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SecretaryMr Uwe KlaasDVGW Deutsche Vereinigung des Gas- und Wasserfaches e.V. Bereich GasverwendungJosef-Wirmer-Str. 1 – 353123 BonnGermanyTel.: +49 228 9188821Fax: +49 228 9188996 E-mail: [email protected]
Working Committee 4
ChairmanMr Jeremy BendingNetwork Strategy Gas Distribution/ National Grid Gallows HillWarwick CV34 6DAEnglandTel: +44 1926 653309Fax: +44 1926 656553E-mail: [email protected]
Vice ChairMr Alessandro SoresinaAEM S.p.AVia Balduccio da Pisa, 1520139 MilanoItalyTel: +39 02 77205057Fax: +39 02 77206575E-mail: [email protected]
SecretaryMr Robert ThomasNetwork Strategy Gas Distribution /National Grid Gallows HillWarwick CV34 6DAEnglandTel: +44 1926 655801Fax: +44 7973 809914E-mail: [email protected]
Working Committee 5
ChairmanMr Jean Schweitzer
Danish Gas Technology CentreDr. Neergaards Vej 5BDK-2970 HørsholmDenmark Tel: +45 4516 9600Fax: +45 4516 9601E-mail: [email protected]
Vice ChairMr Tatsuo KumeOsaka Gas Co. 11-61Torishima 5 chomeKonohana-ku Osaka – 554-0051JapanTel: +81 6 6465 2008Fax: +81 6 6465 2021E-mail: [email protected]
SecretaryMr Aksel Hauge PedersenDONG Energy, RenewableA.C. Meyers Vænge 92450 København SVDenmarkTel: +45 4031 0022Fax: + 45 4480 6665E-mail: [email protected]
Programme Committee A
ChairmanMr Knut BarlandStatoil ASAPB 3085501 HaugesundNorwayTel: +47 91 11 30 48Fax: +47 52 77 22 10E-mail: [email protected]
Vice ChairMr Juan PuertasGas Natural SDG, S. A.Av. Portal de l’Àngel, 2208002 BarcelonaSpainTel: +34 93 402 5327Fax: +34 93 402 9300E-mail: [email protected]
SecretaryMrs Kari Lindøe HunsbedtStatoil ASA
PB 3085501 HaugesundNorwayTel: +47 48 08 02 94Fax: +47 52 77 25 67E-mail: [email protected]
Programme Committee B
ChairmanMr Pedro MoraledaGas Natural SDG, S. A.Avda de América, 3828046 MadridSpainTel: +34 91 589 3170 Fax: +34 91 589 3476E-mail: [email protected]
Vice ChairDr Colin D. LyleGas Market Insights Ltd30 Grove CrescentKingston upon ThamesSurrey KT1 2DGEnglandTel: +44 77 3856 3856Fax +44 20 8546 4700E-mail: [email protected]
SecretaryMr Francisco SicharSEDIGASEdificio ENAGAS – Paseo de los Olmos, 1928005 MadridSpainTel: +34 91 709 9581Fax: +34 91 709 9583E-mail: [email protected]
Programme Committee C
ChairmanMr Mohd. Farid Mohd AminPetronasLevel 75, Tower 1, Petronas Twin TowersKLCC, 50088 Kuala LumpurMalaysiaTel: +60 3 2331 4613Fax: +60 3 2331 2950
A N N E X – A D D R E S S E S
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There was a t ime when Petrobras
was just an o i l company.
Petrobras, as one of the worldʼs leading energy companies, is highly committed to the constant search for renewable
energy sources. Since the 1970s, when Brazil assumed leadership in this field by employing ethanol in cars, Petrobras
has been implementing a logistics and distribution system, and developing specifications that enable the use of this fuel.
From that time on, the Company has been investing in alternative sources such as solar power, wind power and biodiesel.
Energy sources that benefit society while protecting the environment. That is our commitment, and our responsibility.
www.petrobras.com.br
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104
E-mail: [email protected]
Vice ChairMr Antonio Luiz Fernandes dos SantosPetrobrasAv. Almirante Barroso, 81 32nd Floor20031-004 Rio de Janeiro – RJBrazilTel: +55 21 3229 4589Fax: +55 21 3229 4590E-mail: [email protected]
SecretaryMr Rashdan M. RadziPetronasLevel 75, Tower 1, Petronas Twin TowersKLCC, 50088 Kuala LumpurMalaysiaTel: +60 3 2331 4655 Fax: +60 3 2331 2950 E-mail: [email protected]
Programme Committee D
ChairmanMr Seiichi UchinoTokyo Gas Co. Ltd 1-5-20, Kaigan, Minato-kuTokyo 105-8527JapanTel: +81 3 5400 7622Fax: +81 3 3578 8365E-mail: [email protected]
Vice ChairMr Alaa Abu JbaraQatargas Operating Company LtdP O Box 22666DohaQatarTel: +974 485 7556 Fax: +974 473 6122E-mail: [email protected]
SecretaryMr Yutaka ShirakawaTokyo Gas Co. Ltd1-5-20, Kaigan, Minato-ku
Tokyo 1058527JapanTel: +81 3 5400 7580 Fax: +81 3 3578 8365e-mail: [email protected]
Task Force Research and Development
ChairmanMr Marc FloretteGaz de France361, avenue du Président WilsonBP 33 93211 Saint-Denis La PlaineFranceTel: +33 1 49 22 50 59Fax: +33 1 49 22 49 49E-mail: [email protected]
Vice ChairMr Mel YdreosUnion Gas Ltd777 Bay Street, Suite 2801P. O. Box 153Toronto, ON M5G 2C8CanadaTel: +1 519 436 4597Fax: +1 519 436 5392E-mail: [email protected]
SecretaryMrs Marie-José FourniguetGaz de France361, avenue du Président WilsonBP 33 93211 Saint-Denis La PlaineFranceTel: +33 1 49 22 59 75Fax: +33 1 49 22 51 03E-mail: [email protected]
Task Force Gas Market Integration
ChairmanMr Jorge DoumanianGrupo Gas Natural-Gas Natural BAN (Argentina)Jaime Balmes N° 8 –704 Colonia Los Morales Polanco
11510 México D. F.MexicoTel: +52 55 52792401/52792402Fax: +52 55 52792400 Ext:2401E-mail :[email protected]
Vice ChairMr Dietmar SpohnStadtwerke Bochum GmbHPostfach 10 22 50D-44722 BochumGermanyTel: +49 234 960 2000Fax: +49 234 960 2009E-mail: [email protected]
SecretaryMr Javier Fernandez GonzalezGrupo Gas Natural-Gas Natural SDG, S. A. (Spain)Jaime Balmes N° 8 – 704 Colonia Los Morales Polanco 11510 México D. F.MexicoTel: +52 55 52792478 / 790446Fax: +52 55 52792400 Ext:2401E-mail: [email protected]
National Organising Committee
ChairmanMr Eduardo Ojea QuintanaAlicia Moreau de Justo 8462° Piso – Of. 18(1107) – Buenos AiresArgentinaTel: +54 11 4343 6932 Fax: +54 11 4342 5082E-mail: [email protected]
A N N E X – A D D R E S S E S
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Your focus,our focus.
E u r o C a p i t a l M a r k e t s . D e r i v a t i v e s . S t r u c t u r e d F i n a n c e
Societe Generale is authorised by Banque de France and the Financial Services Authority, and is regulated by the Financial Services Authority for the conduct of UK business. In the United States, certain securities, underwriting, trading, brokerage andadvisory activities are conducted by Societe Generale Group's wholly-owned subsidiaries SG Americas Securities, LLC (registered broker-dealers and members of NYSE, NASD and SIPC). © 2006 Societe Generale Group and its affiliates.
Contacts: London: [email protected] +44 20 7676 6584, [email protected] +44 20 7676 6563 - New York: [email protected] +1 212 278 5357 - Hong Kong: Ashley Wilkins +852 2166 5619 - Sydney: Erik Lapstun +612 9210 8100. SG CIB, your partner in Euro Capital Markets, Derivatives & Structured Finance.
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International Gas Oct 07-24198ACPL707-100 / 3153 P106International Gas Oct 07_X171 1International Gas Oct 07_106 7/17/07 11:05:45 PM
107
FEATURES
To mark the holding of the 2007 Council meeting
in St Petersburg, this issue’s feature section starts
with an article from the host, Gazprom. Russia has
the world’s largest gas reserves and is the top
producer and exporter. Gazprom’s Alexander
Medvedev gives an overview of Russia’s export
markets and looks at how Gazprom is investing in
developing infrastructure and relationships with its
customers. Russia will start LNG production soon,
but for the time being all exports are via pipeline
and the next article looks at the latest
developments in pigging. Reports follow on the
successful LNG-15 conference, the emerging
decentralised energy market and aspects of
WOC 5’s and PGC A’s work. Then there is a
message from the International Pipeline and
Offshore Contractors Association (IPLOCA) and
an update on the gas historical network.
As usual, we round up with a description of the
publications and documents available from IGU
and the events calendar.
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110 G A Z P R O M – C O N T R I B U T I N G T O E U R O P E A N E N E R G Y S E C U R I T Y
Europe has a well balanced system of supply
and is clearly interested in retaining such a
balance. The European gas market has been
established by a small number of prominent
players operating under long-term arrangements
with the major gas producers from Russia, Norway
and Algeria. Moreover, the past decades have seen
the development of clearly defined and transparent
rules securing stability and reasonable competition.
Each of the sources is so important that it is
impossible to replace it quickly either in terms of
the resource base, or in terms of available trans-
portation capacity. This is today’s objective reality.
During four decades of presence in the
European gas market, Gazprom has supplied the
region with a total of over 3 tcm of Russian gas,
with 1.4 tcm going to the European Union. The
major markets are Germany and Italy in the EU
followed by Turkey.
Russian gas currently accounts for 26% of
Europe’s demand and over 40% of its imports.
With an annual consumption of some 500 bcm
(18% of the global total), the European gas market
is one of the world’s top three regional markets
together with North America (27%) and the CIS
(22%). The annual growth in European consump-
tion has exceeded 3% over the past decade versus
2.7% for the previous 10 years, and most countries
with domestic gas resources face declining
production. Norway, which has a very small home
market and produces principally for export, is the
key exception. Norway apart, domestic European
production currently supplies some 40% of the
overall gas requirements, with most of the
balance imported via pipeline and approximately
10% as LNG.
Gazprom – Contributing to European Energy SecurityBy Alexander I. Medvedev
Gazprom operates in challenging environments such as Western Siberia (INSET) a production well in the Urengoyskoye field.
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111G A Z P R O M – C O N T R I B U T I N G T O E U R O P E A N E N E R G Y S E C U R I T Y
Gazprom in its position as the world’s largest
exporter of this fuel. Furthermore, as is also clear
today, increasing the share of natural gas in the
energy mix helped reduce the energy vulnerability
of Western Europe, which had manifested itself
during the fuel and energy crises of 1973-1974
and 1979-1980. The increased utilisation of
natural gas, with the bulk obtained through
purchases from Russia, resulted in a lower
dependency on oil imports.
Since Europe’s self-sufficiency in natural gas is low
and declining, Russian gas exports serve as a key
element in European energy security and,
accordingly, are a crucial factor for the
sustainability of the global gas market.
While the first deliveries of Russian natural gas
were a focus of political debates about the
expediency and security of such purchases for
Western Europe, today European consumers should
not have any doubts about the reliability of
RUSS IAN GAS SALES TO EUROPEAN COUNTR IES IN 2006 , BCM
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112
GAS TRANSPORTAT ION SYSTEM
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113
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114 G A Z P R O M – C O N T R I B U T I N G T O E U R O P E A N E N E R G Y S E C U R I T Y
pressor stations with an overall installed capacity in
excess of 44.8 million kW, 24 underground gas
storage facilities and six gas processing plants.
Within the mutually beneficial framework of
cooperation, Europe has obtained, in addition to a
large sales market, a reliable source of gas supply.
The safety and security of Russian gas deliveries
have remained uninfluenced by economic and
political changes in Russia, including the difficult
period of transition from the centrally-planned to
the market economy. This reliability hinges on the
balance of interests of the parties and the sharing
of market risk among producers and large whole-
sale importers, within the scope of the existing
long-term contract system.
The operating background of this system,
where by producers bear the technology and price
risks and prominent importers bear gas off-take
risks on a “take-or-pay” basis, points to its reli-
ability and viability. The system has been, and
remains, the only tool for financing extremely
capital-intensive gas production and transportation
ventures. At the same time, long-term trading
secures reliability and sustainability for importers
and consumers, and thus represents a crucial
element in European energy security.
Gazprom continues to deepen its relationships
with conventional buyers and pays particular
attention to the fulfilment of gas supply commit-
ments and the development of new schemes with
higher reliability. For example, in 2006 the natural
gas supply contracts were extended with Germany
(until 2035), Austria (until 2027), Italy (until 2035),
France (until 2030) and Bulgaria (until 2030). The
accords achieved with the importers create a
favourable environment for Gazprom to implement
its strategy aimed at accessing the end user
markets in Italy, France and other countries.
● Developing the network
Large investments have been committed to shaping
Gazprom’s export portfolio including the develop-
ment of both the UGSS of Russia and the gas
● A framework of cooperation
Cooperation in the gas industry has undoubtedly
been a win/win process. The development of
Russia’s fuel and energy sector opened large
markets for Western technologies, equipment and
financial and insurance services. Earnings from
Russian gas exports to European markets were, to
a large extent, allocated for acquiring gas-
pumping equipment and large-diameter pipes in
the West to build the Unified Gas Supply System
(UGSS) of Russia. The UGSS was developed in
parallel with the geographical expansion of
Gazprom’s exports to secure an uninterrupted flow
of gas from the wellhead to the end user both in
Russia and Europe.
The extent of Russia’s UGSS is unparalleled in the
world. At present the system secures produc tion, trans-
mission, processing and distribution of some 700 bcm
of gas per annum of which 30% is for customers
beyond Russia. The UGSS connects to 78 gas and
gas condensate fields including such “super giants”
as Urengoyskoye and Yamburgskoye, with an
annual extraction of 150-160 bcm each, as well as
the new giant field of Zapolyarnoye with production
exceeding 100 bcm annually. The gas mains are
155,000 kilometres long and there are 268 com-
RUSS IAN GAS PRODUCT ION, BCM
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116 G A Z P R O M – C O N T R I B U T I N G T O E U R O P E A N E N E R G Y S E C U R I T Y
of 100 bcm. The late 1990s and early 21st century
witnessed the completion of a gas pipeline system
in Germany, the Yamal-Europe gas pipeline via
Poland and Germany and the Blue Stream gas
pipeline beneath the Black Sea linking Russia and
Turkey. In 2006 the latter carried 7.5 bcm of gas
and this will be increased to 16 bcm per year.
Moreover, in December 2005 construction of a
new UGSS section commenced in Russia. This will
transport natural gas to the twin-line Nord Stream
gas pipeline to be laid under the Baltic Sea. With
an annual capacity of 55 bcm, Nord Stream will
diversify export flows, directly linking the Russian
gas transmission network with the Western Euro-
pean gas grid and by-passing transit countries.
This will help avoid political and economic risks
relating to gas transit across third countries, and
enhance the reliability of Russian gas exports. The
project has political support both in Russia and the
EU where it has been awarded TEN (Trans-
European Networks) status.
trans mission networks in Central and Western
Europe.
The 1970s and 1980s saw the construction of a
gas pipeline system across Ukraine, Slovakia and
the Czech Republic with an overall annual capacity
The Blue Stream pipeline – seen here under construction on the Russian shore – was inaugurated in November 2005.
Russia’s UGSS is now being extended to link with the new Nord Stream pipeline.
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118 G A Z P R O M – C O N T R I B U T I N G T O E U R O P E A N E N E R G Y S E C U R I T Y
All the above will undoubtedly boost the
reliability and flexibility of Russian gas deliveries to
European consumers and thus make a further
contribution to enhancing European energy
security.
An additional factor in strengthening energy
security is the development of LNG production and
export facilities in Russia. Meanwhile, Gazprom has
started buying and selling LNG. The first trade was
sold into the US market in September 2005 and
Gazprom has since supplied Japan, South Korea
and the UK as well, with total LNG sales averaging
900 mcm a year.
In combination with the UGS facilities, existing
gas production and transmission capacities secure
for Gazprom an export level of over 160 bcm per
annum (disregarding the CIS countries). The com-
pany’s increased export commitments under its
long-term arrangements require the exploration of
new gas production provinces and the creation of
new transport routes both inside and outside
Russia.
Gazprom’s actions to expand a network of
underground gas storage facilities in European
countries are another crucial step towards raising
Europe’s gas supply reliability and hence rein-
forcing its energy security.
The company has entered into an agreement
with Wingas to store gas in Europe’s largest UGS
facility at Rehden, which has a capacity of 4 bcm.
Furthermore, Gazprom leases underground
storage capacity from Austria’s OMV and
Germany’s VNG, and is pursuing co-ownership of
UGS facilities outside Russia so as to increase the
stability of gas supply to European customers. To
this end, in 2005 Gazprom, RAG (Austria) and
Wingas signed an agreement to develop the
Haidach UGS facility in Austria, and the first phase
was commissioned on May 24, 2007. A contract to
store gas in the Humbly Grove UGS site has been
signed with Switzerland’s Vitol for 2006-2011.
Moreover, there is a planned joint project with
Wingas aimed at converting the British Saltfleetby
gas field into a UGS facility.
Gazprom has an agreement with Wingas to store gas in Europe’s largest UGS facility at Rehden (ABOVE) and together with Wingas and RAG has commissioned the first phase of Haidach UGS (INSET).
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www.omv.com/gas
NABUCCO
BAUMGARTEN
OMV keeps natural gas moving to where it's needed
Every year we transport 45 billion m3 of natural gas via theEuropean gas hub in Baumgarten, Austria, to neighboringcountries such as Germany and Italy.With the international NABUCCO gas pipeline project, we arealso playing a significant role in assuring Europe's future gassupply.
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120 G A Z P R O M – C O N T R I B U T I N G T O E U R O P E A N E N E R G Y S E C U R I T Y
This system was formed as a comprehensive gas
transportation and marketing cycle controlled from
an integrated centre.
Unbundling of transportation and marketing
assets might spell serious market risks and negative
material consequences for Gazprom, as well as
lower safety and security of gas supply for consumers.
Furthermore, the issue of transit guarantees has
not been satisfactorily solved within the Energy
Charter Treaty, and the decision has been taken to
prepare for signing an additional Transit Protocol.
The negotiations did not lead to desirable out-
comes – a range of critical issues still remain
unresolved. In particular, the Energy Charter Secre-
tariat has not so far taken a principled position on
a variety of key matters including last year’s
dispute over gas deliveries to Ukraine. Neither the
analysis, nor the assessment have been provided
for the actions of Ukraine that, on the one hand,
signed and ratified the Energy Charter, but, on the
other hand, retrieved Russian gas destined for
Europe without any contract or any legal grounds.
Meanwhile, the guarantees of transit on a long-
term basis or under economically attractive con-
ditions are of great importance both for Gazprom
and for European consumers in terms of gas
supply reliability. Unfortunately, the absence of
accords on the Transit Protocol terms and con di-
tions does not bolster the creation of a solid basis
for expanding gas exports, and will certainly ham-
per the needed decision making on investments.
Another critical issue relates to transportation
costs. Depending on the destination market, they
make up between 70% and 90% of the export price
excluding taxes. European gas market liberalisation
creates the legal conditions for gas deliveries to
final customers in an open market. However, the
existing third-party transportation tariffs in EU
member countries make those supplies practically
impossible in terms of economics. It is still unclear
how transportation costs will change, and this
generates serious risk impeding the organisation of
financing and execution of new investment projects.
● Investment and risk sharing
Clearly investments in the development of gas infra-
structure, particularly transportation facilities, are
extremely capital-intensive and imply high entrepre-
neurial risks. There are only a few com panies with
the ability to make investments of such scale and the
readiness to bear associated risks, and they need a
stable energy policy framework with clearly defined,
economically viable and time-tested conditions.
Only in this way can an environ ment be established
which fosters new investment and entrepreneurial
support oriented towards the future.
Thus, energy security is dependent not only on
energy suppliers but also consumers. Providing
energy security for Europe implies joint responsi-
bilities and the sharing of risks and benefits bet-
ween exporters and importers. This is indispensable
for the creation of the stable market conditions
needed to meet projected soaring demand for
imported gas in the region. Unfortunately, a string
of regulatory initiatives for Europe’s national gas
markets considerably undermine the risk-sharing
system in the region, and shift practically all gas
supply-related risks onto producers and exporters.
The European Commission’s recent proposals
on the unbundling of transportation and marketing
businesses are a vivid example of the disunity
among suppliers and consumers. Such unbundling
moves foster the development of serious material
consequences and considerable risks for system
investors including Gazprom.
The safety and security of supply have a high
market value and determine, to a large extent, a
competitive market environment. The reputation of
Gazprom as a reliable supplier is based not only
on the world’s largest resource base, but also on
the availability of a secure and diversified gas
transportation system both in Russia and abroad.
The major investments in the Yamal-Europe gas
pipeline and the German gas pipeline network
have secured the ability to manoeuvre gas flows
inside the Russia – Belarus – Germany – Czech
Republic – Slovak Republic – Ukraine – Russia ring.
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121G A Z P R O M – C O N T R I B U T I N G T O E U R O P E A N E N E R G Y S E C U R I T Y
time will tell, but the market risks for producers
continue to increase, and the investment decision-
making process as regards new industrial projects
will become even more complicated.
Given this situation, it should be borne in mind
that escalating competition in the European gas
market might spell, in the mid- and long-term, a
new type of global market competition.
Gazprom, for its part, is still intent on pursuing
an integrated export policy based primarily on
long-term arrangements that will remain the
cornerstone of the company’s business in external
markets. We are positive that this will contribute to
stabilising the European gas market, reinforcing
energy security and promoting sustainable
economic development in Europe.
Alexander I. Medvedev is Deputy Chairman of the
Management Committee of OAO Gazprom (www.
gazprom.com).
● Meeting growing demand for imports
As already mentioned above, the bulk of the gas
resources consumed in the European market are
imported; according to projections, the share of
supply from external sources will climb to 70% by
2015-2020.
Under these conditions, issues concerning the
funding of new projects become extremely impor-
tant in terms of the organisation of a secure gas
supply to the European continent. At the same
time, market and financial risks should be reason-
ably divided between producers and consumers,
and guarantee mechanisms should be found for
the growing risks that inevitably emerge from the
process of liberalising the European gas market.
This brings up the question about whether a
liberalised European gas market will be able to
secure the hitherto achieved degree of reliability
and, at the same time, offer consumers a higher
degree of flexibility and price advantages. Certainly
DISTR IBUT ION OF GAZPROM GROUP ’S HYDROCARBON RESERVES IN THE RUSS IAN FEDERAT ION
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international Gas Oct 07-24198ACPL707-99 / 3153
ARE YOU SURE?Pipeline scheduling for liquids and natural gas can be complex and manually intensive. Streamline your process – and help your analysts – with a liquid or gas version of PipelineTransporter®, the premier software application for managing, scheduling and tracking liquids and natural gas in pipelines.
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Since developing the world’s first real-time pipeline
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Natural Gas comes naturally to EnergySolutions
international Gas Oct 07_122-1231 1international Gas Oct 07_122-1231 1 7/17/07 8:51:38 PM7/17/07 8:51:38 PM
124 W H A T ’ S N E W I N G A S P I P E L I N E P I G G I N G ?
necessary dialogue between the pigging contractor
and the pipeline operator has not taken place in
advance, but the pig cannot be blamed for poor
performance if the basic criteria for its operation
have not been fully planned.
This article will review the reasons for pigging a
pipeline in the first place and give a brief overview
of the technologies used for in-line inspection. It
will then discuss multi-diameter pigging and the
problems of “unpiggable” pipelines, and
combining the two main inspection technologies
into a single tool – two specific challenges that are
now able to be met by the latest design of pigging
and inspection equipment.
● Why pig a pipeline?
Pipeline efficiency depends upon continuous
operation and low operating costs and pigs play a
major role in both achieving and maintaining these
two fundamentals.
The science of pigging has developed to such an
extent that nowadays there are almost no pipeline
cleaning or inspection problems that cannot be
solved. The key issue is usually whether a particular
task is economic.
Although not regulated by specific industry
technical standards, most normal pigging
operations for cleaning or inspection can be
carried out with great integrity and little fuss,
provided certain basic criteria are met. Most of
these concern the proper planning of the pigging
task, and should be defined and agreed long
before the launch trap door is opened. Problems of
pig performance certainly occur when the
What’s New in Gas Pipeline Pigging?By John Tiratsoo
Pigs play a major role in maintaining pipeline efficiency.
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125W H A T ’ S N E W I N G A S P I P E L I N E P I G G I N G ?
required for a range of tasks throughout a pipe-
line’s lifecycle: during construction, during oper-
ation, for inspection, for general maintenance and
repair, for renovation/rehabilitation and during
decommissioning.
● Inspection pigging
Utility pigs, which are used during the construction
and operational phases, are intended to perform
functions such as cleaning, dewatering, etc. On the
other hand, “intelligent” pigs, normally nowadays
referred to as in-line inspection (ILI) pigs or tools,
provide information on the condition of the pipe
and/or its contents. Generally speaking, these tools
are not sold, but the vendors offer a turnkey service
to provide an operator with the data on his
pipeline that he needs in order to establish its
integrity and continuing fitness-for-purpose.
The information provided by these ILI services
covers a wide range of inspection and trouble-
shooting tasks, including diameter and geometry
measurement, curvature monitoring, temperature
and pressure recording, bend detection and
measure ment, metal-loss and corrosion detection,
crack detection and leak detection. Many inspec tion
surveys, particularly those for metal loss and pipe line
geometry, are run during or soon after commission-
ing in order to provide a baseline survey. This
enables subsequent inspections to be compared
with the original results, and makes it possible to
detect any changes and trends, as well as to
establish the average rate at which any changes
are taking place. Such information is invaluable for
both maintenance and production planning.
In-line inspection really began in the 1960s with
the introduction of a tool for corrosion measure-
ment based on magnetic flux leakage (MFL)
technology; the first Linalog MFL tool was run in a
pipeline in 1959, and this was soon followed by an
electromechanical pig for geometry measurement.
Today there are over 30 different tools in use by
more than a dozen companies providing ILI
services: many years of research and many millions
They help to ensure continuous operation by:
● removing any substance which might damage
the pipeline system;
● helping to prevent corrosion;
● providing information on developing problems;
and
● providing an alternative to shutting down for
periodic testing.
They help to ensure maximum efficiency by:
● removing any debris or foreign matter in the
line;
● removing any deposits, either liquid or solid,
which might otherwise build up and restrict the
flow; and
● monitoring the operating and/or physical
conditions of the line.
However, it must be remembered that the level
of the contribution made to both the efficiency of
the pipeline and to its protection will depend upon
the pigging programme and the effectiveness of
the pigs which are used. Under any given set of
circumstances there will be significant variations in
the performance of different types of pig, and even
between different makes of the same type.
Perhaps one of the most common and yet costly
mistakes is to rely totally on corrosion monitoring
and automatic corrosion control systems to decide
when to run a pig. The reliability of any monitoring
system depends upon where the probes, coupons,
and/or sampling points are located, and this is
difficult, if not impossible, to achieve on subsea
lines or to determine accurately on land lines,
particularly on those which have significant
gradients. Once corrosion, particularly pitting or
channel corrosion, has occurred, it is unlikely that
a pig will be able to remove the water which will
accumulate in these recesses. It is therefore
advisable to include batch inhibition (running a
slug of inhibitor between two pigs) as part of any
corrosion-control programme.
The earliest pigs were used simply to remove
any large deposits of wax or dirt in order to main-
tain the flow through the pipeline; today, pigging is
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126 W H A T ’ S N E W I N G A S P I P E L I N E P I G G I N G ?
analysis and subsequent reporting on completion
of the run. Continuous development of magnets,
sensors, computer analysis and reporting systems
has meant that the differentiation between the
earlier low-resolution and high-resolution tools has
disappeared; almost all the tools nowadays
available have a resolution capacity that was
unheard of even a decade ago.
The use of ultrasonics for pipeline inspection was
commercialised in the 1980s, and involves ultra-
sonic transducers mounted on the moving pig that
transmit signals perpendicular to the surface of the
pipe. Sensors on the pig receive the echoes of these
signals from both the internal and external sur face
of the pipe, and convert them into digital data so as
to detect any anomalies. The ultrasonic tech nique is
shown in Figure 2, and is based on the dir ect
measurement of the remaining wall thickness.
For gas pipeline operators ultrasonic tools, while
able to do inspection tasks that MFL cannot, have a
particular disadvantage: the ultrasonic waves need
to travel in a liquid medium. In order to inspect a
gas pipeline, therefore, the tool needs to be in a
liquid slug with sealing pigs in front of and behind
the tool and with a homogeneous liquid in between.
Usually one or more slugs of drying fluid, such as
methanol, will also be required, so the process of
running an ultrasonic pig in a gas pipeline becomes
relatively complex when compared to running an
MFL pig. However, the ultrasonic technique will
identify pipeline defects that MFL will not, so there
are advantages to its use. As discussed below, MFL
is generally good at identifying metal loss (internal
and external corrosion, pitting, dents, gouges and
hydrogen-induced cracking), while ultrasonics is
good at identifying other types of crack, particularly
those in the longitudinal direction and stress-
corrosion cracking.
● Unpiggable and multi-diameter pipelines
In-line corrosion inspections have become standard
in pipeline-integrity assessment worldwide, and
around 60% of the world’s gas pipelines can be
of dollars have been spent in their development.
Two basic principles for ILI have emerged:
magnetic flux leakage and ultrasonics. Although
the basic techniques are relatively straightforward,
the problems of putting them into practice have
proved to be extraordinarily difficult. Each
technique has different strengths and weaknesses:
MFL can be used straightforwardly in either gases
or liquids, and can measure metal loss, even in
relatively thin-wall pipes, which can be difficult with
ultrasonic tools. On the other hand, ultrasonic pigs
can generally only be used in homogeneous
liquids, but they are able to measure much heavier
wall thicknesses than is possible with some of the
MFL pigs.
The operation of MFL is shown in Figure 1.
Magnetic flux is induced into the pipe wall between
two magnets, and any metal loss which is present
in the wall results in the flux lines being distorted.
This distortion is sensed by a detector which then
generates an electrical signal, indicating metal
loss. These signals are stored for detailed computer
THE MFL PR INC IPLE
THE ULTRASONICS PR INC IPLE
Source: Pigging Products & Services Association (www.ppsa-online.com).
Source: Pigging Products & Services Association (www.ppsa-online.com).
ABOVE
Figure 1.
BELOW
Figure 2.
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