Pin 2014-06

ISSUE 20
JUNE 2014
New export horizons
AUSTRALIA
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Canada | Germany | Malaysia | Mexico | Russia | U.A.E | USA
CONTENTS
STATS GROUP
16
10
REGULARS
ISSUE 20 | JUNE 2014

UNITED KINGDOM
(Editorial and Technical)
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PROJECTS IN FOCUS
From the Editor
50
World wrap
MACHINERY AND EQUIPMENT
Event calendar
INDUSTRY NEWS
The Ichthys Export Pipeline
52
Regulation and re-routeing in Canada: a

Stopple Train case study
54
Enhancing pipeline security with

distributed acoustic sensing
Advertisers index
Coming in future issues
Ukraine and Russia crisis: potential

impacts for Europe
RISK MANAGEMENT
10
Indian Oil Corporation awards pipeline

coating contract to Denso
UPCOMING EVENTS
INTERVIEW
12
56
16
Queensland: the forefront of Australias

LNG export pipelines
20
The road to LNG: constructing Australias

export piplines
24
Spiderplough delivers a world-first in

pipeline installation
28
Nacap setting the benchmark for pipeline

construction in Australia
31
34
Lifting Australias pipe loads
Troubles with weightings
58
60
Pipeline event opens up new markets
62
Fix your pipeline problems in Berlin
The fall and rise of El Paso Corporation
REGION REVIEW
Managing Pressure, Minimising Risk
Countdown to the International Pipeline

Conference and Exposition
PIPELINES INTERNATIONAL
DIGITAL EDITION
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CSG in focus: modernising the gathering

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PIGGING
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Perfect your pigging knowledge
40
Nitrogen pumping for offshore pigging
The Tecno Plug provides fail-safe double block and bleed pipeline isolation tools for high pressure
applications while the system remains live and at operating pressure. This enables inspection or
maintenance work to be carried out safely and efficiently while meeting industry-led double block and
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Optimal selection of verification digs for

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OFFSHORE
42
Revolutionary pipe-in-pipe installation for

the Rochelle Project
48
Innovation with the Ichthys offshore

pipeline
PIPELINES INTERNATIONAL | JUNE 2014
www.statsgroup.com
FROM THE EDITOR
Editor-in-Chief:
John Tiratsoo
Managing Editor:
Lyndsie Clark
Associate Editor:
Anna Tupicoff
Sales Manager:
Tim Thompson
Senior Account Manager: David Marsh
Sales Representative:
David Entringer
Creative Director:
Michelle Cross
Acting Design Manager: Bianca Botter
Designer:
Kim Barry
Events Manager:
Luke Rowohlt
Publisher:
Zelda Tupicoff
ISSUE 20
JUNE 2014
New export horizons
AUSTRALIA
The entire 540 km QCLNG

pipeline seen here
during construction at
The Narrows in Gladstone,
Queensland has now
been buried. Image
courtesy of QGC.
ISSN: 1837-1167
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peaking at the recent launch of the new

report by the Carbon Tracker Initiative
(CTI), CEO Anthony Hobley commented,
Exxon saying there is no risk does not
constitute prudent management of shareholder
funds: its like King Canute assuming he can
hold back the tide, but investors can see that a
shift in energy is already coming in. Exxon has
come clean that [it is] betting on 6oC of
warming but investors have no way of
managing the risks associated with that
trajectory and need to act to get the oil sectors
capital expenditure in line.
Among the background issues to this recent
report on the effect of global warming on the
hydrocarbons industry, and hence on the
pipeline industry (no new hydrocarbon
developments equals no new pipelines) is the
International Energy Agencys confirmation
that around two-thirds of fossil fuel reserves
cannot be burnt if we are to limit CO2 emissions
to a level that gives a reasonable chance of
restricting global warming to 2C. This means
there is a carbon budget to allocate across fossil
fuels and, essentially, coal, oil and gas are
competing to demonstrate they will get to use
the budget. The more the oil sector expects to
be used up for transport, the less will be
available for burning coal or gas for power
generation. Similarly, the more state-owned
entities produce, the less scope there is for
private companies. According to the CTI, BP
acknowledges that reserves exceed a carbon
budget for limiting global warming to 2oC in its
latest sustainability report, but is less clear
about the financial implications.
Getting companies to explain how they see
their business adapting to the transition of the
energy system away from high carbon sources
starts a new debate which brings together
corporate strategy and spending plans with
climate-change policy positions. Long-term
investors have an inherent interest in resolving
these contradictions between supporting climate
policy on one hand, but spending capital on
increasing fossil-fuel reserves on the other. As
the CTI points out, Shell in its discussion of
risk factors acknowledges in its annual report
that carbon regulation is increasing, and then
also admits that the carbon intensity of its
production is increasing, which appears an
undesirable combination. Further probing is
needed from investors on the logic behind this
conscious pursuit of high-carbon assets.
Oil analysts have been highlighting that
company cash-flow cannot support continued
increasing capital expenditure and
maintaining dividends. Looking at future

plans to spend capital on high-cost projects
which assume high oil prices is prudent
for investors. As Wood Mackenzie has put it,
this is solving the value vs volume dilemma,
and this builds on the issue raised in CTIs
Wasted capital and stranded assets report. If
companies are betting on high oil prices, will
they be able to maintain both dividends and
planned Capex in a lower-price environment?
The oil sector is moving into higher-carbon
unconventionals to try and maintain
production. There is growing exposure to
projects in ultra-deepwater, the Arctic, and in
unconventional plays such as oilsands, all of
which bring greater technical risk and higher
costs. This will affect different companies to
varying extents. The CTI report believes it is
reasonable to expect a company to disclose the
price and demand assumptions it is testing its
capital expenditure decisions against: for
example, the report quotes Shell as having
indicated that it uses a range of $US70110 /bbl.
It would also be useful for a company to indicate
its level of exposure at various oil prices, and
the level at which it would start to impair assets:
companies with higher exposure to projects that
breakeven above $US80/bbl are less wellpositioned to adapt to a low-price environment.
This debate, the CTI points out, is directly
linked to expectations around oil demand
and price. Oil-production costs have
increased at a rapid rate, with Capex by the
largest oil companies now five times the level
it was in 2000. Yet over this time the level of
production has stayed around the same level,
rather than increasing in proportion to Capex
levels. As the cost per barrel has increased,
the profitability of operations has only been
achieved by oil prices increasing to cover the
cost increase. If the original price
assumptions had played out, the projects
would have seen major losses. Analysts are
now questioning whether the price trajectory
can continue to support the cost trajectory
seen over the last decade.
The effect on new pipeline construction
obviously remains to be seen, but if the past is
anything to go by, even a minor fluctuation in
the oil price has a magnified effect on such
long-term projects.
John Tiratsoo
Editor-in-Chief
Halfwave AS | Fjordveien 1 | NO-1363, Hvik | Norway | Phone: + 47 95 81 86 80 | Email: mail@halfwave.com
www.halfwave.com
WORLD WRAP
WORLD WRAP
Alaska passes bill for Alaska LNG and

pipeline project partnership
The Alaskan State Legislature has passed a bill
for the state of Alaska, USA, to partner with
energy companies to develop the $US4565
billion Alaska LNG Project, which involves a
large-diameter natural gas pipeline.
The legislation amends multiple state laws,
and allows negotiations to proceed toward the
state of Alaska becoming an equity partner in
the project.
The Alaska LNG Project partners are North Slope
gas producers ExxonMobil, ConocoPhillips, and
BP, pipeline company TransCanada, and the
state of Alaska. The project involves
construction of:
A gas treatment plant at Prudhoe Bay on
Alaskas North Slope;
A 93 km gas pipeline from Point Thomson
gas field to Prudhoe Bay;
A 1,287 km, 42 inch diameter gas pipeline
from Prudhoe Bay to Nikiski, southwest of
Anchorage along Cook Inlet; and,
A 1518 MMt/a LNG plant, storage and
tanker terminal at Nikiski.
The pipeline would have a capacity of 33.5
Bcf/d of natural gas which would be
distributed domestically as well as being used
for LNG feedstock.
Sterling III NGL Pipeline complete

ONEOK Partners has completed its 869 km,
16 inch diameter Sterling III natural gas
liquids (NGLs) pipeline, which runs from the
United States Mid-Continent region to the
Texas Gulf Coast.
The Sterling III Pipeline has the capacity to
transport 193,000 bbl/d of either
unfractionated NGLs or pure NGL products
from ONEOKs NGL infrastructure at Medford,
Oklahoma, to its storage and fractionation
facilities at Mont Belvieu, Texas.
The partnerships existing Sterling I and II
pipelines are being reconfigured to transport
either unfractionated NGLs or NGL purity
products, and are expected to be completed
during the second quarter 2014. The cost for
the Sterling III Pipeline and these
reconfigurations is approximately
$US760790 million.
TransCanada files Eastern Mainline

Project description with National
Energy Board
TransCanada has filed a project description with
the National Energy Board of Canada for the
Eastern Mainline Project, proposing new
facilities to the companys existing Canadian
Mainline natural gas transmission system in
south-eastern Ontario.
The project description proposes the construction
of as much as 370 kilometres of up to 36 inch
diameter pipe and associated compression
facilities adjacent to existing mainline facilities
between the City of Markham and the Township
of South Dundas in Eastern Ontario.
Discussions between TransCanada and shippers
are ongoing to determine the appropriate
amount of capacity that will be required.
To stay informed on this news and more, subscribe to the Pipelines International Update
Contract signed for second string of South Stream offshore section

South Stream Transport has signed a contract with Swiss Allseas Group to lay the second string of the South Stream offshore gas
pipeline in deep water in the Black Sea, and a contract with Saipem for providing complementary services for the construction.
Pursuant to the contract, Allseas will lay approximately 900 km of pipe on the seabed, and will engage the new pipelay vessel
Pieter Schelte, which is equipped with six welding and coating facilities to undertake the project.
As part of laying the second string, Saipem will engineer, manage pipe storage terminals, and connect the offshore pipeline to
the landfall sections using the above-water tie-ins.
Allseas will start laying the second string in summer 2015, while Saipem will be laying the first one. The second string will be
commissioned by the end of 2016.
Saipem awarded $US2.5 billion contract for Shah Deniz Stage II

The Saipem, Bos Shelf, and Star Gulf consortium has been awarded a new offshore
engineering and construction contract for the Stage II development of the Shah Deniz
field, worth approximately $US2.5 billion.
The field is located 90 km offshore Azerbaijan, in water depths between 75 m and 550 m.
The contracts scope of work includes the transportation and installation of jackets,
topsides, and subsea production systems and structures, the laying of over 360 km of
pipelines, diving-support services, and the upgrade of the pipelay barge Israfil
Huseinov, dive-support vessel Tofiq Ismailov, and derrick barge Azerbaijan.
The project will be completed by the end of 2017.
GLNG pipeline closer to completion after Gladstone

Harbour crossing
CNPC completes subsea section of

Tanzania pipeline
China National Petroleum Corporation (CNPC)
has completed the 29 km subsea portion of the
Mnazi Bay to Dar es Salaam Gas Pipeline Project,
in Tanzania, according to the China Times.
The local news service reports that CNPC
successfully laid and connected the subsea pipe
on 15 April using the pipelay vessel CPP601,
CNPCs largest subsea pipelay vessel.
The Mnazi Bay to Dar es Salaam Gas Pipeline
project involves the construction of 532 km of
pipeline to transport gas from Mnazi Bay in the
Mtwara region and Songo Songo in the Kilwa
District, to Dar es Salaam. The project consists
of a 36 inch mainline and a 24 inch spur line.
Upon completion, the pipeline is expected to
have a capacity of 784 MMcf/d.
The project began construction in September
2012, and is expected to be completed in
January 2015.
The final section of the Santos GLNG Projects gas

transmission pipeline has successfully pushed through a
tunnel beneath the Gladstone Harbour to the LNG plant on
Curtis Island, Queensland.
The 120 pipeline segments, each measuring 36 m, were
welded and pushed through the 4.3 km tunnel using a large
hydraulic jack, as the tunnel filled with seawater to buoy the
42 inch diameter pipeline.
Pipeline pre-commissioning works are well underway, with
clean and gauge activities nearing completion and about half
of the required hydrotesting completed.
The pipeline route will be fully rehabilitated with initial
reinstatement works now more than 90 per cent complete.
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Ukraine and Russia crisis:

potential impacts for Europe
The current political crisis between Russia and Ukraine has prompted governments and industry in
Europe, and throughout the world, to assess the potential impact of a disruption to the transportation of
Russian gas to Europe via Ukraine.
CM
MY
CY
ood Mackenzies latest analysis

demonstrates the comparison of a
potential disruption of two months in
the spring of 2014, with a six-month disruption
during the winter of 2014/15, and how this
could affect European and Asian LNG markets.
The global research group estimates that
Europe imported 155 Bcm of gas from Russia in
2013, some 30 per cent of its overall gas
demand. Ukraine is the key transit route for
Russian gas to Europe, with 50 per cent
(82 Bcm) transited through Ukraine in 2013.
Wood Mackenzies Senior Global Gas
Analyst Stephen ORourke said Central and
Eastern Europe will be most affected by a
Ukraine transit disruption, as eastward-flowing
pipeline capacity [from Western Europe] would
be insufficient to meet gas demand in Eastern
Europe. The region will have to draw upon
strategic storage volumes and some demand
will not be fully met. On the other hand,
north-west Europe has direct access to Russias
Nord Stream pipeline, which mitigates the
impact of any transit disruption.
The consultancys Head of Global Gas
Research Noel Tomnay said Based on our
analysis, if there is a two-month disruption to
the Ukrainian transit route in spring 2014, the

Southern European countries of Turkey and
Greece will require additional LNG, but this
should be less than 2 MMt.
Mr ORourke continued If the disruption
is more severe, for example a six-month
duration over the 2014/15 winter, we expect
further Southern European countries,
including Spain, to call on extra LNG. But,
robust European storage volumes going into
the winter should limit overall additional LNG
demand to less than five million tonnes.
To try and alleviate the impact of a winter
disruption of Russian gas flows, Ukraine
would need to utilise its strategic storage
reserves and prioritise gas demand in the
residential and power sectors. Should the EU
seek to supply Ukraine with gas, additional
reverse flow capacity would need to be
negotiated and accessed. While we believe
deliveries to Ukraine would blunt the impact
of a Russian disruption, they could exacerbate
a difficult position for several Eastern
European countries.
The Oxford Institute for Energy Studies
has also released a report entitled What the
Ukraine crisis means for gas markets, asserting
that The change of government in Kyiv, the

Russian military action in Crimea, the
diplomatic reaction by the Western powers,
and the perceived danger of war, clearly have
implications for all economic relations
between Russia, Ukraine, and Europe,
especially in the energy sphere. Russia
supplies about 30 per cent of Europes
natural gas, and more than half of these
volumes are still transported via Ukraine. In
Ukraine, gas supply issues are combined with
the economic upheavals aggravated by
political crisis.
In a statement issued on 11 March, Gas
Infrastructure Europe an association that
represents the interests of operators of
transmission, storage, and LNG import
infrastructure said Members of Gas
Transmission Europe have now assessed the
supply situation in close co-operation with
their national competent authorities and
expect that most of the European transmission
systems currently can withstand a disruption
of Russian gas through Ukraine. The pipeline
network is available for diverting gas flows in
case of supply problems from Russia from
storage and LNG to market.
CMY
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INDUSTRY NEWS
CENTRALIZER & SPACER SYSTEMS
Indian Oil Corporation awards

pipeline coating contract to Denso
FOR THE DRILLING & CIVIL CONSTRUCTION INDUSTRIES

Centered & restrained
Spacer comprised of the same
HDX 65 segment (65mm runners)
Indian Oil Corporation Ltd, Indias biggest pipeline operator and one of the worlds leading oil companies,
has awarded a tender of more than 2.4 million square metres of high quality pipeline coating to DENSO
GmbH of Germany.
ndian Oil Corporation Ltd (IOCL) aims to

continuously rehabilitate sections of its
more than 11,000 km pipeline grid after 40
years of operation, and this rehabilitation will
be executed under operating conditions. A
three-ply (inner wrap) and two-ply (outer
wrap) PE/butyl-tape-systems has been
selected by DENSO for the project, due to its
proven outstanding technical performance
and the easy application.
The 2.4 million square metres of DENSOLEN
AS39P/R20HT coating that will be used equates
to the area of more than 335 football pitches,
and will be delivered in 2014 and 2015 for
approximately 320 km of IOCLs pipelines.
DENSO has previously delivered more than

2.6 million square metres of the tape system to
IOCL for rehabilitation purposes.
DENSO has been a leading developer
of high-quality corrosion-prevention and
sealing technology since 1922. The
companys success story commenced with
the worlds first passive corrosion-prevention
for pipelines DENSO tape (petrolatumtape) which was invented in 1927. Since
then, the company has been producing a
range of corrosion-prevention products,
such as liquid coatings (DENSOLID),
sealing-tapes (DENSIT), jetty pile protection
(MarineProtect), heat-shrinkable sleeves
(DEKOTEC), and PE/butyl-tape-systems

(DENSOLEN).
IOCL aims to protect its pipelines from
corrosion for at least another 40 years, and the
companys technical committee is satisfied
with the performance of the three-ply/two-ply
and PE/butyl-tape-system technology.
DENSOLEN tapes and tape-systems are some
of the only corrosion-prevention systems
worldwide with a proven long-term experience
of more than 40 years. The high-performance
tape system has successfully been used in
numerous pipeline projects, with more than
100 million square metres applied over the
last 40 years.
Non-centered &
restrained
Spacer comprised of
HDX 125 segments
(125mm runners) above
the pipe and HDX 65
segments (65mm runners)
below pipe
Non-centered & restrained
Spacer comprised of HDX 65 segments

(65mm runners) above pipe and HDX 125
segments (125mm runners) below pipe
Meet the challenges head on

Handles Steel, DICL, MSCL, Concrete & HDPE pipe plus
contents 4 up to 63 OD and beyond
Positions pipe within casing for customised centering or
restraining
Minimizes running friction and drag on very low coefficient of friction wear pads with superior abrasion
resistance properties
Resists chemical and oils and maintains strength even if
immersed for long periods of time
Arrests vibration transfer from outer casing and reduces
point loading via unique load sharing runner system
Contains no lead or metal parts, fully compatible with
municipal water applications
Warehouse locations:
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CM
For more information, contact Michael Schad at schad@denso.de, or visit www.denso.de
HDX Series Spacer
MY
CY
CMY
Application of DENSOLEN AS39 P/ R20HT at IOCL in India.
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INTERVIEW
The fall and rise of El Paso Corporation

Pipelines International recently spoke about culture transformation and leadership development
with Sue Ortenstone, who was part of the team responsible for the remarkable turnaround of El Paso
Corporation, which was on the verge of collapse on the heels of the 2001 Enron scandal.
he financial scandal and subsequent

bankruptcy of American energy
company Enron in 2001 caused
significant disruption across the whole
American energy sector. One of the
companies affected by the subsequent
whole-of-industry shake-up and intense
scrutinisation was one of North Americas
largest natural gas companies, El Paso
Corporation, whose stock plunged from
$US72 to $US3. By 2003, the company was on
the verge of collapse; it had a lot of debt and
was selling-off assets to pay down its debt.
Some wanted the management team thrown
out, and shareholders and employees were
understandably very angry and frustrated.
After a proxy fight, the management team
managed to hang on but a new CEO, Doug
Foshee, was put in place. As Mr Foshee put
together his executive team, he wanted the
head of human resources to have some
operating and business experience as he felt
that would be helpful in turning the company
around with improved collaboration and
12
credibility, bringing all areas together to

develop a new culture. Enter Sue Ortenstone.
Ms Ortenstone had spent approximately
seven years on the engineering and operations
side of Tennessee Gas Pipeline in a variety of
roles with increasing responsibility. She then
moved into business development and spent the
next 18 years on the business side in a variety of
areas including marketing, supply, strategy, and
as CEO of EPIC Energy, which at that time was
partially owned by El Paso Corporation. So, it
was safe to say, she fitted the bill.
While I did not have any formal training
on the human resources front and I never
imagined a career in the area, I was excited
about the opportunity, Ms Ortenstone says.
Not only did I want to do what I could to
help out in such a challenging time for
El Paso, but also I have always been
passionate about the people side of the
business and enjoyed the leadership aspect of
the roles I was in throughout my career.
With their backs against the wall, it was
time to get back to basics.
Sue Ortenstone.
We had gotten into over 20 different

businesses across the energy spectrum and
beyond including telecom, electric generation,
and trading numerous commodities. Our
CONTINUED ON PAGE 14
INTERVIEW
CONTINUED FROM PAGE 12
initial focus was to get everybody aligned on

the same set of values, create a purpose
statement, and then we put a vision in place.
Our purpose was to narrow our focus to
natural gas and natural gas-related products,
so that when a deal came up in the future,
wed look at it and say Does this fit? and if it
didnt, we wouldnt get involved in it. The two
El Paso core businesses going forward were
the natural gas pipeline and the exploration
and production segments.
The next step in turning the organisation
around was addressing the issue of staff
dissatisfaction. We surveyed our employees in
2004 and we knew it was going to be bad
less than 50 per cent of them were happy to
work for El Paso. You cant run a company
when your people arent happy to be there.
So, we looked back at what had happened
over the last number of years, and we felt that
we hadnt been very clear with employees
about what was expected from them. There was
no focus on employee development and
training, including for the leadership.
The team set about implementing a series
of programmes and initiatives surrounding
performance management, compensation,
and leadership development, with the aim of
promoting careers, not jobs.
We ended up having this great vision that
was developed by a team of employees that
was: The place to work, the neighbour to have,
the company to own. Its so simple, but thats
what we wanted it to be, and we felt if we could
get the place to work right, the rest would take
care of itself, Ms Ortenstone continued.
Ms Ortenstone explains that, at the time,
El Paso had a performance-management
system in place but almost everybody got the
top rating, so it wasnt really representative of
how people were performing.
Most employee groups perform over a
bell-curve-type distribution and we werent
being true to that, so the first thing we decided
to do was roll-out a compensation programme
that put metrics in place so only a certain
targeted percentage could be at the top end of
the performance curve.
We had metrics at several levels. We had
corporate goals, business-unit goals,
individual-group goals, and individual goals.
So we went from measuring not much, to
measuring a lot of things.
We had five performance categories with
descriptor words, as opposed to numbers,
with the top category being Outstanding. We
had percentage targets for these categories
14
that the managers had to generally hit so a

leader couldnt have 80 per cent of their
people in the Outstanding category, which is
what had been happening prior to that.
We had limited resources, and we felt
that everybody should not get the same thing
when it came to incentive compensation, but
for those that go the extra mile, we should give
them more, and for those that arent pulling
their weight, we should give them less.
Basically, a pay-for-performance structure was
put in place.
Initially, this was tough for both the
managers, who had to conduct these more
forensic and tough reviews, as well as the
employees, the majority of whom had
previously always been told that they were
performing outstandingly. But it did lead to
better performance discussions between
leaders and their employees, resulting in
improved performance across the company.
The other thing that El Paso did that was
really important on top of the compensation
and performance management, was
leadership development.
Our company, like a lot of the pipeline
companies, had a lot of engineers and
technical people. The thing about that is
that a lot of people had been promoted
because of their technical capabilities and
not necessarily because of their leadership
capabilities. We started to identify who our
really strong leaders were and gave them
opportunities, both on-the-job training
and classroom training for developing
those skills.
Since we did not have many resources

initially due to our financial challenges, we
initially targeted a leadership-development
programme for our officer team and partnered
with Rice University to deliver the curriculum.
We felt that if we started our officer team out
with the basic training, it could help cascade it
to our other levels of leadership.
Later, we developed our own programme
called Lead the Way for our officer team that
defined what it meant to be a leader at El Paso,
established a common leadership language,
provided leadership-development opportunities,
and incorporated leadership competencies into
performance accountabilities, succession
planning, and the selection process.
In addition to these initiatives, El Paso
placed a major focus on transparency and
communication throughout the whole process.
One of the things we did when we
surveyed employees was that we were
transparent about the results, we
summarised what they told us we put it out
there. For the things that we could change or
we could address, we told people what we
were going to do and if we couldnt, we would
explain why.
In 2010, El Paso surveyed its employees
again. Almost 100 per cent of employees
participated in the survey and 90 per cent said
that they were proud to work for El Paso a
far cry from the less 50 per cent satisfaction
rate of 2004.
The key was strong leadership,
consistency, alignment and then results, Ms
Ortenstone says.
El Paso Corporation was a top performer in its peer group as measured by Total
Shareholder Return when it was acquired by Kinder Morgan in May, 2012.
REGION REVIEW
R
Queensland: the forefront of

Australias LNG export pipelines
The Oil & Gas Industry
Queensland, located in the northeast of Australia and the second-largest state in the country, is home
to three of Australias most highly anticipated pipeline-construction projects; the Queensland Curtis LNG
Project, the Australian Pacific LNG Project, and the Gladstone LNG Project. Pipelines International gives
you all the latest project information and pipeline facts from these game-changing ventures.
AUSTRALIA PACIFIC LNG PROJECT
GLADSTONE LNG PROJECT
The Australia Pacific LNG (APLNG) Project involves

the construction of a two-train coal seam gas
(CSG)-to-LNG facility on Curtis Island utilising
Origins Queensland CSG reserves and resources.
The LNG plant will be four trains, to be
constructed using Cascade technology, and will
have the capacity to produce up to 18 million
tonnes annually (MMt/a) of LNG.
The Gladstone LNG (GLNG) Project involves

the development of gas fields in the Bowen
and Surat basins, the construction of a
420 km underground gas transmission
pipeline, and a two-train LNG processing
facility on Curtis Island.
The project includes the construction of a 530 km,

3642 inch API 5L externally coated gas
transmission pipeline from the Surat and Bowen
basins to the LNG processing site. The pipeline
will have a capacity of 1,560 TJ per day.
Manufacturing and transporting the steel pipe
was a major logistical challenge, undertaken in
18 months, involving a total of 42,000 steel
pipe joints, most at 18 m in length and 42 inch
in diameter, and weighing approximately
270,000 tonnes, delivered via 45 ship movements,
approximately 250,000 crane lifts, 307 train trips,
and co-ordinated by teams in three countries.
With the main pipeline nearing completion at the
time of print, the project remains on track for first
LNG in mid-2015.
The project includes an API 5L X70

PSL2-grade 420 km, 42 inch diameter
gas-transmission pipeline, linking a
compression station at Santos Fairview
Bowen and Roma CSG fields in the Surat
Basin to the liquefaction plant.
The project was approximately 80 per cent
complete at the beginning of the fourth
quarter in the 201314 financial year, and is
progressing toward first gas in 2015 with the
final modules arriving at Curtis Island in
early 2014.
GLNG shareholders
KOGAS
27.5%
Santos
Total
APLNG shareholders
15%
Petronas
30%
27.5%
Sinopec
ConocoPhillips
(downstream
operator)
25%
PIPELINE < 75% complete
CM
MY
CY
CMY
Adjustable Pipe Supports

Pipe Clamps and Pipe Guides
(2-inch to 60-inch Pipe Size)
Shim Blocks (Steel and Epoxy)
Pipe Shoes
Structural Steel Fabrication
37.5%
Origin
(upstream operator)
37.5%
PIPELINE < 67% complete
16
The entire 540 km QCLNG pipeline seen here during

construction at The Narrows in Gladstone, Queensland
has now been buried. Image courtesy of QGC.
www.ezline.com
Email: sales@ezline.com
P.O. Box 767 Manvel, TX 77578 Phone: 713-675-6693 Fax: 713-947-0768
Lifting the Standard
REGION REVIEW
QCLNG PIPELINE DESIGN

FEATURES
QUEENSLAND CURTIS LNG

PROJECT
AS2885 Part 1, 2, 4 and 5 the

Australian Standard for the design and
construction of petroleum pipelines.
DN1050 mm API 5L PSL2 manufactured
using UOE pipe with wall thicknesses
of 0.55, 0.71, and 0.93 inches.
With an 0.8 design factor, 0.71 inch
wall-thickness pipe has been used for
road crossings and high-consequence
areas, and 0.93 inch wall-thickness
pipe has been used for horizontaldirectional drills (HDD) and the
Narrows Crossing.
Designed for clean, dry natural gas.
Coated with 8001,000 microns of
dual-layer fusion-bonded epoxy.
Internally lined with 85 microns of
epoxy flow liner.
Induction bends used for horizontal
bends > 40 degrees.
Pipe joint coating system SPC 2888
applied by PIH.
Five laterals and eight mainline valves
including the Receipt Station near
Wandoan and the Delivery Station on
Curtis Island.
Cathodic-protection system installed
to help prevent corrosion.
The Queensland Curtis LNG (QCLNG) Project

is an $8 billion onshore CSG-to-LNG
production and export facility on the
Queensland coast. The project includes a
340 km, 42 inch fusion-bonded-epoxy
(external) and two-pack-epoxy (internal)
coated export pipeline from Wandoan in the
Surat Basin to northeast of Gladstone. It has a
maximum operating pressure of 10.2 MPa
using API 5L X70 grade steel pipes.
The pipeline system also includes the
Narrows Crossing development, which is a
12.7 km pipeline from Gladstone to Curtis
Island. The pipeline has an outside diameter
of 42 inch, and is made of X70 steel with a
yield strength of 485 MPa, coated with
fusion-bonded epoxy.
The 540 km pipeline was mechanically
completed and filled with gas at operating
pressure this year.
This marked the completion of the a two-year

task undertaken by MCJV, a joint venture of
McConnell Dowell Constructors and
Consolidated Contractors Company Australia,
to lay more than 46,000 lengths of 1 m
diameter steel pipe over 540 km, making it
the longest large-diameter buried pipeline
in Australia.
Arrival of first gas onto the island has
enabled commissioning work to begin on the
first of two LNG production trains being
developed as part of the project.
QCLNG shareholders
CM
MY
CY
CMY
Our smallest machine is a big deal

We have been building small pipe layers for over 20 years,
CNOCC
50%
BG Group
50%
and we always thought that there was nothing better in

this class. But the new Maats RL24 pipe layer proves us
wrong! It has wider tracks and the typical hinged boom
as standard. Its cabin with ROPS structure, heater and air
conditioning provides a safe and comfortable working
PIPELINE complete
environment, and with a 24.000 kg lift capacity, this

machine again raises the bar.
The entire 540 km QCLNG pipeline seen here during

construction at The Narrows in Gladstone, Queensland
has now been buried. Image courtesy of QGC.
18
Maats Pipeline Equipment Breukersweg 4 P.O. Box 165 7470 AD Goor (Holland)
Tel.: +31 (0)547 26 00 00 Fax: +31 (0)547-26 10 00 info@maats.com www.maats.com
REGION REVIEW
highest commitment to HSE, quality and social responsibility
CM
The QCLNG Export Pipeline Narrows crossing. This is the largest diameter underwater pipe pull.
MY
The road to LNG: constructing

Australias export pipelines
CY
CMY
In the last six decades, the Consolidated Contractors Company has carried out over 17,000 km of
challenging pipeline projects in the Middle East, Arabian Gulf, CIS, Africa, and recently in Australia. These
pipelines were built in some of the most challenging areas of the world, in extreme hot and cold weather,
across difficult terrains, and in some of the most environmentally sensitive areas.
he Consolidated Contractors Company

(CCC) established its Australian base in
2010, and subsequently has worked on
high-profile pipeline projects worth over
$US1.85 billion including the Queensland
Curtis Island LNG (export and Narrows) and
Australia Pacific LNG projects.
The complexity of QCLNG

The Queensland Curtis LNG (QCLNG)
Project will be one of Australias largest
capital-investment projects, and will initially
supply up to 8.5 MMt/a of LNG through the
development of two LNG trains.
QGC engaged MCJV, a joint venture

between CCC and McConnell Dowell
Constructors, to undertake the QCLNG Export
Pipeline, the Gas Collection Header, and the
Narrows Crossing projects.
The joint venture brought together the
local experience and knowledge of
McConnell Dowell with the technical
expertise and international experience of
CCC to provide a world-class approach to the
engineering, procurement, and construction
of these projects.
The QCLNG Export Pipeline and Gas
Collection Header include the engineering
and construction of a 540 km, 42 inch

diameter gas pipeline network linking
gas fields in the Surat Basin to the LNG
plant on Curtis Island, just north of
Gladstone.
This challenging project involved more
than 1,800 people employed at peak, with
approximately 12 million man hours
completed on works including more than 1000
crossings of creeks, roads, access tracks,
railway lines, and third-party utilities, as well
as the construction of the pipeline network,
with associated vehicles travelling more than
45 million km.
20
Consolidated Contracting Company Australia Pty Ltd.

Level 32 AMP Place 10 Eagle Street
Brisbane Qld 4000 Australia
Tel: +61 7 3230 0600
Fax: +61 7 3230 0699
Consolidated Contractors Company

62B Kissias Avenue P.O. Box 61092
Amaroussion 151 10 Athens, Greece
Tel: +30 210 6182 000
Fax: +30 210 6199 224
Consolidated Contractors Company

www.ccc.gr / www.cccaus.com.au
REGION REVIEW
REGION REVIEW
Crossing the Narrows

The QCLNG Pipeline Narrows Crossing
Project involved connection of the export
pipeline at Main Line Valve #7 across the
Narrows (marine channel) in Gladstone
Harbour, to the LNG plant on Curtis Island.
Part of the Narrows Crossing Project also
includes construction of the Australia Pacific
LNG pipeline in the same trench as QCLNG
the Bundled Crossing. The Narrows Crossing
is one of the nearest points between the
Queensland mainland and Curtis Island, and
is also one of the most technically challenging
locations through which to build a pipeline,
because of the multitude of sensitive terrestrial
and marine environments encountered.
Due to the sensitivity of the surrounding
environment, the joint venture utilised
environmental best practices in the
construction of the pipeline. Importantly, this
commitment resulted in the Project adopting
innovative construction approaches that went
beyond the legislative compliance. The initial
QCLNG Project concept was developed and
implemented as a benchmark environmental
project. Numerous complex engineering
solutions were employed to support
The Narrows Crossing pipe-lay success was recognised in numerous industry

award categories:
2013 High Commendation in the Engineers Australia Queensland Division
Excellence Award for the Environment
2013 High Commendation in the Engineers Australia Queensland Division
Excellence Award for Research, Development and Innovation
2013 Finalists for the Queensland Major Contractors Safety Award
construction of a twin pipeline project safely

and environmentally responsibly.
The 2.45 km Narrows Crossing pipeline
was laid across Gladstone harbour in
February 2013 without injury or incident. This
was a significant engineering achievement
and Australias longest large-diameter
underwater pipe-pull.
Constructing the APLNG pipeline

Australia Pacific LNG, a joint venture
owned by Origin, ConocoPhillips, and
Sinopec, awarded the McConnell Dowell and
CCC joint venture (MCJV) a multi-million
dollar contract to build a 530 km gas
transmission pipeline for the Australia Pacific
LNG Project in Queensland.
The scope of the work included the design,

engineering, and construction of the pipeline
to transport coal seam gas from the Surat and
Bowen basins to the LNG processing site
located on Curtis Island, Gladstone.
The pipeline project brings many
benefits to the economies of regional
communities in Queensland and across
Australia through the creation of over 1000
direct and indirect jobs and investment in
local goods and services.
Through the dedication, commitment
and collaboration between Australia Pacific
LNG and MCJV, the Environment
Management Team from Australia Pacific
LNG has received an Australia Biosecurity
Award and was the runner-up in the 2013
International Pipeline and Offshore

Contractors Association Health and
Safety Awards.
At CCC, we believe that every project
whatever the size deserves our full
attention and commitment, explains
President of CCC Engineering and
Construction Samer Khoury.
Our success over 60 years stems from
understanding this and creating a family
company which fosters relationships with
our stakeholders, employees, partners,
clients, the environment and the
communities where we operate, and
emphasises our commitment.
CCC Regional Managing Director
Africa, Caribbean and the Pacific Moujally
Jabara adds that These Australian projects
were the combined effort of four years of
challenging and dedicated work, and their
successful completion marks not just a
significant milestone for both the APLNG
and QCLNG Projects, but a triumph for those
whose hard work and commitment made
it possible.
The Australia Pacific LNG main pipeline contract.
CCC is a diversified global engineering and construction company with headquarters in

Athens, Greece. In over six decades of operation, CCC has grown to become one of the
leading contractors in the international construction market, with over 120,000
employees from more than 80 nationalities.
CCC is a family-owned company offering a wide range of engineering and construction
services across the engineering, procurement and construction value chain from
feasibility studies into design, procurement, construction, commissioning, operations
and maintenance.
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The QCLNG Pipeline Narrows Crossing Project.
22
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23
REGION REVIEW
MPCs adaptation of Spiderplough pipeline technology extends the limit of pipeline solutions.
Spiderplough delivers a world-first

in pipeline installation
The development and adaptation of the innovative Spiderplough pipeline technology by Murphy Pipe
and Civil, an associated company of J Murphy & Sons Ltd, has provided new options for the oil, gas,
and mining sectors.
he Spiderplough technology has shown

that it can heighten safety performance,
improve sustainability, and reduce costs
by up to 50 per cent, while achieving notable
daily productivity rates of up to 17.2 km using a
range of 4.3 inch to 24.8 inch high-density
polyethylene (HDPE) pipe.
Research and development

identifies a unique opportunity
Murphy Pipe and Civil (MPC) has been
using the German-manufactured Fckersperger
Spiderplough technology over the last three
years to install more than 3,000 km of HDPE

pipe, ranging in diameter from 4.317.7 inches
including dual 12.4 inches. Based on its
experience with the technology, the company
saw an opportunity to adapt the Spiderplough
for 24.8 inch HDPE installations, as MPC
Director Tony OSullivan explains.
Our fleet is currently deployed on three
projects across the Surat Basin in Western
Queensland, Australia, including the
5000+ km 4.324.8 inch HDPE pipeline for the
QCLNG Gathering Project. With the market
continually looking for efficiencies in the
installation of gathering networks, the need to

extend the Spiderplough technology to install
larger diameter pipeline was becoming
increasingly apparent.
Utilising our experience with the
technology, our research and development team
identified a unique opportunity for the 17.7 inch
Spiderploughs to be adapted and modified for
use in 24.8 inch diameter applications. This was
developed and trialled internally, in consultation
with the manufacturer. Extensive modifications
were made in order to deliver economic,
safety, and environmental benefits through its
24
REGION REVIEW
REGION REVIEW
operation, and to assess its viability for

larger-diameter installations.
A wide range of enhancements have been
added to the ploughs, including a radical
redesign of the pipeline-loading process to
allow a pipeline to be loaded at ground level
rather than at height, designing pipe couplings
to safely handle larger pipelines of up to 24.8
inches in diameter, installing GPS equipment to
ensure buried services were not disturbed while
ploughing, and increased operator safety
through step ladders, safety guard rails, and
easily accessible safety-shut-off switches.
The Spiderploughs use a specially
designed all-terrain, all-weather, winch
vehicle to pull the plough using a cable. A
blade on the plough forms and clears the
laying bed to specific depths of up to 2.8 m,
and the machines movement is accurately
guided using GPS technology.
The ploughs ripper and pipe-insertion
unit is pulled through the ground and the pipe
is continuously laid. As the machine moves
forward the narrow slot in the earth is quickly
closed and compacted. The pipe is installed in
a single pass: among the advantages over
conventional installation systems is that the
latter may require several passes.
Spiderplough has the ability to operate in all terrains

and climate conditions, and as a result of the successful
introduction of GPS guidance systems, is able to ensure
accurate pipeline route installation.
The MPC fleet is deployed on projects across the Surat

Basin in western Queensland.
Spiderplough technology heightens safety performance, improves sustainability and reduces costs by up to
50 per cent.
Efficiency, safety, sustainability

MPCs continued investment into research
and development of the technology has
produced considerable advances in
performance, and at the end of 2013, QCLNGs
project crews were able to install an
impressive 250+ km of 24.8 inch diameter
HDPE pipeline each month.
Utilisation of Spiderplough technology for
trenchless installation has been proved to
offer significant efficiencies for MPC over
conventional trench techniques. Evaluation
data indicates many advantages, including
fast and cost-effective pipeline installation,
higher levels of safety through a closed trench
system, improved environmental performance
due to a narrower construction corridor, and
less site preparation and ground
reinstatement. Spiderplough has the ability to
operate in all terrains and climate conditions,
and as a result of the successful introduction
of GPS guidance systems, is able to ensure
accurate pipeline route installation.
The Spiderplough has been able to achieve
significantly increased productivity rates for
HDPE pipeline installation. Of particular note
is the installation of 10+ km of dual 12.4 inch,
3.5 km of 24.8 inches, and an impressive 17.2 km
26
of HDPE pipeline being installed in a single

12 hour shift.
While each pipeline installation contract
varies, Spiderplough technology is generally
seen as saving clients between 3050 per cent
in costs through reduced crew sizes, reduced
fleet requirements, and shorter installation
time leading to reduced contract periods.
One of the key advantages of the
Spiderplough technology is the inherent safety
benefits it brings from eliminating the open
trench. Since its introduction MPC has
achieved 2.7 million hours worked without any
lost-time injury related to its use on projects.
These milestones were further supported by
MPCs adoption of Murphys Never harm
culture development programme which was

rolled-out across MPCs 1,600 employees in
2013. Since then, MPCs total recordable case
frequency ratio has been decreased by 83 per
cent from 10.9 to 1.9 (the Australian industry
average is 5.7) across its projects in the oil, gas,
and mining sectors.
The method is also environmentally
superior to trenching and ditching through a
significantly narrower construction corridor. It
can achieve outcomes within a 1215 m right of
way, far narrower than the conventionallytrenched 30 m allowance. In addition, a
minimal work area is required, which
significantly reduces the area to be reinstated.
The adapted Spiderplough uses a blade to carve
aside earth and insert the pipeline during its

pass over. This eliminates the need to remove or
replace any top or subterranean soil, requiring
only a light-grade post-installation to return the
ground area to its former condition.
A key player in the active Australian coal
seam gas gathering market, MPC today has the
worlds largest fleet of Fckersperger
Spiderploughs offering an inherently superior
pipeline construction system. The leadingedge technology has been heralded as an
industry-changing innovation, which delivers
a positive balance between improved safety,
high levels of pipeline construction
productivity, cost reduction, and improved
environmental performance.
Spiderplough achieves daily productivity rates of up to 17.2 km using a range of 110mm to 630mm HDPE pipeline.
Industry representatives turned out at a field day demonstration to see first-hand the installation of the 630 mm
HDPE pipeline using the Spiderplough technology.
The ploughs ripper and pipe insertion unit is pulled through the ground and the pipe is continuously laid.
27
REGION REVIEW
INTERNATIONAL PIPELINE CONFERENCE & EXPOSITION

CHALLENGING PIPELINE PERFORMANCE
INTERNATIONAL PIPELINE CONFERENCE & EXPOSITION
THE CONFERENCE
September 29 - October 3, 2014
The Hyatt Regency Hotel & TELUS Convention Centre

Calgary, Alberta, Canada
Nacap works on the Woleebee Project.
Nacap setting the benchmark for

pipeline construction in Australia
Nacap has been active in the oil and gas, water, slurry, power, and telecommunication sectors in Australia
for 15 years, with offices in Melbourne, Brisbane, and Perth, as well as a plant yard in Roma, Queensland.
Pipelines International finds out more about this ever-expanding company, and some of the projects with
which it is currently involved.
acap is part of Quanta Services Co, a

US-based S&P 500 company with
$US6 billion in revenue in 2012. Quanta
Services is a leading provider of specialised
contracting services, delivering infrastructure
solutions for the electric power, natural gas,
pipeline, and telecommunication industries.
With an excellent safety record, and
proven ability to provide a wide range of
services from project management and design,
to construction and commissioning, Nacap is a
leading pipeline and horizontal directional
drilling (HDD) construction contractor.
Nacaps clients include some of the largest
28
asset owners in Australia, as well as major

multinational and Australian organisations in
the LNG, oil, gas, and mining sectors.
Contract values range from $US2 million to
in excess of $US500 million on the basis of
construct only, and engineering, construction,
and procurement, packages under an array of
commercial frameworks.
Current projects in focus for Nacap

Nacap has constructed over 3,000 km of
pipelines in Australia, ranging from smalldiameter steel/HDPE gathering/flowlines to
larger-diameter welded-steel transmission
pipelines. Nacap has also constructed

long-distance power-transmission and
telecommunication assets.
Although the company has constructed
small pipelines of steel and HDPE over short
distances for strategic clients, the bulk of
Nacaps work involves the delivery of larger
pipelines with diameters of up to 2 m and
lengths approaching 1,000 km.
Nacaps latest activities in Australia
include the Western Tranche Project, which
involves the construction and testing of 71 km
The definitive conference for

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September 30 - October 2, 2014

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REGION REVIEW
REGION REVIEW
of DN450 and 55 km of DN600 high-pressure

gas pipelines and associated end-line facilities
in Queensland.
This project is expected to be completed in
early 2015.
Also under construction is a Cooper Basin
Project involving the construction and testing
of 40 km of DN100-DN350 gas flowlines and
associated end-line facilities, including 13
flowline manifolds.
Working in the pipeline industry isnt for
everyone, but the things that I enjoy most are
that no two days are ever the same, explains
Nacaps Corporate HSE Manager Paul Whyte.
We are always on the move, seeing
different parts of the country and wildlife that
most people never get to see. We get to meet
people with different views, backgrounds, and
stories to tell.
I would have to say the best part is the
camaraderie and mateship that is developed
throughout time.
Setting a benchmark for

operations and logistics
Nacap has the logistical experience for the
successful completion of projects in remote
regions throughout Australia. Success is
achieved with its highly-skilled and dedicated
workforce, extensive plant and equipment
resources, and robust financial backing.
Nacap owns a large fleet of modern and
well-maintained specialised pipeline
construction equipment including pipelayers,
bending machines, trenchers, welding/
coating tractors, and hydrostatic testing and
air-drying equipment.
Nacap has significant local insight into the
issues and opportunities for sustainable
delivery of linear infrastructure. The company
has successfully completed pipeline installation
of the 392 km North Queensland Gas Pipeline
(NQGP) for Enertrade from Moranbah to
Townsville, which proved to be a benchmark
project in relationship contracting. Nacap has

also delivered the QSN3 (Stage 3) expansion of
the 938 km Queensland and South Australia
pipeline system for Epic Energy.
This repeat business builds on Nacaps
previous successful delivery of Epic Energys
QSN Link Pipeline, demonstrating client
satisfaction with Nacaps execution and
testament to the integration, trust, respect,
and co-operation achieved on this fast-track
ECI project.
Nacaps senior management and project
personnel have extensive experience in
collaborative contracting. The ability of the
team to integrate into its clients organisations
and understand key project drivers is integral to
in the company delivering real value. According
to Nacap President Mark Bumpstead there is
no learning curve at project start-up. It is an
integrated, total, package that makes the
difference when it matters most.
Lifting Australias pipe loads

By Todd Razor, Three Razors, Des Moines, Iowa, USA
A new user and 15-year veteran of vacuum-lifting technology share their respective experiences with
Vacuworx Lifting Systems on the docks in Melbourne, Australia, and in the field.
V
The QSN3 Pipeline Project.
People power
Nacap says that its differentiator is its
people, who are enthusiastic and results
orientated; combined with their expertise and
proven capabilities, the company has
developed lasting relationships with clients,
suppliers, and subcontractors thereby
creating repeat business. Working at Nacap
means you mix with, and talk to, people at all
levels. Nacaps people enjoy a wide-range of
different careers: project engineering,
estimating, project control, scheduling,
document control, quality control, facilities
management, safety, total quality management,
commercial and contracts management, risk
management, procurement, land liaison,
environment, finance, administration,
marketing, and human resources.
Due to the nature and size of Nacap, it is
an ideal place to gain a breadth of experience
and opportunities that are not always
available in larger organisations.
acuum-lifting technology is bolstering

efficiencies on the docks and in the
field for two Australian companies
tasked with handling the coated-steel pipe
that is feeding a 28 km stretch of APA Groups
Victorian Northern Interconnect Expansion
(VNIE) project.
The product DN400 2LFBE-coated carbon
steel gas pipe was manufactured by Shanghaibased Baosteel Group, and began landing in
March at QUBE Energys on-wharf facilities in
the Port of Melbourne. Bound for a VNIE staging
point managed by McConnell Dowell
Constructors Pty Ltd and approximately 27 km

north of Melbourne, QUBE Energy had been
relying on a third-party crane contractor to lift
and help secure the pipe lengths measuring 16
inches diameter onto tractor trailers for
transport to Wallan in country Victoria.
QUBE Energy formerly known as
Continental Freight Services and a division of
port logistics services provider QUBE Ports Pty
Ltd had been relying on a material-handling
method to load the trucks that required the
use of a crane, a spreader bar, and hooks with
straps or chains. In March, the company made
a decision to try-out vacuum-lifting

technology, subsequently entering into an
agreement to lease an MC 5 Series pipehandling system manufactured by Tulsa,
Oklahoma-based Vacuworx.
QUBE Energy is relatively new to the use of
vacuum-lifting equipment, while McConnell
Dowell, who announced in February that it had
been retained by APA Group to construct Loop 1
of the VNIE project from Wollert to the Wandong
Offtake in Victoria, has nearly 15 years of
Nacap teamwork in action on the Victoria

Desalination Pipeline.
Nacap have won awards for their Code Safe

Barcoding initiactive.
NACAPS PIPELINE INITIATIVES AND AWARDS

YEAR
BODY AND CATEGORY
INITIATIVE
2014
Quanta Services CEO Innovation and Entrepreneurship Award
Code Safe Videos
2013
Australian Pipeline Industry Association (APIA) Safety Award
Code Safe Barcoding
2013
International Pipeline & Offshore Contractors Association (IPLOCA) Health and Safety Award
Code Safe Barcoding
2013
WorkSafe Victoria (Finalist): Best solution to a specific workplace health and safety issue
Hydraulic pig catcher
2011
Australian Pipeline Industry Association (APIA) Safety Award
Hydraulic pig catcher
30
31
REGION REVIEW
REGION REVIEW
An employee of QUBE Energy uses a Vacuworx MC 5 to load 16 inch gas-transmission

pipes from the port holding area in Melbourne and onto trucks bound for a VNIE staging
area in Wallan.
conjunction with compact carrier equipment,

such as wheel-loaders or forklifts, according to
the manufacturer.
I watched the operator on QUBEs wharf
place his hands on the MC 5s wireless
remote control for the very first time, Mr
Guevara said.
That initial lift appeared so natural, and
it was satisfying to know the lifts we were
performing in Melbourne would be reversed
engineered, so to speak, when McConnell
Dowell uses an RC 10 to unload these same
trucks in Wallan. Its interesting to see both
sides of the vacuum-lifting equation from
both an industrial setting and in the field.
McConnell Dowell is one of Australias
leading pipeline contractors operating
worldwide and to date has delivered more
than 200 projects totalling more than 30,000
km across Australia, New Zealand, Asia, and
the Middle East. The company has also been
using an RC 10 Series lifter to assist with
handling 6 inch gas pipe for a 20 km gas
pipeline project in the heart of Moomba,
OSD_PIN_June14_HPH.pdf
1
2/05/2014
South Australia.
Staff looked on in March as a forklift operator trialled the use of a Vacuworx MC 5

pipe-handling system at QUBE Energys on-wharf facilities in Melbourne, Australia.
experience with heavy-duty material-handling

systems. Since March 2014, McConnell Dowell
has been running two Vacuworx RC 10 Series
pipe-handling systems in conjunction with
Komatsu CP300 excavator host equipment to
unload at a yard in Wallan, and string a
stockpile of nearly 1,700 lengths of gastransmission pipe along the right-of-way.
We only need an operator and one
additional worker to pick up the pipe and load
or unload a truck, said Darren Hayes, the
McConnell Dowell plant and logistics manager
responsible for ensuring safety and efficiency
on the companys sites in Australia.
Its a faster method, which is among
the main reasons we continue to use
Vacuworx product.
Ken Colwell, an operations and project
manager with QUBE Energy, said that he
found the necessity of having to hire a crane
was a repetitive exercise, and less
cost-efficient than using company-owned
assets and personnel. That ultimately led
QUBE Energy to its trial of the Vacuum
Lifting Systems.
We had the equipment on-site, he said.
We just needed a way of adapting it to lift
pipe. Thats where the Vacuworx product was
discovered. Now, instead of dealing with the
cost of leasing a crane, weve actually
improved our ability to perform more
precision-lifts, while bolstering safety and
lowering our expenses at the same time.
QUBE Energy was working to boost
efficiency by minimising the use of staff on the
32
wharf in Melbourne, yet Mr Colwell noted that

the company was most interested in the safety
aspect of vacuum-lifting technology, as it
poses less risk to workers on the ground in
nearly all weather conditions.
There are no booms overhead or slings
and hooks moving in the air, he said.
Everyone can see whats going on, and
now our operation can continue, even in wind
or rain. Its a much simpler operation.
Though cranes have the ability to lift
multiple pipe lengths at one time, Mr Colwell
said, one advantage QUBE Energy has
realised with the Vacuworx system is that it
mitigates damage to pipe coatings, while
features such as a 360-degree hydraulic
rotator and wireless remote control allow for
the precise placement of materials into
scalloped timber cradles on the awaiting
tractor-trailers.
There are no hooks or collisions, Mr
Colwell said.
It just doesnt get damaged. The lifter
picks up in the centre of the pipe, crimps
down, and gives our operator complete
control. Now we can get away with a forklift
operator and one spotter or a two-man team,
saving on one labour unit while still achieving
the results we need.
In an analysis of the global market for
construction equipment, market-intelligence
provider Grandview Research said that
options to lease construction equipment are
expected to drive cost effectiveness and fuel
market growth as advances in technology lead
to machinery that offers considerable benefits

over mechanical equipment. Applications
that aid in meeting regulatory emission
standards, as well as safety issues related to
the mishandling of equipment, were each
noted as areas of interest or concern.
In total, Mr Colwell confirmed that six ships
carrying nearly 9,000 pipes either have been or
will be routed from China, and through QUBE
Energys wharf facilities for use in Loop 1 of the
VNIE as well as the future looping projects as
part of APA Groups construction of the larger
Victorian Transmission System. The QUBE
Energy team has been averaging the transport
of about 90 pipes over the course of an 8 or
10-hour window, with three drivers each
making round-trip journeys of approximately
250 km per workday. By late-April, they had
delivered about 3,700 pipe lengths, including
shipments to McConnell Dowells pipe yard in
Wallan, as well as a staging area in Tallarook,
Victoria and future shipments intended for a
site in Benalla, Victoria.
Vacuworx is a US equipment manufacturer
that recently opened a dedicated office in
Brisbane, Australia, near one of 16 Sargent
dealerships in the country that stock, maintain,
and service its products. Luis Guevara,
Vacuworx Business Development Manager in
the Brisbane office, travelled to Melbourne and
met with Sargent Product Manager Daron
Wintzloff to help train an operator and to
commission QUBE Energys new MC 5, which
boasts a lifting capacity of 5 t. The MC 5 Series
vacuum-lifting system is best suited for use in
It just doesnt get damaged. The lifter picks up in the

centre of the pipe, crimps down, and gives our operator
complete control.
KEN COLWELL, QUBE ENERGY
The initial stage of the VNIE includes the

installation of two main line valves and
end-of-line cross ties to existing DN300
pipeline. The project is scheduled for
completion in June.
According to Vacuworx, the company has
been busy building up a qualified network of
distribution points and relationships in oil,
gas, and other top energy or utility-oriented
industries while stockpiling machines to
serve markets in North America, Latin
America, Australia, the Netherlands, and
elsewhere. The manufacturers most recent
product launch in May was a lightweight
HDD pipe-handling system capable of lifting
12:18 pm
and positioning drill-stem in a rig via wireless
remote control at angles between

0 and 30 degrees.
Australias largest natural gas
infrastructure business APA Group owns or
operates $12 billion of energy assets with gas
transmission pipelines spanning every state
and territory on the mainland. APA developed
a $US187 million proposal to expand its
Victorian infrastructure to enable more gas to
flow north into northern Victoria and New
South Wales from southern supply basins.
Sections of the existing pipeline will be
looped, including the Wollert Wodonga West
Pipeline, to increase capacity, as well as
increasing compression capacity north and
south of the VNIE project.
OSD is an Australian employee owned service company that provides

whole of life services to the pipeline industry
PROJECT DEVELOPMENT
ASSET MANAGEMENT
Concept development
Feasibility studies
Project execution planning
Economic evaluations
Upgrades & Expansions
Due Diligence
Strategic asset management

Safety & risk management
Contract and financial management
Control room and pipeline control
Maintenance planning & scheduling
Regulatory compliance & reporting
CM
MY
PROJECT EXECUTION
OPERATIONS & MAINTENANCE
CY
CMY
FEED
Detailed Design
Project Management
Project Approvals
Procurement Services
EPCM
EPC
Pipeline and station O&M

Incident reporting
Integrity program management
Emergency response
Landowner liaison
ROW patrols & easement maintenance
Training.
Contact:
Australia East: +61 7 3377 4100 Australia West: +61 8 9320 0400 New Zealand: +64 6 755 4150
Brisbane
Perth
Melbourne
New Plymouth
www.OSDlimited.com
33
REGION REVIEW
REGION REVIEW
CSG in focus: modernising the

gathering system design process
The mainstream approach to route selection and gathering system design has changed little in the
last decade. OSD, a technology focussed pipeline engineering company, is seeking to change this via
new GIS-based collaborative software, recently used for two multi-billion dollar coal seam gas-to-LNG
projects in Queensland, Australia.
nowledge engineering for geospatial

systems (KEGS) is a GIS-based
collaborative platform for route
selection and integrated gathering-system
design, and can be used to support operational
management of the asset. Using a combination
of lean manufacturing philosophies, agile
software, and geospatial technologies, the
software enables designers and operators to
streamline and automate the design process in
ways that until now have not been possible.
Typically, project knowledge and data is
spread across team members, disciplines,
and even organisations in delivering the
project. KEGS brings this together into a web
and mobile interface with an embedded set

of rules, workflows, design tools, and
automated deliverables.
This results in lean and integrated teams
working together, enabling:
Shorter project lifecycles;
Reduced social and environmental impacts;
Lower construction costs; and,
Reduction in operating costs.
KEGS has been used on large gatheringsystem developments including two multibillion dollar coal seam gas (CSG) to LNG
projects in Queensland, Australia.
KEGS is designed for project team members
without the need for specialist CAD or GIS skills.
OSDs direction is technology. We intend to lead. Its up to

the others to decide whether to follow. We hope they do.
MARTIN AXELBY, OSD GENERAL MANAGER
It is open-source technology and therefore

vendor neutral. It conforms to the PODS
pipeline data model, and can accommodate
already- established data models within an
organisation. As a result it is reconfigurable
and is constantly being enhanced to further
meet clients needs.
OSD General Manager Martin Axelby
explains Its about speed. With KEGS we can
ramp-up faster, design faster, and close-out the
design stages faster.
Technology and analytics

KEGS is built to be specifically fit-forpurpose for gathering systems and pipelines.
The relational database stores the business
rules, library codes, and regulatory
constraints. This means the software can
automatically generate the routes and trench
configuration as well as placing fittings and
erosion control. The database performs
automatic checks on the design and notifies
Delivery process maturity.
34
the team when rules are broken, for example:

Is the right-of-way too close to a house?
Are valves appropriate for tie-in points?
Does the pipe sizing match the flowassurance modelling?
Currently KEGS has over 100 automatic
integrity checks and these can be added to or
modified with any new project. And the
development is ongoing, explains Mr Axelby.
Early in the piece we did not have integration
with flow assurance and did not use KEGS for
cost estimating.
It was simply not in our scope. It now is,
and by doing so, weve streamlined the design
process even further.
Tools and reporting

Mr Axelby says that modernising the
service delivery was not about building yet
another piece of software. It was about the
end-to-end process: looking at the roles and
relationships, looking at how the information
supply chain could be improved, and taking a
data-centric approach to field design.
We found engineers loved using Google
Earth and would provide hard copy maps or
kml files to the design team says Mr Axelby.
So we built KEGS with a 2D (and 3D) map
interface plus software tools so they could
perform the design themselves.
Another deliberate strategy was to
automate reporting as much as possible. GIS
software for the generation of alignment
The KEGS menu bar.
Benefits of the KEGS system

It has been built by engineers

Allows one point of truth from concept to operations
Data are easily transferred from stage-to-stage
Allows rapid reconfiguration/evaluation of alternates
It is a simple, high-quality, low-cost, rules-based process
It is available online and via mobile apps, bringing the field and the office together
It is open source and can conform to any standards/formats
GIS is used for reporting (not manual, stand-alone editing).
sheets has been around for some time, but

rarely is the data centralised. This means that
incorporating change is still laborious
because the information sits in many GIS
files. With the KEGS relational database as a
single point of truth, deliverables such as
alignment sheets can be generated via a
single report from the database, and review
of the sheets can be completed on-screen
before printing.
Modernising the business model

By embracing technology in this way OSD
is also changing its business model.
Traditional service-delivery companies are
man-hour businesses and, for them, large

teams are a prerequisite. This is
unproductive, outdated, and inefficient.
Innovations such as KEGS are a deliberate
strategy for OSD to offer smarter engineering
services with lean integrated teams.
Engineering is not a creative art: it is based
on rules and standards, and requires
transparency and consistency. This makes it
ideally suited to software automation and
cloud-based efficiencies.
Mr Axelby says OSDs direction is
technology. We intend to lead. Its up to the
others to decide whether to follow. We hope
they do.
KEGS process flow.
35
PIGGING
Perfect your pigging knowledge

Houston-based Clarion Technical Conferences and Tiratsoo Technical, a division of Great Southern Press,
are offering a variety of practical pigging training courses throughout 2014, allowing great opportunities
to expand your industry knowledge.
he knowledge and technology to

improve pipeline performance is
expanding constantly, and courses are a
great opportunity to update and broaden your
knowledge, as well as meet industry peers and
experts. Courses on offer in 2014 include:
Onshore Practical Pigging

Training
1719 June 2014
TRICHT, THE NETHERLANDS
Presented by Penspen
This training course provides a wideranging overview of all aspects of pigging
operations for onshore pipelines. The site is
A.Hak Industrial Services test loop facility
in Tricht, The Netherlands. The facility has
a 150 m, 12 inch water-driven pipeline, and
a second 150 m, 24 inch line under
construction. During the three days, the
participants will typically participate in
up to nine different runs of various tools.
Practical Pigging Training

15 September 2014,
RIO DE JANEIRO, BRAZIL
Presented by Penspen
This training course provides the
opportunity to get first-hand knowledge
and a wide-ranging overview of all
aspects of pigging operations. The course
will be held at the CTDUT facility
adjacent to Petrobas Duque de Caxias
refinery, near Rio de Janeiro.
The course uses CTDUTs 14 inch, 120 m
long, water and nitrogen/air-driven test
loop at the site.
During the five days, the participants
typically perform up to nine different
runs of various tools.
Pipeline Integrity Courses

15 December 2014
WESTIN CALGARY HOTEL,
ALBERTA, CANADA
Pipeline Integrity Courses

1014 November 2014
HOUSTON, TEXAS
1012 November: Pipeline Repair
Methods, Hot Tapping, and In-Service
Welding
1012 November: Pipeline Integrity
Management
1214 November: Advanced Pipeline
Risk Management
1314 November: DOT Pipeline Safety
Regulations - Overview and Guidelines
for Compliance
An intensive curriculum covering the latest

in pipeline inspection and maintenance
especially designed to facilitate regulatory
compliance and operational excellence.
December 12: Pigging and In-line
Inspection
December 13: Defect Assessment in
Pipelines
December 35: Defect Assessment
Calculations Workshop
December 35: Pipeline Integrity
Management
December 45: Geohazard Management
for Pipeline Engineers
Subsea Practical Pigging Training

1618 September 2014,
BERGEN, NORWAY
Presented by Penspen and KTN
This training course will provide an
extensive overview of all offshore
aspects of pigging operations.
The syllabus includes both hands-on
exercises using the KTN test loop, as
well as classroom instruction, and
full documentation.
Pipeline Pigging & Integrity

Management Conference and
Exhibition
912 February 2015
MARRIOTT WESTCHASE HOTEL
IN HOUSTON, TEXAS
PPIM is a must-attend event on the
international pipeline industry calendar,
with its unique structure consisting of
training courses, a detailed two-day
conference programme, as well as an
Exhibition that allows the whole pigging
industry to gather in one place. Attendees
meet with some of the best in the
industry and discuss issues and
developments in the pigging arena,
one-on-one. PPIM is the one-stop event
for those interested in pipeline pigging
and integrity management, offering an
unparalleled opportunity for those
wishing to learn and share knowledge of
the latest tools and services that keep
pipeline assets safe and reliable.
EXPAND YOUR PIGGING KNOWLEDGE

Make 2014 the year to broaden your pipeline knowledge and skills. For more information on all the above training courses, visit the
Clarion Technical Conferences website:
www.clarion.org
36
PIGGING
PIGGING
Optimal selection of verification digs

for in-line inspection
Thousands of features can be identified from a single in-line inspection. Due to resource constraints,
the selection and priority of excavations requires significant effort and scrutiny. C-FER Technologys
Research Engineer Integrity and Operations Dongliang Lu explains how best to decide which features
require excavation.
Dongliang Lu.
CM
CM
MY
MY
CY
CY
CMY
CMY
38
No critical features
Not to excavate
Type-I error
Correct
Excavate
Correct
Type-II error
In the current practice, a fixed threshold is

crudely if excavation data suggest that the
applied to determine if an excavation should
predefined threshold is overly conservative.
be carried out. If severity of a feature, as
However, such crude adjustments are usually
reported by the ILI, exceeds this threshold
based on experience, and lack a scientific basis.
then the pipeline section containing that
To overcome the shortcoming of using a
anomaly is excavated and the severity of the
fixed excavation threshold, a probabilistic
anomaly is assessed. As illustrated in Figure 1,
approach was developed. This approach
the probability of a type-I error decreases as the
allows the operators to adjust the excavation
threshold size decreases, but at the price of
threshold for a specific case according to
having a higher chance of type-II errors. The
properties of the pipeline under inspection
shortcoming of the current approach is that the
and the actual performance of the tool. One of
excavation threshold is defined prior to the ILI,
the key challenges of the new approach is to
and cannot be adjusted with respect to the
accurately assess the probabilities of having
characteristics of the pipeline under inspection
type-I and type-II errors for any given
and the actual performance achieved by the tool.
excavation threshold. This is done by
To ensure that critical features are addressed,
conducting trial excavations for the most
operators may choose a stringent excavation
severe features reported by the ILI tool, and
threshold, resulting in many excavations that do
using the data to determine the relationship
not require immediate repair. Some operators
between the two types of error. The excavation
2013_Sept_Pipelines International_testing_curved (1)_resize.pdf
1
2/05/2014
9:20 am
have attempted to adjust the threshold size
threshold can then be selected by using a
By Dongliang Lu, Research Engineer-Integrity and Operations, C-FER Technologies, Canada, Edmonton.
n-line inspection (ILI) tools have been

the opposite page. The first type of error, a
used by operators for many years to
type-I error, is when a critical feature exists, but
inspect operating pipelines for the
is not excavated because the ILI tool
presence of pipeline features, and modern ILI
underestimates the severity of the feature. The
tools detect and size various types of feature.
second type of error, a type-II error, is when
After the ILI is completed, excavation of
there are no critical features but the pipe is still
pipeline sections are carried out to address
excavated because the tool overestimated the
important features as identified by the tool
severity of the feature, or the excavation criteria
and to verify the tools performance.
were too stringent. Type-I errors decrease
Given a detected feature, there are two types
reliability, whereas type-II errors add extra cost
2013_Sept_Pipelines International_PIRAMID_Curved_resize.pdf
1
2/05/2014
9:17 am
of errors that can arise, shown in the table on
with little improvement to reliability.
Has critical features
Figure 7. Probability of type-I and type-II errors.
cost-effectiveness model to optimise

excavation selection and priority.
This new approach of selecting excavation
threshold keeps operators risk-informed about
excavation decisions. With the application of
the new approach, operators can optimise the
excavation threshold to achieve a consistent
reliability level in ILIs, while at the same time
lowering the associated costs.
For more information, visit C-FERs

website at www.cfertech.com
39
PIGGING
PIGGING
The connection between the pumping

vessel and the platform is usually made (and
maintained) during the approved weather
window, as specified by the clients marine
department. This weather window is crucial,
as it ensures the safety of the interface
between the pumping vessel and the platform.
Rough weather or sea conditions may cause
stress on the hose connections, due to sea
level changes, and may cause damage to both
personnel and assets.
Extra-reinforced high-pressure hoses
are used during pumping activities from
vessels. Suitable quick-disconnect couplings
are used (in a dual-redundancy set-up)
to ensure a quick and safe disconnection
from the platform should the weather
change unexpectedly, endangering the
pumping activity.
However, the most important advantage is
the nitrogen pumping capacity. Pumping from
platforms limits the volume of liquid nitrogen
that can be used, since the offshore rated
tanks are only 7600 li capacity each. Pumping
from vessels, however, does not have this

limitation, since the larger-capacity onshore
tanks have a volume of 20,000 li each. This
ensures a larger, steady supply of nitrogen for
pumping at rates of up to 15,000 m3/hr for up
to six hours, and this high flow rate is crucial
for larger-diameter lines.
Asphyxiation due to excessive amounts of
nitrogen around the working area is a notable
risk of using such large quantities of
nitrogen. This risk is mitigated by ensuring
that the vent point is elevated (usually at the
top deck) to a height suitable for a full
dispersion of nitrogen. PNS usually performs
a dispersion-modelling calculation and
recommends a suitable height/location for
nitrogen venting.
Using nitrogen as a propellant during
pigging may very well be the most viable
option for lines which have a low flow rate
and pressure. Nitrogen as the propellant also
eliminates the need to worry about waste
disposal and contamination of the sea (and
potential harm to aquatic life). The nitrogen
Rough weather or sea

conditions may cause stress
on the hose connections,
due to sea level changes,
and may cause damage to
both personnel and assets.
exiting the receiving end can be vented to

atmosphere without any adverse effects to
people or the environment.
After all, the atmosphere is made up of
78 per cent nitrogen.
Pipeline Nitrogen Services BV is a full

member of the Pigging Products &
Services Association.
A typical set-up for nitrogen pumping from a work vessel.
Nitrogen pumping for offshore pigging

By Sharmini V. Jayaraman, Pipeline Nitrogen Services BV, Groningen, Netherlands
The use of nitrogen as a pigging propellant in offshore applications is usually not considered due to the
incorrect impression of needing a large footprint for the pumping equipment.
owever, nitrogen pumping for

offshore applications whether
purging, pressure-testing, leak
testing, or pigging is a service which
Pipeline Nitrogen Services BV (PNS) has
been providing to clients, including Total
and NAM, in the North Sea sector for the
past eight years.
PNS has performed several nitrogen
pumping projects for in-line inspections,
which require a constant, controlled, pressure
and flow rate to ensure optimal data quality.
40
As pigging activities are usually

performed during shutdown campaigns, it is
understandable that storage space on
platforms would mostly be taken up by
equipment required for the shutdown work.
In consequence, nitrogen pumping is usually
performed from nearby vessels (work barges
or supply vessels), to minimise the space
taken-up on the platforms. The nitrogen
pumps, liquid nitrogen storage tanks, and
other equipment is placed on the work
barges (or supply vessels) and sea fastened
at the port area, before sailing to the

location. All rig-up work is performed either
in harbour or during sailing, to ensure
minimal downtime once the vessel reaches
the intended location.
Full and complete HAZOP (hazard and
operability study) and SIMOPS (simultaneous
operations) analyses are performed before each
pumping activity, to ensure all risks associated
with the activity are correctly identified and steps
taken to eliminate those risks or, at the very least,
to mitigate the risks to an acceptable level.
41
OFFSHORE
OFFSHORE
surveys, and pre-commissioning. The water

depths along the pipeline route range from
137 m to 146 m.
Subsea engineering challenges

Field surveys carried out prior to work
commencing on the Rochelle fields indicated
soft clay seabed soil and multiple pockmarks
(seabed depressions) throughout the field. This
resulted in detailed engineering analysis to
ensure adequate pipeline support at the trench
transitions and crossings. Feedback from both
the survey and the trenching vessels initially
on the field enabled Technip to identify and
correlate the information required to ensure
an efficient offshore construction operation.
Technip used its extensive trenching
database to predict the risks of trenching in
very soft to soft clay. Shorter transition lengths
at the transition-in and-out locations, as well
as buoyancy and soft-soil skids, were
implemented to prevent excessive sinkage.
The soil-bearing capacity for the mid-span
support to allow the 10 inch/14 inch pipe-inpipe to cross two 30 inch pipelines was also
THE ROCHELLE PROJECT

750,000 man-hours
0 incidents
9 vessels
37 km pipe-in-pipe installed
in 25 days
assessed, and a stress analysis was carried out
on the 30 inch pipeline (using ABAQUS
finite-element analysis) to evaluate possible
soil settlement in order to ensure the pipe was
not at risk of buckling.
Breakthrough in pipelay
technologies
The Rochelle project demonstrated a
breakthrough in pipelay technologies. Technips
recently upgraded Evanton spoolbase was used
for both the fabrication and spooling of the 10
inch/14 inch pipe-in-pipe. The size and wall
thickness of the pipe-in-pipe used for the project
had very high stiffness levels, and the project
team developed innovative engineering

solutions in order to facilitate reeling the
fabricated pipe-in-pipe on to Technips pipelay
vessel, the Apache II. The detailed and
comprehensive onshore activities contributed to
an extremely successful offshore campaign.
Technips revised approach incorporated
reelable and end bulkheads, a pawn head with
split-head adaptor system to connect the pipe
on to the vessel reel, and pipeline-fixed
laydown lengths within the subsea target
boxes. The development and introduction of
the reelable bulkheads dramatically reduced
the vessels offshore time, and also resulted in
a reduced amount of welds and therefore
non-destructive examination (NDE) being
carried out offshore, decreasing the amount of
time required to perform the connections
onboard. The knock-on effect of these
innovations was that the required weather
window for pipelay offshore was also reduced.
As well as saving time offshore, the
adoption of the pawn head and adaptor
The Skandi Arctic.
Revolutionary pipe-in-pipe
installation for the Rochelle Project
By Harry McIntosh, UKBU Project Manager, Subsea Construction, Technip UK, Aberdeen, UK
With an increasing number of developments in deeper water and more challenging environments,
infrastructure and its associated installation has to be adaptable and capable of coping with
unique conditions.
he Rochelle area lies approximately

185 km north east of Aberdeen, and is a
combination of two gas condensate
fields. The East Rochelle development which
was discovered in April 2000 is located on
Block 15/27, and the West Rochelle field, which
encompasses blocks 15/26b and 15/26c, was
discovered in October 2010. The Rochelle unit
area is jointly owned by Endeavour
International Corporation (44 per cent), Nexen
Petroleum UK Ltd (41 per cent), and Premier
(15 per cent).
42
In June 2011, Endeavour Energy UK, a

wholly owned subsidiary of Endeavour
International Corporation, awarded subsea
specialist Technip an engineering,
procurement, construction, and installation
(EPCI) contract for the East Rochelle
development. The contract scope
encompassed full project management and
detailed design, procurement, fabrication,
installation, and pre-commissioning of 30 km
of production pipe-in-pipe, flexible riser,
free-issue umbilicals, and subsea isolation
valves and manifolds. It also included

construction and tie-in of spools to the
wellhead structure, trenching, backfill, and
rockdumping work. A further contract award
for a 7 km extension to connect the West
Rochelle well to the East well followed the
initial agreement. Both wells are tied-back to
the production facilities on the Scott platform
through a subsea isolation valve umbilical
(SSIV) and manifold. Other work included
platform flexible and umbilical pull-ins and
commissioning, crossings installation,
43
OFFSHORE
system minimised the amount of time the

vessel spent in port while the pipe-in-pipe was
reeled and loaded on to the vessel. Fixed
laydown lengths subsequently saved time on
vessel topsides work during the laydown of
the pipe-in-pipe. The savings to the vessel in
terms of operational time at the spoolbase
were in the region of 15 per cent.
These innovations resulted in the
installation of the pipe-in-pipe being carried out
in record time. The Apache II was deployed to
undertake the installation and took five trips
lasting a total of 25 days to lay the required
37 km of pipe-in-pipe. This represents a
reduction of approximately 32 per cent against
the initial time estimate for this work.
The ability to reduce the in-field laydown
times for each trip was particularly valuable,
as some of the work took place during the
winter months. Traditionally, operations
carried out at this time of year are subject to
fewer and smaller weather windows due to
wind speeds and sea states that are
incompatible with the necessary operations.
International resources and client

relationships
Resources from across Technip were used
to fulfill the contract. 37 km of Technips
innovative rigid, reelable pipe-in-pipe were
welded at Technips spoolbase in Evanton,
while the flexible riser was manufactured at
the companys flexible manufacturing unit in
Le Trait, France.
International mobility within Technip
was key to the success of the project. The
Rochelle project team was made up of staff

from Australia, Canada, Malaysia, Nigeria,
Norway, and the UK. Drawing from Technips
global team ensured the right skillsets were
available as and when they were required.
In addition to ensuring the project was
delivered safely with no lost time incidents,
on time and within budget, this approach
gives Technip the opportunity to take it
further. It presents new challenges and
exposes them to different environments in
terms of geography as well as functional and
segmental diversity.
Endeavour Energy UKs CEO William L.
Transier recognised this effect whilst working
with Technip.
Technips installation performance and
attention to HSE at the Rochelle development
has been excellent, he said.
Innovations in pipelay technologies
introduced by the integrated Technip/
Endeavour teams established the ability to
complete the work scope in record time and
within budget.
The successful installation performance,
even during the winter months, demonstrates
the value Endeavour sees in partnering with
companies like Technip to create innovations
that benefit the entire industry.
Work on the Rochelle project to date has
been completed in 750,000 man-hours with no
recordable HSE incidents or accidents.
Innovation combined with clear and effective
communication between all involved in the
project from Technip, Endeavor Energy UK, and
third-party contractors ensured the smooth
running of the project and the record-breaking

delivery of the pipe-in-pipe installation.
Pipe-in-pipe fabrication
Individual 12 m lengths of pipe are
fabricated into pipe stalks at Technips
custom-built Evanton spoolbase in the
Cromarty Firth. Following numbering and a
pre-weld inspection, the pipes are rolled on
to an alignment welding station, where the
ends are pre-heated. This is the start of a
welding line and cycle that welds the
sections in to 1 km long pipe stalks. At
predetermined cycle times, a new section of
pipe is added to the stalk, and each joint
receives the required amount of weld passes
at up to eight separate stations.
Welding
Welding is crucial to the entire process and
the full range of mechanised and manual
technologies are available. As the whole
pipe-in-pipe fabrication process is onshore,
the welding can be done in a controlled way to
the highest technical standards and if there
are any problems they can be dealt with
quickly and effectively.
Weld inspection/non-destructive
examination (NDE)
Following welding, the pipe moves
through the visual weld inspection area to the
non-destructive examination area. The
primary examination techniques are
traditional radiography, digital radiography,
and automated ultrasonic examination, backed
The Skandi Arctic leaving Aberdeen.
44
OFFSHORE
up by manual ultrasonic, magnetic particle,

and/or dye-penetrant inspection as required.
The coating of the weld area is the next
stage in the process. This is carried out in the
field-joint coating area; generally mechanised
three-layer polypropylene tape wrap,
injection moulded polyurethane, or
polypropylene are used.
1 km pipe stalks are fabricated for
both the outer carrier pipe and the inner
flowline in a pipe-in-pipe application. The
completed pipe stalks are stored on the
stalk racks or on the causeway waiting for
pipe-in-pipe assembly.
The assembly of pipe-in-pipe stalks
Technip has designed and manufactured
portable hydraulically operated pushframes to
push the inner flowline pipe stalks into the
outer carrier pipe stalks.
The carrier pipe stalk, fitted with a
bell-mouth guide, is secured in a fixed clamp
at one end of the pushframes, and the inner
flowline pipe stalk is held in a sliding trolley
clamp at the opposite end. There is a 4 m
workspace between the two sets of clamps to
allow the spacers and insulation to be fitted to
the inner flowline. A hydraulic mechanism,
capable of 100 tonnes of force, simply pushes
one pipe stalk inside the other, 4 m at a time.
It takes around 250 pushes to produce a 1 km
long pipe-in-pipe stalk.
The completed pipe-in-pipe stalks are
stored on the stalk racks or the causeway
ready for spooling on to the reel lay vessel
being used for the project.
to the desired 500 mm stick-out, rebevelled,

and cleared by NDE ready for the next tie-in.
The whole process is repeated until the
required pipe-in-pipe pipeline is onboard
the relay vessel in one continuous length,
ready for deployment in the field. Each
vessel trip is dependent on reel capacity,
which in turn dictates either total pipeline
weight or volume.
Apache II
Technip operates with some of the most
advanced pipelay vessels in the offshore
industry. The Apache II, which was used
during the Endeavour Rochelle project, plays
a major role in delivering subsea
infrastructure around the globe. Once
offshore, advanced technology on-board the
vessel delivers all of the additional
advantages of the reel-laying method. During

the pipelay process, a pipe-straightener and
-tensioner system are utilised prior to the
pipe passing through a welding station
situated on the ramp. Here anodes, valves,
flanges, T-pieces, and miscellaneous
equipment can be attached to the pipe as and
when required. Thereafter, a monitoring
system ensures lay-catenary parameters are
maintained on deployment of the pipe. On
multiple trip applications, subsequent tie-in
welding, NDE, and field joint coating are
carried out on the next trip as required.
With sophisticated dynamic-positioning
systems and a range of offshore construction
equipment, the reel-lay vessel can lay pipe
with an unrivalled degree of accuracy
in deep or shallow water and close to
offshore installations.
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46
JUNE 2013
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EVENT EDITION
offshore pipelines
Held under the Patronage of His Excellency Shaikh Ahmed bin Mohamed
Al Khalifa, Minister of Finance, Minister in Charge of Oil and Gas Affairs,
Chairman of National Oil & Gas Authority, Kingdom of Bahrain
Spooling
The first pipe-in-pipe stalk is pulled
through a tie-in station situated within the
hydraulic pushframe. It is pulled along the
spooling rollers and through a set of
approach rollers onto the vessels reel. A
pawn-head/split-head adaptor system is then
used to connect the larger carrier pipe lead
string to the vessels reel. The next pipe stalk
is then ready to be connected to the first.
This is done in the hydraulic pushframe and
involves first welding the two inner flowline
ends together. Once NDE of the weld has
been carried out, the stick-out areas are then
covered with insulation. A fire-retardant
blanket is fitted over the insulation before
the landward carrier-pipe stalk is pushed
over the inner flowline weld area. After
completing the carrier tie-in weld, the
trailing end of the inner flowline stalk is cut
ISSUE 16
Saudi Arabia
2023 October 2013, Bahrain
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SECTION
OFFSHORE
OFFSHORE
The Castorone is a unique vessel in that it

will pre-assemble (weld) triple-joints inside
the vessel before the triple-joint string is
moved into the firing line for assembling into
the main pipeline.
How will the offshore pipeline be

stabilised?
Concrete coating is the primary means of
stabilisation. Trenching and rock cover is
also used within Darwin Harbour to protect
the pipe.
Whereabouts is the pipe lay

beginning and where will be the
final stage of the pipe lay?
The Ichthys Projects onshore LNG facilities under construction at Blaydin Point, Darwin.
The installation starts at the Darwin end with

pipe-lay progressing towards to Ichthys Field.
Firstly, a shore pull will be undertaken by
the Semac-1 in Darwin Harbour, approximately
2 km north of Channel Island, to pull the
Innovation with the

Ichthys offshore pipeline
pipeline on to land. The Semac-1 will then

pull away and lay approximately 130 km of
the pipeline.
The Castorone will then be used as the
main pipe-lay vessel to lay the remaining 760
km of pipeline to the Ichthys Gas Field.
What other contractors are

involved in the offshore pipe lay?
Boskalis is the main subcontractor to
Saipem and is responsible for all pipeline
dredging, shore crossing civil construction,
rock quarrying, and rock installation onto
the pipeline.
How are the onshore facilities

progressing, and when does INPEX
anticipate that the pipeline will
reach the onshore facility?
Construction of the onshore facilities is
progressing well. Site clearance is complete
and civil works well advanced at the LNG

facilities site at Blaydin Point, Darwin.
The Darwin Harbour dredging is nearly
completed and the pipe lay is due to be
completed in early 2016.
Will there be any tie-backs, spools,

or additional flowlines associated
with the offshore pipeline? And
what onshore pipeline will there
be, if any?
Yes. There are other pipelines associated
with the Ichthys Project, including corrosionresistant-alloy (CRA) flowlines and monoethylene glycol (MEG) pipelines which are
located offshore at the Ichthys Gas-Condensate
Field, as well as onshore pipelines.
See pages 5051 for a visual overview of

the Ichthys offshore pipeline.
As far as offshore pipelines in Australia, it doesnt get any bigger than the offshore export pipeline for the
INPEX-operated Ichthys Project.
nce completed, the 889 km, 48 inch

diameter pipeline will be the longest
subsea pipeline in the southern
hemisphere. It will transport gas from the
Ichthys Gas Field, located in permit WA-37-R in
the Browse Basin, approximately 200 km
offshore northwest Australia, to an onshore
LNG processing facility located at Blaydin
Point, Darwin.
Before leaving the gas field, the gas will
undergo preliminary processing at the offshore
central processing facility (CPF) to remove
water and raw liquids, including a large
proportion of the condensate. This condensate
will be pumped to a floating production,
storage, and offloading (FPSO) facility
anchored nearby, from which it will be
transferred to tankers for export.
Estimated reserves for the project stand
at over 12 Tcf of gas and around 500 MMbbl
of condensate. The project is initially
expected to produce 8.4 MMt/a of LNG from
two trains, 1.6 MMt/a of LPG and 100,000
bbl/d of condensate at peak. The facilities
will include two 165,000 cubic metre LNG
storage tanks.
The Ichthys LNG Project equity interest is
INPEX (operator, 66.070 per cent), Total (30
per cent), Tokyo Gas (1.575 per cent), Osaka
48
Gas (1.2 per cent), Chubu Electric Power (0.735

per cent), and Toho Gas (0.42 per cent).
Saipem has been awarded the pipe-lay
contract for the offshore pipeline, following-on
from initial front-end engineering and design
works undertaken by JP Kenny and AMEC.
Boskalis is also subcontracted to Saipem to
assist with associated pipeline works.
To catch up on the where the pipelines
construction is at, Pipelines International
spoke with INPEX General Manager External
Affairs and Joint Venture Bill Townsend, who
provided an update.
The Castorone pipelay vessel.
A graphic of the central processing facility.
At what engineering phase is the

subsea pipeline currently?
The entire linepipe has been produced and
coated. Pipe laying is scheduled to begin in
the middle of the year.
How many people does Saipem

have currently working on the
contract, and what is Saipem using
to undertake the pipe lay?
Saipem has a team of approximately 50
people in its Perth office and has support for
the engineering team from the Saipem offices
in London, Fano (Italy), Singapore, and
Rijeka (Croatia).
Bill Townsend.
The newly-built Castorone fourthgeneration pipe-lay vessel and the Semac-1

pipe-lay barge will be used for the shore pull and
the shallow sections near Darwin, respectively.
Will INPEX be using any particular

innovations for the installation?
The Castorone itself is a main innovation
introduced to the Ichthys Project.
Approximately 600 people will work on this
vessel assembling on-board triple joints.
A graphic of the onshore facility at Blaydin Point, Darwin, NT
The location of the Ichthys Field, off the coast of Darwin.
49
PROJECTS IN FOCUS
PROJECTS IN FOCUS
The Ichthys Export Pipeline
BY 2020 Australia is
The INPEX-operated Ichthys export subsea pipeline will connect the Ichthys Gas Field, located
approximately 200 km offshore northwest Australia in the Browse Basin, to an onshore processing
facility located at Blaydin Point, Darwin, which will make it the longest subsea pipeline in the southern
hemisphere and the fifth longest offshore gas pipeline in the world.
The pipeline will use 690,000 tonnes of steel

1.2 million tonnes of concrete coated pipeline
expected to become the

worlds first or second
ranked LNG exporting country
and will take

2 YEARS to manufacture 75,000 joints and coat
with concrete, and 1 YEAR to install
THE ICHTHYS LNG PROJECT PARTICIPANTS
DARWIN
Tokyo Gas (1.575%)

TOTAL (30%)
Osaka Gas (1.2%)
Chubu Electric Power (0.735%)
INPEX (66.07%)
ICHTHYS
FIELD
The Ichthys Field represents

the largest discovery of
hydrocarbon liquids in
Australia in 40 years
Toho Gas (0.42%)
CENTRAL PROCESSING
FACILITY
The gas will undergo preliminary
processing to remove water and
raw liquids, including a large
proportion of the condensate.
ICHTHYS GAS EXPORT PIPELINE
ESTIMATED RESERVES FOR

THE PROJECT:
Over 12 Tcf of gas 500 MMbbl
of condensate
42 inch
889 km
PRODUCTION AT PEAK:
8.4 MMt/a of LNG from two trains
1.6 MMt/a of LPG
100,000 bbl/d of condensate
FLOATING PRODUCTION
STORAGE AND
OFFLOADING
FACILITY
Condensate is then
pumped to the FPSO.
WESTERN AUSTRALIA
TRANSFERRED TO TANKERS FOR

DELIVERY TO MARKETS
50
NORTHERN TERRITORY
In Darwin Harbour, from approximately 15 km from

the shore crossing near Blaydin Point, the pipeline
will be placed in a trench and covered with rock for
added protection. This part of the pipeline will
become an artificial reef just
like the existing 500 km
offshore BayuUndan pipeline
which carries gas from the
BayuUndan Field to the Darwin
LNG plant at Wickham Point,
operated by Conoco Phillips.
600 personnel will be required on the pipelay barge

during the pipeline construction phase
Ichthys LNG will be the

first Japanese
operated LNG project
in the world
AUSTRALIA

51
30 inch Stopple Train plugging system prior to isolation.
Regulation and re-routeing in Canada:

a Stopple Train case study
Following an upgrade in safetyclass on a Canadian pipeline, T.D.Williamson was called in to handle hot-tap
and plugging operations on a 30 inch diameter pipeline requiring relocation. The pipeline supplies one third
of Canadas population with gas, so it was imperative that the supply of gas was not interrupted.
ost people who have spent any

amount of time in Canada will agree
that its a scenic country. From the
Rockies in British Columbia, to the bays and
estuaries of Nova Scotia, and the miles of
forests, hills, and lakes in between, Canada is
rich in natural beauty.
Canada is also rich in oil and gas. In fact,
the nations estimated oil reserves rank third
in the world, following only Saudi Arabia and
Venezuela. Western Canada has the largest
collection of oil sands. And the country is the
fourth largest producer of natural gas, most of
which flows from west to east through a
30 inch diameter pipeline.
The pipeline is responsible for supplying
many of the nations gas companies and one
third of Canadas population. It is important,
understandably, to keep the pipeline flowing
at all times.
Compliance and the NEB

In early 2013, the operator of the 30 inch
diameter pipeline was handed a challenge: the
52
area around a section of its main pipeline

received a safety-class upgrade, which required
the company to relocate part of the line.
Canadas National Energy Board (NEB)
states in section 42 of its Onshore Pipelines
Regulations that if the class location of a
section of a pipeline changes to a higher
designation that has a more stringent location
factor, the company shall, within six months
after the change, submit the proposed plan to
deal with the change to the Board. The safety
standards for each class are outlined in the
Canadian Standards Association (CSA) Z662, a
document that is updated approximately every
four years.
Safetyclasses are based on a bunch of
criteria like population and proximity of
residences to the pipeline, explains Rebecca
Taylor, a communications adviser at the NEB.
When a class changes, companies are
required to mitigate any hazards related to
their pipelines.
In this specific case, a new subdivision
was under construction near the pipeline, and
the developing area was too close to comply

with the NEBs regulations.
To help create a safer environment, the
operator decided to cut-out a 274 m section of
the pipeline and build a new section further
from the developing area. In order to keep gas
flowing, the pipeline would need to be isolated
upstream from the construction area, and
re-routed through a by-pass line.
The proposed worksite was in an
environmentally sensitive area, and safety was
of utmost concern. The new section of pipeline
would run along the edge of a national park in
Quebec, and near a Mohawk native
reservation. In addition, any incident during
the pipeline project would have dire political
consequences for the operator and any other
oil and gas companies that want to begin large
projects in the region.
Double-block-and-bleed
Desiring to maximise jobsite safety
without shutting down the line, the operator
contracted pipeline service provider T.D.
Williamson (TDW) to handle the hot-tap and

plugging operations. The operators
specifications called for a double-block-andbleed methodology.
Traditional double-block-and-bleed
isolation requires two fittings, two hot taps,
and two plugging heads. More taps on a
pipeline means more risk, in addition to
increasing set-up time and leaving more
permanent equipment on the line. However,
TDWs Stopple Train system reduces the
overall number of hot taps and plugging heads
used in the operation by inserting two
plugging heads through a single entry point in
the line. The two sealing elements also
provide greater safety. Once the seals are in
the set position, a bleed port is placed on the
line in between the two heads. The bleed is left
open and monitored, and any product that
escapes past the first seal goes into the bleed
port and is removed from the line. The two
seals provide a zone of zero energy and an
extra layer of safety for the technicians
working downstream on the pipeline.
The redundancy provided by this method
of double-block-and-bleed is very important to
operators, says Philippe Mari, Account
Manager at TDW.
The Stopple Train system uses half the
amount of fittings, less equipment, smaller
excavations, and its more cost-effective.
In addition to saving money, performing an
isolation using the system makes the operation
just that much safer, says David Turner,
Director of Hot Tapping and Plugging at TDW.
It means fewer welds and less equipment
on the lines.
the flow of product, was well within the

tolerance of the equipment.
First-time success
The success of a traditional isolation job
hinges on creating a seal, but an acceptable
seal is not always achieved on the first
attempt. Mr Turner says that one of the
greatest advantages of the Stopple Train
technology over traditional isolation
techniques is that it greatly increases the
likelihood of achieving an acceptable seal on
the first attempt.
Getting an acceptable first-time seal
reduces the number of times you need to
remove equipment from the line in order to
try again. And as each attempt can take quite
some time, especially when working with
larger diameter lines, reducing that waiting
time has a quantifiable value to operators.
By providing a greater first-time success rate

and less jobsite downtime, the Stopple Train
system can even help reduce the cost of labour
and machinery. It also minimises the number
of times you need to handle equipment, which
lowers the chances of damage or incident.
After TDW achieved a 100 per cent seal with
the system and completed the isolation, the gas
was re-routed, and the job completed with no
issues. Natural gas continued to flow through
the temporary bypass, supplying Eastern
Canada. By the end of the project, a new pipeline
segment was completed, built at a safe distance
from the new subdivision. The entire project was
completed with minimal disturbance to
Canadas pristine natural environment.
For more information on TDWs products

and services visit www.tdwilliamson.com
Under pressure
Relocating this segment would be a big
job. Because work needed to begin within a
few months to ensure it was completed
before the safety-class change, a plan of
action was created that included TDW
building and testing new custom 30 inch
Stopple Train equipment within ten weeks.
Once the fleet was ready to go, the team
mobilised to Quebec.
One of the supporting team members was
Mr Turner, who contributed engineering
calculations and analysis of the pipeline
before beginning the isolation. This
particular operator is very thorough. They
expect the highest degree of engineering,
quality, and safety, says Mr Turner.
We worked together to make sure that
the force on the plugging heads, created by
30 inch sandwich valves being installed on the line.
A diagram of 30 inch Stopple Train isolation and by-pass.
53
Enhancing pipeline security with

distributed acoustic sensing
By Chris Shannon, CEO, Fotech Solutions, Church Crookham, Hants, UK
Oil theft from pipelines is a major international issue, and its not just regions such as the Niger Delta
which attract high levels of media attention that are affected. Recently we have seen instances of
pipelines being tapped as close to home as Hampshire, UK, with 30,000 cubic metres of diesel being stolen.
s well as theft, leak detection and

maintenance are equally important
issues for pipeline operators
particularly as some well-established
pipelines are 40 or 50 years old.
Pipelines are inherently difficult things to
monitor, often covering huge distances in
remote areas. To date, technological solutions,
such as CCTV surveillance, have been either
unable to provide solutions for monitoring
across the long distances required for
pipelines, or they have been too complex to
deliver the simple and actionable information
that offers benefits for security operatives
working on the pipeline.
Pipeline operators need technology that

can distinguish simply, effectively, and in
real time actual threat activities from the
vast amount of regular population movement
or agriculture that can be occurring on or
around the entire length of their pipeline.
Distributed acoustic sensing (DAS) is
demonstrating itself as a technology with the
ability to provide this level of visibility.
DAS explained
DAS uses an optical technique that
involves laser light being pulsed in a standard
single-mode fibre-optic cable. When the
pulses of light encounter a sound or vibration,
Fotech Solutions CEO Chris Shannon.
it causes interference that manifests as signal

backscatter, which is reflected back down
the fibre to the sensor. It is from the analysis
of these interference patterns that vital
information about activity in or around the
pipeline can be gleaned. Each individual
fibre-optic cable can cover up to 40 km
of pipeline.
By analysing the frequency, amplitude,
and temporal characteristics of the
interference in the backscatter signals it
receives, the DAS system can determine what
the potential threat actually is. Footsteps and
manual digging can be detected from within
15 m of the pipeline. Larger threats such as
heavy vehicles and mechanical excavators
can be detected within 50 m. However,
further filtering is applied so that the system
only alarms on activities that could be a
potential threat to the pipeline, thus
presenting an operator with a reliable
alarming mechanism.
As well as detecting external threats, DAS
can also detect pipeline leakage, as the
vibrations caused by disrupted product flow
become visible to pipeline monitors who can
see an irregularity at a certain point on the
pipeline. The ability to track events and
disturbances also means DAS is a useful tool
for processes such as pig tracking.
Critically, all of this analysis of external
and internal factors is done in real time.
In this way, DAS can provide complete
integrity monitoring along the whole
length of a pipeline.
With Fotechs Helios DAS system, this
data and analysis is then fed into a very
simple user interface, which shows each
section of the pipeline and flashes alerts
when issues are detected. All of the analysis
is done behind the scenes and doesnt
require specially trained security staff to be
able to interpret and analyse the raw data.
The Helios DAS system can provide complete integrity monitoring along the whole pipeline.
From experience, Fotech has found that

monitoring systems can be too complex
many operators will initially ask for in-depth
minute-by-minute data of any and every event
along a pipeline, which they must interpret
themselves. However, after a few months of
operation there is a quick realisation that the
most valuable system is one that can tell them,
in very simple terms: is there a threat on my
pipeline or isnt there?
Thats not to say that the information
used by the Helios system to makes these
decisions is not valuable in itself,
particularly for analysing long-term trends of
activity across the pipeline. System data is
accessible to pipeline security personnel and
engineers at any given time and may be used
for further analysis or system optimisation.
However, operatives monitoring the pipeline
need to make fast, informed, decisions in
real time. False alarms are a significant
hindrance to the efficient management of a
pipeline and operatives need tools that are
able to interpret data quickly and reliably in
order to minimise these false alarms and
provide the necessary support for their
decision-making when a genuine threat or

issue is detected.
DAS and the pipeline industry

What DAS brings to operators is an extra
layer of surveillance, monitoring, and alerting
across a wide area of coverage, and it is not a
direct replacement for security guards
manning remote-monitoring stations and
other surveillance techniques. However, DAS
delivers a complementary layer of intelligence
by providing real-time information and
enhanced visibility of the pipeline to
personnel monitoring it.
DAS is geared primarily towards providing
clear and manageable information, which can
be interpreted by non-technical personnel.
Fotechs solution is designed to ensure that
better decisions can be made as quickly as
possible to deal with incidents appropriately
and effectively. As pipeline operators all
around the world look to add security layers to
their assets, DAS has the potential to be an
extremely powerful tool in the fight against oil
and gas theft.
The Helios DAS LivePipe operator interface a field map indicating a disturbance along a DAS fibre-optic cable.
54
55
RISK MANAGEMENT
RISK MANAGEMENT
Troubles with weightings

By W.Kent Muhlbauer, WKM Consultancy, LLC, Houston, TX, USA
There is currently a great disparity in approaches and level of rigour applied to risk assessment by
pipeline operators largely due to the absence of complete standards or guidelines covering this complex
topic. The disparity leads to inconsistent and problematic risk management, as was discussed in a
previous column.
ost operators desire sound and useful

risk assessment to support their
decision-making. Weaknesses in an
operators risk-assessment practice are almost
entirely due to insufficient guidance. This
column strives to improve this situation by
challenging past practice as well as discussing
proper methods for pipeline risk assessment.
Focusing this time on our past missteps,
the use of weightings should be a target of
critical review in any risk-assessment
practice. Weightings have been used in some
older risk assessments to give more
importance to certain factors. They were
usually based on a factors perceived
importance in the majority of historical
pipeline-failure scenarios. For instance, the
potential for AC-induced corrosion is usually
very low for many kilometres of pipeline, so
assigning a low numerical weighting
appeared appropriate for that phenomenon.
This was intended to show that AC-induced
corrosion is a rare threat.
Used in this way, weightings steer
risk-assessment results toward predetermined
outcomes. Implicit in this use is the
assumption of a predictable distribution of
future incidents and, most often, an
accompanying assumption that the future
One can easily envisage

numerous scenarios
where, in some segments,
a single failure mode
should dominate the risk
assessment and result in
a very high probability of
failure rather than only some
percentage of the total.
56
distribution will exactly track the past

distribution. This practice introduces a bias
that will almost always lead to very wrong
conclusions for some pipeline segments.
The first problem with the use of
weightings is finding a representative basis
for the weightings. Weightings were usually
based on historical incident statistics 20
per cent of pipeline failures from external
corrosion; 30 per cent from third-party
damage; etc. These statistics were usually
derived from experience with many
kilometres of pipeline over many years of
operation. However, different sets of pipeline
kilometre-years show different experience.
Which past experience best represents the
pipeline being assessed? What about
changes in maintenance, inspection, and
operation over time? Shouldnt those
influence which data sets are most
representative to future expectations?
It is difficult, if not impossible, to know
which set of historical population behaviour
best represents the future behaviour of the
segments undergoing the current risk
assessment. If weightings are based on, for
example, average country-wide history, the
non-average behaviour of many kilometres of
pipeline is discounted. Using national
statistics means including many pipelines
with vastly different characteristics from the
system being assessed.
If the weightings are based on a specific
operators experience, then (hopefully) only
a very limited amount of data is available.
Statistics using small data sets are always
problematic. Furthermore, a specific
pipelines accident experience will probably
change with the operators changing
risk-management focus. When an operator
experiences many corrosion failures, he will
presumably take actions to specifically
reduce the potential for corrosion occurring
and, over time, a different mechanism should
then become the chief failure cause. So, the
weightings would need to change periodically
and would always lag behind actual
W. Kent Muhlbauer.
experience, therefore having no predictive

contribution to risk management.
The bigger issue with the use of
weightings is the underlying assumption that
the past behaviour of a large population will
reliably predict the future of an individual.
Even if an assumed distribution is valid for
the long term population behaviour, there
will be many locations along a pipeline
where the pre-set distribution is not
representative of the particular mechanisms
at work there. In fact, the weightings can
fully obscure the true threat. The weighted
modelling of risk may fail to highlight the
most important threats when certain
numerical values are kept artificially low,
making them virtually unnoticeable.
Use of weightings as a significant source of
inappropriate bias in risk assessment is
readily demonstrated. One can easily envisage
numerous scenarios where, in some segments,
a single failure mode should dominate the risk
assessment and result in a very high
probability of failure rather than only some
percentage of the total.
Consider threats such as landslides,
erosion, or subsidence, classed as failure
mechanisms called geohazards. An assumed
distribution of all failure mechanisms will
almost certainly assign a very low weighting to
this class since most pipelines are not
significantly threatened by the phenomenon
and, hence, incidents are rare. For example, to
match a historical record that shows 30 per cent
of pipeline incidents are caused by corrosion

and 2 per cent by geohazards, weightings might
have been used to make corrosion point totals
15 times higher than geohazard point totals
(assuming more points means higher risk) in an
older scoring methodology.
But a geohazard phenomenon is a much
localised and very significant threat for some
pipelines, and may dominate all other threats
in some segments. Assigning a 2 per cent
weighting masks the reality that, perhaps,
90 per cent of the failure probability on this
segment is due to geohazards. So, while the
assumed distribution may be valid on average,
there will be locations along some pipelines
where the pre-set distribution is very wrong. It
would not at all be representative of the
dominant failure mechanism at work there.
The weightings will often completely mask the
real threat at such locations.
This is a classic difficulty in moving
between the behaviour of statistical
populations and individual behaviour. The
former is often a reliable predictor hence the
success of insurance actuarial analyses but

the latter is not.
In addition to masking location-specific
failure potential, use of weightings can force
only the higher-weighted threats to be
perceived drivers of risk, at all points along all
pipelines. This is rarely realistic. Risk
management can become driven solely by the
pre-set weightings rather than actual data and
conditions along the pipelines. Forcing
risk-assessment results to resemble a
predetermined incident history will almost
certainly create errors.
Since weightings can obscure the real
risks and interfere with risk management,
their use should be discontinued. Using
actual measurements of risk factors avoids
the incentive to apply artificial weightings
(see the previous column on the need for
measurements). Therefore, migration
away from older scoring or indexing
approaches to a modern risk-assessment
methodology will automatically avoid the
misstep of weightings.
Kent Muhlbaner contributes a column to

each edition of Pipelines International
tackling specifics of pipeline risk in
bite-sized portions to make this
challenging subject more approachable.
FUTURE COLUMN TOPICS

Consequences of failureID the

scenarios
The Perfect Storm chain

of events
How do I handle non-pipe assets?
Getting info from SMEs

facilitation!
Monetisation of risks a useful

common denominator
How safe is safe enough?
Damage vs failure an important

distinction
Q&A on risk assessment evolution
Youve got a challenging pipeline with even more

challenging validation requirements.
Quest Integrity Groups proprietary, ultrasonic in-line inspection
technology and engineering assessment capabilities are designed
to help you address the most complex pipeline challenges.
When combined with our suite of integrity management services,
Quest Integrity delivers a truly integrated and powerful solution for
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InVistaTM technology capabilities for challenging pipelines include:
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Bi-directional inspection capabilities
Navigates back-to-back 1D bends
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Operates in no-flow or limited flow conditions
Traverses unbarred tees, wyes and mitre bends
Get the answers you need.

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A TEAM Industrial Services Company
57
UPCOMING EVENTS
UPCOMING EVENTS
Mr Lowe says The business opportunities

for international and Middle Eastern pipeline
products and service companies are vast.
According to analysts, Saudi Arabias economy
has grown by 29.6 per cent since 2008. We
anticipate a greater opportunity and return for
suppliers by locating the POMME event in
Saudi Arabia.
Tiratsoo Technicals Director John Tiratsoo
adds The event also provides a pipelinespecific forum to discuss the unique operations,
system-integrity, and maintenance issues faced
by Middle Eastern pipeline operators. There is
currently no other event that brings Middle
East-based pipeline companies within the
region together in this way.
Pipeline integrity and maintenance
strategies in the region are constantly being
adapted, and there is a real drive for industry
innovation. Our conference programme aims
to facilitate this conversation and knowledgesharing within the industry.
Mr Tiratsoo says The region is a key focus
for Clarion and Tiratsoo Technical, and as our
relationships strengthen in the region, we
want to ensure that others do too.
Delegates at a networking event.
Attendees discuss pipeline operations with exhibitors.
Event organisers BJ Lowe, Frances Webb and

John Tiratsoo.
Azerbaijan
Access Middle Eastern

pipeline markets
at POMME
Delegates at the 2013 conference in Bahrain.
Pipeline event opens up new markets
2 and a half hours
Clarion Technical Conferences and Tiratsoo Technical are proud to announce the Pipeline
Operations and Management Middle East (POMME) Conference and Exhibition, to be held
in Saudi Arabia, one of the worlds leading oil-producing countries, in April 2016.
he event will be held in Dhahran, Saudi

Arabia in April 2016 to meet the demand
of the huge Saudi Arabian and wider
Middle Eastern petroleum industry.
The POMME Conference and Exhibition
has evolved out of the biennial Best Practices
in Pipeline Operations and Management
Conference and Exhibition, last held in
Bahrain in 2013 and supported by Platinum
Elite sponsor Saudi Aramco.
Clarions Director BJ Lowe explains the
move: We recognise that the Middle East
represents a great opportunity for the industry
service-provider companies with whom we work
58
globally. Our aim is to open up a potentially new

market to these companies one that they may
not otherwise be able to access and to expand
the opportunities for those companies who may
already have a presence there.
Saudi Arabia holds one-sixth of the worlds
proven oil reserves and the worlds fifth largest
accumulation of natural gas reserves. It is the
second-largest exporter of petroleum to the
United States. According to the Organisation of
the Petroleum Exporting Countries (OPEC)
Annual Statistical Bulletin 2012, petroleum
exports accounted for approximately 90 per cent
of total Saudi export revenues in 2011. Given
this economic dependence on petroleum

exports, Saudi Arabia and its national
petroleum and natural gas company Saudi
Aramco, is willing to invest heavily in the
countrys oil and gas industry, including
its pipelines.
According to Saudi Arabias Foreign
Investment Policy, The Kingdom of Saudi
Arabia realises that achieving its ambitious
economic goals requires a steady flow of
technology and expertise into the countryits
policy is to welcome foreign capital and invite
it to participate in economic development
projects in co-operation with Saudi business.
Make the most of your

attendance at the POMME
Conference and Exhibition
by visiting nearby Middle
Eastern markets.
2 and a half hours
Kuwait
Fly to UAE in under an hour
1 hour
BAHRAIN
Drive to Kuwait and Qatar in

an hour
1 hour
1 hour
SAUDI
ARABIA
Qatar
under an hour
UAE
1 hour
under an hour
1 hour and a half
Oman
Fly to Oman in an hour and

a half
Fly to Azerbaijan in two and a
half hours.
1 hour and a half
59
UPCOMING EVENTS
enters a new age

Introducing the digital edition
ISSUE 20
JUNE 2014
New export hori
zons
Event attendees enjoying the networking opportunities at the 2010 International Pipeline Conference.
Countdown to the International

Pipeline Conference and Exposition
With only a few months remaining until the 10th International Pipeline Conference and Exposition
kicks-off in Calgary, Canada, the events Official Media Partner Pipelines International gives you the
latest information on this exciting industry event.
housands of the worlds leading

pipeline industry professionals will
gather for the biennial event from
29 September3 October 2014.
The International Pipeline Conference
(IPC) attracts some of the most experienced
and respected members of the international
pipeline community.
The conference begins on Monday 29
September, with tutorials in key areas of
interest. Streamed technical sessions begin
the morning of Tuesday 30 September, and
run through to Friday 3 October. The
conference organisers have developed
13 technical streams to enhance the
opportunities for you to hear and participate
in discussions with industry leaders in the
topic areas of your choice.
60
A world-class Exposition
The International Pipeline Exposition will
feature over 200 international companies
displaying their latest technology, so it is a
great meeting ground for exploring the latest
innovations, products, and services for the
pipeline industry, as well as providing
face-to-face networking opportunities.
The 2014 Exposition will be held from
Tuesday 30 September to Thursday 2 October,
so be sure to exchange knowledge and remain
current with advances in corrosion, integrity,
detection, testing, inspection, and pigging.
Meet the Pipelines International

team
Pipelines International will be bringing
you all the conference and exposition news in
ISSUE 20
JUNE 2014
AUSTRALIA
New export horizons
AUSTRALIA
the IPCE 2014 update. Make sure you drop by

the Pipelines International stand to say hello to
the team who take pride in bringing you all
the latest in international pipeline industry
news. Pick up a copy of the September edition
of the magazine, and declare your love for the
industry with an I Pipelines sticker.
SAVE THE DATE!

29 September 3 October, 2014
The Hyatt Regency Hotel and
the TELUS Convention Centre
Renew today and receive your subscription in our new

interactive digital flipbook format, as well as in print.
www.pipelinesinternational.com/subscribe
UPCOMING EVENTS
technical
JOURNAL OF
ESTREL HOTEL, BERLIN, GERMANY

OCTOBER 2124 2014 www.clarion.org/fpp/fpp-2014
PIPELINE
C
ENGINEERING
Fix your pipeline problems in Berlin
CM
MY
CY
Don't miss out on the opportunity to learn from top industry professionals from around the world at the
upcoming Fixing Pipeline Problems Conference and Exhibition, to be held from 2124 October 2014 at the
Estrel Hotel, Berlin, Germany.
he international event, organised by

Tiratsoo Technical, a division of Great
Southern Press, and Houston-based
Clarion Technical Conferences, will provide both
a forum for discussion as well as a platform to
showcase the industrys latest achievements.
A wide variety of issues concerning
pipeline rehabilitation will be covered,
ranging from the initial stages of evaluation of
a pipeline's condition, to the steps required to
undertake rehabilitation of the structure to
ensure its continued fitness-for-purpose and
prolong its economic lifetime.
The event provides a unique opportunity
to meet face-to-face with the pipeline industry
personnel, showcasing the latest
achievements in pipeline rehabilitation.
The Fixing Pipeline Problems (FPP)

conference programme will be divided into the
following broad areas of interest:
Repair and rehabilitation practices and
technologies;
Pipeline rehabilitation project case studies;
Internal issues including black powder,
microbial corrosion;
External issues including coatings,
DCVG, direct assessment;
Inspection internal and external; and,
Integrity assessment.
An opportunity not to be missed

The event will not only discuss the
latest developments in the industry, but
also to showcase some of the industry's
latest achievements, and to provide an

unmatched opportunity for both networking
and learning.
The conference programme will be of
relevance to all involved in the operation and
lifetime planning of pipelines that transport
all types of hazardous hydrocarbons both
on- and offshore, in particular oil and gas, as
well as to those involved in their regulation
and safety.
Sign up for training courses

Two pre-conference courses will be offered
on 2122 October:
Performing Pipeline Rehabilitation
Pipeline Repair, Hot Tapping, and
In-Service Welding.
To request more information about attending the event, presenting a paper or exhibiting, visit www.clarion.org/fpp
62
CMY
If you are a pipeline engineer,

The Journal of Pipeline Engineering
is a vital tool that will keep you
up-to-date on the latest technical
research around the world.
Digitally published four times a year,
it stands alone as the premier technical
publication for the pipeline industry.
As a peer-reviewed journal it provides
quality information to keep you at the
forefront of industry developments.
Subscription is just $US350 per year
and also includes access to the
electronic archive.
Visit the website to subscribe today.
www.j-pipe-eng.com
ADVERTISERS INDEX
ADVERTISERS INDEX
CFER Technology
38, 39
Consolidated Contracting
Company Australia Pty Ltd
DONT FORGET THESE

EVENTS FOR 2014:
21
E-Z Line Pipe Support company, Inc. 17

Enduro Pipeline Services
15
Girard Pipeline Pigs
41
Halfwave 5
International Pipeline Conference
& Exposition
29
Journal of Pipeline Engineering 63

Kwik-Zip 11
Maats B.V.
19
Nacap Australia Pty Ltd
Pigging & In-line Inspection
Houston, USA
23 June 2014
www.clarion.org
DOT Pipeline Safety

Regulations - Overview and
Guidelines for Compliance
Houston, USA
23 June 2014
www.clarion.org
Pipeline Integrity Courses,

Houston 2014
Houston, USA
26 June 2014
www.clarion.org
Pipeline Integrity
Management
Houston, USA
26 June 2014
www.clarion.org
The Pipeline Defects Clinic
Houston, USA
24 June 2014
www.clarion.org
Advanced Pipeline Risk

Management
Houston, USA
26 June 2014
www.clarion.org
Defect Assessment
Calculations Workshop
Houston, USA
46 June 2014
www.clarion.org
Advanced Pipeline Risk

Management
Houston, USA
46 June 2014
www.clarion.org
Global Petroleum Show
Calgary, Canada
1012 June 2014
www.globalpetroleumshow.com
Global Pipe Tech Summit
Rome, Italy
29 September
3 October 2014
www.pipetechsummit.com
International Pipeline
Exposition and Conference
Calgary, Canada
29 September
3 October
NDT Systems and Services

GmbH & Co. KG
IFC
OSD 33
Pigs Unlimited
23, 43
Pipelines International flipbook 61

Pipelines International shop 47
Pipelines International subscription IBC
Power Associates International Inc 55
Precision Pigging, LLC
OBC
Quest Integrity Group
57
Rosen 37
Ruhrpumpen 25
Stats Group
TD Williamson, Inc.
The Pipeline and Energy Expo
45
Vacuworx International
31
Vermeer 13
www.international
pipelineconference.com
COMING IN FUTURE ISSUES

SEPTEMBER 2014
DECEMBER 2014
MARCH 2015
JUNE 2015
Focus
Valves and pumps
Welding
Trenchless technology
Compressors
Equipment Focus
Trenchers and
earthmoving equipment
Pipelayers and sidebooms
Vacuum lifters
Machinery and equipment
Feature
Major pipeline logistics
Pipe manufacture
Safety
Offshore
Integrity and
Maintenance
Coatings
Pigging
Region Focus
North America
Middle East
Europe
Australia
DEADLINE
8 August 2014
7 November 2014
20 February 2015
24 June 2015
64
Rehabilitation, repair
and corrosion
Pigging
DONT MISS
AN ISSUE!
SUBSCRIBE TODAY
ISSUE 20
MARCH
ISSUE
JUNE 2014
2014
New export horizons
19
AUSTRALIA
ISSUE 18
Pipelaye
DECEMBER
perfectio
NYnC
n
i
D
D
H e lowdow
th
Purchase your Pipelines International subscription online at
pipelinesinternational.com/subscribe
2013

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ISSUE 20

New export horizons

Protecting your assets,

ISSUE 20 | JUNE 2014

From the Editor

MACHINERY AND EQUIPMENT

The Ichthys Export Pipeline

Regulation and re-routeing in Canada: a

Enhancing pipeline security with

Ukraine and Russia crisis: potential

Indian Oil Corporation awards pipeline

Queensland: the forefront of Australias

The road to LNG: constructing Australias

Spiderplough delivers a world-first in

Nacap setting the benchmark for pipeline

Lifting Australias pipe loads

Troubles with weightings

Pipeline event opens up new markets

Fix your pipeline problems in Berlin

The fall and rise of El Paso Corporation

Managing Pressure, Minimising Risk

Countdown to the International Pipeline

Tecno Plug | High Pressure Pipeline Isolation

CSG in focus: modernising the gathering

Perfect your pigging knowledge

Nitrogen pumping for offshore pigging

Optimal selection of verification digs for

Revolutionary pipe-in-pipe installation for

Innovation with the Ichthys offshore

PIPELINES INTERNATIONAL | JUNE 2014

FROM THE EDITOR

New export horizons

The entire 540 km QCLNG

FREE Pipelines International

Remember to email your news,

peaking at the recent launch of the new

maintaining dividends. Looking at future

PIPELINES INTERNATIONAL | JUNE 2014

Halfwave AS | Fjordveien 1 | NO-1363, Hvik | Norway | Phone: + 47 95 81 86 80 | Email: mail@halfwave.com

Alaska passes bill for Alaska LNG and

Sterling III NGL Pipeline complete

TransCanada files Eastern Mainline

PIPELINES INTERNATIONAL | JUNE 2014

Contract signed for second string of South Stream offshore section

Saipem awarded $US2.5 billion contract for Shah Deniz Stage II

GLNG pipeline closer to completion after Gladstone

CNPC completes subsea section of

The final section of the Santos GLNG Projects gas

Ukraine and Russia crisis:

ood Mackenzies latest analysis

the Ukrainian transit route in spring 2014, the

that The change of government in Kyiv, the

PIPELINES INTERNATIONAL | JUNE 2014

Hot Tapping & Plugging Cleaning Pipeline Integrity Services

North & South America

+1 918 447 5000

+65 6364 8520

CENTRALIZER & SPACER SYSTEMS

Indian Oil Corporation awards

FOR THE DRILLING & CIVIL CONSTRUCTION INDUSTRIES

ndian Oil Corporation Ltd (IOCL) aims to

DENSO has previously delivered more than

(DEKOTEC), and PE/butyl-tape-systems