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Storage Tank storage operations Corrosion Increasing pipeline resilience
Storage
Ageing plant
Cybersecurity
Four ways to Improve tank farm operations
The dangers of false economy
Managing oil & gas sector risk
December 2017
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contents december 2017 In a country where workplace deaths and injuries remain commonplace, the death toll from the incident at the newly-built Unit 6 at NTPC’s Unchahar coal-fired power plant in India – 43 on November 11 and forecast to rise still higher – was still shocking (See page 10). NTPC officials involved in the investigation told local media the accident occurred as workers were trying to remove bottom ash from beneath the furnace in the boiler unit. Pressure inside the affected unit increased to 70 times its normal level in a few minutes, and an emergency shut-off mechanism failed to work. The pressure caused a section of ductwork to fail, resulting in the explosion that released superheated gas onto the workers. Some Indian news sources have raised questions over the speed with which the affected unit was brought into service, possibly with its ash disposal system still incomplete. The fact
14
that there were 311 workers inside the unit at the time, far more than would be required for normal operations, points to additional work being carried out. Those sources also claim workers were trying to clean out the clinker at the bottom of the unit without shutting it down by manually poking the blocked deposits with rods through access holes. This is in itself a questionable practice, although according to the Indian Express, relatively common at Indian coal-fired powered plants. A similar incident killed five workers at the Big Bend power plant near Tampa, Florida, in June.
Because of their role within the supply chain, terminal operators play an important role in regulating imbalance between supply and demand
20
The NTPC has had an impressive safety record overall and if it is to retain its reputation, the official incident review needs to look closely at these issues and ensure any short cuts responsible are identified and not repeated. …Alan Franck, Editor, Hazardex Oil & gas companies are reluctant to publicise successful cyber attacks for fear that exposing vulnerability may invite further attacks
in this issue News Extra
5
• After BP leak report, state calls for review of all Alaska North Slope wells • Latest UK ATM explosion heist highlights growing criminal trend • Las Vegas airport aviation fuel tanks targeted during October 1 mass shooting incident • US urges worldwide ban on laptops in checked-in luggage on aircraft • Romania suffers two fatal coal mine incidents in October • India power plant blast death toll reaches 43 • Molten iron ore kills four, injures 11 in Indian metal plant • US study finds power from coal up to 100 times more toxic than from shale gas
13
Standards: IECEx
14
Tank storage and tank storage operations
19
Digital collaboration – Four ways to Improve tank terminal operations
20
Cybersecurity - Digitalising oil and gas
24
Sourcing equipment to withstand hostile oil and gas operations
28
The dangers of false economy in a low oil price environment
31
Event previews
24
Severe pipeline corrosion can lead to the loss of ductility and impact strength, reduced pipe thickness, or even complete failure
28
• Process Safety Excellence – 24-26 January 2018 – Amsterdam, The Netherlands • European Oil Storage Conference - 25-26 January 2018 – Amsterdam, The Netherlands • European Gas Conference - 29 to 31 January 2018 - Vienna, Austria
36
The pressure to reduce capex when designing and installing a corrosion control system can lead to sub-standard solutions
the journal for hazardous area environments
hazardexonthenet.net
December 2017
Datafiles & Buyers Guide
Storage Tank storage operations Corrosion Increasing pipeline resilience Storage Tank storage operations Corrosion Increasing pipeline resilience
Storage
Ageing plant
Cybersecurity
Four ways to Improve tank farm operations
The dangers of false economy
Managing oil & gas sector risk
Hazardex is a controlled circulation journal published monthly. Completed print or online registration forms will be considered for free supply of printed issues, web site access and online services. Annual subscription for non-qualifying readers is UK £84.00, EU €113.00, Airmail £178.00 and single copy price is £17.00 plus P&P.
Hazardex content is the property of the publishers or relevant content providers. The publishers and sponsors of this magazine are not responsible for the results of any actions or omissions taken on the basis of information in this publication. In particular, no liability can be accepted in respect of any claim based on or in relation to material provided for inclusion.
Editor Alan Franck alan.franck@imlgroup.co.uk
Group Publisher Russell Goater russell.goater@imlgroup.co.uk
Sales Executive Kathryn Startin kathryn.startin@imlgroup.co.uk
Circulation subscriptions@imlgroup.co.uk Tel: +44 (0)1732 359990
Production and Events Sara Clover sara.clover@imlgroup.co.uk
Design Graham Rich Design www.grahamrichdesign.co.uk
IML Group plc Blair House, High Street, Tonbridge, Kent TN9 1BQ, UK Tel: +44 1732 359990 Fax: +44 1732 770049 Email: events@imlgroup.co.uk ISSN 1476-7376
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BP operations on the North Slope – Image: BP
News Extra
5
After BP leak report, state calls for review of all Alaska North Slope wells T
he Alaska Oil and Gas Conservation Commission (ADEC) is ordering all wells on the North Slope that have a
Foerster said the ADEC review would establish how many wells on the North Slope have a similar design, but expected
work completely in many business units over the first 12 days of October.
similar design to a BP well that failed to be shut in immediately and reported to the state. The emergency order comes after BP blamed an April oil
newer fields not to suffer the same problems. She said the permafrost around the wells
The safety incident where two workers were exposed to a gas leak inside a building at one of BP’s drill sites which could have led to a fatal explosion was
spill and gas leak on a well casing that buckled under pressure from thawing permafrost. BP operates Prudhoe Bay,
is not thawing because of climate change but from the heat from the oil and gas and other fluids being pumped from thousands
one of five spills or leaks — known as Tier 1 events — that BP Alaska was responsible for in 2017, BuzzFeed
the biggest oil field in Alaska
of feet underground to the frozen surface.
reported.
State regulators have called for a review of
Earlier, local media reported that BP was
In an email to the company workers, BP
thousands of oil wells on the North Slope by the end of this year to see how many are similar to the failed BP well and what
likely to plug and abandon 13 wells on the North Slope following the incident earlier this year.
Alaska President Janet Weiss said, “I am deeply concerned that with these trends, we are not in a stable state.”
action needs to be taken to prevent a re-occurrence of the incident, which saw the well spew oil and gas for several days before it could be plugged.
BP’s report concluded the incident was caused by thawing permafrost deep below the surface, which put uneven stress on
BP published a statement claiming that safety and protecting the environment are the company’s top priorities, and its
the well. Eventually, the well gave out, rising several feet out of the ground and colliding with the top of the well house, leading to the uncontrolled leak.
pipeline assurance program performs close to 300,000 inspections each year.
ADEC, the US Environmental Protection Agency, the North Slope Borough and BP Exploration Alaska has established a committee to respond to the discharge near Prudhoe Bay. According to the KTOO website, ADEC board member Cathy Foerster said she was disappointed by BP’s decision not to share information from its internal review into the incident with all other North Slope operators. Where problems were identified, operators would have to remediate them, she said.
This was not BP’s only accident this year. An earlier investigation published on October 20 by Buzzfeed News revealed
“BP reports all incidents in accordance with state and federal laws, including two natural gas releases earlier this year at a Prudhoe Bay drill site and Flow Station 3,” spokeswoman Dawn Patience said in
BP Alaska has suffered a number of safety incidents on the North Slope this year, some of which put workers at risk. The report claims that BP recorded 27 worker incidents in Alaska as of September 12 and
the written statement. “While the goal is to have no releases, both of these incidents occurred during planned maintenance and were halted quickly, and neither resulted in injury to workers or impact to
managers were so concerned they stopped
the surrounding environment.”
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News Extra
6
Latest UK ATM explosion heist highlights growing criminal trend U
K police are searching for thieves who blew up a cash machine in
of damage in attacks on ATMs at 13 banks and supermarkets, police said.
in the cash piles to enable police to catch the criminals after the act.
an explosion that shook homes more than two miles away in the early hours of October 26. The blast happened at a Co-operative Bank cashpoint
The usual technique is to pipe gas into the cash dispenser slot and ignite it. If the resulting blast is of the right amplitude, the
A report in October by the EU Association of Secure Transactions (EAST) on ATM crime covering the first six months of 2017 said
outside a Matalan store in Darlington in north eastern England, leaving a large amount of debris spread over
rear door of the ATM inside the building or lobby will have been blown off, leaving the perpetrators to gain entry to the building,
attacks took place in eleven countries. The report revealed the scale of the problem:
the adjacent car park.
slide open the cash drawers and take the money.
“ATM related physical attacks rose 6% when compared with H1 2016 (up from 1,604 to 1,696 incidents). Within this total
There have been instances where too much gas has been used and the ATM and the cash inside has been completely destroyed.
ATM explosive attacks (including explosive gas and solid explosive attacks) were down 2% (down from 492 to 481 incidents).
At the UK Explosion Liaison Group’s 35th anniversary meeting in October at DNV GL’s Spadeadam research and test
Losses due to ATM related physical attacks were €12.2 million, a 55% drop from the €27 million reported during the same period in 2016. Part of this decrease is due to the
Police said the raiders may have miscalculated the amount of gas or explosive material needed and it was possible one of them may have been injured. The trend of blowing up ATMs with gas, usually oxyacetylene, started in 2005 in Eastern Europe. It has since spread across the continent, with the first recorded UK attack taking place in March 2013. By April 2015 there had been more than 100 in the UK, mostly around Bristol and South Wales, with incidents spreading out across the country in the last two years.
site in Cumbria, delegates were given a presentation on this issue. They learned this criminal trend had been under-reported in the media at the request of police to minimise copycat attacks. Banks have introduced a number of security measures to counter the raids.
In April 2017, a gang of seven men that caused explosions at cash machines around England and Scotland were jailed for a total of 92 years. The Merseysidebased group stole more than £550,000
ATM manufacturers now offer various anti-gas-attack modules: some absorb shock waves, some detect gas and render it harmless, and some emit sound, fog, or dye to discourage thieves in the act. They
and caused more than £160,000 worth
sometimes also include geolocation devices
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fact that one major ATM deploying country that used to report this data is currently unable to do so. “The average cash loss per explosive or gas attack is estimated at €14,575, the average cash loss for a robbery is €10,357 per incident and the average cash loss for a ram raid or burglary attack is €9,761. These figures do not take into account collateral damage to equipment or buildings, which can be significant and often exceeds the value of the cash lost in successful attacks.”
News Extra
7
Las Vegas airport aviation fuel tanks deliberately targeted during October 1 mass shooting incident
O
n the night of October 1 a gunman opened fire on a crowd of concert-
A statement by airport officials said it was virtually impossible for gunfire to trigger a fire or
tanks, which are about 335 metres from the Las Vegas Village venue where the festival was
goers at the Route 91 Harvest music festival on the Las Vegas Strip in Nevada, leaving 58 people dead and 546 injured.
explosion at a commercial fuel storage facility.
held.
Richard Brenner, the Clark County Fire
The affected tank has now been drained and
It was subsequently discovered that he had also shot at a giant jet fuel tank on the edge of McCarran International Airport, beyond the venue where the
Department’s expert on hazardous materials, said on October 19 that the tanks were designed to withstand extreme forces.
McCarran International Airport officials said they would hire a safety expert to inspect it.
concert was taking place. The Las Vegas Review-Journal reported
Clark County Sheriff Joe Lombardo said the gunman, who was shooting from the 32nd floor of the Mandalay Bay hotel, may have tried
storage system meets all structural and safety requirements set by the National Fire Protection Association for on-airport fuel storage, as
that there were two bullet holes in one of two adjacent 43,000-barrel fuel tanks, along with black powder burns. Markings from
to create an explosion or diversion by firing at the tanks after he sprayed the crowd of 22,000 at the country music festival.
well as the standards set by the American Petroleum Institute. The airport’s tank farms are designed to include a combination of manual
investigators indicating entry points were still visible three weeks after the incident near the top of the tank, which airport officials said was
“It is believed the fuel tanks were fired upon with intent,” Lombardo said during a press
partially filled at the time of the shooting.
briefing on October 13.
One bullet made its way inside the tank, officials said, but caused no fire or explosion.
County Commissioner Chris Giunchigliani has called for a security review of the jet fuel
The airport statement added: “McCarran’s fuel
and automated fire suppression systems to ensure the utmost public safety. “Likewise, in the event of an actual, uncontained tank fire, these systems are engineered to vent flames upward into the air rather than explode.”
News Extra
8
The test showed that because of the rapid progression of the fire, Halon gas
US urges worldwide ban on laptops in checked-in luggage on aircraft
A
US government regulator has asked airlines to ban large electronic
airliner’s fire suppression system leading to the loss of the aircraft.
devices such as laptops from checked-in luggage because of the potential for a catastrophic fire. The US Federal Aviation Administration (FAA) asked the United Nations’ International Civil Aviation Organization (ICAO) to introduce a ban
The FAA conducted 10 tests involving a fully charged laptop packed in a suitcase. A heater was placed against the laptop’s battery to force it into “thermal runaway,” a condition in which the battery’s temperature continually rises.
after tests identified particular dangers in overheating rechargeable lithium-ion
In one test, an 8-ounce aerosol can of dry
batteries. When a laptop battery overheats in proximity to an aerosol spray can, the FAA said, it could cause an explosion capable of disabling an
shampoo —which is permitted in checked baggage — was strapped to the laptop. There was a fire almost immediately and it grew rapidly. The aerosol can exploded within 40 seconds.
fire suppressant systems used in airline cargo compartments would be unable to put out the fire before there was an explosion, the FAA said. The explosion might not be strong enough to structurally damage the plane, but it could damage the cargo compartment and allow the Halon to escape, the agency said. Then there would be nothing to prevent the fire from spreading. Other tests of laptop batteries packed with potentially dangerous consumer goods that are permitted in checked baggage such as nail polish remover also resulted in large fires, although no explosions. The FAA said the European Safety Agency, European aircraft manufacturer Airbus, the International Federation of Airline Pilots’ Association, and the International Coordinating Council of Aerospace Industries Association, which represents aircraft makers, concurred in the recommendation.
News Extra
9
to a specialist burns hospital in Bucharest and two of the rescuers were also admitted to hospital suffering from smoke inhalation. One local source quoted a trade union leader saying the most likely cause of the explosion was the ignition of methane in the mine. A judicial investigation into the incident will take place, according to local state prosecutors. The Uricani mine currently employs 300 and will close by the end of the year. At its peak, some 2,200 miners used to work at
Romania suffers two fatal coal mine incidents in October
O
n October 30, an underground explosion at the Uricani coal mine
miners dead and one injured.
the site. The earlier incident at the Lupeni mine involved a ceiling collapse more than 400 metres underground. After 12 hours of digging, rescuers found one dead and two injured miners, with one of the latter later succumbing to his injuries in hospital.
in Western Romania killed one and injured three others. This is the second mine accident in Romania in a month: a
The Uricani miners were carrying out activities associated with the pit’s closure when the blast took place, 50 metres
The Lupeni coal mine is located in the Valea Jiului mining region and is owned by the
gallery ceiling collapsed at the Lupeni coal mine on October 5 leaving two
underground. According to Romania Journal, two of the injured were airlifted
state-owned energy company Complexul Energetic Hunedoara.
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Unchahar power plant - Image: NTPC
10 News Extra
India power plant blast death toll reaches 43 T
he death toll from the November 1 explosion at NTPC’s Unchahar coal-fired power plant in Raebareli,
media reported. NTPC, formerly known as National Thermal Power Corporation, said in a statement that hot flue gases and steam
1988 and three remain in production, with two closed for maintenance.
Uttar Pradesh, reached 43 ten days later. A total of 21 of the seriously injured were flown by air ambulance to New Delhi for specialist treatment after the
escaped from the pipe, affecting the people working around the area.
The Indian Power Ministry has set up a committee to investigate the incident.
Ash had piled up in the furnace beneath
On the same day, reports came in of a
incident and 18 are said to still be in critical condition, with further fatalities a possibility. Around 80 were less seriously
the boiler, which then led to a build-up of pressure resulting in the explosion, a senior Uttar Pradesh police spokesperson posted
transformer blast that killed 14 near Shahpura town in Rajasthan. According to eyewitness accounts, scalding oil from the transformer
injured.
online.
sprayed over a marriage procession causing many of the victims’ clothing to catch fire.
A boiler pipe burst in a 500 MW generating
The unit has been shut down and is likely
unit, which started operating in March. After the blast, a large fire broke out and a huge ball of dust rose making rescue difficult, local
to be closed for several months until repairs can be carried out, NTPC said. The other five units of 210 MW have been in operation since
According to local news sources, another 10 people with more than 50% burns are being treated in hospital following this incident.
Molten iron ore kills four, injures 11 in Indian metal plant
A
t least 15 labourers were injured when a crane broke and the molten iron ore it was carrying rained down on workers in a factory in Haridwar district, 200 km north east of New Delhi, police said on November 6. Four of the injured died in hospital over the next 48 hours and at least one other was said to be in a critical condition. The incident took place at the Radiant Bar iron bar factory, part of the Rana Steel group. There was also a major explosion as the molten ore
www.hazardexonthenet.net
from the broken 17-tonne capacity ladle fell on oxygen cylinders. A generator also caught fire, adding to the blaze. A case has been registered against the factory management for negligence and obstructing rescue efforts. Police said they have arrested the factory’s general manager and supervisor for not informing the police about the accident and barring entry to officials, delaying the rescue and relief operations. The Hindustan Times quoted a police source
saying that security guards did not let the police onto the site for a considerable amount of time. It was only after additional reinforcements were called that they were able to get inside and rescue the workers. Most of the workers are migrant labourers from Bihar and Uttar Pradesh, police said, with around 125 workers on site when the incident occurred. A district magistrate ordered a probe staffed by a joint team of representatives from the fire, labour and police departments.
News Extra 11
extraction. And the harmful air emissions from coal-fired power plants were much worse than those from cleaner-burning natural gas plants, Miller said. “We looked at the total mass of emissions released per unit of electricity generated throughout the lifetime of both systems,
US study finds power from coal up to 100 times more toxic than from shale gas
and the overall toxic load is much greater for coal,” she said. “Emissions of particulate matter pumped into the air every single day by coal-fired power plants have greater potential human health impacts than any of the other chemicals we examined.”
he lifetime toxic chemical releases associated with coal-generated electricity are 10 to 100 times greater than those from electricity generated
we should be pursuing renewables more aggressively if we really want to decrease the human toxicity burden of our energy system.”
The study by Miller and her colleagues is believed to be the first head-to-head comparison of coal and shale gas from the resource extraction phase through electricity generation. While the results provide a
with natural gas obtained via fracking, according to a new University of
In recent years, the combination of horizontal drilling and hydraulic fracturing (commonly
comparison of relative toxicity between the two systems, large uncertainties and lack of
Michigan study. In their lifecycle impact assessment, the researchers used Pennsylvania as the point of origin for both shale gas and coal, since both are
known as fracking), have helped unlock vast stores of natural gas in shale formations. Increased shale-gas production created
data precluded a full-blown risk assessment.
T
abundant in the state. The study is a comparative analysis of
a boom in some parts of the country but has also led to concerns over potential contamination of drinking water and possible human health impacts related to hydraulic
Much of the uncertainty relates to the hydraulic fracturing process. The chemicals used in hydraulic fracturing fluid are considered proprietary, and the magnitude and frequency of water-contamination events
the harmful health effects of electricity produced from shale gas and coal and was published online on October 10 in the
fracturing.
are not well-documented.
For the coal system, the study estimates
When faced with uncertainties about the
journal Environmental Science & Technology. It looks at the amount of toxic chemicals released into the air, soil and water during
the toxicity associated with air pollutants emitted during power generation, as well as toxic chemical releases during the coal-
chemicals used in the hydraulic fracturing process, the researchers deliberately overestimated the amount of toxic chemicals
both the resource extraction and electricity generation phases of both technologies and concludes that the potential human health
mining process from acid-mine drainage and coal-ash impoundment. The air pollutants analysed for the coal system included
that would reach the environment to ensure they weren’t minimising fracking’s health impacts, Miller said.
impacts of electricity from coal are much higher.
particulate matter (soot), mercury, volatile organic compounds, nitrogen oxides and sulphur oxides.
Even in a seemingly implausible accidentalrelease scenario in which all of a well’s
The findings suggest that as the US energy market continues to shift from coal to natural gas, the overall “toxicity burden” of the electricity sector will decrease, said study author Shelie Miller, an environmental engineer and an associate professor at the U-M School for Environment and Sustainability’s Center for Sustainable
For the hydraulic fracturing system, the study estimated the toxicity of the fracturing fluid chemicals used to crack rock and release natural gas, as well as the wastewater associated with shale-gas extraction. The researchers also looked at air pollutants emitted during both shale-gas
Systems.
extraction and electricity generation.
“This analysis does not imply that concerns associated with shale gas production are unfounded, only that the overall toxic load
In both systems, particulate matter released into the air from power plants during electricity generation was the dominant
of coal is definitely greater,” Miller said. “And while the study doesn’t address this directly,
toxicity contributor and outweighed chemical releases that may occur during
hydraulic fracturing fluid and untreated wastewater were discharged directly into surface waters for the lifetime of the well, shale-gas electricity had a lower lifetime human toxicity impact, or HTI, than coal electricity, according to the study. To calculate the health impacts of particulate matter from power plants, the researchers collected emissions data from 23 natural gas and 13 coal-fired power plants in Pennsylvania. Data from 2,900 hydraulically fractured wells in the state were used to estimate potential releases of fracturing fluid chemicals and wastewater.
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Advertorial 12
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American system and ATEX Directive and answers the typical questions that you may have when considering certifying for this sector. Areas covered include: • The Certification required for North America • The production requirements • How hazardous locations are categorised • Classes • Divisions and Zones systems • Ex certified components • The standards The requirements for North American Certification are unique to each product, and understanding these requirements early is helpful to ensure a successful project. As such, SGS Baseefa invite manufacturers to contact them during the R&D stage in order that they can provide guidance and appropriate assistance. It is also advised that manufacturers speak to their customers and distributors to understand their end user’s requirements, and to obtain certification accordingly. It has not always been possible to identify a requirement for North American Certification at the time of a product going to market, leaving manufacturers unsure as to whether their existing ATEX and IECEx
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Standards 13
IECEx at the end of 2017 challenges and opportunities two years, was elected as the new Vice Chair with no objections. For his very valuable contribution to the success of the system, Dr. Zalogin was given the Edison Award later on at the annual IEC general assembly in Vladivostok. Professor Xu of China and Mr. Thiery Houeix of France have been elected respectively for a second term as ExTAG Chairman and IECEx treasurer.
keep the quality levels high, but at the cost of a lot of time, money and effort, including at the annual Management Committee meeting. One fact which worries me as the chairman of the system is the stagnation in the number of member countries over the last two years. At our 2015 meeting In Christchurch, New Zealand, Israel joined the system, but we have not had any new applicants since then.
A relatively long time was spent on the
So I was more than happy to accept an invitation from customers and national organisations to come to Indonesia and
discussion of the harmonization of the four different conformity assessment systems under the IEC CAB organisation. The goal of
present the IECEx system. Two weeks after my trip to Washington I flew to Jakarta via Singapore. There I had some very interesting
the so-called Harmonized Basic Rules (HBR) is clear and well appreciated by the complete IECEx membership. Harmonization means
and encouraging meetings with regulators, engineering companies, insurance companies and end customers. My impression was
an improvement in the efficiency of the whole system and makes any extensions easier but there is no reason for total harmonization.
very positive. Indonesia has a very powerful economy with a number of world class process companies, especially in the oil and
he 2017 IECEx Management Committee Meeting took place in Washington D.C., a location with a special
Every single Conformity Assessment System needs sufficient flexibility to adapt to the very special needs of its stakeholders. The
gas and chemical sector.
meaning for our organisation. Our hosts from the US National Committee did a great job to provide the best conditions for a successful event. The meeting opened with a really motivating speech from the new IEC president, Mr. James M. Shannon from the USA. He reminded us all of the IEC’s mission to promote global technical safety and urged us not
overall goal should be to establish as much harmonization as possible, but no more than necessary.
of NEC, European (ATEX) and international regulations for hazardous areas – which is far from providing an all-embracing safety system. This makes the country an ideal candidate for IECEx, as our system not only unifies the requirements for explosion protected products but can also ensure a high quality workforce through the application of the competency scheme.
to become discouraged in the face of current difficult political circumstances around the world
The continuous growth of our system is 99% positive, but expansion also means it becomes ever more difficult to sustain high quality levels across all our worldwide activities. This means more time must be spent ensuring that all
Every two months, IECEx Chairman Prof. Dr. Thorsten Arnhold provides an update on developments within the organisation
T
One of the first activities at the start of the meeting was to elect new officers. The second term of the Vice Chair, Dr. Alexander Zalogin of Russia, will finish at the end of 2017 and the candidate from Canada, Mr. Marty Cole, who has been an active member of IECEx for many years and who has done a great job as the convenor of the Working Group 1 over the last
Other important agenda items were the extension of the service facility scheme, the updating of a number of operational documents and the approval of the 2018 budget.
activities are being executed correctly. To cover this we established the proficiency test program to ensure the correct execution of the type tests in all IECEx Test labs, and we set up mid-term evaluation of the certification activities of the IEC Ex CBs. This helps us to
Currently in Indonesia companies use a mix
These factors are highly appreciated by Indonesia’s neighbour, Malaysia, a key IECEx member. The future membership of Indonesia would be an important step for IECEx and with this in mind, the next international conference of UNECE and our organisation will be held in Jakarta in August 2018. I will keep you updated on any future developments on this matter.
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14 Storage
Tank storage and
tank storage operations
E
urope provides approximately 30% of the world capacity for bulk liquid storage through a network of over 400
Third party storage businesses provide neutral and independent bulk liquid storage solutions for their customers. Tank space is
Products and markets
terminals providing logistical support for industry, authorities and the armed forces. In principle any liquid product
available for all market players and provides an essential part of the supply chain for many industries.
multiple products, and can provide supplementary services such as blending, packaging, canning, drum
Terminals provide the means to import and export products through various means
filling, water treatment and analysis, warehousing and bonded alcohol storage.
that is transported in bulk can be stored in a bulk liquid terminal, including transport and heating fuels, chemicals, food and agricultural products. In this article, Peter Davidson of the UK Tank Storage Association looks at bulk liquid storage and the main issues faced by operators in the sector. Terminal operating companies typically fall under two categories, either those that own the product in their tanks – for example major oil company terminals, and trading companies, or those that provide third party storage – that do not own the products in their tanks.
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including sea-going vessels, inland barges, road tankers, rail cars and pipelines. They typically store large volumes of liquids and do not normally store packed products, for example those in Intermediate Bulk Containers. Regardless of whether a terminal operator provides third party storage or stores their own products, all are committed to achieving high standards of safety and are regulated closely by relevant agencies. In the UK, the TSA represents the interests of businesses which operate 70 COMAH (Control of Major Accident Hazards) terminals, and 217 nonCOMAH terminals.
Terminal operating companies could store a single product or
Because of the varied nature of the products stored and the operations that take place, terminal operators have a range of commitments and responsibilities both to their customers and to the regulatory authorities: • Safety, Health and Environmental • Quality • Security, including cybersecurity • Contract conditions • Product requirements and registration (for example REACH) • Construction and maintenance • Tax and customs
Storage 15 Importance of location Terminal locations are strategic and aim to satisfy the needs of the market and wider supply chain (their customers). They may also be placed to capitalise on product patents. For certain products, for example transport fuels, terminals may be considered as Critical National Infrastructure by Governments due to their importance in providing essential services to a country. When considering the location of a terminal it is essential to consider access to logistical connections, for example unrestricted access to international ports, inland waterways, pipelines and road networks. Terminal operations are present throughout the world; however, the major storage hubs are in the United States, Europe, the Middle East and Asia, providing the lion’s share of the storage required for global commerce in bulk liquids.
Terminal assets Terminals are essentially a collection of tanks, pipes, pumps and valves. They are typically not considered process plant (even though they may carry out some very simple processes, such as blending). Whilst pipework and ancillary equipment are Products and markets
common, tank design will depend on the nature of the products stored, for example:
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16 Storage • Floating roof tanks are most commonly used for products with high vapour pressures such as Gasoline and Naphtha • Fixed roof tanks are most commonly used for Diesel and Fuel/Gas Oil • Chemical products are typically stored in smaller closed-circuit tanks manufactured from Stainless Steel • Temperature controlled tanks store viscous or other temperature-sensitive substances • Spheres and spherical tanks are used to store products under high pressure Local and European legislation will often determine environmental requirements for the storage of bulk liquids, including: • Vapour recovery • Primary, Secondary and Tertiary containment
Gasoline supply chain (Source: US Energy Information Administration) through coordination and collaboration with suppliers, intermediaries, third party service providers and customers.
stored for customers in independent storage, one of the challenges the sector
Terminals provide an essential component of many complex supply chains and therefore form part of the system of organisations, people, activities, information and resources involved in moving a product from a supplier to a customer or end user. A terminal operator could appear multiple times within
faces is understanding the changing nature of regulation and standards that apply.
a supply chain providing storage for base, intermediate and finished materials.
Logistics and supply chain management
including: • Facility engineering – the necessary assets, maintenance, health safety &
Because of their role within the supply chain, terminal operators play an important role in helping to regulate imbalance between production and consumption
environmental design & compliance, energy design & availability and quality management • Information Technology – the necessary
Because of the varying nature of substances
Bulk liquid storage plays an important role in the logistical supply for many different sectors and businesses. One definition can be described as: “The intermediate accommodation for conservation of liquid products – i.e. products in large definite volumes but of no fixed shape. Bulk liquid storage provides the interface between production and distribution.” Bulk liquid storage can change its nature depending on the logistical function it is providing, for example: • General storage, for multi-purpose use to several customers • Dedicated storage, for specific substances, customers or infrastructure needs (for example transport fuels) • Tailor-made storage, for specific customers and substances which require special handling, design and construction of storage facilities • Value added storage, whereby the terminal provides additional intermediate services such as blending and packaging • Strategic storage, storage for political purposes (for example Compulsory Stocking Obligations, Military use)
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or supply and demand. This is achieved
Decisions on inventory management – the products stored, when and for how long – are influenced by many different factors
systems in place to manage inventories
Storage 17
internally and externally with customers, regulators and relevant government departments (customs) • Strategic and commercial information – replenishment lead times, carrying costs, inventory forecasting, demand forecasting and physical available space
Challenges in Europe
provides essential services to the public such as transport and heating fuels. Europe has an increasing demand for the import of Aviation and Diesel fuels. This change has been partly influenced by European refiners coming under greater pressure from large complex and modern
Managing terminal operations is a complex business due to the varying inventories of products stored and the different regulations and standards that apply. These inventories can often change quickly depending on the
refineries in the Middle East and Asia (often not subject to the same environmental standards). With global markets open to traders and importers there is a need to ensure that storage capacity is available to meet this increased demand.
needs of the customer and the end market, with Europe having some of the most stringent environmental laws compliance can be challenging. Terminal operators are also faced with meeting the demands of new European directives such as the
In the long term there is a need to consider demands for future fuels. Many governments have set de-carbonisation targets which implies a falling demand for fossil based fuels in the future – will there be
Network Information Systems and General Data Protection regulations – which could
an increased demand for alternative liquid fuels, and in the interim, will the demand for
bring heavy fines for non-compliance.
the bio content of transport fuels increase? Both scenarios will continue to rely on bulk liquid storage.
There is a need to take a practical approach to regulation – 2004 saw 940 EU regulations on Health, Safety and the Environment. In 2013 this number was 1,724. This places a very heavy burden on the sector, one
Finally, the impact of BREXIT is unknown. What influence this has on global supply chains and the domestic UK market is yet
which supports many other businesses and
to be seen.
Conclusion Bulk liquid storage provides an essential part of the logistical supply chain for many different sectors. Whilst transport and heating fuels represent a larger proportion of the products stored, terminals also store chemicals, food stuffs and agricultural products that influence many aspects of our lives. With bulk storage and intelligent distribution, the industry can also achieve a positive environmental impact – cutting down on packaging and reducing transportation miles. There is an increasing demand for storage capacity, and in order to meet this demand industry and governments should work closely to ensure that any barriers to this growth are minimised.
About the author
Peter Davidson is Executive Director of the UK Tank Storage Association and sits on the Executive Committee of the Federation of European Tank Storage Associations (FETSA). The Tank Storage Association (TSA) represents the interests of twenty-twomember companies engaged in the storage of bulk liquids. Collectively members operate over 280 terminals and distribution hubs in the UK and have over 8 million cubic metres of storage capacity. More than 60% of the products stored and distributed are refined petroleum, however members also store many other substances including a wide variety of chemicals, molasses, fats & oils, ethanol and glycerine.
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Award nominations closing soon, have you entered
First conference papers announced, early-bird delegate offers now available
The 2018 Hazardex International Conference and Exhibition will be taking place once again at the Holiday Inn Hotel in Runcorn, Cheshire, UK, on February 28 and March 1. The two-day Conference & Exhibition, which also includes workshops, a networking dinner and awards ceremony, aims to strengthen and expand the community that looks to the Hazardex website and journal for industry intelligence and information. We are pleased to announce the key note presentation will be a joint paper from the UK HSE and National Cyber Security Centre titled ‘Cybersecurity: Is the UK prepared to address the risks?’. This will set the tone for the conference & event along with the IIOT / Ind 4.0 exhibitor village and workshops. The other main areas of interest at next year’s conference will be systems, procedures, competence, human factors, legislation, non-electrical, risk and asset management. The full conference programme will be announced shortly, the committee also issued a special request for end user/operator experiences, particularly relating to regulation, cultural change,ageing plant and decommissioning. Delegate, exhibitor or sponsorship enquiries should be addressed to the Event Director Russell Goater at events@imlgroup.co.uk or phone +44 (0) 1732 359990.
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Storage 19
aspect, real business benefits will come from a data driven end-to-end approach. 4. Process Automation is transforming supply chains into a simple, fast, and automated way of processing routine transactions. Robotic process automation tools are a way to cut costs, improve administrative quality, eliminate keying errors, speed up processes and link applications together. Machine learning explores the study and construction of algorithms that can learn from and make predictions on data.
Digital collaboration – Four ways to Improve tank terminal operations t the StocExpo Europe 2017 Conference, Eduard J. Smits, Manufacturing IT, MES at Accenture,
development according to their needs. Nowadays, considerable time is wasted on data sharing between companies, since
New digital technologies often provide quick efficiency benefits, in small, incremental steps and may be developed in an agile way, whilst closely cooperating with the business they serve. Companies should think about how to take advantage of digital technology and its opportunities to increase revenue or to reduce costs. Organisations that master the
hosted two panel sessions, looking at the Global Energy Outlook and the Storage Market Outlook. Here he
there is no protocol for communication between them. The following model helps with digitising and aligning data sharing with
right mix of digital supply chain capabilities will be best positioned to innovate, compete and succeed in an entirely digital business
considers how digital technology can improve operations at tank terminals.
tank terminals.
future. The world of digital communication will soon become the norm and not the exception.
A
The availability of advanced digital
1. It is critical that businesses not only agree to communicate and work together, but they
technologies, such as big data, analytics, cloud and connected devices are driving new opportunities to integrate storage
must also begin to function as a single entity, in a synergistic system. This process involves integrating and working various verticals
terminal operations. Research conducted by Accenture into collaboration at tank terminals has created an outline of the current digital
to achieve the desired outcome, enabling demand-driven responsiveness, achieved by seamless execution across an end-to-
maturity in the market, and suggests there is still a lot of scope to grow.
end integrated network. Terminals, LSP’s and other stakeholders must work towards a unified system and synchronise with each
Terminals, especially brownfields, frequently lack the digital maturity to fully capitalise on digital opportunities as they present themselves. Aligning the supply chain will
other.
have a considerable impact on the terminal’s operating efficiency and therefore also on reducing costs and improving customer service.
uncertainty in the supply chain. This includes developing global data standards and policies related to data sharing and security, and encouraging transparency in operations.
Historically low crude oil price levels have strongly increased the importance of efficiency across the industry. The exciting
3. Visibility is the capability to track products in transit from refineries to terminals and when arriving at the final destination.
thing is that this has overlapped with a technology revolution, bringing a series of new digital technologies and applications that impact on the productivity of the oil industry. Tank terminals need to evaluate
Creating dashboards with KPIs coming from heterogeneous data-sources enhances the decision-making capability by allowing privileged users to make changes on demand and redirect the supply. Where
their supply chain capabilities and pursue
vendors often focus on one domain-specific
About the author
2. There is a need to identify the coordination mechanisms which help address the
Eduard Smits is a senior manager at Accenture and has over 20 years of experience in the Chemical industries, Terminals, Oil & Gas, Metals and Pharmaceuticals, with a focus on combination of Digital, Internet of Things (IoT), Manufacturing Execution Systems (MES), Operational Technology (OT) and IT, in the Europe-Africa-Latin America (EALA) region.
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20 Cybersecurity
Digitalising oil and gas D
Managing cyber risks
A survey conducted by the US-
reaching benefits to the oil and gas industry. This increased connectivity has signalled many benefits in measurable innovations and efficiencies. The potential downside is exposure to cyber
The frequency of attacks on oil and gas operational technology is almost certainly underestimated. Companies are reluctant to publicise them for fear that exposing vulnerability may invite further attacks.
headquartered Ponemon Institute found almost 68% of oil and gas companies in the US were hit by at least one cyber incident in 2016. Additionally, they surveyed oil and gas professionals
risks. Cyber security breaches can take businesses offline and lead to lost production, raised health, safety and
International survey findings show that senior oil and gas industry leaders agree about the need for greater focus on this aspect of
responsible for securing or monitoring cyber risks in the operational technology environment and found that 59% believed
environmental risks, costly damage claims and negative reputational impacts
cyber security. Therefore, a collective effort to mitigate risk is vital.
there is greater cyber risk there than in enterprise information technology. Additionally, 39% said they planned to
igitalisation has already brought far-
Dealing with cyber security challenges has become a key focus area for the oil and gas sector and there is greater awareness of the requirements that need to be in place. Increasingly, the industry is seeing critical network segments in production sites, which used to be kept isolated, now connected to broader computer networks, making the operational technology more vulnerable. In this article, Graham Bennett of DNV GL looks at some of the challenges and suggests that industry collaboration can have a crucial role to play in countering this expanding threat.
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The threat from cyber attacks is constantly changing, with hackers continually looking for different ways to infiltrate systems and as such, the industry’s response must be equally as adaptive
spend more on digitalisation in 2017 compared to the previous year, while 49% believe that their company should try and embrace new digital technologies.
Globalised projects and rapid digitalisation The complexity and global nature of oil and gas field development projects, and rapidly increasing digitalisation across the supply chain, is increasing cyber risk by providing many different points at which cyber criminals could take advantage.
Cybersecurity 21
Facilities and topsides may be designed in London, and subsea equipment designed in Paris, for example. The shipyard building the hull may be in South Korea, and the fabrication yard in China or Singapore. A typical project involves multiple contractors and hundreds of information interfaces, requiring a high level of diligence to
covering security for industrial automation
It is a central part of the digital asset
and control systems. The guideline also embraces international practice and experience. It considers health, safety and environmental requirements as well as the IEC 61511 standard for specification, design, installation, operation and maintenance of a safety instrumented system.
ecosystem and will enable a new generation of advanced predictive analytics, allowing real-time optimisation and asset-centric engineering applications.
understand where risks might arise. The industry encourages the sharing of information on digitalisation processes, software and control systems, and 3D virtual models. These, and other trends, create risks that may not yet be fully understood or appreciated. Determining who is responsible and accountable for such risks is not yet clear in all cases. Should it be the operator, the engineering, procurement and construction contractor, or the software vendor? Awareness of risks should certainly be a shared burden.
The threat from cyber attacks is constantly changing, with hackers continually looking for different ways to infiltrate systems and as such, the industry’s response must be equally as adaptive. To account for this, it is
which combines diverse data sources such as sensor networks, databases, expert information, inspection data, and assessment methods in one unified platform. It can provide an entirely quantifiable and verifiable way to incorporate the effects of
intended that the RP will remain dynamic to ensure that companies are always protected.
operating changes, mitigating actions and monitoring activities.
Protection from cyber attacks
The digital twin allows engineers to test how various systems on an asset would perform in the event of a malicious cyber incident.
One way oil and gas companies are guarding against cyber attacks is by using cloudbased digital twins. A digital twin is a virtual model of an asset, maintained throughout
DNV GL recognises the need for industry-
the asset lifecycle and accessible from multiple locations at any time. The concept integrates data from many different software
wide guidance and has launched the globally-applicable Recommended Practice (RP) DNVGL-RP-G108 Cyber security in the oil and gas industry, based on IEC 62443 to
products and will enhance information management and collaboration, where the experts and operators can work together, preventing costly mistakes and rework.
DNV GL guidelines
For both offshore and onshore assets, a digital twin is a risk management solution
Safety systems could be at the greatest risk of a potential attack with the consequences potentially proving catastrophic. Safety systems are used sporadically, so viruses can lay dormant and undetected until the system is activated in a real emergency. Having an undetected breach in a security system could potentially put people’s lives in danger, as countermeasures are compromised.
address how oil and gas operators, working with system integrators and vendors, can manage the emerging cyber threat. It outlines a tailored approach for the industry on how to build security, with the emphasis on operational technology. As the title suggests, the new RP is based on the International Electrotechnical Commission’s standard IEC 62443
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22 Cybersecurity Utilising the digital twin software means processes can be replicated and run in
use blockchain, or similar security software packages, prove to be much more effective
is not implemented for malicious cyber incidents, meaning there is no readily
a digital, simulated environment to the complete specifications and coding of the physical asset. This means that any weaknesses brought on by a cyber-attack will be highlighted in a safe environment, before there is a real emergency.
than traditional methods. By staying a step ahead of the hackers, companies can ensure that no private information is lost.
available information which the industry can use to learn, adapt and improve its security measures and systems.
It is important to determine the risk associated with the data or system and how
Furthermore, many cyber-attacks are not immediately reported by oil and gas
best to guard against this threat without having a negative impact on the efficiency of the organisation’s business systems.
companies as they are seen as embarrassing and there is a fear that it may have a negative impact on their reputation in the eyes of their stakeholders.
However, it is not just the assets that are at risk from cyber threats – companies can come under attack through their general IT systems. One of the most common methods used to infiltrate IT systems is spam mail, with hackers able to conceal pieces of code in images embedded within an email. These phishing emails are designed to appear as though they have been sent from a colleague to maximise the likelihood the attack will be successful. This means that companies and individuals must be extremely vigilant, installing multiple barriers to ensure that confidential data cannot be stolen and that it remains secure. To do this, DNV GL recommends that companies change the way they receive and transmit data. Cloud-based solutions, which
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Changing the mindset Currently, the oil and gas industry is active
The growing use of IT systems has now
in sharing information relating to health and safety best practice or accidents on offshore installations, but this approach
led to a level of trust where employees will refuse to question any suspicious data they find. This means that by the time the threat is identified, there is potentially no time to undertake any form of effective countermeasure.
Cybersecurity 23 Industry collaboration pays off
implement these requirements. The new RP, developed in collaboration with key players,
There have previously been several different guidelines relating to cyber security, resulting in uncertainty amongst contractors and the supply chain. The recent work on DNVGLRP-G108 has allowed companies to work together to cut through the noise and provide
puts operational technology in the spotlight alongside IT, so the industry can protect its operations. It is not only for new installations. Existing and older installations may not be prepared for the new connected reality – and need to be updated with respect to the new
direction.
risk picture.
The RP is the result of a joint industry project (JIP) conducted over two years with partners ABB, Emerson, Honeywell, Kongsberg Maritime, Lundin, Shell Norway,
Industry players need confidence that countermeasures can deal with more frequent and sophisticated cyber-attacks, which are becoming increasingly costly
Siemens, Statoil, and Woodside Energy. The Norwegian Petroleum Safety Authority has observed the work and exchanged experiences with the JIP group from a regulatory perspective.
and harder for companies to recover from. The RP goes someway to providing the assurances required.
Until now, there has been a lack of guidance for the oil and gas industry on how to
us to learn from and contribute to industry knowledge and capability. The RP provides practical guidance on applying the standard to oil and gas.” In a joint statement, vendors involved in the JIP commented: “Our customers in the oil and gas industry are to a large extent facing the same types of cyber threats found in information technology systems. Being able to standardise what we deliver to our customers is important in reducing cyber risks and reducing cost. Above all, it will increase the safety, availability and reliability of the operational technology systems.
Benefits delivered for the future
“The organisations operating the systems can also manage cyber risks by following and implementing the identification, protection, detection, response and
Feedback from industry participants in the JIP revealed that they benefitted from the
recovery steps defined in the standards to withstand cyberattacks. In the process of
collaborative approach.
defining this RP, we have collaborated with both our competitors and our customers on guidance to the IEC 62443 series of standards.”
“The process leading to this Recommended Practice has enabled our team to leverage industry best practices, share learnings, and grow capability,” said Woodside Energy’s Julie Fallon, Senior Vice President Engineering. “Aligning our operational technology cyber security approach to IEC 62443 enables
A full copy of the RP can be downloaded at: https://www.dnvgl.com/oilgas/download/ dnvgl-rp-g108-cyber-security-in-the-oil-andgas-industry-based-on-IEC-62443.html
About the author
Graham Bennett is Vice President – Oil & Gas at DNV GL and is responsible for developing the group’s oil and gas business in the UK, Ireland & West Africa. Prior to that, he was Director - Refining & Petrochemicals Segment at DNV Energy and Director – Process Market at DNV Consulting.
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24 Corrosion
Living in a material world: Sourcing to withstand hostile oil and gas o A
n infrastructure of pipes is
essential for a steady supply of oil and gas to distributors and consumers. But drilling for crude oil, as well as the production, processing, storage and transportation of energy, inflicts huge stresses on piping materials. Acidbearing fluids will eat into pipelines, sulphur and hydrogen sulphide can induce corrosion and if temperatures are higher than 600°C, steel can become brittle.
Corrosion – the deterioration of a metal or
cause severe corrosion of completion strings
its properties – poses one of the biggest threats to the Oil & Gas industry. From casing strings to production platforms, drilling and abandonment, corrosion can affect almost
and acids – used to remove scale – will attack metal components. On offshore rigs, even crustaceans and seaweed add weight that could increase stress-related corrosion
every stage of oil and gas production. According to ODEE - an Oil & Gas Industry journal - as offshore exploration moves into deeper and more hostile waters the potential impact of corrosion increases, with the total annual cost of corrosion estimated at almost $1.372 billion.
by attaching themselves to submerged parts.
In this article, Martin Phillips of flow control specialist Fluenta looks at the effects and costs of pipeline corrosion and some of the materials and methods that can be used to increase durability
Counteracting the effect of corrosion is made difficult by its causes – of which there are many. If left untreated, drilling mud – or liquid drilling fluid – that has been exposed to oxygen can corrode drilling equipment
and resilience.
and pipelines. Water and carbon dioxide can
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The cost of corrosion Oil and gas companies must be conscious of the corrosion threat, as pipelines and their component fittings could undergo serious material degradation as a result. Severe degradation can lead to the loss of mechanical properties such as ductility and impact strength, reduced pipe thickness, or even complete pipeline failure. If sections of pipe need to be replaced, engineers may require a complete plant shut down to carry out repairs – at significant cost to the operator.
Corrosion 25
equipment operations
Safety first
extensively in gas processing plants and
The Oil & Gas Industry is investing heavily in materials and personnel to curb the effects of corrosion - but it is almost impossible to prevent. With the percentage of high
liquefied natural gas (LNG) plants. Any steel with 9% nickel content will be particularly tough at extremely high and very low temperatures – and is commonly used in
pressure and high temperature (HP/HT) wells increasing, there is a heightened need for pipes and connections that can resist
heat exchangers. Heat exchangers remove heat from oil and gas at around 200°C and cool it to 21°C, allowing for the safe
high internal pressure and customised alloys to fight off corrosion.
transportation of fluid. The addition of titanium to steel alloys further
In addition to impacting capital, pipeline
When oil and gas assets start to age or degrade, there is an increased likelihood of major incident. Studies show that more
increases the material’s strength, density and corrosion resistance. High-strength titanium alloys - used in compressor parts - are
corrosion can have a knock on effect on the measurement and reporting equipment often used by oil and gas sites. Environmental authorities around the world increasingly
than 60% of Hydrocarbon (HC) leaks are caused by ageing processes such as fatigue and corrosion. Fire and explosions can be a serious consequence of HC leaks – which
particularly durable and increase the working lives of parts. Titanium is also highly resistant to seawater, carbon dioxide and hydrogen
require the Oil & Gas Industry to monitor and record emissions, flowrates and gas composition. Almost every offshore production facility now has flare gas meters installed to control mass balance, prevent leakage and monitor CO2 emissions. Pipeline corrosion can drastically affect the accuracy of these flow measurements – if materials
could result in substantial revenue loss and even the loss of life.
are degrading, flow can be interrupted and measurements across the pipe’s diameter will be inaccurate. If these inaccuracies are reported to regulators, oil and gas companies can face significant fines, penalties and even imprisonment in some parts of the world.
A steel solution Arguably the most important metal component used in the Oil & Gas Industry, steel plays a part in the production,
sulphide corrosion. It maintains its strength at the very low temperatures (- 151°C) required to liquefy natural gas. Engineering systems for handling liquefied natural gas are designed for an operating temperature of -163°C. Metals for use at such cryogenic temperatures need to comply
processing and final distribution of refined products. Carbon steel - an alloy of iron with up to 2% carbon - is even stronger and more resistant to corrosion.
with demanding mechanical and physical properties. The ductile strength of metals tends to increase at lower temperature, but LNG applicable metals need to have sufficient strength in service, but also be
Due to their high strength and corrosion resistance, steel and nickel alloys are used
strong enough to be formed and fabricated at ambient temperature.
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26 Corrosion Corrosion on the cold front
A hot topic
A new approach to materials
In addition to the threat of corrosion, the
Low carbon steel containing between 12%
Predevelopment planning and a growing
materials and metals used in oil and gas equipment must withstand extreme heat or cold. In extreme cold, pipeline systems may experience component failure. This can be caused by meter damage from snow or ice shedding off rooftops, falling trees
and 14% chromium is highly resistant to carbon dioxide, hydrogen sulphide and the high temperatures (above 224°C) found in deep oil and gas wells.
knowledge of corrosion control is benefitting newly discovered oil and gas fields. However, it still remains important to regularly monitor metal components for damage. Regular maintenance schedules are particularly advised in hostile environments where sea
due to ice accumulation or fractures due to the expansion of moisture trapped inside components and equipment.
the use of chromium steel tubing has soared over the last five years in the United States. Chromium compounds such as chromium lignosulfonate can be used in drilling fluids as deflocculants - compounds that reduce the fluid’s viscosity and prevent suspended rock
water or extreme temperatures could impact asset performance. With regular equipment checks, potential issues can be identified and dealt with before they become a high-cost, time intensive problem.
material from clogging or corroding around the drill bit.
New technologies are being developed to improve monitoring techniques and reduce the likelihood of equipment failures. Condition based monitoring (CBM) is a maintenance strategy that monitors the condition of an asset to decide what maintenance needs
Copper and its alloys – including bronze - have excellent electrical and thermal conductivity and cryogenic, or cold-resistant, properties. These metals are commonly used in valves, stems, seals and heat transfer applications because of their resistance to temperature change. A bronze alloy with traces of nickel and aluminium can also be used in wellheads and blowout prevention valves to protect processes from the effects of extreme heat or cold.
Following a boom in drilling for shale gas,
Counteracting the effect of corrosion is made difficult by its causes – of which there are many
to be done and when. CBM dictates that maintenance should only be performed when certain indicators show signs of decreasing performance or upcoming failure and will greatly minimise the cost and disruption of repairs. It is far easier to identify a problem early than to deal with an unexpected repair in the future.
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Corrosion 27
The remote measurement and testing of equipment and pipelines can also help eliminate human risk. With continuous measurement, operators can discover leaks through a process called mass balancing. By accounting for material entering and leaving pipes, mass flows can be identified which might have been unknown, or previously difficult to measure. For example, operators can use mass balancing to identify corroded valves within their pipe systems that may be causing dangerous leaks. Remote action can be taken to update software, shut down failing or faulty systems, and if there is a danger of explosion, extract on-site personnel immediately. The principles of corrosion need to be understood before selecting materials for oil and gas operations. Currently, 40% of all produced steel is used to replace corroded steel. Strong and resistant metals are the first line of defence against corrosion – safeguarding capital and industrial processes. The second line of defence is regular monitoring and maintenance of on-site equipment – identifying issues before they become a significant danger.
About the author
Martin Phillips is Product Manager at Fluenta, the supplier of ultrasonic flow measurement solutions for the Oil & Gas and Chemicals Industries. Formerly Product Manager at Nokia and Honeywell, Martin has worked in marketing and product management for more than 30 years, accruing international expertise in the full lifecycle development and launch of products across diverse market sectors.
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28 Corrosion
The dangers of false ec in a low oil price enviro T
he Spanish have a phrase: “lo barato sale caro”. Roughly translated, it means that which
One such area is in pipeline corrosion control, says Mark Smith of Cosasco. Whereas once upon a time manual,
for before-the-fact action.
is bought cheap, often turns out expensive. It may sound obvious, but they are words to live by when making procurement decisions for safety and operation-critical components in oil
after-the-fact inspection was the only way to assess the problem, now there are a variety of sensors available to monitor corrosion rate and send back the data to a central location. Based
when described in plain terms, but the pressure to reduce capex when designing and installing a corrosion control system can lead to sub-standard solutions being implemented, which result in much higher
and gas projects.
on this data, anti-corrosion chemicals are injected into the oil flow, allowing
opex in the end – or even worse – potential loss of containment.
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It seems like a relatively simple set-up
Corrosion 29
conomy onment
becoming more competitive than ever, squeezing costs wherever possible to
The risks of false economy
put in the leanest possible tender.
On the one hand, there’s the risk of increased ongoing costs. On the other, a substandard system might increase
For aspects of a project like corrosion monitoring, which make up a relatively small proportion of the total project capex cost, the temptation to underspend is especially strong, as it is less likely to attract attention than with a big-ticket item.
Procurement: I can resist anything but temptation to reduce capex
This is understandable, but not condonable. Often, the operator has created specifications in consultation with experts, and includes a specific
The prolonged low-oil price environment has put margins under sustained pressure throughout the industry. Where operators are investing in new projects, they are keeping a tighter rein on their spending.
type of system. Often, a solution is then included in the tender which meets the specifications in a narrow technical sense but not in the way requested by the operator – meeting the letter of the ‘law’
This means engineering, procurement and construction (EPC) contractors are
but violating the spirit.
The risks of this approach are twofold.
corrosion risk. An example: an operator specifies for a corrosion monitoring system, including corrosion data management. They want a completely online solution, automatically feeding sensor data back into the system for analysis. What they get instead is a cheaper solution that relies on data loggers – sending someone out into the field a few times per month to take manual readings. The data is less granular, and the ongoing cost is much greater and an unnecessary element of personnel risk is introduced. Or, consider a situation where a customer needs a corrosion system to operate in a high H2S environment. Traditional electrical
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30 Corrosion resistance (ER) probes have struggled in these conditions, however the box is
Loss of containment – the worst-case scenario
ticked to say they’re up to the task and the buyer, lacking technical expertise in this specific niche, takes it at face value. Over the coming months and years, the data collected is so noisy as to be nearly unusable, and the probes are gradually
Risking downtime and reduced return on investment by replacing parts that wear out more quickly is one thing, but loss of containment is obviously the biggest risk of unchecked corrosion.
replaced with more expensive ones designed for the conditions. The EPC may have submitted the lowest tender, but the operator has ended up paying the price twice.
Fatalities and injuries, environmental hazards, damage to reputation, legal expenses, downtime, the cost of asset repair or replacement and the cost of the spilled product – it is a risk-list that makes for grim reading.
full data communication capabilities, but was unable to purchase one, because the company’s standards – written in the 1980s – specified the use of data loggers. The employee involved knew what they needed, but was hamstrung by old specifications. Then, it is important not to take a ticked box at face value on a tender. If a system needs to stand up to a high H2S environment for example, the contractor should be able to provide data to prove its assertion that the suggested system can do so – the burden of proof should be put squarely on the
So, there are the obvious costs directly associated with maintaining and replacing the data collection technology, but there are also the less obvious but potentially bigger costs that result from the poorquality data. As with all things, decisions
As such, when it comes to corrosion monitoring, the old doctor’s adage applies: prevention is always better than cure, and effective corrosion monitoring is essential for prevention.
based on bad data are probably bad decisions. When it comes to corrosion
What’s an operator to do?
In a low-oil price world it is essential to get product flowing as quickly and cheaply as possible to start generating a return on investment. In that context, it is tempting to eschew spending the upfront time and effort to get it spot on in a part of the project
It is tricky for operators to fix the problem of false economy when it comes to corrosion monitoring. Unlike a scenario where, say,
which, to be honest, constitutes a small part of the total expenditure. However, false economy is one of the biggest, most
a pump is handed over by a contractor and it stops working within a few months, corrosion stays invisible for a long time. By the time – months or years later – the
insidious risks of a low-margin landscape. If ever in doubt, remember what the Spanish say: “lo barato sale caro”.
monitoring, this data is used to assess how much (if any) corrosion inhibitor to inject into the gas or oil flow. Typically, poor data and uncertainty lead operators to err on the side of overdosing, rather than under-dosing, thereby spending countless millions on expensive and unnecessary volumes of inhibitor chemical.
contractor.
problem comes to light and the false economy becomes clear, it is often too late.
About the author
However, more worrying than the extra cost associated with bad data, is the risk of increased corrosion. Surprisingly, corrosion inhibitor chemicals can
So how to avoid cheap becoming expensive? Though the problems often stem from the supplier, there are some steps the
themselves be quite corrosive if used in too great a concentration or where they are not needed. It’s a delicate balancing act – too much or too little can be ruinous. Top quality data is therefore crucial.
buyer can take to avoid false economy. The first step is to ensure specifications are as up to date as possible. One operator I have seen wanted a system including
Mark Smith is Business Unit Director – EMEA at Cosasco, the corrosion control specialists who can provide consultancy to manufacturing, and in-field support to long-term maintenance. Intrusive and nonintrusive corrosion and erosion monitoring sensors allow bespoke chemical optimisation solutions to fine-tune the levels of anti-corrosion chemicals injected. This can be coupled with complete data and communications as part of a full service approach to controlling corrosion.
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Event preview 31
Process Safety Excellence Date: 24 to 26 January 2018 Location: Amsterdam, The Netherlands Our 2nd edition “Process Safety Excellence” event, held in Amsterdam on 24-26 January, is an unique opportunity for Process Safety leaders to discuss how to focus resources and competencies on accident prevention activities and how to avoid situations where safety and costs
become competing objectives. With a lot of effort going into aligning Process Safety with the business strategy, this is also a good opportunity to have a cross-functional discussion involving not only Process Safety professionals, but also Engineering and Operations leaders. Speakers from: BASF, AkzoNobel, Maersk Drilling, Johnson & Johnson, Total,
Sandvik, Linde, Vattenfall, Saudi Aramco and Nestlé to name a few. www.me-assets.com/HTMLEmail/ ProcessSafetyExcellenceAgenda_5. pdf
European Oil Storage Conference Date: 25 to 26 January 2018 Location: Amsterdam, The Netherlands What to expect at the 11th Platts European Oil Storage Conference in 2018: • Setting the scene for oil storage: Supply and demand fundamentals – Latest on the Trump Presidency, Brexit, the oil price, contango versus backwardation, shipping tariffs, and the impact of renewable energy on storage take up • 2020 marine fuel sulphur cap: what
does it all mean for oil storage? – Assessing the changes in legislation: what will happen? Is there enough product and storage to meet demand? • Diesel and gasoline demand and the rise of electric vehicles: Outlining the implications for oil storage – Is there adequate storage currently, challenges of converting storage tanks from diesel to gasoline, and examining battery electric vehicle legislation and the impact of 2040 targets • Refining, biofuel and petrochemical industry developments, challenges and
opportunities: What are their future prospects? – Latest on demand and storage availability along with market investments, margins, closures and takeovers • Finance and investment trends and dissecting the latest M&As – What is required for the storage industry today? www.platts.com/events/emea/ european-oil-storage/index
European Gas Conference Date: 29 to 31 January 2018 Location: Vienna, Austria
end of the year and the continuing trend towards a low-carbon future, gas will play an important role in Europe’s future.
The global gas community’s eyes are fixated on the European market with declining domestic production and new sources of imports central to the current debate. With the on-going developments in the DG Comp case involving Gazprom and Naftogaz, the recent election results in Germany, the release of the European Commission’s Quo Vadis Study at the
The 11th Annual European Gas Conference is perfectly timed for your business to address this market activity. Ideally located in the heart of Europe to facilitate and support key discussions spanning the entire region with a focus on Eastern Europe, the event attracts over 434 industry professionals, is
hosted alongside OMV and boasts the largest delegation of Gazprom attendees compared to any other European event. This is a conference that cannot be missed. www.europeangas-conference.com
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32 Product Datafiles Leading the Customer Service Experience in the Certification Industry
Asecos Q range – proven fire resistance of 90 minutes
Providing exceptional customer service is a key aspect of the work we do at CSA Group. Over the last 18 months CSA Group has made significant improvements to the way we provide our service to our customers. Our customers have scored us 90% in overall customer satisfaction, with 4 out of 5 clients saying they would recommend CSA Group to a colleague. Interested in learning how we do it? Please contact us to arrange a no obligation project planning meeting.
Labtex’s Asecos Type 90 storage cabinets provide extremely safe, regulationcompliant storage of hazardous materials in laboratories and other work spaces. Each cabinet variant is furnace tested in accordance with EN 14470-1 and proven to give fire resistance of 90 minutes. Extremely robust in construction for maximum torsional rigidity and with tamper proof lock and indicators built in, every ASECOS cabinet has GS approval and CE conformity. In addition the Q range is offered in range of scratch-resistant paint colours and with extensive interior equipment options Warranty cover is available up to 10 years.
T: +44 (0) 1244 670 900 E: ukinfo@csagroup.org W: www.csagroupuk.org
Tel:+44 (0)1484 600200 Please contact Greg Smith at greg@labtex.co.uk
ABS Group THESIS risk management software
How to ground your road tanker correctly
ABS Group provides holistic enterprise risk management tools to help you identify, analyze and manage hazards. Our THESIS BowTie™ 6.3 standalone and THESIS Enterprise™ risk management software solutions help document risk analyses in a systematic manner, making the control of hazards easier to understand.
Loading and unloading road tankers with large quantities of commonly used chemicals and powders generates static electricity which, if left to accumulate could discharge electrostatic sparks, potentially causing fires and explosions. Newson Gale’s Earth-Rite® RTR is the most reliable and precise method of grounding road tankers today. To find out more information about the Road Tanker Recognition contact Newson Gale.
Developed to assist risk managers and stakeholders in their decision making process, THESIS delivers a simplified and comprehensive risk management solution for mapping threats, risk events and consequences at all levels of an organization—from the front-end engineering design stage through to operations and decommissioning. Our software integrates with risk management to promote safety, reliability and business continuity across the enterprise. www.abs-group.com Tel: 44-1925-287300 enquiriesuk@abs-group.com
www.newson-gale.co.uk
Flow Meter Identifies Potential Savings in Compressed Air Supply The monitoring of compressed air consumption ensures cost transparency and helps cut energy costs by identifying potential savings. The EE741 in-line flow meter from E+E Elektronik is ideal for measuring the consumption of compressed air and technical gases. Due to its modular design, the compact device is suitable for pipe diameters from DN15 to DN50 (1/2” to 2”). The thermal hot-film anemometer measuring principle provides high accuracy and reliability. The gauge mounting block enables easy and reproducible positioning of the transmitter in pipes with an operating pressure up to 16 bar (232 psi). Outstanding measuring accuracy, even in the lower measuring range, is achieved by the application-specific multi-point factory adjustment at 7 bar (102 psi). This allows precise leak detection and the consequent energy savings. The EE741 features an integrated consumption meter for costeffective consumption monitoring without an additional data logger.
The EE741 works on the thermal hot-film anemometer principle. The E+E thin-film sensing element stands out by excellent long-term stability and short response time. The measuring principle is largely insensitive to contamination and eliminates the need for additional pressure or temperature compensation. The EE741 also measures the standard volume flow, mass flow, standard flow and temperature of non-corrosive gases such as nitrogen, oxygen, helium, CO2 or argon. E+E Elektronik GmbH. Tel. +43 7235 6050 pr@epluse.at | www.epluse.com
Amphenol Micro-B cost-effective Circular Connectors
Connecting you to Global Markets
Amphenol Industrial Products Group, a global leader in interconnect systems, now offers a lightweight, high performance circular connector series with a small footprint that provide a viable alternative to high-cost connectors used in a variety of industrial markets needing high signal counts in a very small package. The Micro-B series utilises a robust triple bayonet coupling that provides quick and positive locking, as well as an internal EMI ground spring for excellent shell-toshell conductivity at an affordable price. This new circular connector series was designed for industrial applications such as sensors, data and mobile communications, medical equipment and motor controls where electrical performance must be met with affordability.
CSA Group is a global organization dedicated to safety, social good and sustainability. We provide testing, inspection and certification services for products in industrial and hazardous locations. We realise our customers need access to global markets and they need it quickly. As such, we’ve evolved our processes to respond even better to the pressures our customers face, while offering the marks needed to access markets around the world. Our large team of certification engineers are focused on completing projects within agreed-to timelines and we consistently start and finish projects with some of the best lead-times within the industry.
Contact Amphenol Ltd Tel +44(0)1227 773200 www.amphenol-industrial.com
T: +44 (0) 1244 670900 E: ukinfo@csagroup.org
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W: www.csagroup.org
20 17 FO R NE W
A Report on the World Market for Hazardous Area Equipment HazardEx has worked with IHS Markit to provide this new edition of a report on equipment for use in hazardous environment.
JOHN MORSE AT IHS MARKIT T +44 1933 408 077 E John.Morse@ihsmarkit.com
RUSSELL GOATER AT HAZARDEX T +44 1732 359 990 E Russell.goater@IMLgroup.co.uk
technology.ihs.com
hazardonthenet.net
155950530
‒ World market revenues and shipments with detailed analysis of selected products ‒ Data from 2016 to 2021 ‒ Many market segmentations including: by region, country and industry ‒ Estimated market shares of leading suppliers
34 Buyers Guide
For a complete range of hazardous area solutions Intrinsic Safety Isolators • Zener Barriers • Zone 1&2 Remote I/O • Fieldbus Exe Enclosures • Exd Control Panels • Ex Lighting • Purge Solutions • Zone 1 & 2 HMI’s PC’s
www.pepperl-fuchs.co.uk Batteries
Tel.: 0161 6336431
Consultancy
sales@gb.pepperl-fuchs.com
Electrical Distributor
Explosion Proof Cranes
®
Powerful New ATEX-Approved Batteries
Your Source Onshore For Everything Electrical Offshore R&M is the UK’s largest independent electrical group serving the Oil and Gas industries.
023 80341 444
www.rm-electrical.com
Advanced batteries and protection whatever the environment
Explosion protection
Call 0161 727 3860 for further details
Control Panels Cable Glands
Hazardous Area Specialist
Total Explosion Protection ■ ■ ■ ■ ■ ■
J.B. SYSTEMS LTD EExd & EExe enclosures Custom built panels, terminal boxes & control stations
Conventional venting Flameless venting Explosion isolation Explosion suppression Testing services Expert advice
Contact us today! ike i E
Tel: 01296 489967 Fax: 01296 393515 Email: sales@jbsystems.co.uk Website: www.jbsystems.co.uk
E one
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Explosion Proof Cranes
Control Panels
Heaters In Control
EXd & EXe Control Systems Design Using the Latest AutoCAD software, based on your specification
Manufacture Drawings approved, we then build the system in-house
Test
Your total solutions provider
t-s-e.co.uk
Specialist in design and custom build of a wide range of high-quality, hazardous area enclosures, terminal boxes & control stations
Trant System Electrical Southampton SO40 9AH 023 8042 8700 HAZARDOUS AREA PRODUCTS info@t-s-e.co.uk
APPROVED OEM INSTALLER FOR CORTEM EXD ENCLOSURES
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We flash test as standard, we also offer injection testing & more
Delivery All around the world, Packaging to suit your Circumstances
Install & Commission Our engineers are fully qualified and we have carried out successful works in over 50 countries On & Offshore
Tel: +44 (0) 1384 48 48 05 Email: sales@banelec.co.uk Web: www.banelec.co.uk
BARTEC MCC
CONTROL PANELS
PLC
SCADA
Approved Partner
Training
10% OFF all CompEX Courses • Foundation • EX01 to EX04 • EX01 to EX04 Refresher
• Dust EX05 to EX06 • Mechanical EX11
Quote Code: HAZ10
+44 (0) 1642 770310
www.tte.co.uk/accredited
To advertise please contact contact
Kathryn Startin
on +44 (0)1732 359990 or kathryn.startin@imlgroup.co.uk
To advertise in the Product Datafiles or Buyers Guide contact Kathryn Startin on +44 (0)1732 359990 or kathryn.startin@imlgroup.co.uk
AWARD NOMINATIONS NOW OPEN
Sponsorship & exhibition stands now on sale Contact the HazardEx sales team on +44 (0)1732 359990 or events@imlgroup.co.uk
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SAFE FOR USE IN EXPLOSIVE NVIRONMENTS EX80 8” Fully Rugged ATEX Tablet with Intel® Atom® x5 processor Engineered from the ground up for safety, the EX80 is certified for use in ATEX & IECEx Zone 0 and NEC Class I Division 1, making it ideal for cross-zone operations. Its thin ergonomic design features programmable buttons and wearable options. This, combined with an 8.5 hour battery life, drives productivity across the oil and gas workplace. The EX80 is certified to the highest standards of ruggedness. Resistant to temperatures from -21°C to 60°C, 6ft drop resistant as well as water and salt fog resistant, the EX80 can operate in the harshest offshore environments. Operators in volatile environments have sometimes been restricted to pen and paper reporting to avoid ignition risk. The EX80 eliminates this risk.
Contact your Getac representative now. Getac UK Office Mitac House, Nedge Hill, Telford, Shropshire TF3 3AH, UK Email: sales-getac-uk@getac.com
Phone: +44 (0) 1952 207 222
www.getac.com
Copyright © 2017 Getac Technology Corporation and/or any of its affiliates. All Rights Reserved. V01M11Y17UK Intel, the Intel logo, Intel Inside, Intel Inside logo, Intel Atom and Intel Atom Inside are trademarks of Intel Corporation or its subsidiaries in the U.S. and/or other countries.