Pipeline Integrity: Management and Risk Evaluation

Pipeline Integrity

Management and Risk Evaluation

Second Edition

Ramesh Singh

Nadoi Management, Inc., Katy, TX, United States

Table of Contents

Cover image

Title page

Copyright

Dedication

Foreword to The Second Edition

Foreword by Trevor Paananen

Preface to The Second Edition

Preface

Acknowledgments

Part 1. Pipeline Risk, Consequences & Engineering Assessment

1. Introduction

2. Basic Concept of Risk Management and Risk Defined

What is risk?

Relation of risk with integrity management

3. Data Collection

Elements of integrity management system

Data collection

Making sense of collected data

4. Risk Assessment Tools

Risk assessment tools

Fault tree analysis

Five steps to FTA

Basic mathematical foundation

Comparison of FTA with failure mode and effect analysis

Cause and effect (Ishikawa) diagrams

Hazard and operability study

Failure mode and effect analysis

5. Hazards and Threats to a Pipeline System

Threats leading to risk

Definition of hazard

Pipeline corrosion control

Determining corrosion rate by weight loss coupons

Coupons, selection, and its preparation

ER probes and instruments

LPR probes and instruments

Galvanic probes and instruments

Hydrogen permeation technology

Summary and conclusions

Handling uncertainty

6. Regulatory Approach to Risk Management

Initial approach to risk management

Paradigm shift

Elements of risk management

Risk management programs

Risk assessment and integrity management of offshore pipeline and risers

7. Liquid Hydrocarbon Pipeline Risk Management

Introduction

Definitions of HCA for liquid pipelines

High consequence area analysis

Direct and indirect HCAs

HCA analysis automation

Identification of HCAs

Integrity management

The scope of regulation

Baseline assessment

Leak detection

Elements of an integrity management program

Repairs and immediate repair

Risk-based alternative to pressure testing

Summary of the regulatory guidance for integrity management plan

Conditions that may impair a pipeline's integrity

In-line inspection or smart pigging

Magnetic flux leakage

Ultrasonic thickness

Magnetic Eddy current

Limitation of Eddy current

Tools defined by the configuration of magnates

Logistics of smart pigging

Information management

8. Gas Transportation Pipeline Risk Management

Introduction

Pipeline IM

The process of identifying HCA

Implementing an IM program

Qualifications of IM personnel

Baseline assessment

Direct assessment and threats

External corrosion direct assessment

Confirmatory direct assessment

Addressing integrity issues

Reduce the pressure

Third party damage and outside force damage

Importance of continuation of IM process

Reassessment intervals

Low-stress reassessment

Assessment of IM program's effectiveness

Record keeping

Communication with PHMSA and reporting

Part 2. Pipeline Integrity Evaluation and Engineering Assessment

1. Introduction

Introduction

Pipeline IM

Analysis of HCA

Potential impact radius

Direct and indirect HCAs

HCA analysis automation

Identification of HCAs

Immediate repair

2. Pipeline Defects and Corrective Actions

Assessing the remaining strength of a corroded pipe

Method for determining the remaining strength of corroded pipelines based on ASME B31G

3. Pipeline Reliability Assessment

Influence of residual stress on pipeline reliability

Variable sensitivities

Gas pressure fluctuation

Residual stress data

Corrosion effects

Part 3. Pipeline Material

1. Introduction

2. Line Pipes

ERW pipes: LFW versus HFW pipes

Submerged arc–welded line pipes

Classification of line pipes

PSL 1 versus PSL 2

Determination of percentage shear through DWT test for PSL 2 welded pipes

Ordering a line pipe

Pipes from other specifications

3. Fittings and Forgings

ASME/ANSI B16.5—Pipe flanges and flanged fittings

ASME/ANSI B16.9—Factory-made wrought steel butt welding fittings

ASME/ANSI B16.11—Forged steel fittings, socket welding and threaded

ASME/ANSI B16.14—Ferrous pipe plugs, bushings, and locknuts with pipe threads

ASME/ANSI B16.20—Metallic gaskets for pipe flanges, ring joint, spiral wound, and jacketed

ASME/ANSI B16.21—Nonmetallic flat gaskets for pipe flanges

ASME/ANSI B16.25—Butt welding ends

ASME/ANSI B16.28—Wrought steel butt welding short radius elbows and returns

ASME/ANSI B16.36—Orifice flanges

ASME/ANSI B16.39—Malleable iron threaded pipe unions

ASME/ANSI B16.42—Ductile iron pipe flanges and flanged fittings, classes 150 and 300

ASME/ANSI B16.47—Large diameter steel flanges: NPS 26 through NPS 60

ASME/ANSI B16.48—Steel line blanks

ASME/ANSI B16.49—Factory-made wrought steel butt welding induction bends for transportation and distribution systems

4. Valves

API 598 valve inspection and testing

API 600 steel valves – flanged and butt welded ends

API 602 compact steel gate valves – flanged, threaded, welding and extended body ends

API 603 class 150 cast, corrosion-resistant flanged-end gate valves

API 608 metal ball valves – flanged and butt welded ends

API 609 butterfly valves – double flanged, lug and wafer type

Testing of valves

NACE trim and NACE material

ASME codes and other specifications

Valve materials

Component materials for NACE standards

API 6D specification for pipeline valves

API 6FA

API 526 flanged steel pressure relief valves

API 527 seat tightness of pressure relief valves (2002)

ANSI/API STD 594 check valves: flanged, lug, wafer, and butt welding

ANSI/API 599: metal plug valves – flanged, threaded, and welding ends

ASME/ANSI B16.38 – large metallic valves for gas distribution

ASME/ANSI B16.33 – manually operated metallic gas valves for use in gas piping systems up to 125 psig

ASME/ANSI B16.40 – manually operated thermoplastic gas valves

ASME/ANSI B16.10 – face-to-face and end-to-end dimensions of valves

ASME/ANSI B16.34 valves – flanged, threaded, and welding end

Preparing a piping specification for a project

Definitions and abbreviations

Piping classifications

5. Pressure Testing: Pneumatic and Hydro Tests

Purpose

Leak test

Practical application of hydrostatic testing

6. Corrosion and Corrosion Protection

Corrosion

Protection from internal corrosion

Monitoring of internal corrosion

Internal corrosion monitoring techniques for pipeline systems

Abstract

Internal corrosion of a pipeline main causes of pipeline failures

Electrochemical failures are caused by corrosion of metals and seals

Causes and rates of internal corrosion

Methods of corrosion control

Monitoring versus inspection

Corrosion monitoring techniques

Weight loss corrosion coupons

ER probes and instruments

LPR probes and instruments

Galvanic probes and instruments

Hydrogen permeation technology

Protection from external corrosion

CP criteria

Caution on use of standard polarization potentials

Overprotection by CP

Corrosion protection by coating

Surface preparation

7. Asset Integrity Management and Other Concepts of Asset Reliability

Introduction

Definitions of reliability

Measurements of reliability

Reliability index

Asset integrity management

Risk-based inspection

RBI for refineries and chemical plants

Reliability centered maintenance definition

Limitations of RCM approach

Steps for implementing RCM

Risk-based maintenance definition

Determining risk

Risk assessment process for RBM

Total productive maintenance

Total maintenance system

Value-driven maintenance

Evidence-based asset management

Summary

Asset Integrity Book of Knowledge

References and Bibliography

Index

Copyright

Gulf Professional Publishing is an imprint of Elsevier

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This book and the individual contributions contained in it are protected under copyright by the Publisher (other than as may be noted herein).

Notices

Knowledge and best practice in this field are constantly changing. As new research and experience broaden our understanding, changes in research methods, professional practices, or medical treatment may become necessary.

Practitioners and researchers must always rely on their own experience and knowledge in evaluating and using any information, methods, compounds, or experiments described herein. In using such information or methods they should be mindful of their own safety and the safety of others, including parties for whom they have a professional responsibility.

To the fullest extent of the law, neither the Publisher nor the authors, contributors, or editors, assume any liability for any injury and/or damage to persons or property as a matter of products liability, negligence or otherwise, or from any use or operation of any methods, products, instructions, or ideas contained in the material herein.

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Dedication

This book is dedicated to the memory of my late father, Kripashanker Singh, from whom I learned to put pen to paper, who taught me to be analytical in my approach, and who instilled in me a sense of discipline and dedication to the work I do.

Foreword to The Second Edition

It is my honor to introduce this second edition of Pipeline Integrity Management and Risk Evaluation. I have known Ramesh as a professional colleague and friend for more than 12  years. We have collaborated on pipeline projects around the globe, in which I have found his advice invaluable and his knowledge of metallurgy, welding, pipe manufacturing, and corrosion issues to be both extensive and trustworthy.

Ramesh is always learning. Unlike some who choose to rest on their laurels once they have achieved a level of expertise and credentials within their specialty, Ramesh does not rest. In that regard, for this updated second edition, he has taken into account the input of his readers and followers to expand the application of his knowledge and experience.

In the first edition Ramesh had introduced us to the basic principles of risk, consequence, and integrity management. In this second edition he further builds upon those basic principles by devoting individual chapters to describe the regulatory requirements unique to liquid and gas pipeline systems. This second edition also contains more information on the types of inspection methods and subsequent evaluation techniques, within the context of the regulatory approach used by the US Department of Transportation, Pipelines and Hazardous Materials Safety Administration guidelines. Included in the new edition are the concepts of prioritizing inspection, based on qualitative and quantitative risk analysis. Also included are concepts such as risk-based inspection as applicable to asset integrity management.

For those who aspire to further their career as an asset integrity management professional, the book contains a set of more than 100 questions typically found in the body of knowledge for examinations in this field. These questions cover a wide spectrum of topics related to asset integrity management. These questions are organized into five modules: (1) asset integrity, (2) risk and consequences, (3) corrosion, (4) principles of reliability centered maintenance (RCM), and (5) integrity management planning. The book also contains recommendations for several reference publications and books for further study in this field.

I am confident that this book will be a valuable resource to both experienced and aspiring integrity management professionals.

W. M. (Bill) Olson, P.E.

Director—Project Management,

Gulf Interstate Engineering, Houston, Texas.

Professional Engineer: Texas No. 53778 (since 1983)

Vice Chair—American Society of Mechanical Engineers,Pressure Piping Code Section Committee B31.4/1

Bill Olson has over 30  years of engineering and project execution experience in the pipeline industry. The majority of his experience has involved international project development and execution, particularly in remote, greenfield areas. He has successfully formed and led teams to execute high-risk, fast-track projects in remote and geographically challenging locations. His experience extends to more than 16 countries, including Ecuador, Colombia, Peru, Yemen, Chad, UAE, Cameroon, Venezuela, Spain, China, Indonesia, and Russia.

Foreword by Trevor Paananen

With an increasing demand for oil and gas while continuing to use ever aging assets, combined with increasingly competitive markets and growing environmental concerns, the oil and gas industry has a need for managing existing infrastructure more than ever before. Oil and gas companies are requiring increased capacity and life expectancy for equipment far beyond the original designs. With the advancement of inspection technologies, the expectations of integrity professionals have increased accordingly. All these factors increase the importance for integrity professionals to provide accurate and cost-effective integrity management programs.

Integrity management excellence is so much more than performing inspections and assigning inspection intervals. Excellence is achieved through understanding degradation mechanisms, construction materials, and the wide field of inspection techniques. It is equally important to understand the shortfalls of the tools utilized for inspections. Processing all this information to create an integrity management plan can be difficult, but having a plan will ensure that required inspections are scheduled and carried out.

Management of the risks is the key to a solid asset integrity program. The more information the integrity professional has, the better the risk will be managed. To achieve perfect asset integrity would be a near impossible task or is at least cost prohibitive as many of these inspections can be very expensive and require significant costs associated with downtime. A well-managed integrity program, administered by a qualified integrity professional, will result in lower costs. This is due to fewer failures resulting in unplanned downtime. The plan equally must ensure that it is not overinspecting or using the wrong techniques that can give a false sense of security.

With all the information required to properly manage asset integrity, it is a field that requires continuous learning. Integrity management is a career where you will never be bored. In the Pipeline Integrity Management and Risk Evaluation, Ramesh has addressed the principles of asset integrity management and regulatory aspect.

Trevor Paananen, P.Eng., MBA

Senior Integrity Engineer

RAE Engineering and Inspection Ltd.

4810—93 St.

Edmonton, AB T6E 5M4

Canada

Preface to The Second Edition

The second edition is the result of the feedback from readers of the first edition and a demand for more information. The first edition was more generic and focused on general principles of risk, consequences, and integrity management. The second edition, while retaining all of the first edition, includes more of the types of inspection methods and evaluation practices, and the regulatory approach.

In keeping the above concept of providing more details, the new edition has two independent chapters on integrity management (IM) of liquid transportation pipelines and gas transportation pipelines. Included in the new edition are the concepts of prioritizing the inspection method based on risk analysis. Though the primary focus of the book is the integrity of pipeline, I could not totally ignore the fact that associated with the pipelines are several facilities that by definition may or may not be part of pipeline systems. The integrity of such associated assets is equally important. The concept of risk-based inspection is also added in the new edition.

The last chapter of this book contains 116 questions prepared as body of knowledge for asset integrity management. These questions are set around five modules of IM: (1) asset integrity, (2) risk and consequences, (3) corrosion, (4) principles of reliability centered maintenance (RCM), and (5) IM plan. These questions cover a wide spectrum of topics related to the asset integrity management. These questions are intended to be used as guideline for developing concept and knowledge.

Preface

There are several information sources in the market on this subject; most of them are regulatory requirements and guidelines. In most cases, due to their very nature, the regulatory materials are specifically tailored as do and don't lists. This book is intended to bring closer the management principles and regulatory requirements and to apply these principles to achieve the best possible results.

While the regulatory requirements are essential, the application of management principles, in the writer's view, uplifts the degree of success of the integrity management efforts. This intends to support the undersupported by giving the practical perspective to the theoretical texts.

The book is aimed at those managers, engineers, and nonengineers, who are responsible for establishing and managing pipeline integrity for public safety. The book is intended to serve as a body of knowledge and as a source of reference.

In writing this book I do not claim originality on all thoughts and words, as this would be impossible on a subject as universal as integrity management. I acknowledge various sources and job positions that have contributed to my experience of the subject, and I am proud of them. Where I have consciously borrowed matters and ideas directly from these experiences and resources, I acknowledge them as best as I can.

Those individuals who need more detailed study on any specific topic covered in this book should reach out to these acknowledged specialized associations, institutions, and local regulatory bodies for further guidance. There are several published works available from these bodies that can be of immense help in developing in-depth understanding of specific subjects.

Acknowledgments

Writing this book made me realize how dependent a person is in accomplishing the task of this nature. The process started with retrieving several years of notes, handouts, and handwritten chits.

I am extremely thankful to the management and team of Gulf Interstate Engineering, Houston (www.gie.com) for creating an environment that encouraged me to write this book. I sincerely thank my consulting clients who allowed me to use data and pictures from projects that I worked. I am especially thankful to Joe Sonnberger of Metal Samples Company, Munford, Alabama, who kindly allowed me to use pictures of internal corrosion coupon and holders for this book.

I am also indebted to the encouragement, support, and help from my friend Olga Ostrovsky. She helped me negotiate the obstacles of writing and editing the drafts. Without her expert help, this book would not be possible.

Last but not least, I am also grateful to my loving wife, Mithilesh, and my son, Sitanshu, for their support in accomplishing this goal. Mithilesh tolerated my indulgence with the project. Without her support and understanding, this task would not have been possible.

Part 1

Pipeline Risk, Consequences & Engineering Assessment

Outline

1. Introduction

2. Basic Concept of Risk Management and Risk Defined

3. Data Collection

4. Risk Assessment Tools

5. Hazards and threats To a pipeline system

6. Regulatory Approach to Risk Management

7. Liquid Hydrocarbon Pipeline Risk Management

8. Gas Transportation Pipeline Risk Management

1

Introduction

Abstract

This chapter introduces the concept of risk management and the mandatory risk management requirements for pipelines. This also introduces the general understanding of terms such as high-consequences areas, importance of data collection, sources of data, and how to make use of available data.

Keywords

Consequence analysis; Data collection and analysis; Dynamic segmentation; Failure mode; Hazard zone; Leak impact factor; Managing the risks; RCA; Risk; Supplemental assessments

The transportation of oil and gas and other hazardous fluids is done in several ways. They are transported through pipelines, surface transports such as railroad tankers and road tanker trucks, over water transports such as ocean-going ship tankers, or smaller tankers or barges in coastal waters and rivers. There is always a possibility for any transportation system to fail during its operation, and the failure is associated with the risk of loss of fluid and damage to lives and properties. The concept of risk management (RM) is a conscientious effort to assess and analyze the risk and then develop plans and methods to contain the severity of the risk.

RM has been embraced by both the pipeline industry and regulatory agencies as a way to increase public safety and also to optimize all aspects of pipeline design, operations, and maintenance. The focus of RM is to establish a program that follows industry best practices, gives a long-term decision support tool to the pipeline owner and the operator, and instills confidence in public about the safe operations of pipeline passing through their neighborhood (Table 1.1.1).

The RM process typically begins with a review of the risks associated with the specific pipeline systems or a segment of the system, compares it with the RM concepts and methodologies, and then focuses on the most effective RM techniques that can be applied. These available techniques are currently used by the pipeline industry in RM process. In general all available techniques make their estimates based on the severity of pipeline releases in air or surrounding environment in terms of:

Table 1.1.1

ASME B31.8S Mandatory Risk Assessment for Gas pipelines

ASME B31.8S gives a list of criteria in Appendix A, which addresses the subjects such as pipeline material, design conditions, construction and inspection, and operating history. It sets out some strict guidelines for inspection frequency based on the percentage of SMYS over the years. SMYS, specified minimum yield strength.

• the potential volume of product that could be released,

• the physical pathways and dispersion mechanisms by which the product could move to a high consequence area (HCA) in terms of environmental damage or hazard to life and property, and

• the amount of product that might actually reach the boundaries of the HCA.

The emphasis throughout is practical, ready-to-apply techniques that would yield positive and cost-effective benefits.

The RM process can be structured so that it is appropriate for application, either to a new or an existing pipeline system. Understanding the concepts and principles listed below helps the risk manager to focus on the task as a more knowledgeable person.

• Basic concepts of risk

• Risk assessment processes

• The indexing technique

• Failure modes

• Consequence analysis

• Hazard zone calculations

• Leak impact factor

• Supplemental assessments

• Data collection and analysis

• QA/QC of data

• Dynamic segmentation

• Using common spreadsheet and desktop database tools

• Managing the risks

• Resource allocation modeling

• Practical applications

• Integrity management and RM

Subsequent chapters of this part of the book will delve on some of the following concepts and principles.

• Concept of RM and risk defined

• Data collection and analysis

• Risk assessment concepts and tools

• Identification of hazards that lead to failure

• Determining consequence of failure and identification of HCA

2

Basic Concept of Risk Management and Risk Defined

Abstract

In this chapter we study the concept of risk, relation of risk to probability and consequence as applicable to integrity management. We will discuss understanding and rating of risk, approach taken to mitigate risk, steps taken to either eliminate or at least reduce the severity of consequences. The concepts of acquired knowledge, knowledge of pipeline system and risk associated with it, modeling methods used to assess risk, and the concept of relative risk and absolute risk are explained.

Keywords

Hazard; Probability; Product characteristics; Receptors; Relative vs absolute risk; Risk; Spill spread

Chapter Outline

What is risk?

What is probability?

What is consequence?

Relation of risk with integrity management

What is risk management?

What is risk assessment?

Test of acquired knowledge

Room for complacency—result not to be taken for granted

Know the pipe system and associated risk

Measure the completeness of the assessment model

Relative risk versus absolute risk

Risk is associated with failure of the pipeline or the equipment in the pipeline system, or system as a whole. Hence, it is required to understand what a failure is. The pipeline failure can be defined as:

• An unintended release of pipeline product or loss of pipeline's integrity

• Failure to perform its intended function

• Examples include leak in pipelines due to internal corrosion, external corrosion, improper operation, or a damage caused by a third party.

What is risk?

Before one starts on the process of managing risk, one needs to know what constitute a risk to pipeline, and furthermore be able to identify what is the mode of the risk. The most common definition of risk is a relationship of the probability of an incident occurrence and the consequence of that occurrence. This can be written as follows.

where R denotes risk, P, probability, and C, consequences.

It is observed from the above equation that there are only two components to risk, the probability and the consequences. This will also lead us to an understanding that if we take any one of the components out of the equation, the risk will be contained or eliminated. This is an important observation, as the primary goal of risk management is to eliminate or contain risk. We further discuss these two components of risk:

1. the probability of failure and

2. the consequences of failure.

What is probability?

Probability is defined as how likely is it that the risk will occur? Or in other words, what are the chances of failure?

What is consequence?

The result of the failure is defined as consequence.

Example: A pipeline failure close in proximity to areas of high density population or near a school, hospital, or any other public congregation centers can cause an explosion and fire with a considerable loss of life and damage to properties.

Relation of risk with integrity management

Integrity management (IM) concept is based on control and elimination of risk by assessing probability of failure. As stated above, the probability and consequence relationship establishes the level