Onshore Pipelines Overview

Asian Pipeline Landscape –

Challenges and Opportunities

Pipeline Perspective on India

25 October, 2010

McDermott Asia Pacific Pte Ltd

Background

With average GDP growth rate of 5.8% for pass

two decades, India is one of the fastest growing

economies in the world

Estimated population of 1.2 billion and a coast

line of 7,517km

The energy needs are growing rapidly in India

and particularly consumption of gas is expected

to grow 500 MMSCMD in 5 years

Hydrocarbon Vision 2025 aims to create more

pipeline projects both national & international

Considering size and growing population,

Pipeline infrastructure needs to grow several

folds

I. Onshore Pipeline Overview

II. International Pipeline Opportunities

III. Offshore Pipeline Overview

IV. Deepwater Pipeline Overview

V. Technical Aspects, Challenges and Opportunities

VI. Pipeline Resources and Information

VII. Indian Regulatory Challenges

Content


32%

32%

26%

10%

Pipelines

Road Tankers

Rail Tankers

Water Carriers

• Environment friendly

• Least energy requirement

• Lowest maintenance costs

• Minimal impact on land use

• Negligible loss of product in transit

• High reliability

• Multi-product transportation

Drivers of Transportation of Oil by Pipeline


Onshore Pipeline Services

• Crude oil pipelines

• Petroleum product pipelines

• Natural gas pipelines

• LPG

• Water & effluents

• Slurries

Classification of Pipelines

• Cross country trunk pipelines

• Spur and branch pipelines

• Marine offloading terminals and

outfalls

40%

45%

7%

8%

Onshore Pipelines Approx 25,000+ Km

Gas

Oil & Petroleum Product

LPG

Brach/Spur

10000 Km

11450 Km

1700 km

2000 km


India’s Major Gas Trunklines

Pipeline Company Length Size Product

1 HBJ GAIL 1700 -->3397km 36” Gas

2 DVPL GAIL 770km 42” LNG

3 EWPL RGTIL 1385km 48” Gas

4 Country Pipeline Network GAIL 7850km1900km

- GasLPG

60%15%

6%

11%

8%

Existing Gas Pipelines Network By Companies (%)

GAIL - Gas (7850km)

GAIL - LPG (1900km)

GAIL - LNG (770km)

RGTIL - Gas (1385km)

GSPCL - Gas (1070km)


India’s Future Gas Pipelines Network (km)

400 445 670 660

2600

7890

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

Kakinada -Howrah (400km)

Vijayawada - Chennai (445km)

Chennai -Tuticorin (670km)

Chennai -Bangalore -Mangalore

(660km)

Gujarat pipeline

(2600km)

GAIL Gas Grid

(7890km)

66%

12%

22%

Future Gas Pipelines By Major Companies(%)

GAIL - Gas (7890km)

RGTIL- Gas (1515km)

GSPC - Gas (2600km)


India’s Major Cross Country Crude Oil & Petroleum PipelinesPipeline Company Length

1 Product Pipelines – including Kandla to Bhatinda 1443 kmTrunklineCrude Pipelines

IOCL 6000km3000km

2 North East India Crude oil Pipelines to refineries OIL 1432km

3 Onshore Spur and branch Pipelines ONGC/GSPCL 1000+ km

4 24 inch Oil MDP (insulated & heated longest Pipeline) Cairn 670km

5 Multi-Product Pipelines BPCLHPCL

1650km2100km

20%

39%

14%

11%

9%

7%

Existing Oil/Product Pipeline By Companies(%)

IOCL Crude (3000km)

IOCL Product (6000km)

BPCL Product (2100km)

HPCL Product (1650km)

OIL (1432km)

ONGC Spur/Brach (1000km +)


Future Petroleum Product Pipelines (km)

1580

2540

660540

200

375

1000

0

500

1000

1500

2000

2500

3000

RIL Jamnagar -Patiala

RIL Jamnagar -Kanpur

RIL Goa- Heydrabad RIL Chennai -Bangalore

RIL Kakinanda -Vijaywada

RIL Haldia - Ranchi RIL & IOCL Central India Pipeline


Crude Oil & LPG Pipeline

In IndiaGAIL Gas Pipeline Grid

II. International Pipeline Opportunities

Notable Proposals:

• Iran-Pakistan-India (IPI) Gas Pipeline

• Turkmenistan-Afghanistan-Pakistan-

India (TAPI) Gas Pipeline

• Bangladesh – India Onshore Gas

Pipeline

• Import gas from Myanmar

• Oman – India Gas Pipeline

Figure: Iran-Pakistan-India (IPI) Gas Pipeline

Geopolitical Issues:

• Gas pricing dispute

• Security/ border risk

• Route selection


Major offshore fields in India

1. Bombay (Mumbai) Offshore Basin, West coast of India, Arabian sea

2. Gulf of Cambay, North West coast of India

3. Krishna-Godavari Basin, East Coast of India, Bay of Bengal

4. Cauvery Basin, East Coast of India, Bay of Bengal Figure: Offshore Fields in

India


Offshore Pipeline Services

• Crude oil

• Gas (sour & non-sour)

• Multiphase production

• Gas lift

• Water Injection

Classification of Offshore Pipelines

• Trunk line

• In-field pipelines

• Flow lines including flexible

• Offshore loading/unloading line

• Marine Terminal and Jetty Head

Pipelines

19%1800 km

77%2300 km

2%200 km

2%180 km

Existing Offshore Pipelines approx 4500 kms

Trunk Lines

Infield Lines

Loading/Unloading Lines

Marine Terminal/Jetty Head


Bombay (Mumbai) Offshore Basin

• Discovered in 1974, the field has

been operated by ONGC

• Bombay High Oil field consist of 2

blocks, namely Mumbai High North

(MHN) and Mumbai High South

(MHS)

• Decline in existing oil and gas

production led to the need of a

redevelopment plan in 2000

• ONGC owns and operates the

largest network of subsea pipelines

including in-field lines and trunk

lines.

• Other major field operators includes

Reliance, British Gas, Cairn, and

GSPCL.


Mumbai High Field (North)


Mumbai High Field (South)


ONGC’s Major Offshore Trunkline

• Bombay High Uran Trunk Line, BUT (1979) 30”

crude/26” gas; 200km x2

• Mumbai High Uran Trunk Line, MUT (2005) 30” crude/

28” gas 205km x 2; pre-trench/backfill for 20km; post

trenched until 130 km offshore section

• South Basin Hazira Trunk Line (1986) 36” Gas 220km

• Heera – Uran, HUT (1991)26” crude/24” Gas 85km x 2

• ICP – Heera Trunk Line (1995) 30”/22” Crude 143km

• Second Basin Hazira Trunk Line, SBHT (1995) 42”

Gas 245km;Post trenched to 4m cover at shore;

Mumbai High Field

Hazira

Figure: MUT


Offshore loading/Unloading Pipelines – CALM/SPM

• Liquid chemical handling jetty at Dahej, Gulf of Cambay, Gujarat chemical

port terminal company limited (GCPTCL), which comprises 38 pipelines

(20” to 2”) includes 15 cryogenic lines.

• Reliance Jamnagar Marine Terminal (RJMT) is located in the Gulf of

Kutch, India’s largest petroleum terminal. The terminal provides 4 berths

and 5 single point moorings (SPM).

Owner Pipe Size Length (km) Tanker Size DWT

RIL - RJMT 48”30”

3 X 203 X 18

350,000150,000

Essar – VadinarIOCL - Vadinar

48”42”

2020

350,000300,000

BPCL - Kochi 48” 20 300,000

BORL - WestHPCL - VisagCPCL- Chennai

48” 154.28

300,000

Major Marine Terminal/ Jetty Head Pipelines


10%500 km

90%4500km

Offshore Pipelines in India

Deepwater

Shallow Water

Outlook of Deepwater and Shallow Water Pipeline

Oil available onshore and shallow

water environment is diminishing,

hence there will be a need for

deepwater drilling.

India has some breakthroughs in

deepwater pipeline system at certain

fields.

• KG-D6

• D1, D3 Gas Field

• MA-D6


India’s first deepwater oil and gas field – KG D6

• Located 60km off east coast of India in the Bay

of Bengal

• Operated by Reliance Industries (RIL)

• At 1200m water depth with proven plus

probable reserves of 11.3 Tcf

• Tie-Back of 60kms

• Capacity of 550,000 Barrels of Oil Equivalent

Per Day (BOEPD)

• 500kms of pipelines, flow lines and umbilicals

installed

• Start of production in 6.5 years from discovery

in comparison to the world average of 9 – 10

years for similar deepwater production

Figure: KG – D6 Block


D1, D3 Subsea System and Pipelines

• 2 major gas discoveries, D1

and D3, began producing in

2Q 2009

• At peak production, the gas

fields are expected to produce

80 MMSCM

• Water depth:600 -1200m

• Comprises 18 production wells, 18 Xmas trees

• Subsea facility comprises 350km of pipeline,

150km of steel tube umbilicals, 11 subsea

structures (PLEM, 6 MF, 3 SDA, UDH) 45

PLETs, 29 anchor blocks, 56 jumpers and 212

subsea tie-in

Figure: D1 & D3 Gas Field

• 14 x 8”/10” Flow lines

• 6 x 16”/18” Infield pipelines

• 3 x 6” MEG lines

• 3 x 24” Gas Export


MA-D6 (D26) Field

• Reliance implemented an Early Production

System to produce oil from the MA-D6

(D26) field using an FPSO

• Production commenced on 4Q 2008 in a

record time of about 2.5 years from

discovery

• Oil production from 6 wells now exceeds

22,000 barrels per day

• Water depth range 1200m to 1400m

• Risers and umbilicals are connected to the

FPSO through a turret and swivel mooring

system to position itself at the desired

location for disconnect in extreme weather

Figure: MA-D6 Field

• 4 x 8” Gas export flexible risers

• 4 x 8” Production flexible risers

• 1 x 6” Gas injection flexible riser

• 6 x 6” Production jumpers

• 24” Export rigid pipeline to CRP

• 1 Dynamic Umb riser & 8 infield Umb

• 1 each Prod MF & Gas export MF

Primary Pipeline Design Codes and Standards

Codes/Standards Description

ASME B31.8 Gas Transportation and Distribution Piping Systems

ASME B31.4 Pipeline Transportation Systems for Liquid Hydrocarbons and other Liquids

OISD-141 Design and Construction Requirements for Cross-Country Hydrocarbon Pipelines

OISD-214 Cross-Country LPG Pipelines

OISD-226 Natural Gas Transmission Pipelines and City Gas Distribution Networks

API 5L / ISO 3183 Specification for Line Pipe

API RP1102 Recommended practice for Rail and Highway crossings

API 1104 Standard for Welding Pipeline and Related Facilities

API 6D / ISO 14313 Pipeline Valves

ASME B16.2 Metallic Gaskets for Pipe Flanges – Ring Joint, Spiral Wound and Jacketed

ASME B16.5 Pipe Flanges and Flange Fittings

ASME B16.9 Factory – Made Wrought Steel Butt welding Fittings

DNV OS-F101 Submarine Pipeline Systems

DNV’81 Rules for Submarine Pipeline System

DNV RP B401/F103 Cathodic Protection Design

DNV RP E305/F109 On-bottom Stability Design for Submarine Pipelines

DNV RP F105 Free Spanning Pipelines

Other References Applicable Standards / Specs of ASME, API, NACE, MSS, BS, DIN and IP-6

Table : Pipeline Codes, Standards

V. Technical Aspects, Challenges & Opportunities

Local Regulations

Type of Pipeline Crossing Approval Authority

ROU & Land Acquisition Central/State Govt. as applicable

(As per PMP Act 1962)

National Highway

Crossings

NHAI

MDR/ ODR Crossings PWD

Railway Track Crossings Indian Railways

Crossing through Forest

Land

Forest Authority

River/Canal Crossings Irrigation/Canal Authority

Table : Indian Approval Authorities Regulations


Pipeline Design and Technological Advancement

Shore Approach Design

Combination of site selection and design activity

• Pipeline stability analyses, trenching/ burial requirements and construction method

• Dredging (hydraulic and conventional), HDD, mechanical trenching, jetting and

plowing techniques are considered in conjunction with seabed soils data to

determine method suitability.

• Shore approach installation methods and equipment, including pipe pull, pipelay,

directional drilling and/or a combination of the above methods, to be evaluated.

• Surface and bottom currents are very severe at shore crossings (East Coast &

Hazira landfalls)

• Shore approaches and port limits typically with pre-trench and burial; then continue

with post trench until the pipeline stability and concrete coating not an issue.



Deepwater pipeline design

• 500m to 2200m water depth

• Encompass most of the fundamentals of conventional pipeline design

• Warrants a thorough and rigorous level of engineering

Key Aspects:

• Flow Assurance

• Operability

• Pipeline routing

• Material selection

• Installation methods

• Construction logistics


Subsea Pipeline Technology Drivers – Typical Deep Water subsea Tie-back


• Large diameter line pipe at manufacturing limit

• Large diameter pipeline installation limits

• High external over-pressure & thermal loads

• Corrosion resistant materials Large bore valves & diverlessconnections


Subsea Pipeline Technology Drivers

• Line pipe manufacturing

technical limits(CRA

clad, wall thickness,

ovality)

• Hydrate prevention

challenges during pre-

commissioning

• Commissioning High

pressure wells: Class 5000

Large Bore equipment



Long Free Span Lengths over 100m+ in length

• May exceed static structural limits for combined

loading

• May be subject to VIV

Steep seabed slopes

• May aggravate liquid slugging

Interaction with thermal loads

• Buckling

Need to develop robust geological & geotechnical models

• Seabed evolution & historical events

• Current seabed characteristics

• Potential sources of instability (seismicity, shallow gas)






High Pressure/High Temperature Reservoirs

• make pipeline design impractical

• large diameter line pipe can only be cost effectively manufactured by UOE

• CRA clad line pipe difficult to manufacture in high wall thicknesses

• Induced Lateral Buckling


Lateral Buckling: (Typical Mitigation Methods)




Construction Challenges

Challenges of Onshore Pipelines in India

• Land acquisition for the 'right of way' and the public

hearing along the pipeline route

• Working in desert areas poses a number of challenges

• Equipments should be tailored to withstand very hot

climates

• Very steep hilly terrain, with slopes up to 70°. Mobilize

transportation of pipe, equipment etc will be a logistical

challenge.

• Many high pressure pipelines that are constructed

require anchor block



Challenges of Onshore Pipelines in India

• The Right of Way is restricted to protect sensitive ecosystem

i.e. dense forest land, biological diversity hotspots etc.

• For the laying of pipeline in the above areas, permission has

to be obtained from the relevant authorities.

• Trenching in marshy and slushy coastal land with a limited

working window

• Trenching in hard rock that require three to four rounds of

controlled blasting to remove rock

• River crossing by HDD, river crossing by float and sink

technique.

• Water for hydrotesting can be difficult to source and require

transportation

• Excavation on the steep slope carryout by special excavators

and a powerful all-wheel drive.



Challenges of Offshore Pipelines in India• Almost everywhere around east coast the ocean conditions are hostile.

• The inclement weather on India’s east coast reduced a fair weather window for offshore installation

to 4 months i.e. from mid December to mid April.

• Demobilization is deemed necessary in case of rapid evacuation to avoid damages due to

cyclones that are endemic to the Bay of Bengal.

• Seasonal Loop or Eddy currents in Bay of Bengal causes extensive weather down time

• In addition, the KG deepwater fields have the following notable challenges during installation:

muddy seabed; ROV operable affects due to zero visibility; high currents.

• Mumbai offshore field weather window for installation is 7 months i.e. from October to April.

• Lay barge to equip with better motion characteristic, improved barge-mooring or positioning

systems and faster weather disruption procedures

• Vessel entry permit approval required from Indian Navy


Moving Forward with ECA of Pipeline Girth Weld

• ECA is based on fracture mechanics principles

• ECA is alternate acceptance criteria for pipeline girth weld inspection

• Due to wide usage of Automatic welding/AUT system during pipe

laying, ECA has been carried out prior to laying to define flaw

acceptance criteria to benefit the following:

Fewer repairs

Faster installation

Reduced laying cost

Predict large acceptable flaw size than the workmanship


Pipelines with HDD Technology

Figure: Horizontal drill installed under a water

crossing

Benefits of HDD over laying the pipe in an open trench are various:

• No shore excavation

• No cofferdam requirement

• No interruption to surface traffic

• No disturbance to shoreline flora and fauna

• Secure depth of cover

• Minimal footprint

• Minimal site preparation & reinstatement

• Vary depth of cover to avoid underground utilities, pipelines or structure

• Relatively short construction duration



Pipeline Decommissioning Opportunities

• Pipelines have surpassed its design life, either they have to be

decommissioned or replaced with the new pipeline

• In Mumbai High Fields, there are 200 offshore platforms & 4500 km offshore

pipelines installed; some were built in late 70’s and early 80’s that faces de-

commissioning or replacement due to ageing design life.

• Pipeline decommissioning involves:

Pigging

Flushing

Filling and Plugging of lines

Followed by removal or abandonment in situ.

• Regulations relating to pipelines are currently controlled by operator’s

preference and national regulations rather than international code

requirements.

Emergency Pipeline Repair System

• The EPRES provides a mechanism that mitigates risk and addresses the timely repair of

pipelines.

• The industry is to work on a co-operative basis with a common interest of timely repair and

minimal disruption to oil and gas operations.

The possible emergency pipeline repair equipment to be shared includes:

• Pressure containment clamps (Eg: hot tap clamps)

• Mechanical connectors

• Line pipe, bends and pipe fittings

• ROV tools



ONGC Leading National Oil and Gas Exploration Company of India

GAIL Gas Authority of India, a Leading public sector company;

Largest gas transmission network

Bharat Petroleum (BPCL) Refining, Storing, Marketing and Distributing petroleum

products

Hindustan Petroleum (HPCL) Major integrate oil refining and marketing companies in India

Indian Oil Corp Ltd. (IOCL) Major diversified, transnational, integrated energy company

OIL India Oil exploration, refining and distribution

GSPC Gujarat State Petroleum

Corporation

Vertically integrated energy company across India and

overseas

Reliance Industries Limited (RIL) Activities span exploration and production of oil and gas,

petroleum refining and marketing, petrochemicals

Cairn India Largest producing oil field in the Indian private sector

HOEC Oil field operator in the Indian private sector

BG Exploration Tapti gas field operator

Essar Oil Operates a fully integrated oil company of international size

and scale in India

NIKO Resources, ENI, Hardy oil Operators/JV - Shareholders in Offshore Fields

Pipeline Operating Companies


EIL Leading Design Consultant providing offshore and onshore field development

L&T - Valdel Engineers Offshore/ Onshore Engineering

Wood Group (JPK) Pipeline Engineering

Bechtel Corporation Engineering, Construction and Project Management

RGTIL (Reliance) Leading Gas Transmission Infrastructure onshore pipeline

L & T Leading EPCI both onshore and offshore pipeline

Punj Lloyd Ltd One of the largest engineering construction companies in India

KasStroy Service Pipeline EPC

PSL Pipe Coating, Anode, Bends

McDermott EPCI – Offshore Pipelines

HHI EPCI – Offshore Pipelines

Saipem EPCI – Offshore Pipelines

Leighton EPCI – Offshore Pipelines

Global Industries EPCI – Offshore Pipelines

NPCC EPCI – Offshore Pipelines

Allseas EPCI – Deepwater Pipelines

Technip EPCI – Deepwater Pipelines

Aker Solutions EPCI – Subsea System

Pipeline Engineering Consultants

Pipeline EPCI Companies

VII. Indian Regulatory Challenges

Central Regulatory Bodies like PNGRB ensure access to gas pipelines on non-

discriminatory common carrier principle for all users; Tariff for the pipelines to be

approved by Regulator. For details refer to http://www.pngrb.gov.in/

Functions of the BoardProtect consumer

interest by fostering fair trade & competition

Register & Authorise entitiies

Declare pipeline as common/contract

carrier

Regulate access & transportation rather on common/ contract carrier/ CGD network

Enforce retail & marketing service

obligation

Ensure adequate availability and

equitable distribution

Monitor prices & prevent restrictive

trade practices

Maintain databank information

Lay down technical standards/

specifications

Perform other functions entrusted

by central government

Conclusions

The challenges faced by any company, is more or less conventional as

faced by any pipeline construction.

• Land acquisition for the ‘right of way’ will be the biggest challenge

• Limited offshore weather windows

• Lag far behind in pipeline infrastructure

• Produced 2/3rd of gas consumed by power and fertilizer sectors; GOI given

special thrust to these sectors to provide gas in priority

• Expected expenditure in the next 5 years will be approx $5 to 6 billion in

pipeline

• RIL, ONGC,GSPCL have made several major discoveries including ultra

deepwater in its KG basin blocks

• Major investment expected in rural water pipeline infrastructure.

Onshore Pipelines Overview

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