Canusa-CPS Offshore Evolution & Lessons Learned Upstream Conference & Exhibition Bucharest Thursday 23 rd April, 2015

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1 Canusa-CPS Offshore Evolution & Lessons Learned Upstream Conference & Exhibition Bucharest Thursday 23 rd April, 2015 Dan Pearson Area Manager Onshore Western & Central Europe

2 Ten Business Units PIPELINE & PIPE SERVICES PETROCHEMICAL & INDUSTRIAL Bredero Shaw Coatings - corrosion protection - insulation - weight / protective - internal flow efficiency Canusa-CPS Joint protection Pipe coating materials Shaw Pipeline Services Weld inspection - Radiographic - Ultrasonic - Offshore and onshore Socotherm Coatings - corrosion protection - weight / protective - thermal insulation Flexpipe Flexible composite pipe for: - oil and natural gas gathering lines - oilfield water and fluids Desert NDT Integrity Management Weld inspection - Radiographic - Ultrasonic DSG-Canusa Heat shrink tubing for sealing and protection ShawFlex Guardian Control, instrumentation cable Drill pipe/tubular inspection Inventory management services 2

3 Evolution of offshore pipeline projects

4 Offshore Innovations : Blue Stream Project 10-24" OD x 15,000 joints Introduction of GTS-PP Onshore Sections & Compressor Station

5 Blue Stream GTS-PP Heat Shrink Sleeve System

6 Offshore Innovations : Blue Stream Project 10-24" OD x 15,000 joints Introduction of GTS-PP Onshore Sections & Compressor Station : Green Stream Project > 600 km x 32" OD GTS-PP in S-Lay Saipem Castoro Sei

7 Green Stream

8 Offshore Innovations : Langeled Project 1,200 km x 42-44" OD Acergy Piper & Allseas Solitaire : Blue Stream Project 10-24" OD x 15,000 joints Introduction of GTS-PP Onshore Sections & Compressor Station : Green Stream Project > 600 km x 32" OD GTS-PP in S-Lay Saipem Castoro Sei

9 Langeled

10 Offshore Innovations : Langeled Project 1,200 km x 42-44" OD Acergy Piper & Allseas Solitaire : Blue Stream Project 10-24" OD x 15,000 joints Introduction of GTS-PP Onshore Sections & Compressor Station : Green Stream Project > 600 km x 32" OD GTS-PP in S-Lay Saipem Castoro Sei : Dolphin Project 160 km x 36" & 480 km x 48" OD Induction Heating Saipem Castoro Sei and Castoro 2

11 Dolphin Induction Heating Generators & Coils

12 Offshore Innovations : Langeled Project 1,200 km x 42-44" OD Acergy Piper & Allseas Solitaire : Blue Stream Project 10-24" OD x 15,000 joints Introduction of GTS-PP Onshore Sections & Compressor Station : Medgaz Project 207 km x 24" OD Semi-Automated GTS-PP (6.0 mm Thickness) Saipem Castoro Sei & S : Green Stream Project > 600 km x 32" OD GTS-PP in S-Lay Saipem Castoro Sei : Dolphin Project 160 km x 36" & 480 km x 48" OD Induction Heating Saipem Castoro Sei and Castoro 2

13 Medgaz Thick central sleeve area Custom edge-reduced sleeve design Chamfered overlap and underlap seams

14 Medgaz Automated Sleeve Welders Conditioning Ovens Sleeve Spacer Tools Manual Sleeve Welders

15 Offshore Innovations : Langeled Project 1,200 km x 42-44" OD Acergy Piper & Allseas Solitaire : Nord Stream Project 2,400 km x 48" OD Saipem Castoro Sei & Allseas Solitaire : Blue Stream Project 10-24" OD x 15,000 joints Introduction of GTS-PP Onshore Sections & Compressor Station : Medgaz Project 207 km x 24" OD Semi-Automated GTS-PP (6.0 mm Thickness) Saipem Castoro Sei & S : Green Stream Project > 600 km x 32" OD GTS-PP in S-Lay Saipem Castoro Sei : Dolphin Project 160 km x 36" & 480 km x 48" OD Induction Heating Saipem Castoro Sei and Castoro 2

16 Nord Stream

17 Offshore Innovations : Langeled Project 1,200 km x 42-44" OD Acergy Piper & Allseas Solitaire : Nord Stream Project 2,400 km x 48" OD Saipem Castoro Sei & Allseas Solitaire South Stream Project : Blue Stream Project 10-24" OD x 15,000 joints Introduction of GTS-PP Onshore Sections & Compressor Station : Medgaz Project 207 km x 24" OD Semi-Automated GTS-PP (6.0 mm Thickness) Saipem Castoro Sei & S : Green Stream Project > 600 km x 32" OD GTS-PP in S-Lay Saipem Castoro Sei : Dolphin Project 160 km x 36" & 480 km x 48" OD Induction Heating Saipem Castoro Sei and Castoro 2

18 Offshore Pipeline Trend Difficulty Index for Deepwater Pipelay Projects South Stream (2,000 m - J/S) Water Depth x Pipe Diameter *Adapted from Peritus International Ltd. Engineering Paper, February 23-24, 2011 Galsi (2,822 m - J/S) Blue Stream Walker Ridge (2,175 m - J/S) (2,150 m - J/S) Medgaz (2,152 m - J/S) Green Stream Tupi (2,130 m - S) (1,200 m - S) Liwan (1,500 m - J/S) Greater Plutonio Urugua (1,360 m - J/S) (1,500 m - J) Langeled (400 m - S) USAN (850 m - S) Nord Stream (210 m - S) Year

19 Lessons Learned

20 General FJC Design 3 layer systems for 3 layer mainline coatings FJC Selected to Match Performance, Temperature, Service Selected for MLC PP HSS for 3LPP PE HSS for 3LPE Liquid Epoxy for FBE { 3 mm thick Adhesive Cross Linked PE/PP Backing Mirrors the mainline coating Epoxy Primer PE/PP Mainline Coating Sealant FBE Primer Steel Pipe Weld Bead

21 General FJC Design Force cured liquid epoxy Same properties and thickness required as for the FBE layer of the mainline 3LPE / 3LPP coating Uniform coating thickness, always > 100 μm, and μm recommended for maximum resistance to cathodic disbondment (especially at high temperatures) Allows pre-inspection of primary anti-corrosion layer prior to HSS application Ensures DFT is maintained after application with no displacement during application of outer coating layer Ensures full cure of LE layer in applied FJC system prior to leaving the vessel Pre-manufactured materials produced in ISO certified factories no field chemistry Specialized formulations to match mainline coating specifications

22 General FJC Design Single wrap products in mainline coating thicknesses Profiled / customized FJC solutions allowing for reduced FJC thickness at overlaps onto mainline coating Faster installation times / faster contact with pre-heated mainline coating to promote optimal conditions for fusion Reduce potential for mainline coating disbondment at cutback edges by overheating Thick central sleeve area Custom edgereduced sleeve design Chamfered overlap and underlap seams

23 Design of FJC Specifications Differences between Industry, Project & Company Specifications ISO is only a starting point not a replacement for a Project or End-User specification Not enough to simply state in a spec that Field Joint Coatings must comply with ISO As stated in Clause 6.1, designer needs to select the appropriate field joint coating from those available in the Standard based on parent coating compatibility, line pipe construction, location and operating conditions. Goal should always be to create joint coating with equivalent performance (and with full compatibility) to the factory applied coating to avoid any compromise in pipeline integrity End Users must be active in defining the standard they require End Users must take responsibility to define required standard and open up or narrow down the choice available as appropriate to the circumstances The Standard can be used as a tool to bring the various elements of the supply chain together

24 Design of FJC Specifications Mainline coating, temperature, mechanical properties, anti-corrosion properties, design life, service conditions, construction conditions, special performance criteria, track record, total installed cost, etc. should all be considered FJC should be selected to match performance of mainline pipe coating No need to downgrade coating specifications at the field joint Products/systems now available from numerous suppliers

25 Design of FJC Specifications Coordination required between mainline coating and FJC specifications PQT s / PPT s performed with production intent products and equipment Project pipe OD(s) Production cycle times Specialized testing for pipeline construction bending, roller box, friction clamps Simulated service testing now more readily available Include in deepwater qualification programs as mandatory to demonstrate suitability of coatings for the intended deepwater service at design conditions

26 Design of FJC Specifications Example of Pre-Qualification Testing involving; - Application of materials onto project pipe using project equipment - Simulation of quenching and roller box testing within same process

27 Advanced Products 3LPP Coating Requirements Test / Property Factory Coating NFA Factory Coating DIN GTS-PP System Specifications Adhesion to Ambient Temperature 250N/cm 50 C > 250N/cm Adhesion to Max. Operating Temperature 110 C 90 C > 110 C Adhesion to Ambient Temperature N/A N/A Fused Impact Resistance (Pass Holiday Test) 10J/mm 5J/mm 30 Impacts > 10J/mm Indentation Resistance 23 C 110 C 90 C < 23 C < 110 C

28 Industry Best Practices Application Surface preparation abrasive blasting (mandatory) Ensure clean, well prepared surface for optimal coating adhesion & performance Induction heating (mandatory) Uniform heating across width & around circumference of joint Penetrating heat for lasting effect Controlled & repeatable heating process with faster heating times Indirect heating of MLC overlap area prevents damage & bonding issues

29 Industry Best Practices Application Cycle time optimization Conditioning ovens Pre-heat FJC materials prior to application Ensures consistent starting point for application Reduces application time Tube welding Enables the production of tubular field joint coating system prior to application on the joint, during other application steps Potential to save s from the critical FJC application path

30 Field Joint Coating Services Field services / supervision / support should be supplied by FJC materials manufacturer as a condition of supply Operator training & accreditation Training completed with same products, application equipment and for project specific conditions Validity of training limited to project or 1 year from issue Equipment set-up Ensure optimal set-up of coating stations and equipment for coating quality, health and safety and application speed Process optimization Supervision during construction Higher expectations to ensure quality and achievement of intended design life Support Contractor QA programs Approach is next best alternative to automation

31 Industry Best Practices Application Automated application Automated systems now available for partial / full application of the field joint coating Faster and more consistent installation times producing best-in-class application quality with guaranteed productivity

32 - 36 OD System

33 Thank you Dan Pearson