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© Penspen Ltd Pipeline Integrity Reviews - A Holistic Approach Phil Hopkins Andrew Palmer & Associates, UK Part of Penspen Ltd Paper presented at: Pipeline Pigging, Integrity Assessment and Repair Conference. February 2001, Houston.
© Penspen Ltd Presentation Structure nBackground to paper nChange nSafety of Ageing Pipelines nMove to Risk Management nPipeline Integrity Reviews and Their Benefits nConducting a Pipeline Integrity Review (PIR) nFitness for purpose nRisk analysis nWho should conduct a PIR nPipeline Management Systems nTen key considerations for all pipeline engineers when considering your pipeline’s safety and integrity nConclusions.
© Penspen Ltd Background
© Penspen Ltd Background nThe USA pipeline industry is about to commence integrity management programs, encouraged by regulations. The core of these programs will be detailed reviews of pipeline integrity nAndrew Palmer & Associates have been conducting integrity reviews (baseline assessments) for clients worldwide: nUK - uprating of 25 year old system nAsia - assess safety & rerating of 40 year old pipeline nAfrica - third party commercial reasons nGeneral - pipeline management systems nWe’ve learnt that: nNot sufficient just to look at ‘integrity’ nNot sufficient to focus on the pipeline alone nYou must look at the whole pipeline system, as all aspects contribute to safety - a ‘holistic’ approach. nYou must have a pipeline management system nWe’d like to share our experiences/expertise with you, as you start complying with the ‘final rule’ and using API 1160
© Penspen Ltd Background nYou will be needing to thoroughly review your integrity in USA nYou may call this review a ‘baseline’ assessment, and nyou may call the overall framework ‘integrity management’ and nyou may call you integrity assessments or the procedure for obtaining a plan to reduce risk ‘direct assessment’, nbut all this is accommodated in the Pipeline Integrity Review. nThe major difference is that the Pipeline Integrity Review is explicitly... HOLISTIC
© Penspen Ltd Change
© Penspen Ltd Change in our world… the family. nCentral Heating - we no longer need to sit together for warmth nMicrowave cookers - we no longer have to sit together for eating nElectronic games - we no longer have to sit together to play nCell phones - we no longer have to be together at all! l The whole world is changing, not just the pipeline business. Consider the effects of technology on our family:
© Penspen Ltd Change in people…. l People are changing. l Every morning I look in the mirror, and I think I look better. Sadly, I’m fooling myself…. l Consider how humour is changing… for example in a bomb squad….
© Penspen Ltd Change in pipeline construction… little change. l Remember… Pipeline Engineers are like surgeons… l They bury their mistakes l OLD l NEW
© Penspen Ltd Change in pipeline testing…. l Images courtesy of Lattice, UK and BJ Services, UK l We have seen major changes in testing our lines. l From limited gas testing, to l high level water testing (1960s) to l low resolution smart pig inspection (1970s) to l high resolution smart pig inspection (1980s)
© Penspen Ltd Pipeline Safety
© Penspen Ltd Pipeline safety… recent USA failures l Images taken from OPS website: ops.gov.com
© Penspen Ltd Pipeline safety… not confined to USA l Images taken from Reuters and Tapline websites.
© Penspen Ltd Pipeline failures… why? nYou MUST have an holistic approach to integrity, to prevent all these failures, AND nSmart pigging, risk management programmes, correct routeing etc., will help you achieve high integrity, but only good management will GUARANTEE you integrity
© Penspen Ltd Pipeline safety… why are we having ‘more’ failures? nOur pipelines are getting older, and we expect the same/more performance. nBut we still treat them the same…? nThis cannot be a decision from an engineer! nUSA system oldest in the world nIf it’s going to happen, it will happen here first…. nMore buildings/activities around pipelines; increased consequences nWe are increasingly treating engineering as a ‘commodity’ nCommodities (e.g. sugar) are price-driven, and not perceived as complicated or having variable quality nThis may be true of, e.g. linepipe, in our industry nBut it is not true of anything related to safety and environment nSome of our operators have downsized nlosing the ‘grey hairs’, nunder-strength or under-trained or ‘under-experienced’, and nlosing ‘corporate memory’, and engineering objectivity. nOur regulators are under pressure to reduce size… the ‘more for less’ pressure is on our civil services. nWe are decreasing our spending on research nHeightened public awareness, litigation and reporting
© Penspen Ltd Safety of Ageing Pipelines n Good maintenance and management of ageing pipelines allows them to be operated safely for many years. FAILURES NEED NOT HAPPEN! l Data taken from CONCAWE; onshore European liquid lines
© Penspen Ltd Change in approach to pipeline safety…. l Old Style… Reactive… from failure to failure…. l New Style… Proactive… no failure philosophy l Pipeline Integrity Review l Pipeline Management System l No Failure l Plan l FOCUS OF PRESENTATION l Failure l Legislation and/or Pipeline Integrity Review l Don’t update Plan l No Failure l Act and/or Plan l Failure
© Penspen Ltd Change to Risk Management
© Penspen Ltd Change to Risk Management - ‘Proactive’ nThe change to ‘proactive’ safety requires formal identification and management of risk. This is an international movement: nUSA Office of Pipeline Safety has a risk demonstration programme, and see risk management as a potential method of producing equal or greater levels of safety in a more cost effective manner that the current regulatory regime nUK Pipelines Safety Regulations: Goal-setting, not prescriptive The Regulations require a ‘major accident prevention document’, including safety management system. nCanada has non-mandatory ‘Guidelines for Risk Analysis of Pipelines’ in its pipeline code. nThe European Commission is reviewing ‘major accident’ pipelines, and are likely to require operators to have a ‘major accident prevention policy and a pipeline management system that ensures the policy is applied.
© Penspen Ltd Pipeline Integrity Reviews
© Penspen Ltd Pipeline Integrity Reviews l Pipeline integrity review + l Pipeline management system = l Integrity management l IN THE USA YOU WILL HAVE: l ‘FINAL RULE’ + API 1160 = INTEGRITY MANAGEMENT l This can be simply represented by:
© Penspen Ltd There are six main reasons why an operator may need to review the integrity of a pipeline: The Need For Pipeline Integrity Reviews, and Their Benefits nContinuing safety, security and compliance. nCost effectiveness. nPoor documentation. nChange or extension of use. nRevalidation. nChange of ownership or third party access.
© Penspen Ltd The Need For Pipeline Integrity Reviews, and Their Benefits The benefits of conducting an integrity review include: nCompliance with regulations nFactual demonstration to all stakeholders of pipeline safety and corporate commitment to safety nPipeline health check. nConfirmation of safe operating limits. nIndependent review of design and operation. nIdentify and justify any requirement for remedial action. nIdentify any weaknesses in management procedures.
© Penspen Ltd Conducting a Pipeline Integrity Review A Pipeline integrity review is a review of a pipeline system that, as a minimum, includes analysis of: nThe pipeline’s design, construction and commissioning, nPipeline route and hazards (e.g. proximity of housing, subsidence areas or seabed profile), nOperating history, practices and management, nCurrent condition via inspection records, failures, downtime, etc., nPractices for inspection and maintenance of the pipelines, nHydraulic/compression, including delivery forecasts and expansion plans, nProduct quality; both current and future quality is considered, nSafety and environmental procedures and systems, nThe critical parts of the pipeline system (pipelines, SCADA systems, gas conditioning stations, valve stations, pig launch/receive stations, etc.).
© Penspen Ltd Pipeline Integrity Review - Execution plan
© Penspen Ltd Fitness for Purpose and Risk Review nContribute to the overall expert opinion on the integrity of pipeline system. nIdentify critical sections of the pipeline system (e.g. in terms of security of supply). nAssess the remnant life of the pipeline, and its ability to withstand either its existing duty, or change of duty. nProvide a review of the risks associated with the pipeline in both its current and future condition. One part of the Pipeline Integrity Review is the FFP and Risk Review. This is a major topic of this conference, so it is worthy of mention. These reviews will:
© Penspen Ltd Fitness for Purpose and Risk Review nThe ‘fitness for purpose’ review will usually focus on any defects (e.g. corrosion) or damage (e.g. dents) recorded/anticipated in the pipeline, as these will be the results of the major hazards to the pipeline (e.g. mechanical damage, or deteriorating coating). This review will help us determine the PROBABILITY (LIKELIHOOD) of a failure; however, this review does not take account of the CONSEQUENCES of any failure. nThe ‘risk’ review will take account consequences, as: nRISK = PROBABILITY OF FAILURE x CONSEQUENCES OF FAILURE nBut don’t forget, we also need to take account ‘GAIN’. We balance our risk with our gain. This is controversial and usually avoided in public, but ESSENTIAL. nWhy? Because it is often the operator who gains by increasing risks, and the public who loses.
© Penspen Ltd Fitness for purpose assessment of defects nFitness for Purpose - defect assessment. nThis is a mature subject and you can assess existing defects, you can evaluate future defect occurrence and growth using these methods. nYou can also determine when to repair defects, which pig to use, how often, and whether you need to hydrotest or not. nAttend my course if you want to find out more!
© Penspen Ltd Risk Assessments Risk Assessment is essential, and you have many risk assessments methods and packages to choose from. Here’s one:
© Penspen Ltd Results of a risk assessment Results from part of a Qualitative Risk Assessment
© Penspen Ltd Some Decisions made in a PIR Outcome of FFP and Risk Assessment may include recommendations for: n Smart pigging, n Hydrotesting, n Critical point inspection, n Cathodic protection testing, n Repair methods, n Other rehabilitation methods. Note that the results of the risk review are important, but the most important feature of the risk review is the PROCESS we go through in identifying risks and understanding our pipeline.
© Penspen Ltd Who should conducting a PIR? The review should be conducted by an organisation that can offer the following skills: n Independence n Design, construction and commissioning of above and below ground plant (or offshore and subsea plant if appropriate), n Operation, inspection and maintenance of pipeline systems, n Communications and instrumentation, n Defect assessment, repair and rehabilitation, n Risk and safety assessments, n Management consultancy, n Technical audit.
© Penspen Ltd A Pipeline Integrity Review Report The integrity review report should include: nAn overall view of pipeline system condition: nWellheads / above ground installations nPipeline nCathodic protection nControls nAssociated facilities nOperation and Maintenance nRecommendations on: nModification and Repair nInspection nFuture operation nAn appraisal of management system and procedures n(see paper for full and detailed listing of Report)
© Penspen Ltd Pipeline Management System* l See… Hopkins, P., ‘Risk and Integrity Management of a Transmission Pipeline’, 2 nd International Pipeline Technology Conference, Abu Dhabi, October 1998, for a complete pipeline risk management system.
© Penspen Ltd Pipeline Management System l Pipeline integrity review + l Pipeline management system = l Integrity management l FINAL RULE + API 1160 = INTEGRITY MANAGEMENT
© Penspen Ltd Management System - Generic
© Penspen Ltd Pipeline Integrity/Risk Management System Integrity or Risk Management
© Penspen Ltd Ten Key Considerations for Engineers when Considering your Pipeline’s Integrity & Safety l Changing to a safer pipeline….
© Penspen Ltd Image from Microsoft Encarta Ten Key Considerations for Engineers when Considering your Pipeline’s Integrity & Safety ‘The significant problems we face, cannot be solved at the same level of thinking we were when we created them’. l Key Consideration 1. Change Requires New Thinking
© Penspen Ltd Ten Key Considerations for Engineers when Considering your Pipeline’s Integrity & Safety Image from Microsoft Encarta ‘There is nothing more difficult to plan, more doubtful of success, nor more dangerous to manage than the creation of a new system. For the initiator has the enmity of all who would profit by preservation of the old institutions, and merely luke warm defenders in those who should gain by the new ones.’ l Key Consideration 2. Change Will be Resisted
© Penspen Ltd nIn pipeline operation, our maintenance costs are minor compared to our corporate overhead. nIt is a fact that large organisations operating pipelines will cut costs on maintaining their pipelines, but let junior executives travel over the world in business class, or waste time on meetings that all participants know are a waste of time. nThese companies are both out of date, not serving their business goals, and creating imbalances between the needs of their wide ranging stakeholders Ten Key Considerations for Engineers when Considering your Pipeline’s Integrity & Safety l Key Consideration 3. Corporate Culture
© Penspen Ltd nDon’t let you Contract/Finance Department select pipeline contracts or services. Why not? na trained monkey can select the smallest of three objects nan engineer can select the safest and best nWe have advice against selecting the lowest bid from Ruskin, : n‘It is unwise to pay too much but it is worse to pay too little. When you pay too much you lose a little money… that is all. When you pay too little you sometimes lose everything because the thing you bought was incapable of doing the things it was bought to do. nThe common law of business balance prohibits paying a little and getting a lot… it cannot be done. If you deal with the lowest bidder it is well to add something for the risk you run. nAnd if you do that, you will have enough to pay for something better’. Ten Key Considerations for Engineers when Considering your Pipeline’s Integrity & Safety See ‘Time to Change?’, by P Hopkins, in Pipes & Pipelines Journal, Sept-Oct 2000, for more on ‘low bidders’.’ l Key Consideration 4. Selecting the lowest bid
© Penspen Ltd n‘Low bidders and “can-do” type of guys kill people’ See ‘The Structural Engineer’s Standard of Care’ by J Kardon, for more info on ‘low bidders’ Ten Key Considerations for Engineers when Considering your Pipeline’s Integrity & Safety l Key Consideration 4. Selecting the lowest bid (cont.)
© Penspen Ltd nCodes. Regulations, etc., are minimum requirements nAim to do more than your peers - it makes sense... nIf you do only one thing more than your peers, his/her pipeline will probably fail first nYou’ll learn from their experience, and act accordingly, so it doesn’t happen to you nThey will then copy your practices, but nYou will then move one step ahead again… nAnd then their pipeline will fail before yours again! Ten Key Considerations for Engineers when Considering your Pipeline’s Integrity & Safety l Key Consideration 5. Do not do the ‘minimum’ expected or required
© Penspen Ltd nPipeline Integrity Management must consider all aspects of our pipeline system as it is an integrated process, where all elements affect safety.’ nWe must apply holistic solutions See ‘The Structural Engineer’s Standard of Care’ by J Kardon, for more info on engineers’ standard of care Ten Key Considerations for Engineers when Considering your Pipeline’s Integrity & Safety l Key Consideration 6. Think Holistic Solutions
© Penspen Ltd nThey do convey the thought process and design intent. nThe quality, etc. of calculations indicates the level of care and diligence; calculations substantiate, but do not substitute for judgement. n‘The use of canned calculations and design approaches without understanding their application & limitations, is beneath an engineer’s standard of care.’ See ‘The Structural Engineer’s Standard of Care’ by J Kardon, for more info on engineers’ standard of care Ten Key Considerations for Engineers when Considering your Pipeline’s Integrity & Safety l Key Consideration 7. ‘Calculations are not Engineering’
© Penspen Ltd nSmart pigging, risk management programmes, correct routeing etc., will help you achieve high integrity… nbut only good management will GUARANTEE integrity Ten Key Considerations for Engineers when Considering your Pipeline’s Integrity & Safety l Key Consideration 8. Management
© Penspen Ltd nMURPHY'S UNIVERSAL LAW: nIf anything can go wrong, it will. nMURPHY'S COROLLARIES: nNo. 1 - Left to themselves, things tend to go from bad to worse. nNo. 2 - It is impossible to make anything foolproof because fools are so ingenious. nMURPHY'S CONSTANT: nMatter will be damaged in direct proportion to its value. nQUANTIZED REVISION OF MURPHY'S LAW: nEverything goes wrong all at once. Ten Key Considerations for Engineers when Considering your Pipeline’s Integrity & Safety l Key Consideration 9. Murphy’s Law
© Penspen Ltd nWe are in a litigious society today… we are outnumbered… do not get it wrong!!!!! nThis is USA data… Lawyers in USA now outnumber engineers and scientists combined…. Ten Key Considerations for Engineers when Considering your Pipeline’s Integrity & Safety M G Fontana, Corrosion Engineering, McGraw Hill, New York, l Key Consideration 10. Don’t Get it Wrong!
© Penspen Ltd CONCLUSIONS nIntegrity Reviews can be conducted on pipelines in a systematic manner. They provide: n Pipeline ‘health’ check, n Independent review of design and operation, n Confirmation of existing safety and safe operating limits, n Confirmation of compliance, and ability to be uprated/reused/sold, etc., n Opportunity to undertake remedial action before operational or design discrepancies develop, n Confirmation of future safety and security of supply to all stakeholders. n You must adopt a ‘holistic’ approach, taking account of all the engineering associated with the pipeline system n The resulting integrity plan must be adopted within a management system
© Penspen Ltd ABOUT THE LECTURE & LECTURER l This lecture, and associated paper, was presented at: The Pipeline Pigging, Integrity Assessment and Repair Conference. February 2001, Houston. Conference Proceedings from Clarion Press, Houston, Tx. l Dr Phil Hopkins is a Director of Penspen Ltd., UK, the international pipeline engineering company, and was previously Managing Director of Andrew Palmer and Associates, UK, a company of specialist pipeline engineers. l He has over 20 years experience in all aspects of pipeline engineering, integrity and management consultancy and has presented many keynote papers and lectures at international conferences. l His technical and management training courses and lectures are presented all over the world; additionally he presents lectures and courses on ‘Change’*, for all levels of staff, from Executives to Administration. l If you require this lecture (in 1,2 or 3 hour format) or any of his training courses, contact either: l Dr Phil Hopkins, Penspen APA, 4, Amethyst Road, Newcastle Business Park, Newcastle upon Tyne, NE4 7YL, UK, Tel 44 (0) , Fax 44 (0) , or l BJ Lowe, Clarion Press, 3401 Louisiana St., Houston, USA Tel , fax , *See ‘Time to Change?’, by P Hopkins, in Pipes & Pipelines Journal, Sept-Oct 2000.
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