White Paper New Solutions for Aging Pipelines bakerhughes.com Baker Hughes White Paper Since 2010, there have been 1,300 oil spills from US pipelines New Solutions for Aging Pipelines That amounts to nearly nine million gallons—one spill every two days A single incident in 2010, in which 840,000 gallons of tar sands crude oil spilled into Michigan’s Kalamazoo River, was estimated to cost $800 million for cleanup, earning it the dubious distinction as the most expensive pipeline spill in US history And these are just the ones we hear about An even larger but less publicized pipeline rupture occurred in Denver City, Texas in January of 2008 Over the course of just 24 hours, a pipeline operated by a major operator spilled 1.3 million gallons of crude oil According to data from the U.S Department of Transportation, Pipeline & Hazardous Materials Safety Administration (PHMSA), Texas poses a particular problem The state has by far more miles of pipeline than any other In 2011, the state also had more significant leaks of hazardous liquids, which included crude, than in any year since 2002.3 (A significant leak is defined as an amount in excess of 2,100 gallons.) With most pipeline infrastructure lying beneath the ground, it’s tempting for the industry to ignore the problem until a spill occurs But make no mistake—we are standing in a minefield Pipelines run through rural and urban areas They run near schools, residential areas, and environmentally sensitive zones, including water supplies And they are aging at an alarming rate Baker Hughes White Paper New Solutions for Aging Pipelines Out of sight, out of time There are 2.5 million miles of pipelines in the United States They carry all of our nation’s natural gas and a majority of its oil and refined petroleum than having no coatings at all products, along with a variety of hazardous liquids that include LNG, A May 2015 crude oil spill that fouled California’s Santa Barbara coastline anhydrous ammonia, and carbon dioxide They are found onshore and offshore, transporting commodities between producers, refiners, processors, terminals, distributors, and end users Literally, they are the lifeblood of industry, critical to the United States’ economic well-being Generally speaking, there are three major types of pipelines: gathering lines, which take unprocessed oils from wells to storage tanks; feeder lines, which carry oil from storage tanks to transmission lines; and transmission lines, which take oil from these producing areas to refineries or various was due to a corroded section of pipe that was only 28 years old While maintenance, testing, and inspection practices have evolved, they vary from one operator the next, adding yet another variable to the mix Pipeline composition Some of the older pipelines are made of cast iron, which is extremely corrosion-resistant but offers low beam strength, making it vulnerable to stress due to freezing, erosion, excavation, and other underground disturbances Smaller-diameter cast-iron pipes have even lower other end users beam strength Pipelines run through rural and urban areas They run near Internal corrosion schools, residential areas, and environmentally sensitive zones, including water supplies And they are aging at an alarming rate According to the U.S Department of the Interior, more than half of these pipelines are at least 50 years old, many built to accommodate the booming post-war demand for energy More than 12 percent of the nation’s cross-country gas transmission and hazardous-liquid pipelines were built earlier than 1950 Some even predate World War II Inevitably, these aging pipelines are prone to rupture—and age isn’t the In 2008, after a major spill in Prudhoe Bay, Alaska, one operator discovered portions of pipeline that had lost more than 70 percent of its mass to corrosion Some early anti-corrosion pipe coatings have been show to be worse only factor involved Leaks can result from material or weld failures, equipment failures, excavation damage, even natural disasters such as hurricanes However, the leading cause of releases on gas transmission and hazardous liquid pipelines is corrosion, which is directly affected by how long these lines have been in the ground In a study conducted from 2008-2016, corrosion was a factor in 24 percent of significant incidents The chemical composition of materials flowing inside the pipeline is another contributing factor Carbon dioxide (CO2), hydrogen sulfide (H2S), and free water 10 along with a corrosive soup of microorganisms can cause major damage To increase the output of a well, operators will often inject CO2 or seawater into a formation These corrosives, along with the high temperatures characteristic of extracted crude, dramatically exacerbate the problem Once these contaminants begin to collect in a pipeline, they eat away at the interior steel surface This in turn attracts other particles, creating additional fluid turbulence and accelerating the process of corrosion In 2008, after a major spill in Prudhoe Bay, Alaska, one operator discovered portions of pipeline that had lost more than 70 percent of its mass to corrosion 11 In terms of corrosive properties, not all crude is created equal The 875-mile Keystone XL Pipeline will transport a diluted bitumen referred to as “dilbit,” which was the contaminant involved in the Kalamazoo The nature and causes of corrosion spill Heavier and far more corrosive than conventional oil, many are several variables It can occur inside or outside the pipe In addition What we do? How we start? Corrosion as a factor in pipeline failure takes into consideration to age, corrosion can be influenced by pipe composition, diameter, chemical makeup, flow velocity, and temperature of the materials being transported Pipeline design has evolved over time Notably, some standards have proven to be more effective than others Just because one pipeline is newer doesn’t necessarily mean it’s safer For example, cathodicprotection systems implemented in the late 1940s helped to mitigate oxidation damage from external corrosion On the other hand, some protection methods had good intentions that failed upon execution convinced it may increase the likelihood of leaks 12 Regardless of the causes, the older these pipelines get, the more problems we’re going to see The Colonial Pipeline leak, which occurred in March of last year near Birmingham, Alabama, spilled at least 250,000 gallons of gasoline It resulted in shortages and a price spike throughout the Southeast And it occurred on a 53-year-old section of pipe 13 The industry and public generally agree that something must be done about the problem Formulating and implementing a solution gets a little more complicated, beginning with how we determine what gets fixed first, and who fixes it The Colonial Pipeline leak, which occurred in March of last year near Birmingham, Alabama, spilled at least 250,000 gallons of gasoline It resulted in shortages and a price spike throughout the Southeast And it occurred on a 53-year-old section of pipe Baker Hughes White Paper New Solutions for Aging Pipelines Logistic challenges to replacement strategies It’s tempting to say that the easiest solution is to simply identify problematic pipelines—the oldest or those in need of the most repair—dig them up and replace them This, however, is an expensive proposition According to a 2015 report by the Department of Energy, replacing all of the nation’s oldest and most vulnerable pipelines would cost $270 billion 14 Given the current political and economic climate, such an appropriation is not likely to happen There’s also the issue of managing supply disruption and planning alternate routes Replacing pipelines in urban areas would require tearing up roads and removing existing utility lines for telephone, electricity, Typically, a mile of pipe can be pulled through an existing pipeline in as little as four hours water, or cable services Municipal permitting, which is extremely timeconsuming, is required Many pipelines are owned by corporations or public utilities, throwing another wrench into the works Because these entities may lack the authority to pass such significant expenses on to All of the above in-situ repair solutions involve excavation of the damaged section, which ideally is isolated to a small section of pipe Therein lies the fundamental shortcoming of the patchwork approach: addressing one leak is no guarantee you won’t have to soon contend with another, particularly if you’re repairing a 60-year-old section of pipe A more flexible route One promising alternative that addresses these limitations is a trenchless repair technique in which flexible, composite pipe is pulled through a section of damaged pipeline with a rope or cable Composite piping is lightweight and spoolable, making it easy and cost-effective to transport Installation requires no heavy machinery or welding, and can be routinely performed in crowded oilfields with complex right-of-ways The process itself is fast A pig is sent through the existing pipeline to inspect the bore, identify potential obstacles, and provide an analysis of the pull force required After access points are excavated, a rope or cable is sent through the pipe with a pig and attached to the customers, they may be reluctant to take action 15 composite pipe, which is then pulled back through The rehabilitation argument existing pipeline in as little as four hours On the whole, government is leaning on industry to address the problem of pipeline infrastructure Aside from replacement, there are several viable options available on the market today for pipeline repair and/or rehabilitation This offers significant cost savings in both manpower, time, and material over conventional pipeline replacement—estimates are as low as $16$20 per mile for composite versus $46-$54 for steel Welded patches, wraps, and sleeves are a conventional approach in which circular or square steel patches are welded to the outer diameter of the damaged section of pipe This solution is preferable in situations where the damaged section can be isolated Steel clamps, which can be either bolted or welded to the outside surface, can also be used 16 Welded solutions have their limitations, however While suitable for straight sections of pipe, repair around joints and bends is problematic It’s also an expensive and cumbersome job, requiring excavation if the pipe is located underground Welding also increases the risk of explosion; ASME B31.4 limits patch length to 6” and pipe diameter to 12” or less for welding on hazardous-liquid pipelines Typically, a mile of pipe can be pulled through an 17 Thinking beyond steel Composite wraps, in which a resin-impregnated fiberglass is wrapped several times around the leak, eliminates the risk of explosions because no welding or cutting is required In an industry comparison, composite repair systems were an average of 73 percent less expensive than replacing the damaged section of pipe and 24 percent less expensive than welded steel-sleeve repairs 18 While the process is relatively fast, the long-term effectiveness of this solution is still under evaluation on average installation Reinforced Thermoplastic Pipe (RTP) For decades, RTP has successfully been used for oil and gas applications Typically, it features Polyethylene (PE), Polyamide-11, or PVDF reinforced by various high-strength synthetic fibers or other material Compared to steel, RTP offers up to four times the corrosion resistance and eliminates—obviously—the need for chemical washes, rust inhibitors, anodes, cathodes, or DOT-regulated inspections Spoolable and lightweight, RTP comes with significantly lower installation costs Low-friction characteristics also give it a higher flow rate than steel, which means smaller diameters can be used for the same project requirements Depending on the composite materials, there may be limitations when it comes to higher pressures and higher temperatures Older generation composite pipe has been known to develop stress cracks under extreme environmental and operating conditions Poor fusion jointing can also cause problems 19 Baker Hughes White Paper New Solutions for Aging Pipelines New Steel Pipeline Vs Rtp Rehabilitation RTP* Corrosion Resistance STEEL Highly resistant to internal fluids including crude oil, brine, chemicals, and bacteria Corrosion inevitable over time; chemical-treatment program with exterior corrosion (cathodic) protection required Erosion Resistance – 12 times more erosion resistance than steel Lower erosion resistance Permeation Ultralow permeation to H2S, CO2, CH4, water vapor Susceptible to corrosion from CO2 and H2S Flexibility Pressure Capability Temperature Capability Composite layers, which vary by manufacturer, have been introduced to address these limitations To increase the strength and pressure capabilities, some products include a glass fiber-reinforced layer or epoxy laminate However, many of these fiberglass solutions have problems with cyclical loading and stress fatigue They also have a tendency to weaken in the presence of fluids Some composite products even feature a layer of steel Highly flexible, with a 3.92-ft bend radius on 2.375-in pipe No flexibility Up to 2,000 psi Up to 16,000 psi, requiring greater wall thickness Up to 180°F Composite options for strength or steel mesh Of course, adding a layer of steel means adding weight Steel-reinforced composite solutions can be as much as six-times heavier than other composites And even some of the most popular steel composites cannot be used for H2S or CO2 applications, as these materials can diffuse into the annulus, resulting in Up to 700°F; requiring greater wall thickness accelerated corrosion More effective and lighter methods of reinforcement include braided polyester or Kevlar® aramid fibers, both of which can accommodate cyclical loading and surge pressures While polyester may exhibit problems with creep, aramid does not, giving it the advantage Weight Lighter-weight spools reduce transport costs and simplify logistics; 6-in RTP is approximately lbs./ft 6-in steel pipeline can be over 60 lbs./ft Flow Resistance Low Smaller diameters provide greater flow rates Greater resistance Requires larger diameters, exacerbates erosion Deployment and Installation Pull-through technique requires no trenching, heavy machinery, welding, permitting, or DOT inspections Excavations at access points or sharp turns only day per mile New pipeline installation is labor-intensive, requiring full excavation and trenching, welding, extensive permitting, and inspections days per mile Rehabilitation: $16 – 20K per mile for materials and installation New steel: $46 – 54K per mile for materials and installation Lower life-cycle cost — no corrosion inhibitors or pigging required, no paraffin build-up in bore Requires ongoing chemical treatment programs and pigging, along with exterior corrosion (cathodic) protection Cap Ex Costs Op Ex Costs While HDPE as a base layer offers greater corrosion, chemical and bacterial protection than steel, in some cases it requires the venting of fittings to allow gas release due to the permeation through the base HDPE core HDPE is also sensitive to bruising Advanced alternatives for corrosion resistance In addition to strength, corrosion resistance must be considered in evaluating an RTP solution As a base layer, Polyphenylene sulfide (PPS) offers 2-3 times the corrosion resistance of high-density polyethylene, which is used in some low-pressure hydrocarbon applications PPS is also much more resistant to pecified RTP product features a Thermoflex® PPS base with a nylon PA12 *S inner sleeve, reinforced by Aramid fibers permeation, lasting up to 20-times longer than standard HDPE-lined products with no softening or swelling Nylon liners can also be introduced, offering additional protection against hydrocarbon contamination and paraffin By choosing the right materials, an operator can optimize a pipeline solution according to its application For example, a PPS pipe reinforced with an aramid layer would combine greater corrosion protection with greater strength, temperature, and pressure capabilities—up to 3,000 psi New steel versus rehab: a no-contest case study In West Texas, numerous leaks were recently detected on a one-mile section of 8-inch steel pipeline that had been installed in the 1970s Production was halted while the operator evaluated options for repair The installation of new steel pipe would require the digging of a new trench, new permitting, up to four days of installation, welding and backfill, at a total cost of $213,000 Moreover, corrosion management would still be needed over the course of operation Instead, the operator chose a pull-through rehabilitation solution offered by Baker Hughes, the company that had pioneered the technique There would be no need to dig a new trench, no new permitting, no welding, no corrosion management, and the solution could be deployed in a single day Total cost: $89,000 A 3-inch PPS Thermoflex® pipe with a nylon inner liner and aramid reinforcement was selected Two pigs were run through the host pipeline, cleaning residual gas condensates in a process that took 2.5 hours A rope, attached to the pig, is then attached to the Thermoflex RTP, which is then pulled back through the host pipe at 60 ft per minute End fittings were attached and the new line was tested at 1,500 psi (minimum burst pressure 4,064 psi) The entire rehabilitation project took about five hours, providing a much lower installation cost and a lower life-cycle cost The entire rehabilitation project took about five hours, providing a much lower installation cost and a lower lifecycle cost Baker Hughes White Paper New Solutions for Aging Pipelines Conclusion Pipeline infrastructure in the United States is vital to industry, national security, and economic well-being However, as this aging infrastructure ages even further, so increases the likelihood of devastating oil and gas spills due to the effects of corrosion on steel Replacing this network of pipelines is a daunting task—logistically, financially, and politically Rehabilitation, in the form of pull-through solutions, is a more viable approach with the introduction of flexible, composite pipe, which in fact offers numerous cost and performance advantages over steel There are a variety of composite materials available on the market Aramid-fiber reinforcement provides optimal strength, while nylon Notes: Harrington, Rebecca Business Insider Here’s How Much Oil Has Spilled From US Pipelines Since 2010 December 15, 2016 URL source: http://www.businessinsider.com/how-much-oil-spills-from-pipelines-us-america-naturalgas-2016-12 Groeger, Lena Scientific American How Safe Are America’s 2.5 Million Miles of Pipelines? November 16, 2012 URL source: https://www.scientificamerican.com/article/how-safe-are-americas-2-5-million-miles-of-pipelines/ Fehling, Dave NPR StateImpact: Texas Moving Crude Relies on Aging Pipeline System September 5, 2012 URL source: https://stateimpact.npr.org/texas/2012/09/05/moving-crude-relies-on-aging-pipeline-system/ Groeger, Lena Scientific American How Safe Are America’s 2.5 Million Miles of Pipelines? November 16, 2012 URL source: https://www.scientificamerican.com/article/how-safe-are-americas-2-5-million-miles-of-pipelines/ PHMSA The State of the National Pipeline Infrastructure: A Preliminary Report U.S Department of Transportation 2011 liners offer additional resistance to hydrocarbons and paraffin buildup Ibid Ultimately, product selection should be based on a thorough evaluation Ibid of the unique application North American Oil & Gas Pipelines Five Fixes for Aging Pipelines April 6, 2016; URL source: http://napipelines com/5-fixes-aging-pipelines/ Kiefner, J., & Trench, C (December, 2001) Oil Pipeline Characteristics and Risk Factors: Illustrations from the Decade of Construction American Institute of Petroleum 2001 URL source: http://www.api.org/~/media/files/oil-andnatural-gas/ppts/other-files/decadefinal.pdf?la=en 10 Nyborg, Rolf Controlling Internal Corrosion in Oil and Gas Pipelines Business Briefing: Exploration & Production: The Oil & Gas Review 2005 – Issue 11 Engber, Daniel Slate My Pipeline’s Corroded But I Thought Oil Prevented Rust August 8, 2006 URL source: http://www.slate.com/articles/news_and_politics/explainer/2006/08/my_pipelines_corroded.html 12 Fehling, Dave NPR StateImpact: Texas Moving Crude Relies on Aging Pipeline System September 5, 2012 URL source: https://stateimpact.npr.org/texas/2012/09/05/moving-crude-relies-on-aging-pipeline-system/ 13 Isidore, Chris CNN Money Spills Are More Common Thanks to Aging Pipelines September 21, 2016 URL source: http://money.cnn.com/2016/09/21/news/companies/aging-pipelines/index.html 14 Quadrennial Energy Review: Energy Transmission, Storage, and Distribution Infrastructure, April 2015, Department of Energy URL source: https://energy.gov/sites/prod/files/2015/04/f22/QER-ALL%20FINAL_0.pdf 15 PHMSA The State of the National Pipeline Infrastructure: A Preliminary Report U.S Department of Transportation 2011 16 Dr Abdel-Alim Hashem Oil and Gas Pipeline Design, Maintenance and Repair Cairo University, Dept of Mining, Petroleum & Metallurgical Engineering URL source: http://www.eng.cu.edu.eg/users/aelsayed/Part%2011%20 Pipeline%20Rehabilitation%20and%20Repair%20Techniques.pdf) 17 Sharma, K.P Case Study: Rebabilitation of 32” Gas Pipeline in the Most Cost-Effective Way 6th Pipeline Technology Conference, 2011 URL source: https://www.pipeline-conference.com/sites/default/files/papers/Sharma.pdf 18 G.H Koch, M.P Brongers, N.G Tompson, Y.P Virmani, and J.H Payer Corrosion Cost and Preventative Strategies in the United States Federal Highway Administration, Office of Infrastructure Research and Development, pp.260-311, 2001.) Source URL: https://www.researchgate.net/publication/310518032_Systems_for_Repair_and_Rehabilitation_of_ Corroded_Oil_Gas_Pipelines 19 O’Connor, Chris The Nature of Polyethylene Pipe Failure Unconventional Oil & Gas September 27, 2016 URL Source: http://www.unconventionaloilandgas.com.au/the-nature-of-polyethylene-pipe-failure/) bakerhughes.com Copyright 2020 Baker Hughes Company All rights reserved The information contained in this document is company confidential and proprietary property of Baker Hughes and its affiliates It is to be used only for the benefit of Baker Hughes and may not be distributed, transmitted, reproduced, altered, or used for any purpose without the express written consent of Baker Hughes Baker Hughes reserves the right to make changes in specifications and features shown herein, or discontinue the product described at any time without notice or obligation Contact your Baker Hughes representative for the most current information The Baker Hughes logo is a trademark of Baker Hughes 2020 ... Poor fusion jointing can also cause problems 19 Baker Hughes White Paper New Solutions for Aging Pipelines New Steel Pipeline Vs Rtp Rehabilitation RTP* Corrosion Resistance STEEL Highly resistant... American Oil & Gas Pipelines Five Fixes for Aging Pipelines April 6, 2016; URL source: http://napipelines com/5-fixes-aging-pipelines/ Kiefner, J., & Trench, C (December, 2001) Oil Pipeline Characteristics... Baker Hughes White Paper New Solutions for Aging Pipelines Logistic challenges to replacement strategies It’s tempting to say that the easiest solution is to simply identify problematic pipelines—the