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DESIGNING AND
CONSTRUCTION OF PIPELINES
Week 10
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Distance.
The distance that crude needs to be moved
often dictates the mode of movement.
Shorter distances may be dominated by trucking,
medium distances by barge or rail, and the
longest distances by tanker or pipeline.
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Pipeline Timeline
(19th Century)
FINANCIAL
Capital investment in oil pipelines, 1998 $
30.2 billion
Operating revenues, 1998 6.9 billion
Oil pipelines share of national freight bill,
States in which pipelines operate 50
1998 1.6%
PERFORMANCE
SAFETY
Total ton-miles of crude and
Total transportation fatalities in 1998 43,920
products, 1998 619.8 billion
Number of liquid pipeline fatalities in 1998 1
Percent of total intercity freight (ton- REGULATION AND EMPLOYMENT
miles) carried by pipelines, 1998
Number of oil pipeline companies regulated
17.3%
by the Federal Energy Regulatory
Percent of all crude oil and refined
Commission, 2000 183
products transported (ton-miles)
Total employees in oil pipeline industry, 1998
carried by pipelines, 1998 66.6%
16,000
Crude trunk and gathering lines
114,000
Product trunk lines 86,500
Total 200,500
Pipeline Timeline
(20th Century)
1905: Crude Oil Pipelines built from the fields in Texas, Oklahoma and Kansas to Eastern refineries.
1908: Henry Ford develops Automobile assembly line, gasoline becomes primary customer of oil,
electricity continues to replace kerosene oil lamps.
1912: Sherman Anti-trust act finalized and Standard Oil dissolved.
1913: the Valuation Act was the first attempt at Federal involvement in US pipeline ratemaking.
1917: Crude Oil Pipelines
1920s: Pipeline Mileage Triples
1935: The first product pipelines where built from Whiting, St. Louis and Kansas City to the west.
1945: Product Lines Grow During World War II (oil tankers were sunk frequently, pipelines seen as more
reliable).
1944: pipeline regulation became the responsibility of the US Interstate Commerce Commission who
introduced the notion of reasonable returns in the 8 percent to 10 percent range.
1954: Stanolind, the Indiana Standard pipeline company, became the largest liquid pipeline carrier in
North America. A position it held until the most recent Enbridge expansion.
1968: import refineries on the US Gulf Coast led to the construction of Colonial pipeline to supply the
eastern seaboard. Colonial was the largest privately financed undertaking in US history in 1968.
1970 - 1977: The Trans Alaska Pipeline System (TAPS)
Dirty tankers are those carrying black cargoes, such as crude and
resid.
They do not require as much cleaning between voyages as clean
tankers, which carry so-called white product, encompassing the
lighter, more valuable products.
White cargoes arc more expensive to transport because
contamination must be avoided and because much smaller ships
typically carry these products. LPG (butane and propane) and
ethylene must be transported in high-pressure containers and are
not included in the designation of clean or dirty tankers.
Tankers sometimes sail under flags of convenience, meaning they
are registered in a country where tax rates, operating standards,
and environmental requirements are more lax than the home
country of the chartering company.
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Technical Issues
Receiving terminals for crude oil and petroleum products have
large tanks for temporary storage, called tank farms, where crude
and products are segregated by owners.
Various grades of crude and products must also be segregated into
batches in the pipeline.
Scheduling and dispatching of batches is done by computer, with a
single batch having a minimum volume.
Unless products are physically separated in a pipeline (e.g., by
large rubber balls), there is some mixing at the interfaces.
If product specification is not too tight, the products at the
interfaces can be used;
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TERMINALS
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Fig. 17-6. Illustrative gas and oil transportation costs, 2011 Source:
Used with permission ol James Jensen. Jensen and Associates, Inc.
Note: LP = low pressure; HP = high pressure (in this tigure); = inch. Natural gas delivery
capability in million cubic leet per day is given in parentheses. Divide by 35.3 to obtain million
cubic meters per day Divide miles by 0.621 to convert to kilometers and divide by 1 055 to
obtain price in dollars per million kilojoules Multiply by 2.54 to convert inches to centimeters.
Numbers in parentheses indicate natural gas deliverability in millions of cubic feet per day
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Market Share
Total Crude and Product Pipeline Market
In 1999, Nigeria vented or flared more than onehalf of its gas and injected another 13%.
With the large LNG project that came on-stream
in 1999, by 2009, Nigeria vented and flared only
about one-fourth of gross natural gas
production.
Ghana, a relatively new gas producer in 2009,
flared or vented almost 90% of its gross natural
gas production but only about a quarter by
2012.
Market Share
Ton Miles
1,400
100
90
1,200
80
1,000
70
60
800
50
600
40
30
400
20
200
10
1980
1985
1990
1995
2000
2005
Year
Total Crude and Products Ton Miles
Pipelines
Water Carriers
Motor Carriers
Railroads
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Pipeline construction
Pipelines
Pipelines are critical from the beginning of oil
and gas production.
As pipeline engineers frequently say "Nothing
happens until we get our lines in place."
Beginning at the wellhead, on land or sea,
the oil and gas produced from the well must
be first contained and moved via pipeline.
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Pipeline construction45%;
line pipe and fittings19%;
pump stations and equipment16%,
land and ROW5%; other15%.
Pipeline construction costs, as the largest single
component, are
38% labor and
36% materials,
ROW and damages make up about 7%, and
miscellaneous expenses 20%.
Obviously construction, pipe, and pumps and
compressors dominate investment.
CO2 50ppmv
H2S 5mg/Nm3
Total S 30mg/Nm3
Water 80mg/Nm3
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Gathering systems
A production field with multiple wells must first
combine or gather the crude o before Initial prtx
euing and shipping.
The network of pipes, the flowline network,
moves the oil to a central processing plant
and/or shipping point.
The entire gathering system will include the
pumps, separators, treatment facilities, tanks,
regulators, compressors, dehydrators, valves,
and all other associated equipment.
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Pipeline Construction
This subpart prescribes minimum design
requirements for new pipeline systems
constructed with steel pipe and for
relocating, steel pipe and for relocating,
replacing, or otherwise changing existing
systems
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1. Surveying.
The right-of-way is a narrow strip of land that
contains the pipeline(s) and is where all
onsite construction activities occur.
After a planned or proposed route is
determined, it is proposed route is
determined, it is surveyed to determine the
parameters that will be needed to complete
the project.
Pipeline location
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Inspection - general
Inspection must be provided to ensure the
installation of pipe or pipeline systems in
accordance with the requirements of this
with the requirements of this subpart.
No person may be used to perform
inspections unless that person has been
trained and is qualified in the phase of
qualified in the phase of construction to be
inspected.
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3. Right-of-way preparation.
The right-of-way will be graded, and pads
may be built to allow for the movement of
ditchers, additional equipment, materials and
other pipeline construction activities.
Stringing
Stringing is the delivery and distribution of
line pipe where it is needed on the right-ofway and when it is needed
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Bending of pipe.
Pipe may not have a wrinkle bend.
Each field bend must comply with the
following:
not impair serviceability
have a smooth contour
pipe with longitudinal weld, must be in neutral
axis unless
made with internal mandrel pipe is <12
Bent to Fit
6. Welding
A technique where another metal is melted
and used to join lengths of pipe.
Automatic welding machines are used where
possible and some hand welding also takes
place.
A rigorous quality assurance and quality
control program is followed to ensure the
strength and quality of the welding.
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Welding Equipment
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Welding Tractor
Firing Line
The workers responsible for the filler pass
and the cap bead, which complete the joint.
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Radiography
195.234 Welds:
Nondestructive testing.
Good Weld?
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195.557 Which
pipelines must
have coating for
external
corrosion
control?
195.559 What
coating material
may I use for
external
corrosion
control?
Hydraulic Excavator or
Trackhoe
Ditching or Trenching
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Trench Boxes
Pipelayer or Sideboom
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Lowering In
10. Crossings
A pipeline will need to cross rivers and streams,
roads, railroads and other pipelines.
Plans are developed in advance.
Water crossings can be completed either by
"open cut" techniques or by directional drilling.
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12. Tie-in
13. Testing
Track-Type Tractor
or Dozer
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14. Dewatering
If water is used as a test medium, dewatering
of the pipeline is done with dewatering pigs.
The water should be disposed of in an
environmentally sensitive manner.
15. Cleaning up
The pipeline right-of-way and temporary
facilities such as camps will be reclaimed.
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Purging
Commissioning
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