Doha

to Istanbul, a distance of approximately

2,500 km. The pipeline would carry Qatari

gas to the Mediterranean Sea, crossing Saudi

Arabia, Jordan and Syria, and may link to the

proposed Nabucco gas pipeline.

United Arab EmiratesIn February 2010, Abu Dhabi Company

for Onshore Oil Operations (ADCO) awarded

a contract worth approximately

$US683 million to National Petroleum

Construction Company (NPCC) for the

construction of a 950 km oil pipeline in the

United Arab Emirates (UAE).

NPCC will perform the EPC for the new

pipeline, as well as production well tie-ins

and flowlines that will connect the field to

four new production facilities. The contract

is expected to be executed in 30 months to

increase the capacity of the Bab field from

1.4 MMbbl/d to 1.8 MMbbl/d by 2017.Dolphin Energy has completed the

commissioning of early gas facilities in

August 2009 at the gas receiving station

associated with the Taweelah Fujairah

gas pipeline. The 240 km Taweelah

Fujairah pipeline will carry gas from the

Taweelah gas terminal on the Persian Gulf

coast, to treatment facilities in the emirate of

Fujairah near the Oman border. The project

is set to be completed later this year.

In January 2010, UAE-based construction

firm Dodsal secured contracts worth

over $US160 million to construct two gas

pipelines in Abu Dhabi. The first contract

is for the replacement of a 100 km, 36 inch

diameter pipeline linking Abu Dhabi Gas

Industries (GASCO) Thamma C production

facilities in the northeast to the firms Asab

field in the south. The contract is worth

approximately $US85 million.

The second EPC contract includes

construction of the 45 km, 48 inch diameter

Mirfa Habshan nitrogen pipeline. Part

of the joint venture industrial gas scheme by

Abu Dhabi National Oil Company (ADNOC)

and Germanys Linde, this pipeline will linkMirfa, in west Abu Dhabi, with the Habshan

oil field, located in the south of the capital.

China National Petroleum Corporation

(CNPC) and International Petroleum

Investment Company (IPIC) have signed an

EPC contract for the Abu Dhabi crude oil

pipeline project.

The project will involve the construction

of a 400 km, 48 inch diameter pipeline,

which will run from the Habshan oil field in

the west to the Fujairah Port in the east, and

will have a designed delivery capacity of

1.5 MMbbl/d and a maximum capacity of

1.8 MMbbl/d.

WorleyParsons has been awarded the

front-end engineering and design contract,

REGION REVIEWREGION REVIEW

NABUCCO AND ARAB GAS PIPELINE TO LINK THE MIDDLE EAST?

The Turkish Parliament has ratified a 2008 agreement with European Union statesregarding the nations participation in the construction of the 3,300 km Nabuccopipeline.The $US10.6 billion Nabucco pipeline will draw gas from the Caspian region

Azerbaijan, Turkmenistan and Kazakhstan as well as Georgia and Iraq. From thepoint where it connects into Turkeys pipeline network, the Nabucco pipeline will run3,300 km to a distribution hub in Baumgarten, Austria, potentially delivering up to31 Bcm/a of natural gas to Europe.Tying into the Nabucco project is the 36 inch diameter, 1,200 kmArab Gas Pipeline,which will transport Egyptian gas through Jordan and Syria to Turkey once completed.Construction has been completed on part of the pipeline, extending from Arish inEgypt, passing through Aqaba in Jordan, Damascus and Banias, both in Syria.Phase 2 of the pipeline will run to Turkey, and commissioning of the entire pipeline isplanned for 2011.Lebanon will also tap into the network, having signed an agreement with Egypt for600 MMcm/a, while Iraq will be integral in keeping supplies of gas flowing into thenetwork.

Ras Laffan Gas Plant, located in UAE.


CONTINUED FROM PAGE 23

Turkey is in negotiations to

discuss the development ofthe Qatar Turkey pipeline.

The pipeline would run

from Doha to Istanbul, a

distance of approximately

2,500 km.

Dolphin EnergyhascompletedtheTaweelahFujairahPipelineintheUAE.ImagecourtesyofDophinEnergy.


16/37


17/37


The 590 km Mangala to Salaya Pipeline

runs between the Mangala Processing

Terminal (MPT) and Salaya, and forms

a section of the 24 inch diameter, 670 km

Mangala to Bhogat oil pipeline. Proposed

by a joint venture between Cairn India and

ONGC to extend from the MPT, Rajasthan,to Bhogat in Gujarat, the pipeline runs via

the districts of Jalore, Banaskantha, Patan,

Ahmedabad, Surendranagar, Rajkot, and

Jamnagar.

Cairn India has been exploring

hydrocarbon resources in the state of

Rajasthan for more than ten years. The

pipeline was conceived in 2005 to facilitate

the early production from these fields, and

JP Kenny was engaged to complete a concept

design.

The Mangala to Salaya section

commenced construction in July 2008, and

was completed in December 2009. The

Salaya to Bhogat section of the pipeline

is still to be constructed. Approvals and

land purchase have been completed and

construction is to commence shortly.

The unique nature of the Rajasthan

crude requires the pipeline to be heated to

ensure the continuous flow of oil. To achieve

this 35 intermediate power feeding/heating

stations, each with a capacity of 1 MW, havebeen constructed at 20 km intervals along

the length of the pipeline.

Captive power facilities are located at all

heating stations and at the oil terminals at

Viramgam and Bhogat in Gujarat.

A skin-effect, heat-tracing system has

been installed along the periphery of the

pipeline. A polyurethane foam insulation

system with a high density polyethylene

jacket has also been installed around the

crude oil pipeline to prevent heat loss from

the pipeline to the environment.

Other works associated with the pipeline

include an 8 inch diameter gas line, running

parallel to the pipeline along most of its

length, starting from the Raageshwari

gas field in the Rajasthan Block. Storage,

handling and pumping stations are located

at the Viramgam terminal along with

a diluent mixing facility at the Bhogat

terminal.

Sourcing locallyThis is the first project of its kind in

the country and possibly one of the most

challenging undertaken in the world, said

a Cairn India spokesperson. Nearly 80 per

cent of the contracts to construct the pipeline

have been awarded to Indian companies.

The integrated engineering, procurement

and construction contract for the pipeline

was carried out by Larson & Toubro, while

the pipes have come from the Jindal Saw Mill

at Mudra. Certain sections of the pipeline

were constructed by Punj Lloyd to ensure

faster execution and optimum utilisation of

resources.

More than 4,000 contractor personnel

have been employed on the project.

Cairn India has recently completed construction of the worlds longest continuously heated andinsulated pipeline, located in western India and crossing the states of Rajasthan and Gujarat.

PROJECTS

Heating up in India:the Mangala to Salaya oil pipeline

The pipeline project activities provide

employment to persons of different skills and

trades. The local population is being given

preference regarding employment. During

construction of the project, temporaryemployment to unskilled and semi-skilled

labourers was provided. During the

operational phase, we plan to develop and

train local community members to provide

services such as security, administration and

maintenance, the Cairn India spokesperson

continued.

ChallengesThe Managala to Bhogat Pipeline corridor

traverses two states and eight districts and

required the acquisition of approximately

670 km of right-of-way (RoW), involving the

daunting task of impinging on the land of

nearly 50,000 landowners. Cairn India put

in place a dedicated team to address social

issues and gain the support of the locals

residing along the length of the pipeline

route. Programmes were undertaken to

educate stakeholders about the significance

of the project and various measures that are

being taken to protect the asset.

Other issues identified included the

movement of heavy machinery in remote

areas, weather-related issues such as

water-logging in the pipeline trench, and

overcoming the challenges of major river,

canal, rail, and road crossings. Each crossing

was unique: some of the river crossings

contained water, while others were dry

except in the monsoon season. In addition,

some of the canals crossed were unlined

whereas others had bed and banks protected

with boulder-pitched cement lining. Railway

crossings included single and double tracks,and the road crossings included all types of

minor and major district roads, as well as

state and national highways.

The majority of the crossings also

involved crossing existing utilities, including

optical fibre cables, power lines, and

drainage ditches around the RoW of the

facility to be crossed. Third-party pipelines to

be crossed included water and hydrocarbon

pipelines, both in and out of service.

All major road, railway and canal

crossings were undertaken using an auger-

boring machine. These obstacles, combined

with a tight project schedule, strict statutory

requirements, inaccessibility of the crossing

sites, and extreme weather conditions,

coupled with the desired safety and integrity

of pipelines, posed a major challenge for

both the design and construction teams

the Cairn India spokesperson said.

Hot to goAt the time of writing, commissioning of

the Mangala to Salaya Pipeline section was

underway, and construction activity at the

Viramgam Terminal, the 35 above-ground

installations, and the Salaya Terminal were

all at an advanced stage.

Cairn India said that approvals for the

Salaya to Bhogat Pipeline section had been

obtained and the necessary land purchase

had been completed. Bhogat lies on the

Gujarat coast and provides further flexibility

in terms of future offtake volumes.

Previous modes of oil transportation,including road transport, have been

susceptible to the vagaries of poor roads,

traffic congestion, and shortages. This

generally results in interrupted supplies of

the hydrocarbons to the consumers. The

pipeline, once commissioned, will ensure an

uninterrupted availability of these products

to the market, in the required quantity at the

required place and at the required time,

Cairn India said. Transportation of crude oil

by pipeline is comparatively less costly than

by other modes of transport, both in terms of

capital and operating costs. If a good network

of pipelines is implemented throughout the

country, this will ensure that there are cost

savings in transporting crude.

PIPE STATS

Pipe material: Mild steel API 5L - X65

Oil pipeline coating: Fusion-bondedepoxy/high-build liquid epoxy, thickinsulation, and a thick high-densitypolyethylene jacket

Gas pipeline coating: Multilayerpolyethylene augmented by a cathodicprotection system

Burial depth: 1 m minimum

Top: The Mangala to Salaya Pipeline runs from theMangala Processing Terminal.Bottom: Pipe stringing on the right-of-way.

A rail crossing underway on the project.

Construction works on a section of the pipeline.

PROJECTS


18/37

The Sakhalin 2 Pipeline Project involved

the construction of offshore and

onshore pipelines as part of the overall

development of the Piltun-Astokhskoye

and Lunskoye oil and gas fields, offshore

Sakhalin Island in the Sea of Okhotsk, north

of Japan. Construction of the pipelines began

in early 2004, and was completed in 2008,

with commissioning taking place in 2009.

At the peak of construction, around

8,000 people were employed on the

project, approximately 30 per cent of

whom were Sakhaliners, with most of

the others being from mainland Russia.

Around 500 expatriate employees, from

Europe, the Americas, and Australia, also

worked on the project.

Project scopeThe pipe used for the project ranged

between 14 and 48 inches in diameter, with

wall thicknesses varying from 7.1 to 30.2 mm,

and made from X52, X60, X65, and X70 steel.

The onshore pipelines totalled 1,600 km in

length, and 300 km of offshore pipelines were

constructed.

The Sakhalin pipelines are located in

three main groups between the offshore

platforms, situated to the northeast of

Sakhalin Island in water depths of up to 50 m,and an onshore processing plant situated

near the coast in the northeast of the island

and an LNG plant in the south of the island.

The northern offshore area has an ice season

of six to seven months, whereas the southern

part of the island is subject to a shorter ice

season and less severe conditions, which

allow the year-round export of LNG and

crude oil from the island. The two northern

groups of the pipelines transport oil, gas, and

condensate in single and multi-phase states

from three offshore production platforms to

the onshore processing plant, where the well

streams are separated and treated.

There is also a pipeline from the onshore

processing plant to Lunskoye-A, the most

southerly offshore platform of the fields,

transporting regenerated mono-ethylene

glycol (MEG) back to the platform for re-use in

the multi-phase pipeline.

The third group of pipelines transports gas

and oil from the onshore processing plant to

the LNG plant and the oil export terminal in the

south of the island. Another crude oil loading

pipeline runs from the oil terminal to a single-

buoy mooring of the tanker-loading unit.

The pipeline facilities include

approximately 150 block-valve stations and

19 pig trap stations, as well as a fibre optic

cable for communication and control

purposes running the length of the lines.

The offshore pipelines also involved the

installation of seven platforms risers and

three shore approaches.

Special sections for the onshore pipelines

were needed for approximately 700 road

crossings, 1,100 water crossings, 18 rail

crossings, 19 active seismic fault crossings,

80 electrical transmission line crossings,

and more than 100 underground services

crossings, as well as more than 70 unstable

ground areas (landslides, mudslides, and

avalanches).

Constructing pipelines on

Sakhalin IslandThe Sakhalin project was Russias firstoffshore development, which meant that

during construction, the existing regulatory

framework for the energy sector was still

geared to onshore development activities.

Sakhalin Energys Robert Boulstridge says

that this made construction particularly

challenging in terms of the necessary

requirements for permits and authorisations.

In addition, the construction of the

pipelines was characterised by various

seasonal limitations. These included the

end of the winter thaw period, which is

approximately one month long, and makes it

impossible to work in many areas.

The Sakhalin 2 Pipeline Project is one of the largest integrated oiland gas developments in the world. Located on Sakhalin Island,in the far east of Russia, construction of the project was completedin freezing temperatures and over many seismic fault lines.

Constructing SakhalinIslands pipeline network

PROJECTSPROJECTS


CONTINUED ON PAGE 32 The Sakhalin 2 Pipeline Project involved the con-

struction of both onshore and offshore pipelines.



19/37


In the case of many peat/bog areas, it

was only possible to excavate and lay pipe

in the middle of winter when the ground

was frozen, Mr Boulstridge says. Similarly,

work on crossings of salmon rivers was

limited by various designated spawning

season constraints and these were different

for different salmon species and in different

locations on the island.

The ground on Sakhalin is frozen for

approximately four to five months of the year.

The weather on Sakhalin can be very harsh

with normal mid-winter daytime temperatures

of -20 to -40C. These temperatures posed

obvious personal safety hazards, and ordinary

manual activities became very difficult. In

order to mitigate the hazard to workers, warm

shelters were provided on the work site sothat workers could have a break from the cold

every two hours.

While snow isnt too frequent on Sakhalin,

when it occurs it is often as one to three day

blizzards, resulting in large quantities of

snow being deposited in a very short period.

This made all roads impassable until cleared

and access to off-road sites was blocked for

considerable periods, says Mr Boulstridge.

Horizontal directional drilling (HDD) was

used to cross six watercourses with 12 individual

HDDs between 5001,000 m in length, for the

20 inch, 24 inch, and 48 inch pipelines.

Securing seismicityA large part of the onshore pipeline route

passes through areas of landslides, mudflows,

and avalanches. The general engineering

approach in these areas was to estimate the

unstable slip-plane locations and install the

pipelines below this level. This necessitated

the removal of large volumes of material on

some occasions, says Mr Boulstridge.

Seismic fault crossings constituted the

most difficult technical aspect of the pipeline

engineering design, taking several years tocomplete due to the complexities of the fault

systems, as well as developing the designs

for each individual crossing. There are two

main fault systems on Sakhalin: the Goromay

Fault and the Kliuchevskoi Fault. The design

objective was to minimise the number of fault

crossings, despite the fact that the pipeline

route runs parallel to the Kliuchevskoi Fault

over much of its length. The final design

incorporated one crossing of the Goromay

Fault and 18 crossings of the Kliuchevskoi

Fault. Fault movement does not normally

occur at surface level when the seismic event

has a magnitude of less than 6.5, but Sakhalin

has experienced events with magnitudes

greater than this, Mr Boulstridge says.

Because the crossings were designed

for a 1,000 year return period, which

involves potential ground movement and

pipe displacements of up to 4.6 m, the

pipelines have been designed to withstand

large movements by deforming without

rupture or loss of containment. Crossings are

configured in a dog-leg shape, over a length

of approximately 1 km, and cross the faults

at specific angles, typically 45C, to minimise

compression stress on the pipe. The

crossings are characterised by very shallow

trench sides, with an infill of a mixture of

special round-particle-shaped sand, and

lightweight expanded clay aggregate to allow

the pipeline to move out of the trench with

minimal resistance, says Mr Boulstridge.

In addition, the detailed design aspects

were complicated by the need to avoid waterbuild-up in the trenches to avoid freezing,

and increased resistance to movement.

This was fulfilled by using self-draining or

waterproof designs, which included the use

of impermeable layers, compartmentalised

sections, and complex drainage systems,

as well as surface insulation material to

minimise the pipe and backfill temperature

fall during the winter periods.

Safety on SakhalinThe pipeline construction involved

location-specific hazards, which needed to

be managed, including:

Crossing and working on ice, ice bridges, etc.;

Very unstable landslide areas;

Swamp areas;

Pipe string instability on poor ground

conditions, and particularly on slopes;

Encounters with bears, particularly during

non-noisy, survey-type activities; and,

Encroachment into no-go areas where

unexploded ordnance had not been cleared.

A f ocused action plan was developed

to focus attention and efforts on the four

main topic areas of safety concern, whichwere identified as drivers, vehicles, site

supervision, and subcontractor management.

Each topic had a senior management

sponsor and a designated leader. This

approach, coupled with strict consequence

management, had a positive effect on incident

frequencies and severities.

The existing road traffic culture was not

conducive to safe road travel. The project-

specific controls comprised compulsory

defensive driving tests, vehicle inspection/

testing, seat-belt fixing, seat-belt wearing

compliance, speed-limit compliance, and daily

alcohol testing for professional drivers. A fleet

of road transport monitors was used to control

speeding, alcohol misuse, and other offences.

Low temperatures and deep snow

were managed via thermal clothing, warm

shelters, journey management rules in

relation to travelling alone, and emergency

survival kits in vehicles.

An additional safety hazard on Sakhalin

Island was the significant occurrence of

unexploded ordnance remaining from World

War II. This affected most of the onshore

pipeline route, particularly in the southern

half of the island. A specialised contractor,

in combination with the Russian military,

cleared huge areas of pipeline right-of-way,

station areas, and camp/storage sites.

Preserving the environmentThere were several important

environmental challenges in relation to

both flora and fauna. Offshore, the mainenvironmental consideration was the western

grey whale. Some major re-scheduling and

re-routeing of the pipeline was necessary to

avoid any potential impact on the whales,

as monitored by international experts on

the Western Grey Whale Advisory Panel. Re-

routeing around the main whale feeding areas

was required, as was maintaining low noise

levels from all vessels and work activities in

the vicinity of the feeding areas.

Onshore, the route passes along the

outer part of two nature-reserve areas and

these required special pipeline construction

techniques and treatment of the flora. In

addition, a rare species of orchid along some

parts of the route was protected from damage.

The onshore environmental challenges to

fauna concerned the following:

The Stellars sea eagle protection of

nesting sites and the control of noise

levels during the breeding season;

Migrating reindeer migration routes

were kept open to avoid affecting the

migration patterns;

Salmon spawning hundreds of

sensitive salmon rivers were crossedin restricted time periods to minimise

impact on the spawning grounds; and,

Sakhalin dunlin, Aleutian tern and

Spotted greenshank protective

measures were necessary to avoid

disruption to nesting habitats during

certain periods of the year.

More than 100 cultural heritage sites

were identified along the pipeline route, and

these were either bypassed by a re-route

or protected from the main construction

activities until archaeological excavations and

studies had been completed. This resulted

in more than 30,000 archaeological finds,

many of them crucial for understanding the

prehistoric age.

PROJECTS PROJECTS

At the peak of construction, around 8,000 people were

employed on the pipeline project.

CONTINUED FROM PAGE 31

The Sakhalin pipelines route.

The Sakhalin 2 project was successfully completedin challenging environments both onshore andoffshore.


20/37


21/37


Pembina Pipelines completed the construction of a pipeline project to supply oil pipeline servicesto one of the new oil sands mines in northern Alberta, western Canada, in 2008. Near the middlea horizontal directional drill was required due to access, environmental and land constraintsencountered.

Pembina Pipelines Trust operates

approximately 8,350 km of pipelines

in British Columbia and Alberta.

The company was awarded the contract to

supply pipeline services to the oil sands

project.

The pipeline project included thecompletion of five pipeline loops along

the Alberta Oil Sands Pipeline (AOSPL).

Existing AOSPL rights-of-way (RoWs)

were used wherever possible to limit the

quantity of new disturbance caused by the

pipeline project. One of the loops, dubbed

the Horizon Pipeline Project involved the

looping of approximately 129 km of 24 and

30 inch diameter pipe, construction of

which started in 2006.

One of the five new pipeline loops was

the 17.3 km NPS24 Pine Creek Loop, which

followed the existing pipeline corridor

through the environmentally sensitive La

Biche Wildland Provincial Park. This loop

involved the crossing of two water bodies,

the La Biche River at the north boundary

of the Park and Pine Creek at the southboundary.

Due to the protected status of the La

Biche River Wildland Park, no additional

RoW was being granted within the Park.

WorleyParsons attempted to design a

horizontal directional drilling (HDD)

crossing with this restriction in mind but

could not achieve the desired results based

on the following:

The existing AOSPL RoW configuration

was designed to accommodate the

previously installed trenched crossing.

There were changes in horizontal

direction, both upstream and

downstream of the crossing.

A number of adjacent pipelines within

the area had to be crossed along the HDD

path. The minimum design radius of curvature

of the drill required clearance from the

bottom of Pine Creek and the required

entry and exit angles.

Ledcor Pipelines was awarded the

mainline contract for the Horizon Pipeline

Project. Ledcor subsequently awarded the

HDD subcontract to Direct Horizontal of

Stoney Plain, Alberta.

More and more subsea pipelines are being laid and, as time progresses, exploration and production istaking place in deeper waters. Some offshore pigging providers are now planning for operations downto 5,000 m as operators find that more traditional techniques will no longer meet the demand.

Developing tracking and signalling

pigs to work at extreme depths

creates new challenges.

Pre-commissioning pigs pass along subsea

pipelines and may be pre-installed into

launchers months and sometimes a year, inadvance of flooding, cleaning, gauging, and

testing operations.

Subsea pigging provider Online

Electronics says that pressure rating, battery

life, and delayed-activation techniques are

examples of the parameters that need to

be met to ensure the integrity of pigging

equipment matches the intended purpose.

Deep water pigging in BrazilIn 2009, Petrobras developed the

Hybrido gas field, offshore Brazil. The field

development involved the installation of

141 km of flexible and rigid lines in four

different fields in the Santos, Espirito Santos

and Campos basins. Subsea 7 was contracted

to install and commission the pipelines. This

field involved water depths of more than

2,000 m, over 100 km from shore.

Online Electronics supplied pig-tracking,

signalling, and data-logging equipment that

enabled proof of launch, proof of receipt,

and a means of tracking pigs. All products

delivered met the battery-life requirement

by incorporating pressure-switch activation

where appropriate, while also complyingwith the necessary pressure rating.

Petrobras safety standards require that

any subsea pipeline is fully tested to one-and-

a-half times its operating pressure. Online

Electronics temperature and pressure subsea

data-logging system was used to monitor,

record and report pressure and temperature

data for each pipeline hydrotest. Its function

is to secure the data while freeing up the

support vessel to continue to the next phase of

operations.

Online Electronics said that the

technology supplied had to confirm that

various events had taken place in the

interests of optimum operational efficiency

and optimal vessel utilisation.

Providing solutions with depthTo best contribute to the success of

operations, such as those at the Hybrido

field, Online Electronics said that it

has to understand, from information

supplied by its clients, the logistics of eachproject. A method statement or pipeline

pig monitoring and testing philosophy

statement is then prepared and the

appropriate equipment can be offered, for

example acoustic, electromagnetic (EM),

magnetic or ultrasonic solutions to best suit

the demands of the project.

Different systems work better in

different areas. EM technology operates

well in gas-filled, buried pipelines and in

pipe-in-pipe installations. Acoustic systems

have a greater detection range. Magnets can

be used where there is inadequate space to

house transmitters or pingers. Ultrasound is

a very effective method for pig signalling in

topside applications.

Online Electronics said that its 4000SD

unit can be strapped to a receiver prior

to deployment or attached to a receiver

by a remotely operated vehicle, which

can then interrogate the unit after all the

pigs have arrived. An acoustic modem orhigh-power beacons can be added to enable

confirmation of events to remote locations

up to 8 km away.

In addition, the company said that

its gauging-run integrity data system

transmits data through a pipe wall, giving

confirmation of the condition of a gauging

plate with the time of an event if the plate

has been damaged. This enables the client

to continue with the hydrotest immediately

after the completion of the gauging pig run,

avoiding the need to recover the pigs to

manually inspect the plate, saving a lot of

vessel time.

TRENCHLESS TECHNOLOGY

Subsea pipelinecommunication challenges

Analysing Alberta HDDBy Jim Murphy, WorleyParsons; Glen Fyfe, Pembina Pipelines; Trevor Giesbrecht, WorleyParsons;and Wes Dyck, WorleyParsons.

Online Electronics4000SD unit.


OFFSHORE TERRAIN REVIEW


22/37


Analysing the HDD pathThe soil within the HDD crossing at Pine

Creek was assumed to be a soft formation

based on feedback from the drilling

contractor, which included the difficulty

experienced with downhole steering and the

results of a geotechnical investigation.

Analysis of the drill path was completed

using the Von Mises method. There are a

number of methods available for calculating

the combined stress within an HDD path:

the Tresca, Von Mises, and limit-states

approaches are all recognised within the

CSA Z662 oil and gas pipeline systems

standard, and offer varying degrees of

conservatism. Regardless of the method

chosen, stress is analysed for a pipelinewithin the HDD path for the maximum

operational conditions.

The presence of applied loads in more

than one direction results in a much more

complex state of stress than for applied

loads in only one direction (uniaxial).

The predominant stresses in pipelines are

typically biaxial, with internal pressure acting

in the circumferential (hoop) direction and

thermal loads and beam bending acting in

the longitudinal direction. The yielding of the

steel under these conditions is considerably

more complex, and there are two widely

accepted approaches for determining the

combination of stress in various directions

that result in yielding of ductile material (such

as steel); the two approaches are the Tresca

theory and the Von Mises theory.

The combined stress according to

CSA Z662 is a biaxial stress, which is a

combination of hoop stress due to internal

pressure, and longitudinal stress due to

bending of the pipe to achieve the curved

shape of the HDD path added to the stress

imposed on the pipeline due to thermal

differential. A large positive thermaldifferential, together with internal pressure, is

typically the worst case.

The Pine Creek crossingThe resultant minimum acceptable

radius for the Pine Creek crossing was

determined to be 385 m, a marginal

improvement on the previous 425 m. The

385 m radius would need to be compared to

the calculated minimum radius of the drill

path after completion of the 36 inch ream.

The ream was completed two days

later. Entec analysed the drill profile data

and calculated a minimum dog-leg radius

of 284 m, with a number of other radii

less than 385 m. The subsequent survey

tool run was completed later in the same

day. Entec analysed these results and

calculated a minimum radius of 170 m with

a number of other radii less than 385 m.

The ever-decreasing calculated minimum

radius confirmed that the progression of

the calculations was from conservative to

more realistic.

Pembina and its construction manager

subsequently decided to pull the NPS24

pipe into the hole and the project team

agreed to continue analysing the available

information to determine if in fact the

36 inch reamed drill path was acceptable.

First, the project team completed a

sensitivity analysis to determine if reducing

the maximum operating pressure of the

pipeline or increasing the pipe grade would

be a viable alternative. After careful review,the required maximum operating pressure

reduction to 4,400 kPa, or a pipe grade

increase to 545 MPa, would still not be

sufficient to provide acceptability for the

Pine Creek crossing.

The next and only viable alternative for

analysing the crossing was to determine

the absolute stress level within the pipe

at this location. The Tresca and Von

Mises methods are both stress-based,

conservatively not accounting for the non-

linear steel properties. Due to tight-bend

radii determined in the field, the group

agreed to undertake a third method of

analysis: a non-linear strain analysis, which

is permitted by CSA Z662 Annex C as a limit-

state design approach. This strain analysis

is much more complex than either of the

stress methods, but it also is a more rational

and usually less-restrictive approach.

Determination of the longitudinal strain with

non-linear steel properties and subject to

biaxial stresses was performed with a finite-

element computer program.

Subsequent to the very detailed review

of the stresses involved in this installation,the current drill alignment was supported

by WorleyParsons Calgary, based on the

maximum calculated strain being below the

maximum allowable strain for the crossing

using limit-states analysis. WorleyParsons

used the minimum drill path radius of 170 m

and compared the strain at this location to

the maximum strain allowable for the NPS24

crossing pipe. The results were deemed

acceptable as per the above discussion.

In addition, WorleyParsons recommended

running a geometry pig through the crossing

within two years of the start of pipeline

operation to verify the geometry of the pipe

within the crossing and reconfirm the results of

the limit-states analysis.

The purpose of this article is not to

support less conservative analysis as a

general rule for HDD installations but

rather, given the difficult circumstances

encountered at the site, to illustrate that

this method of analysis is applicable

and required in certain circumstances.HDD installations of pipelines beneath

pipeline route obstructions are technically

challenging, as are the determination of the

construction stresses. These installations

are such that future repair and clean-up if

a problem develops are not possible or are

extremely difficult due to the location and

depth of these installations. Therefore, a

conservative approach to the design provides

some assurance that problems should not

occur at this type of crossing.

Chinas 8,704 km Second West East Gas Pipeline is one of the largest pipelines currently underconstruction. The pipeline crosses many different terrains, some of which require specialistinstallation techniques. One of Chinas main specialist manufacturers, Drillto, provided a horizontaldirectional drilling rig to complete a 510 m crossing of an environmentally sensitive area along thepipeline route.

China National Petroleum Corporation

commenced construction of the$US23.3 billion project in late 2008. The

scope of works involves the construction of an

8,704 km gas pipeline that will connect Horgos,

in the Xinjian Uygur Autonomous Region, with

the Hong Kong Special Administrative Region

after traversing 14 provinces, autonomous

regions, and municipalities. The trunk pipeline

is estimated to cost $US10.3 billion, while the

network is expected to cost $US13 billion.

The project has been divided into eastern

and western sections with Zhongwei, in the

Ningxia Hui Autonomous Region, designated

as the pipelines midpoint.

The western section, running 2,461 km

from Horgos to Zhongwei, commenced

construction in February 2008 and the majority

of the welding is now complete.

The eastern section, running 2,477 km

from Zhongwei to Guangzhou, and with

a design pressure of 10 MPa, commenced

construction in December 2008. The eastern

section will connect to the Turkmenistan

China Gas Pipeline, which is also currently

under construction and is scheduled to be

commissioned in 2011.

When completed in 2011, the Second West-East Gas Pipeline will have a capacity of

30 Bcm/a of gas.

HDD in TianjinThe Tianjin Pipeline Bureau planned

the installation of pipe near the Tianjin

West Outer Ring No.10 Bridge district. The

crossing started on 16 May 2009, with the

pipeline pull-back completed on 6 June 2009.

Horizontal directional drilling (HDD) was

chosen for the pipeline installation under

approximately 400 m of green belt land,

as well as under a canal and neighbouring

high-tension electricity pylons. The length of

the directional drilling crossing was 510 m,

with a design depth of 15 m.

Project contractor Mr Xing identified one

of the major challenges of the crossing. The

main difficulty was overcoming the strong

electric field interference from the high-

voltage lines, which changed the magnetic

declinations we use to guide the drill head.

The river banks in the green belt area

were smooth, and the river is approximately

110 m wide and 4 m deep. Ground conditions

along the crossing path consisted of clay and

sand at varying depths.

In order to place precisely the drilling

rigs, the entry and exit points of the drill

path needed to be set along the routes

central axis. Mr Xing said that it was very

difficult to set out the central axis due to the

dense vegetation of the green belt, and GPS

was used to overcome this challenge.

The completion of the pilot hole, the key

to the entire crossing, used a ZT-150 HDD rig.

The bore was guided under the river with the

SST system, using the shore as a reference

point. After the river crossing, ground

tracking was used to guide the bore path.

Accuracy of the entry and exit points

is fundamental to the success of HDD

crossings. In this case measurements were

taken frequently and trial holes were dug

to avoid interference with existing utilities.

The drill bit broke through along the

centre-line with a 6 angle an indication

TRENCHLESS TECHNOLOGY TRENCHLESS TECHNOLOGY

Crossings on the greatpipeline of China

Drillto's HDD rig in action.

This article is an edited version of a paper entitled Does the HDD reaming passremove extreme alignment dog-legs: a case historyby James P. Murphy, Glen Fyfe,Trevor Giesbrecht and Wes Dyck presented at No-Dig 200

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