INTEGRITY MANAGEMENT SYSTEM FOR THE ULTRA DEEPWATER MEDGAZ PIPELINE23rd World Gas Conference, Amsterdam 2006

Jay Chaudhuri, MEDGAZ S.A., SpainDon Mackinnon, JP Kenny Ltd., UK

Gopi Rengasamy, Infosys Technologies Ltd., UK

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The MEDGAZ Project

Project Highlights• Designed to deliver 8 BCM/y gas during Phase 1; pot ential for capacity upgrade to 16 BCM/y by

installing a parallel pipeline.• The Medgaz system will consist of an onshore compres sor station at Beni Saf, Algeria (BSCS)• A deepwater 24 inch diameter pipeline across the Al boran sea

– Maximum depth: 2155 m – deepest depth for an Europea n pipeline– Approximate offshore length: 210 kms

• A gas reception terminal near Almería, Spain (OPRT )• Has received backing/funding from EU-TEN programme• Spanish and Algerian institutional support for Firs t Gas in early-2009

SONATRACH20%

CEPSA20%

BP12%

IBERDROLA12%

GdF12%

ENDESA12%

TOTAL12%

Ownership structure

3

Proposed Pipeline Route

4

Medgaz Project : Economic Rationale

• Spanish gas consumption has grown from 21.4 BCM in year 2002 to 28.3 BCM in year 2004 – Anticipated demand for year 2011 exceed 44 BCM

• Gas demand at 18% compound rate. – Contributing Factors

• Manufacturing growth• Switching to ‘Kyoto Protocol’ friendly fuels

• Economic growth rationale for investments in infras tructure capacity of energy market

• Gas demand from CCGTs increased by 66% in 2005, comp ared to 2004 – Contributing factor: Start-up of a number of gas fu elled power stations

(Source: Sedigas)

• Spain dependency on gas imports: 99.6% – LNG: 65% – Gas via pipeline: 35% – LNG price penalty factors:

– liquefaction– sea transportation – re-gasification

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Spanish Gas System Capacity (Source: CNE, 2004)

0,00

10,00

20,00

30,00

40,00

50,00

60,00

70,00

80,00

90,00

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011Year

bcm

/yea

r

GME Larrau Medgaz Barcelona

Cartagena Huelva Bilbao Mugardos

Sagunto Annual demand Peak demand

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LRMC supply cost (source: OME)

0,8 1 1,2 1,4 1,6 1,8 2 2,2 2,4 2,6 2,8 3 3,2

NORWAY-Norwegian Sea

NORWAY- LNG Snohvit

YEMEN LNG

OMAN LNG

UAE LNG

IRAN LNG

NIGERIA LNG

QATAR LNG

TRINIDAD &TOBAGO-LNG

VENEZUELA-LNG

NORWAY-North Sea Medium fields

LIBYA LNG

EGYPT LNG

NORWAY-North Sea Troll

ALGERIA-LNG

NETHERLANDS

ALGERIA via GME

ALGERIA via Medgaz

$/MBTU* Long Run Marginal Cost excluding producer country's royalty

Supply costs* for potential gas supply for SPAIN (2 010 - 2020)

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Pipeline Integrity Management

• Pipeline integrity ‘core business’ objective for MED GAZ

• Framework to resolve the issues of Pipeline Integri ty Management resulting from conventional design-construction-operation approach

• Maintenance of accurate data from design and construction phases and the project ‘Knowledge Database’

• Effective integration of In-Line-Inspection database with the construction ‘As-Built’ database

• Disjointed survey information and CAD information

• Lack of simulation and accuracy

• Requirement of manual correlation of data at all stages

• Lack of centralized database

• Sub-optimal collaboration between survey, engineering, construction and handover to Operations

• Routing alternatives

• Geophysical and geohazardcharacterization of seabed and underlying strata

• In-service loading

• Construction/installation assessments

Contributing Factors

Long-term operational Phase

Construction phaseDesign phasePhase

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Managing Design Integrity

Design Issues• Minimisation of environmental impact• Protection of marine flora/fauna on the offshore

and onshore sections on the Algerian and Spanish sides

• Avoidance of natural obstacles that exist along the route

• Low geological and geotechnical risks• Minimization of “free-span” risks

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Managing Design Integrity: Leveraging Technology

ROV-TRITON XL-14

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Managing Design Integrity: Geohazard evaluations

• Objective: To verify the integrity of the pipeline, thereby ensuring pipeline survival during extreme events.

Assessments conducted• Geophysical interpretation• Probabilistic Seismic Hazard Assessment

(PSHA)• Slope stability assessment• Probabilistic Fault displacement hazard

analysis• Numerical runout modeling

Extreme failure events covered• Fault slip - reverse, normal and strike slip,

and fault movement

• Slope failure - failure of the steeper slopes resulting in loss of support to the pipeline

• Mass sediment movements (turbidity flow and mud slide events) - impact of a fast-moving dense flow on the pipeline

Canyon area on the Habibas Escarpment

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Managing Design Integrity: Design code governance

• Medgaz pipeline design complies with the internation ally known design code DNV OS - F101.• Extensive material and full-scale testing have been performed for design validation.

Finite Element Model - Buckling Collapse Analysis

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Managing Construction Integrity: Traditional approa ch

Operations & Maintenance

CAD As-Builts

CAD DesignSurvey Data

Survey Data

Reports

As-built Data (GPS) GIS Data

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Managing Construction Integrity: Fully Integrated G IS and CAD

CAD Design

ConstructionSurvey Data

ReportsProject

Construction Database

Enterprise GIS Data

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MIMS: Knowledge management based on different views of data

Design Phase

PODS Data

Geometry

Geographic

Material

Spatial hazards GIS data

• Link to GIS-CAD data• Other documents and file•….•…

MIMS DataModel

MIMS“As designed” View

“As built” View(With updates from

Construction phase)

“As maintained”View (With updates

from annual Maintenance/Operations

Construction Phase

Operations Phase

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CAD – GIS – FEM : 3D Alignment Sheet

• 3D AutoCAD – ArcGIS data integrity• Export centerline of the 3D Pipe from AutoCAD and give thickness to represent the pipe in

ArcGIS

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MIMS: Logical architecture and Data handshake point s

GIS Spatial DataDTM

Alignment Sheets

Pipe Procurement

Engineering Integrated CAD/GIS Database

Engineering Database

PODS DataModel

Financial & AccountingApplication

Financial & AccountingApplication

Pipeline Operations

and Construction Information Application

GIS Application

GIS Application

Pipe Tracking Database

CAD Application: 2D

Other Documents/Regulatory

Data

Dat

a an

d F

orm

at M

appi

ng a

nd T

rans

form

atio

n la

yer

Maintenance DataGIS and Pipeline Survey

(DTM, ILI and Sensor data)

MIM

S D

ata

Inte

grat

or

B2B PortalConverter forGIS/CAD Compatible CAD Application data

CAD PDM

Other Applications

MIMS

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MIMS Application Landscape & Business Systems Lands cape

Long-term operations IT components Design & Construction IT Components

Business Systems

Financials / Project Accounting

Human ResourceseProcurement

Maintenance Management

Purchase Requisition, Goods receipt

Skills, Work Allocation, Shifts

Cost, Variance and Asset Information

Payroll, HR Budgets, Effort Estimates (Man Hours)

Invoicing, Budgeting Invoicing, Accruals

Document Management System

Pipe Tracking System

CAD Inline Inspection (ILI) Data Management

SystemGIS

FEM

Gas nomination, accounting &

balancing

Invoices, Receipts

MIMS

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OP

ER

AT

ION

SO

PE

RA

TIO

NS

EPC EPC

Vendors

DATA WAREHOUSE

ENGINEERINGDATA

WAREHOUSE

PR

OC

UR

EM

EN

T/

FR

ON

T

OF

FIC

E

PR

OC

UR

EM

EN

T/

FR

ON

T

OF

FIC

EB

AC

K O

FF

ICE

BA

CK

OF

FIC

E

KNOWLEDGE MGMT.

PORTAL

MEDGAZMEDGAZSUPPLIER TO MEDGAZ/EXTERNAL PARTY

CUSTOMER OF MEDGAZ /EXTERNAL PARTY

EXTERNALCOMMUNICATIONS/

INTERNETPORTAL

MOBILE PLANT DATA FEEDS

-PIPELINE

SYSTEM

B2B PORTAL

PIPELINE OPERATIONS

SYSTEM-B2B PORTAL

PROCUREMENT

InterestedParties

Parts Parts

Providers

Third PartyNetworks

Shippers(Customers)

Stakeholders

InternalTeam

InternalTeam

InternalTeam

KNOWLEDGE

MGMT

FINANCE &ACCOUNTING

APPS.

REPORTING &OPERATIONALPERFORMANCE

HR AND

HR ANDORGANIZATIONAL

PLANNING

FIELD OPERATION

DATA FEEDS

EngineeringServiceProvider

EPC EPC

VendorsParts

Providers

Engg.Service

Providers

ASSET

INFRASTRUCTURE/ASSET

MAINTENANCE &MANAGEMENT

FINANCE &ACCOUNTING

APPS.

ME

DG

AZ

INT

EG

RIT

Y M

AN

AG

EM

EN

T

SY

ST

EM

(M

IMS

)

Summary

- Medgaz is making significant investment in IT systems and operating processes to ensure that integrity management of the pipeline system becomes a core business function.- The proposed technology platforms will use proven engineering and database technologies; ensuring cost-effective implementation.- Higher system availability and lower operational cost are expected outcomes from efficient use of ‘knowledge management’ in Medgaz’s business processes.