Press Release. Rehabilitation of oil pipelines with flexible high pressure pipes

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1 Press Release July 31, 2013 Rehabilitation of oil pipelines with flexible high pressure pipes Network operators all over the world are confronted with increasingly aging pipeline infrastructure. Since 2010, over 1,150 pipeline accidents were reported to U.S. federal regulators. More than half of the U.S. pipeline infrastructure is older than 45 years. Corrosion and the use of obsolete welding techniques deployed before the 1970s are major concerns to network operators. Raedlinger Primus Line addresses this issue by providing an economical and innovative trenchless relining technology that is characterized by flexibility, portability, light weight and low wall thickness while having the material strength of a steel pipe. Know-how from the fields of construction, mechanical engineering and web technology

2 were combined to create a state-of-the-art solution for the trenchless rehabilitation of pressure pipes. Raedlinger Primus Line can transport different fluids such as drinking water, natural gas, crude oil, salt water, kerosene and even fluids containing abrasive components. The relining hose is produced in nominal diameters from 6 (150 mm) to 20 (500 mm) and can withstand pressures of up to 899 psi (62 bar). Composition & Installation The Raedlinger Primus Line hose consists of 3 different layers. The inner layer of the hose can be tailored to the specific fluid being transported. The middle layer consists of a seamless aramid fabric which functions as a static loadbearing layer. For higher pressures a second layer of the aramid fabric can be added. The outer layer is made of wear-resistant polyethylene regardless of the transported fluid and protects the middle layer during the installation process.

3 The Raedlinger Primus Line hose is inserted into the host pipe from small construction pits and is self-supporting. The hose is not attached to the host pipe and an annular space remains between Raedlinger Primus Line and the host pipe. Specially developed termination fittings on each end connect the hose to the host pipe with flanges or welded ends. The high pressure termination fitting consists of a contoured internal core and an external sleeve. The external sleeve has a malleable steel jacket on the inside. A two-component resin which is injected through a valve on the external sleeve forces the steel sleeve and hose into the contours of the internal core. Thus, a durable and pull-proof connection is achieved. Benefits of Trenchless Technology Compared to open construction, trenchless methods have both economic and environmental benefits. Since the reinstatement of road surfaces, pavements and landscapes can be costly, trenchless technologies can achieve significant savings. In addition, areas which are difficult to access, such as pipelines running under rivers or through environmentally sensitive areas, can be rehabilitated inexpensively compared to traditional open trench methods. Further, a fast installation and re-commissioning lowers construction costs and simultaneously increases revenue for the network

4 operator. From an environmental point of view, noise and emissions can also be reduced significantly. What makes Raedlinger Primus Line unique? In addition to the advantages of using trenchless technologies, Raedlinger Primus Line has unique characteristics moving trenchless a giant leap forward. Due to the hose s flexibility, bends of up to 45 degrees can be negotiated and installation lengths of up to 6,500 ft. (2.000 m) in one single step can be realized. Thus, fewer construction pits are needed and additional cost and time savings can be achieved. Further, pipelines that run in difficult to access areas with long insertion lengths (such as siphon pipelines) can be, for the very first time, rehabilitated with this trenchless relining method. In addition, the hose is delivered on a drum and can hold up to 14,500 ft. (4.500 m) having little space requirements on-site. Furthermore, there is little need for machinery on-site. On the one hand mobility costs can be reduced and on the other hand the small foot print makes Raedlinger Primus Line ideal for high traffic areas. The termination fittings, specifically designed for the Primus Line hose, can be installed within the shortest period of time. Raedlinger Primus Line has a minimum life span of 50 years.

5 Project In 2011 Petroleos Mexicanos (PEMEX) was confronted with a leaking oil pipeline which was caused by corrosion. Since the 3,312 ft. (1.010 m) long pipeline ran through a difficult to access rain forest area and the pipeline was laid at a depth of up to 33 ft. (10 m) below ground level, a solution that protects against corrosion and offers minimum interference with the landscape had to be deployed. The steel pipe to be rehabilitated had a diameter of 8 (200 mm) and an operating pressure of 44 psi (3 bar). For this specific task the contractor selected a single-layer Raedlinger Primus Line hose with an inner diameter of (169 mm). In a first step, the pipe to be renovated was taken out of operation and secluded from the pipeline network. The contractor created the needed excavation pits, removed the fittings and opened the pipe by cutting out approximately 9 ft. (2,8 m) of each section to be renovated. In a second step, the contractor performed a TV camera inspection and removed existing incrustations. The Raedlinger Primus Line hose was delivered on a flat-bed truck directly to the construction site and was folded into U-shape right before

6 inserting it into the host pipe. The installation of the 3,312 ft. (1.010 m) was performed in three sections of 246 ft. (75 m), 738 ft. (255 m) und 2,230 ft. (680 m). In addition, the Raedlinger Primus Line solution negotiated several vertical and horizontal bends of up to 30 degrees. In a last step, the contractor performed a leak tightness test, installed the fitting pieces and put the pipeline back into operation. The installation of the Raedlinger Primus Line hose including the assembly of the termination fittings was performed in five working days by four skilled workers. Company Raedlinger primus line GmbH is part of the Raedlinger Group which has been active in the construction sector for over 50 years. Today, the company is one of the most successful construction companies in Germany with expertise in road construction, civil engineering and asphalt building. The company employs over 1,200 people and has recently opened its first subsidiary in the U.S. Raedlinger Primus Line has completed numerous projects globally using this unique and innovative trenchless technology. Companies such as ExxonMobil, Gazprom, PEMEX and many more rely on this solution.

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