IPLOCA 2016 EXCELLENCE IN PROJECT EXECUTION AWARD · 2016-05-13 · McConnell Dowell has...

IPLOCA 2016 EXCELLENCE IN PROJECT EXECUTION AWARD

Fourth Transmission Pipeline Stage 2, Thailand

McConnell Dowell Group Ltd May 2016


IPLOCA 2016 EXCELLENCE IN PROJECT EXECUTION AWARD 1

Table of contents Executive summary ...................................................................................................................................... 2

McConnell Dowell company profile.............................................................................................................. 3

Pipeline and facilities construction capability .......................................................................................... 3

Industry-leading safety performance ...................................................................................................... 4

Internationally accredited HSEQ management system ............................................................................ 4

Fourth Transmission Pipeline Stage 2 ........................................................................................................... 5

Findings ....................................................................................................................................................... 5

Solutions...................................................................................................................................................... 6

Integrated culture with one-team approach............................................................................................ 6

Strong, collaborative stakeholder relationships ....................................................................................... 7

Effective ongoing community engagement ............................................................................................. 7

Rapid mobilisation of McConnell Dowell plant and equipment................................................................ 8

Direct pipe technology and HDD operations to suit conditions ................................................................ 8

Focus on safety as a priority .................................................................................................................... 9

Achievements .............................................................................................................................................11



Executive summary McConnell Dowell has demonstrated excellence in project execution in completing the Fourth Transmission Pipeline Stage 2 (FTP2) project for PTT Public Company Ltd in Thailand between June 2014 and August 2015. The complex, fast-tracked project was completed in a challenging, densely populated environment ahead of a demanding schedule, within budget and incident free.

The project has showcased McConnell Dowell’s ability to self-perform the works and use world’s best practice and latest technologies to address the project’s physical constraints and deliver a pipeline that surpasses client and community stakeholder requirements and adds significant value to the Thai economy.

A peak workforce of 2,800 and considerable plant and equipment was mobilised along the 300 km pipeline route, with more than 50 worksites operating concurrently to meet the aggressive program demands. The team dealt with continuous change along the route that included overhead power lines, water courses, residential and business properties and a variety of land uses.

More than 4 million manhours were completed on the project lost time injury (LTI) free. This significant milestone was achieved through implementation of McConnell Dowell’s proven safety management system, ‘Home without Harm’ safety culture and significant safety innovations and initiatives to assure the safety of the multicultural workforce and public throughout the project. Proactive safety management also contributed significantly to the project’s success.

A strong, collaborative relationship was formed with PTT to align project objectives and address challenges. McConnell Dowell worked effectively with the client to genuinely engage with local communities along the pipeline route leaving a valuable legacy without harm or disruption. Sensitive worksites were rehabilitated effectively and there were no significant reportable environmental incidents.

Key to the strength of the project outcomes was the team of long-term Thai staff who had completed numerous projects with McConnell Dowell. Fluent in English and Thai, this core team knew McConnell Dowell’s systems and processes and was able to build an integrated team with a one-team approach and commitment to achieving high-performance outcomes from the outset.



McConnell Dowell company profile McConnell Dowell is the Creative Construction Company for clients who want to build better communities through safe, smart, efficient infrastructure. We have built thousands of quality assets and facilities for clients and communities over more than 50 years. Our expertise spans civil, electrical, fabrication, marine, mechanical, pipelines, rail, tunnel and underground construction. We pride ourselves in working collaboratively with our clients under a range of contract models to achieve outstanding outcomes for all project stakeholders.

Our clients benefit from our unique mix of local knowledge and international experience, with more than 7,500 employees and professional engineering and construction personnel operating in 23 locations in Australia, Asia, New Zealand, the Pacific Islands and the Middle East. We also operate fabrication facilities in Thailand, Indonesia and Dubai.

The McConnell Dowell Group is wholly owned by Aveng Ltd, a South African infrastructure company that is listed on the Johannesburg Stock Exchange and employs more than 29,000 people.

Pipeline and facilities construction capability McConnell Dowell provides a complete pipeline and facilities construction service in greenfields and brownfields environments, from engineering, procurement, fabrication, field erection, civil, mechanical, piping and electrical installation works, through to commissioning. We have specialist skills in industry sectors including oil and gas, chemical processing, petrochemical, mining and metals and water markets.

We are experts in large diameter and cross-country pipeline construction and have delivered many of the major gas pipelines in Australia, as well as in South East Asia, the Middle East and southern Africa. Our team brings a depth of technical knowledge and experience spanning carbon steel, DICL, GRP and PE, including major transmission pipelines and smaller diameter networks. Our competencies cover heavy equipment and lifts, welding, rock excavation, deep trenches and tight easements. Our specialist in-house skills also enable us to carry out horizontal directional drills (HDD), micro-tunnelling, marine pipe-pulls, pipe bridges and other complex crossing solutions. This technical expertise directly translates into certainty of delivery to quality standards for our clients.

McConnell Dowell owns and operates a large fleet of pipeline plant and equipment allowing us to provide cost-effective and responsive construction services. We have proven our ability to mobilise large project teams and specialist plant and equipment to deliver projects in some of the most remote and challenging environments around the world. We also own and operate an ISO-accredited high level testing laboratory and have certified and experienced staff to carry out hydrostatic strength and leak tests on gas pipelines to relevant standards.

We draw on our specialist structural mechanical piping (SMP), civil and fabrication capabilities to develop high quality, safe and sustainable facilities for the oil and gas sector. These functions are supported by our global engineering, procurement, construction and electrical and instrumentation capabilities. Construction is optimised through modularisation, maximising offsite fabrication and minimising site construction risks and durations. We are also able to leverage from our international procurement resources to maximise value for money and eliminate project risk.

With our integrated, multidisciplinary service, McConnell Dowell is the partner of choice for complex engineer, procure and construct (EPC) projects. This approach maximises opportunities to integrate constructability into the design and focuses the team on design-to-function and design-to-cost drivers. It eliminates contractor interface risks for clients, reduces project timelines and drives cost savings throughout project development and delivery.

We are also experienced in participating in Early Contractor Involvement (ECI) processes for large and complex projects. We work collaboratively with our clients and their design teams during ECI to provide constructability input and clear and practical guidance for design deliverables that optimise construction solutions, reduce program risk and address engineering challenges to meet stakeholder requirements.



Industry-leading safety performance Safety is our number one priority and we have an industry-leading safety record. Safety is integral to our culture and central to every part of our business. It is driven through the collaborative effort and uncompromising commitment of all our employees, from the top down. We ensure every employee and person who works alongside us goes ‘Home without Harm’. This culture is brought to all the projects we undertake, no matter how large or small.

We bring a history of positive health and safety outcomes for projects in urban and remote regions. Our safety philosophy, approach and management system are built on seven pillars that underpin everything we do: • Committed and visible leadership • Everyone takes ownership of HSEQ and is accountable • Risks associated with high consequence activities can be eliminated or reduced • Risks arising from changed circumstances are recognised and controlled • Consistent understanding and application of systems and contract requirements • Measurement and success • One team approach with clients and stakeholders.

Internationally accredited HSEQ management system Our integrated management system (MMS) provides a framework to manage timely and cost-efficient delivery of projects and drive excellence in safety, environment, time, cost and quality performance. Our accredited health, safety, environmental and quality (HSEQ) management system forms part of the MMS and is risk-based and scalable.

The MMS enables us to achieve compliance with legislation, regulations, corporate requirements and applicable codes and standards. It also specifies processes for control of health and safety risks and hazards, and the impact of activities on the environment. In addition, it underpins the process of continuous improvement to which we have a strong commitment.

The MMS has the flexibility to adapt our systems and processes or adopt those of our clients to meet project requirements. It provides systematic processes for the development and reporting of project schedules.

The MMS is accredited to national and international HSE standards, including:

• AS/NZS 4801:2001 Occupational health and safety management systems – Specification with guidance for use

• BS OHSAS 18001:2007 Occupational Health and Safety Management Systems – Requirements • AS/NZS ISO 14001:2004 Environmental Management Systems – Requirements with

guidance for use.

The MMS is also certified by Lloyds Register Quality Assurance (LRQA).

In addition to operating an independently certified management system, McConnell Dowell is registered and engages with third-party prequalification providers, including the Achilles and ISNetworld (ISN) prequalification organisations commonly used by many oil and gas operators.



Fourth Transmission Pipeline Stage 2 The AU$270 million FTP2 project was awarded to McConnell Dowell in June 2014 by PTT Public Company Ltd (PTT). The project involved construction of 70 km of 42" high-pressure gas pipeline between Rayong LNG terminal in the south of Thailand to the Wang Noi-Kaeng Khoi pipeline tie-in station in the north.

Work was spread over 300 km and required more than 20 km of trenchless pipe installation and construction of significant above-ground facilities, including 18 block valve stations, metering, mixing and scraper stations and associated electrical, instrumentation and communication work.

The completed pipeline delivers 1,700 million cubic feet of gas per day to meet industry and power plant demand. It has provided a significant boost to the economy to benefit the Thai people.

Findings The FTP2 project was delivered in a complex environment with significant terrain, environmental, safety, logistical and stakeholder challenges. It required mobilisation of large and specialist resources to fast-track a program to meet an aggressive one-year completion target.

A multicultural workforce peaking at 2,800 direct employees and subcontractors was deployed to install the pipeline and construct the facilities. The workforce was spread across 300 km with up to 50 discrete worksites operating concurrently. At peak construction, key equipment included six horizontal directional drilling (HDD) rigs, two direct pipe rigs and six thrust boring rigs.

Much of the work involved extensive trenchless pipe installation, including 45 waterway crossings and 189 road crossings. All bores and crossings were completed along the pipeline first then project teams went back to ‘fill the gaps’ along the route.

Works were undertaken largely in brownfield environments with restricted space for installation. The team dealt with continuous change along the route, which was adjacent to busy highways, overhead power lines, utility services, watercourses and residential and commercial dwellings. The pipeline was also in close proximity to schools, temples, military facilities, hospitals and highly populated community centres.

Many of the worksites were in environmentally sensitive areas with poor ground conditions. In some places this required rerouting of the pipeline. Strict site rehabilitation requirements needed to be met by the project team once the pipeline was installed.

Significant engagement with the community was needed to ensure minimal disruption and adequate access to property during construction. A focus on safety, and traffic management in particular, was of utmost importance to protect the workforce and general public during delivery of this highly complex project across six densely populated provinces of Thailand.

70 KM OF 42” X70 HIGH PRESSURE GAS PIPELINE 20 KM OF HORIZONTAL DIRECTIONAL DRILLS

AND DIRECT PIPE INSTALLATION 3 KM OF THRUST BORES

18 BLOCK VALVES 2 END-LINE FACILITIES

MID-LINE SCRAPER STATION PEAK WORKFORCE OF 2,800 PERSONNEL

50 WORKFRONTS SPREAD ACROSS 300 KM OVER 4 MILLION HOURS WORKED LTI FREE



Solutions Integrated culture with one-team approach Key to successful project completion was adopting McConnell Dowell’s proven project management approach and establishing a project management team of highly experienced McConnell Dowell employees from Australia and Thailand. Long-term Thai staff who were fluent in English and Thai and knew McConnell Dowell’s systems and processes were critical to the project’s success. Their knowledge was invaluable in building an integrated culture and dealing with the substantial multicultural workforce, local communities and authorities during project planning and execution.

The project management team was inspirational in acknowledging and understanding the importance and differences between cultures and the need to harness cultural strengths and attributes to achieve project goals from the outset. The team focused on driving continuous improvement throughout the project by building positive relationships and embracing cultural integration to ensure a one-team approach. This team mobilised a peak workforce of more than 2,800 personnel across multiple workfronts. The majority of the workforce consisted of direct McConnell Dowell employees from Thailand, with around 10 per cent being expats. Work teams were supplemented by carefully selected, specialist subcontractors where required.

Developing positive relationships with senior members of the largely Thai workforce, such as superintendents and supervisors, was essential to ensuring that the right examples were set to establish and maintain consistent, safe work practices and behaviours in the workforce. Senior project management built strong relationships with Thai supervisory staff and led by example in demonstrating a commitment to safety, the environment, quality and the application of McConnell Dowell’s systems and processes. These processes were supported by regular field visits and mentorship. A safety management program with bilingual and pictorial documentation and an active Safety Leadership Team was also established to ensure the needs of the multicultural workforce were addressed.

The project management team recognised the importance of engaging with the workforce to identify the project challenges and risks and respond appropriately. Weekly meetings were held with superintendents and supervisors to look at upcoming work for each crew and determine what preparations needed to be made to overcome challenges and mitigate risks for all worksites.

Communication across worksites was also critical to effective project delivery and the LINE mobile phone app was used to facilitate communication between supervisors and engineers. The closed chat forum enabled pictures and comments to be shared as well as daily permit to work approvals, power energisation information and progress status updates to be communicated consistently, as shown in Figure 1.

Figure 1: LINE phone app for approval and communication of permits to work and status updates



Strong, collaborative stakeholder relationships Strong, collaborative relationships established between McConnell Dowell, PPT and other stakeholders, including CCC and Penspen (the design team during project delivery), facilitated successful delivery of the fast-track schedule with minimal disruption to the community.

All stakeholders focused on aligning their project objectives and working as a team to build productive relationships with local communities and authorities, and determine solutions to address project challenges efficiently. For example, when the pipeline alignment was required to change as a result of technical challenges and landholder sensitivities, the team worked effectively with Penspen and PTT to resolve issues and ensure the necessary approvals were obtained to continue working without undue delay.

Effective ongoing community engagement The McConnell Dowell team worked collaboratively with PTT to genuinely engage with local communities, including residents, businesses, landholders, government and government authorities. A team of 12 people was established to focus on community engagement throughout the project. This team worked with landowners and community groups such as schools, temples, the military and hospitals along the route to ensure that they had a strong understanding of the project outcomes and the impact it would have on them and the environment during and post construction. Consultation with these groups informed the project team’s construction plans and solutions to minimise disruption.

Engagement with local government and authorities was important to obtain the necessary approvals and agree commitments in relation to land access, environmental management and traffic management. McConnell Dowell was also committed to adding value to the communities in which it worked, contributing to local charities and ensuring that employees participated in community events along the pipeline route, including blessing of the pipe ceremonies, as shown in Figure 2.

Figure 2: Landowner consultation, involvement in community events and charities, and blessing the pipe



Rapid mobilisation of McConnell Dowell plant and equipment To meet the demanding schedule, McConnell Dowell worked collaboratively with its construction partner, Consolidated Contracting Company (CCC), to mobilise a fleet of specialist plant and equipment. This enabled use of best practice techniques and latest technologies to deliver the project safely and with minimal community disruption. Plant and equipment was brought from Australia, Singapore, the Middle East, Europe and Thailand, including multiple thrust bore, HDD and direct pipe spreads. The pipe drying technique and equipment used also represented latest technology that helped to accelerate project outcomes.

McConnell Dowell’s fabrication facility in Rayong, Thailand was used to expedite fabrication of all structural, mechanical and piping needed for the extensive above-ground facilities, including 18 block valves, a mid-line pig launcher/receiver station and end-of-line facilities, as shown in Figure 3.

Figure 3: Fabrication work expedited the construction of extensive facilities

Direct pipe technology and HDD operations to suit conditions HDD, thrust boring and direct pipe installation methods were used across the project to efficiently address the challenges of each worksite. The method used depended on the type of ground, available space, environmental sensitivity and program and risk constraints. All bores and crossings were completed first then project teams went back to ‘fill gaps’ along the pipeline route.

The advantages of the direct pipe method were capitalised on in many situations, including that it: • Combines the advantages of microtunnelling and HDD technology • Enables prefabricated pipeline installation and borehole excavation in one step • Is fast and highly economical • Suits practically any ground condition while the environment remains largely unaffected • Suits densely populated areas with its minimum footprint and maximum efficiency • Does not require expensive shaft construction • Makes direct installation of pre-welded and pre-inspected pipeline possible • Makes precise steering on upward and downward slopes and in curves possible.

The two pipe installation methods are shown in Figure 4.



Figure 4: Direct pipe and HDD operations on the pipeline route

Focus on safety as a priority A range of safety initiatives were put in place to meet the challenges of dealing with a multi-cultural workforce across 50 worksites and achieving the stretch targets set for safety performance. An HSE management team with more than 100 advisors was set up to manage safety across the project, with a majority focused on traffic management to mitigate one of the highest safety risk elements.

A strong safety culture-building program based on understanding of Thai culture was established and delivered to the workforce through a comprehensive safety induction program and ongoing training for all personnel. The program was based on McConnell Dowell’s ‘Home Without Harm’ safety culture, core values and HSEQ management system. The aim of the training packages was to establish McConnell Dowell’s systems and processes consistently in each discrete project area and ensure that they were implemented correctly for the project duration. The project management team set clear expectations and reiterated the importance of cultural inclusion and harnessing positive attributes from each culture to achieve project milestones in relation to safety.

The program featured bilingual and pictorial HSE field documentation and regular pre-start and toolbox meetings to ensure consistent application and monitoring of safety hazard controls across multiple worksites. Examples of these are shown in Figure 5. The HSE management team oversaw a strict program of weekly and monthly reporting of hazard observations and ensured that regular reports and meetings were conducted with the project management team and client. The HSE management team was also responsible for conducting weekly site audits with the client and applying safety controls and issuing work permits for each work location.

Figure 5: bilingual and pictorial HSE field documentation and pre-start and toolbox meetings

A Safety Leadership Team comprising senior managers, superintendents and supervisors was implemented at the early stages of the project. The team led safety by example. It focused on proactive and timely resolution of safety issues and continuous improvement of the program throughout the project. Developing positive relationships with senior members of the Thai workforce was also an imperative to achieving and establishing



consistent, safe work practices and behaviours across the rest of the workforce. This was supported by regular field visits and mentorship from senior project managers.

The safety program recognised, reinforced and celebrated successes as key safety milestones were reached. This included the team’s achievement of progressive milestones, individual achievements and group effort, as shown in Figure 6.

For example, the achievement of 3 million man-hours LTI free was celebrated in May 2015 by issuing Safety Award Certificates and ‘3 Million Man-Hours MCD Home Without Harm’ caps to personnel who had demonstrated ongoing positive safety behaviours and leadership in the field.

Figure 6: Celebrating safety success



Achievements The project was substantially completed in August 2015 with outstanding outcomes demonstrating excellence in project execution. These include: • More than 4 million man hours completed LTI free – cultural integration of the workforce and a one-

team approach to safety ensured consistent application of safety systems and processes across multiple worksites to achieve exceptional standards of safety performance.

• Satisfied client – 60 trenchless crossings, 26 HDDs and direct pipe crossings and numerous facilities were completed under challenging conditions without incident, ahead of schedule and within budget.

• Minimal disruption to the community and satisfied stakeholders – PTT’s strong leadership and collaboration with McConnell Dowell in community consultation resulted in minimal disruption to communities along the pipeline route during construction and satisfied stakeholders. McConnell Dowell’s genuine engagement with communities and involvement in charities and events built positive relationships that have left a lasting legacy.

• Self-performance of the works using world’s best practice and latest technologies – Direct pipe installation, HDD and pipe drying techniques expedited construction and enabled the physical constraints of the project to be addressed with minimal disruption to the community or environment. Much of the pipeline plant and equipment was provided by McConnell Dowell and project partner CCC, with pre-fabrication of all structural, mechanical and piping for the extensive above-ground facilities carried out at McConnell Dowell’s fabrication facility at Rayong.

• Effective rehabilitation of sensitive worksites – Following construction, 157 km of right of way was rehabilitated, with damaged or unusable fibre-optic cable conduit repaired or replaced. Sensitive environments were returned to their original condition or better.

• No significant reportable environmental incidents – McConnell Dowell’s focus on safety and quality outcomes throughout the project and positive engagement with the relevant authorities ensured minimal impact on the environment.

IPLOCA 2016 EXCELLENCE IN PROJECT EXECUTION AWARD · 2016-05-13 · McConnell Dowell has...

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