Asian Pipeline Landscape –
Challenges and Opportunities
Pipeline Perspective on India
25 October, 2010
McDermott Asia Pacific Pte Ltd
Background
With average GDP growth rate of 5.8% for pass
two decades, India is one of the fastest growing
economies in the world
Estimated population of 1.2 billion and a coast
line of 7,517km
The energy needs are growing rapidly in India
and particularly consumption of gas is expected
to grow 500 MMSCMD in 5 years
Hydrocarbon Vision 2025 aims to create more
pipeline projects both national & international
Considering size and growing population,
Pipeline infrastructure needs to grow several
folds
I. Onshore Pipeline Overview
II. International Pipeline Opportunities
III. Offshore Pipeline Overview
IV. Deepwater Pipeline Overview
V. Technical Aspects, Challenges and Opportunities
VI. Pipeline Resources and Information
VII. Indian Regulatory Challenges
Content
I. Onshore Pipeline Overview
32%
32%
26%
10%
Pipelines
Road Tankers
Rail Tankers
Water Carriers
• Environment friendly
• Least energy requirement
• Lowest maintenance costs
• Minimal impact on land use
• Negligible loss of product in transit
• High reliability
• Multi-product transportation
Drivers of Transportation of Oil by Pipeline
I. Onshore Pipeline Overview
Onshore Pipeline Services
• Crude oil pipelines
• Petroleum product pipelines
• Natural gas pipelines
• LPG
• Water & effluents
• Slurries
Classification of Pipelines
• Cross country trunk pipelines
• Spur and branch pipelines
• Marine offloading terminals and
outfalls
40%
45%
7%
8%
Onshore Pipelines Approx 25,000+ Km
Gas
Oil & Petroleum Product
LPG
Brach/Spur
10000 Km
11450 Km
1700 km
2000 km
I. Onshore Pipeline Overview
India’s Major Gas Trunklines
Pipeline Company Length Size Product
1 HBJ GAIL 1700 -->3397km 36” Gas
2 DVPL GAIL 770km 42” LNG
3 EWPL RGTIL 1385km 48” Gas
4 Country Pipeline Network GAIL 7850km1900km
- GasLPG
60%15%
6%
11%
8%
Existing Gas Pipelines Network By Companies (%)
GAIL - Gas (7850km)
GAIL - LPG (1900km)
GAIL - LNG (770km)
RGTIL - Gas (1385km)
GSPCL - Gas (1070km)
I. Onshore Pipeline Overview
India’s Future Gas Pipelines Network (km)
400 445 670 660
2600
7890
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
Kakinada -Howrah (400km)
Vijayawada - Chennai (445km)
Chennai -Tuticorin (670km)
Chennai -Bangalore -Mangalore
(660km)
Gujarat pipeline
(2600km)
GAIL Gas Grid
(7890km)
66%
12%
22%
Future Gas Pipelines By Major Companies(%)
GAIL - Gas (7890km)
RGTIL- Gas (1515km)
GSPC - Gas (2600km)
I. Onshore Pipeline Overview
India’s Major Cross Country Crude Oil & Petroleum PipelinesPipeline Company Length
1 Product Pipelines – including Kandla to Bhatinda 1443 kmTrunklineCrude Pipelines
IOCL 6000km3000km
2 North East India Crude oil Pipelines to refineries OIL 1432km
3 Onshore Spur and branch Pipelines ONGC/GSPCL 1000+ km
4 24 inch Oil MDP (insulated & heated longest Pipeline) Cairn 670km
5 Multi-Product Pipelines BPCLHPCL
1650km2100km
20%
39%
14%
11%
9%
7%
Existing Oil/Product Pipeline By Companies(%)
IOCL Crude (3000km)
IOCL Product (6000km)
BPCL Product (2100km)
HPCL Product (1650km)
OIL (1432km)
ONGC Spur/Brach (1000km +)
I. Onshore Pipeline Overview
Future Petroleum Product Pipelines (km)
1580
2540
660540
200
375
1000
0
500
1000
1500
2000
2500
3000
RIL Jamnagar -Patiala
RIL Jamnagar -Kanpur
RIL Goa- Heydrabad RIL Chennai -Bangalore
RIL Kakinanda -Vijaywada
RIL Haldia - Ranchi RIL & IOCL Central India Pipeline
I. Onshore Pipeline Overview
Crude Oil & LPG Pipeline
In IndiaGAIL Gas Pipeline Grid
II. International Pipeline Opportunities
Notable Proposals:
• Iran-Pakistan-India (IPI) Gas Pipeline
• Turkmenistan-Afghanistan-Pakistan-
India (TAPI) Gas Pipeline
• Bangladesh – India Onshore Gas
Pipeline
• Import gas from Myanmar
• Oman – India Gas Pipeline
Figure: Iran-Pakistan-India (IPI) Gas Pipeline
Geopolitical Issues:
• Gas pricing dispute
• Security/ border risk
• Route selection
III. Offshore Pipeline Overview
Major offshore fields in India
1. Bombay (Mumbai) Offshore Basin, West coast of India, Arabian sea
2. Gulf of Cambay, North West coast of India
3. Krishna-Godavari Basin, East Coast of India, Bay of Bengal
4. Cauvery Basin, East Coast of India, Bay of Bengal Figure: Offshore Fields in
India
III. Offshore Pipeline Overview
Offshore Pipeline Services
• Crude oil
• Gas (sour & non-sour)
• Multiphase production
• Gas lift
• Water Injection
Classification of Offshore Pipelines
• Trunk line
• In-field pipelines
• Flow lines including flexible
• Offshore loading/unloading line
• Marine Terminal and Jetty Head
Pipelines
19%1800 km
77%2300 km
2%200 km
2%180 km
Existing Offshore Pipelines approx 4500 kms
Trunk Lines
Infield Lines
Loading/Unloading Lines
Marine Terminal/Jetty Head
III. Offshore Pipeline Overview
Bombay (Mumbai) Offshore Basin
• Discovered in 1974, the field has
been operated by ONGC
• Bombay High Oil field consist of 2
blocks, namely Mumbai High North
(MHN) and Mumbai High South
(MHS)
• Decline in existing oil and gas
production led to the need of a
redevelopment plan in 2000
• ONGC owns and operates the
largest network of subsea pipelines
including in-field lines and trunk
lines.
• Other major field operators includes
Reliance, British Gas, Cairn, and
GSPCL.
III. Offshore Pipeline Overview
Mumbai High Field (North)
III. Offshore Pipeline Overview
Mumbai High Field (South)
III. Offshore Pipeline Overview
III. Offshore Pipeline Overview
ONGC’s Major Offshore Trunkline
• Bombay High Uran Trunk Line, BUT (1979) 30”
crude/26” gas; 200km x2
• Mumbai High Uran Trunk Line, MUT (2005) 30” crude/
28” gas 205km x 2; pre-trench/backfill for 20km; post
trenched until 130 km offshore section
• South Basin Hazira Trunk Line (1986) 36” Gas 220km
• Heera – Uran, HUT (1991)26” crude/24” Gas 85km x 2
• ICP – Heera Trunk Line (1995) 30”/22” Crude 143km
• Second Basin Hazira Trunk Line, SBHT (1995) 42”
Gas 245km;Post trenched to 4m cover at shore;
Mumbai High Field
Hazira
Figure: MUT
III. Offshore Pipeline Overview
Offshore loading/Unloading Pipelines – CALM/SPM
• Liquid chemical handling jetty at Dahej, Gulf of Cambay, Gujarat chemical
port terminal company limited (GCPTCL), which comprises 38 pipelines
(20” to 2”) includes 15 cryogenic lines.
• Reliance Jamnagar Marine Terminal (RJMT) is located in the Gulf of
Kutch, India’s largest petroleum terminal. The terminal provides 4 berths
and 5 single point moorings (SPM).
Owner Pipe Size Length (km) Tanker Size DWT
RIL - RJMT 48”30”
3 X 203 X 18
350,000150,000
Essar – VadinarIOCL - Vadinar
48”42”
2020
350,000300,000
BPCL - Kochi 48” 20 300,000
BORL - WestHPCL - VisagCPCL- Chennai
48” 154.28
300,000
Major Marine Terminal/ Jetty Head Pipelines
IV. Deepwater Pipeline Overview
10%500 km
90%4500km
Offshore Pipelines in India
Deepwater
Shallow Water
Outlook of Deepwater and Shallow Water Pipeline
Oil available onshore and shallow
water environment is diminishing,
hence there will be a need for
deepwater drilling.
India has some breakthroughs in
deepwater pipeline system at certain
fields.
• KG-D6
• D1, D3 Gas Field
• MA-D6
IV. Deepwater Pipeline Overview
India’s first deepwater oil and gas field – KG D6
• Located 60km off east coast of India in the Bay
of Bengal
• Operated by Reliance Industries (RIL)
• At 1200m water depth with proven plus
probable reserves of 11.3 Tcf
• Tie-Back of 60kms
• Capacity of 550,000 Barrels of Oil Equivalent
Per Day (BOEPD)
• 500kms of pipelines, flow lines and umbilicals
installed
• Start of production in 6.5 years from discovery
in comparison to the world average of 9 – 10
years for similar deepwater production
Figure: KG – D6 Block
IV. Deepwater Pipeline Overview
D1, D3 Subsea System and Pipelines
• 2 major gas discoveries, D1
and D3, began producing in
2Q 2009
• At peak production, the gas
fields are expected to produce
80 MMSCM
• Water depth:600 -1200m
• Comprises 18 production wells, 18 Xmas trees
• Subsea facility comprises 350km of pipeline,
150km of steel tube umbilicals, 11 subsea
structures (PLEM, 6 MF, 3 SDA, UDH) 45
PLETs, 29 anchor blocks, 56 jumpers and 212
subsea tie-in
Figure: D1 & D3 Gas Field
• 14 x 8”/10” Flow lines
• 6 x 16”/18” Infield pipelines
• 3 x 6” MEG lines
• 3 x 24” Gas Export
IV. Deepwater Pipeline Overview
MA-D6 (D26) Field
• Reliance implemented an Early Production
System to produce oil from the MA-D6
(D26) field using an FPSO
• Production commenced on 4Q 2008 in a
record time of about 2.5 years from
discovery
• Oil production from 6 wells now exceeds
22,000 barrels per day
• Water depth range 1200m to 1400m
• Risers and umbilicals are connected to the
FPSO through a turret and swivel mooring
system to position itself at the desired
location for disconnect in extreme weather
Figure: MA-D6 Field
• 4 x 8” Gas export flexible risers
• 4 x 8” Production flexible risers
• 1 x 6” Gas injection flexible riser
• 6 x 6” Production jumpers
• 24” Export rigid pipeline to CRP
• 1 Dynamic Umb riser & 8 infield Umb
• 1 each Prod MF & Gas export MF
Primary Pipeline Design Codes and Standards
Codes/Standards Description
ASME B31.8 Gas Transportation and Distribution Piping Systems
ASME B31.4 Pipeline Transportation Systems for Liquid Hydrocarbons and other Liquids
OISD-141 Design and Construction Requirements for Cross-Country Hydrocarbon Pipelines
OISD-214 Cross-Country LPG Pipelines
OISD-226 Natural Gas Transmission Pipelines and City Gas Distribution Networks
API 5L / ISO 3183 Specification for Line Pipe
API RP1102 Recommended practice for Rail and Highway crossings
API 1104 Standard for Welding Pipeline and Related Facilities
API 6D / ISO 14313 Pipeline Valves
ASME B16.2 Metallic Gaskets for Pipe Flanges – Ring Joint, Spiral Wound and Jacketed
ASME B16.5 Pipe Flanges and Flange Fittings
ASME B16.9 Factory – Made Wrought Steel Butt welding Fittings
DNV OS-F101 Submarine Pipeline Systems
DNV’81 Rules for Submarine Pipeline System
DNV RP B401/F103 Cathodic Protection Design
DNV RP E305/F109 On-bottom Stability Design for Submarine Pipelines
DNV RP F105 Free Spanning Pipelines
Other References Applicable Standards / Specs of ASME, API, NACE, MSS, BS, DIN and IP-6
Table : Pipeline Codes, Standards
V. Technical Aspects, Challenges & Opportunities
Local Regulations
Type of Pipeline Crossing Approval Authority
ROU & Land Acquisition Central/State Govt. as applicable
(As per PMP Act 1962)
National Highway
Crossings
NHAI
MDR/ ODR Crossings PWD
Railway Track Crossings Indian Railways
Crossing through Forest
Land
Forest Authority
River/Canal Crossings Irrigation/Canal Authority
Table : Indian Approval Authorities Regulations
V. Technical Aspects, Challenges & Opportunities
Pipeline Design and Technological Advancement
Shore Approach Design
Combination of site selection and design activity
• Pipeline stability analyses, trenching/ burial requirements and construction method
• Dredging (hydraulic and conventional), HDD, mechanical trenching, jetting and
plowing techniques are considered in conjunction with seabed soils data to
determine method suitability.
• Shore approach installation methods and equipment, including pipe pull, pipelay,
directional drilling and/or a combination of the above methods, to be evaluated.
• Surface and bottom currents are very severe at shore crossings (East Coast &
Hazira landfalls)
• Shore approaches and port limits typically with pre-trench and burial; then continue
with post trench until the pipeline stability and concrete coating not an issue.
V. Technical Aspects, Challenges & Opportunities
Pipeline Design and Technological Advancement
Deepwater pipeline design
• 500m to 2200m water depth
• Encompass most of the fundamentals of conventional pipeline design
• Warrants a thorough and rigorous level of engineering
Key Aspects:
• Flow Assurance
• Operability
• Pipeline routing
• Material selection
• Installation methods
• Construction logistics
V. Technical Aspects, Challenges & Opportunities
Subsea Pipeline Technology Drivers – Typical Deep Water subsea Tie-back
Pipeline Design and Technological Advancement
• Large diameter line pipe at manufacturing limit
• Large diameter pipeline installation limits
• High external over-pressure & thermal loads
• Corrosion resistant materials Large bore valves & diverlessconnections
V. Technical Aspects, Challenges & Opportunities
Subsea Pipeline Technology Drivers
• Line pipe manufacturing
technical limits(CRA
clad, wall thickness,
ovality)
• Hydrate prevention
challenges during pre-
commissioning
• Commissioning High
pressure wells: Class 5000
Large Bore equipment
Pipeline Design and Technological Advancement
V. Technical Aspects, Challenges & Opportunities
Long Free Span Lengths over 100m+ in length
• May exceed static structural limits for combined
loading
• May be subject to VIV
Steep seabed slopes
• May aggravate liquid slugging
Interaction with thermal loads
• Buckling
Need to develop robust geological & geotechnical models
• Seabed evolution & historical events
• Current seabed characteristics
• Potential sources of instability (seismicity, shallow gas)
Pipeline Design and Technological Advancement
Subsea Pipeline Technology Drivers
V. Technical Aspects, Challenges & Opportunities
Pipeline Design and Technological Advancement
Subsea Pipeline Technology Drivers
High Pressure/High Temperature Reservoirs
• make pipeline design impractical
• large diameter line pipe can only be cost effectively manufactured by UOE
• CRA clad line pipe difficult to manufacture in high wall thicknesses
• Induced Lateral Buckling
V. Technical Aspects, Challenges & Opportunities
Lateral Buckling: (Typical Mitigation Methods)
Pipeline Design and Technological Advancement
Subsea Pipeline Technology Drivers
V. Technical Aspects, Challenges & Opportunities
Construction Challenges
Challenges of Onshore Pipelines in India
• Land acquisition for the 'right of way' and the public
hearing along the pipeline route
• Working in desert areas poses a number of challenges
• Equipments should be tailored to withstand very hot
climates
• Very steep hilly terrain, with slopes up to 70°. Mobilize
transportation of pipe, equipment etc will be a logistical
challenge.
• Many high pressure pipelines that are constructed
require anchor block
V. Technical Aspects, Challenges & Opportunities
Construction Challenges
Challenges of Onshore Pipelines in India
• The Right of Way is restricted to protect sensitive ecosystem
i.e. dense forest land, biological diversity hotspots etc.
• For the laying of pipeline in the above areas, permission has
to be obtained from the relevant authorities.
• Trenching in marshy and slushy coastal land with a limited
working window
• Trenching in hard rock that require three to four rounds of
controlled blasting to remove rock
• River crossing by HDD, river crossing by float and sink
technique.
• Water for hydrotesting can be difficult to source and require
transportation
• Excavation on the steep slope carryout by special excavators
and a powerful all-wheel drive.
V. Technical Aspects, Challenges & Opportunities
Construction Challenges
Challenges of Offshore Pipelines in India• Almost everywhere around east coast the ocean conditions are hostile.
• The inclement weather on India’s east coast reduced a fair weather window for offshore installation
to 4 months i.e. from mid December to mid April.
• Demobilization is deemed necessary in case of rapid evacuation to avoid damages due to
cyclones that are endemic to the Bay of Bengal.
• Seasonal Loop or Eddy currents in Bay of Bengal causes extensive weather down time
• In addition, the KG deepwater fields have the following notable challenges during installation:
muddy seabed; ROV operable affects due to zero visibility; high currents.
• Mumbai offshore field weather window for installation is 7 months i.e. from October to April.
• Lay barge to equip with better motion characteristic, improved barge-mooring or positioning
systems and faster weather disruption procedures
• Vessel entry permit approval required from Indian Navy
V. Technical Aspects, Challenges & Opportunities
Moving Forward with ECA of Pipeline Girth Weld
• ECA is based on fracture mechanics principles
• ECA is alternate acceptance criteria for pipeline girth weld inspection
• Due to wide usage of Automatic welding/AUT system during pipe
laying, ECA has been carried out prior to laying to define flaw
acceptance criteria to benefit the following:
Fewer repairs
Faster installation
Reduced laying cost
Predict large acceptable flaw size than the workmanship
V. Technical Aspects, Challenges & Opportunities
Pipelines with HDD Technology
Figure: Horizontal drill installed under a water
crossing
Benefits of HDD over laying the pipe in an open trench are various:
• No shore excavation
• No cofferdam requirement
• No interruption to surface traffic
• No disturbance to shoreline flora and fauna
• Secure depth of cover
• Minimal footprint
• Minimal site preparation & reinstatement
• Vary depth of cover to avoid underground utilities, pipelines or structure
• Relatively short construction duration
V. Technical Aspects, Challenges & Opportunities
V. Technical Aspects, Challenges & Opportunities
Pipeline Decommissioning Opportunities
• Pipelines have surpassed its design life, either they have to be
decommissioned or replaced with the new pipeline
• In Mumbai High Fields, there are 200 offshore platforms & 4500 km offshore
pipelines installed; some were built in late 70’s and early 80’s that faces de-
commissioning or replacement due to ageing design life.
• Pipeline decommissioning involves:
Pigging
Flushing
Filling and Plugging of lines
Followed by removal or abandonment in situ.
• Regulations relating to pipelines are currently controlled by operator’s
preference and national regulations rather than international code
requirements.
Emergency Pipeline Repair System
• The EPRES provides a mechanism that mitigates risk and addresses the timely repair of
pipelines.
• The industry is to work on a co-operative basis with a common interest of timely repair and
minimal disruption to oil and gas operations.
The possible emergency pipeline repair equipment to be shared includes:
• Pressure containment clamps (Eg: hot tap clamps)
• Mechanical connectors
• Line pipe, bends and pipe fittings
• ROV tools
V. Technical Aspects, Challenges & Opportunities
VI. Pipeline Resources and Information
ONGC Leading National Oil and Gas Exploration Company of India
GAIL Gas Authority of India, a Leading public sector company;
Largest gas transmission network
Bharat Petroleum (BPCL) Refining, Storing, Marketing and Distributing petroleum
products
Hindustan Petroleum (HPCL) Major integrate oil refining and marketing companies in India
Indian Oil Corp Ltd. (IOCL) Major diversified, transnational, integrated energy company
OIL India Oil exploration, refining and distribution
GSPC Gujarat State Petroleum
Corporation
Vertically integrated energy company across India and
overseas
Reliance Industries Limited (RIL) Activities span exploration and production of oil and gas,
petroleum refining and marketing, petrochemicals
Cairn India Largest producing oil field in the Indian private sector
HOEC Oil field operator in the Indian private sector
BG Exploration Tapti gas field operator
Essar Oil Operates a fully integrated oil company of international size
and scale in India
NIKO Resources, ENI, Hardy oil Operators/JV - Shareholders in Offshore Fields
Pipeline Operating Companies
VI. Pipeline Resources and Information
EIL Leading Design Consultant providing offshore and onshore field development
L&T - Valdel Engineers Offshore/ Onshore Engineering
Wood Group (JPK) Pipeline Engineering
Bechtel Corporation Engineering, Construction and Project Management
RGTIL (Reliance) Leading Gas Transmission Infrastructure onshore pipeline
L & T Leading EPCI both onshore and offshore pipeline
Punj Lloyd Ltd One of the largest engineering construction companies in India
KasStroy Service Pipeline EPC
PSL Pipe Coating, Anode, Bends
McDermott EPCI – Offshore Pipelines
HHI EPCI – Offshore Pipelines
Saipem EPCI – Offshore Pipelines
Leighton EPCI – Offshore Pipelines
Global Industries EPCI – Offshore Pipelines
NPCC EPCI – Offshore Pipelines
Allseas EPCI – Deepwater Pipelines
Technip EPCI – Deepwater Pipelines
Aker Solutions EPCI – Subsea System
Pipeline Engineering Consultants
Pipeline EPCI Companies
VII. Indian Regulatory Challenges
Central Regulatory Bodies like PNGRB ensure access to gas pipelines on non-
discriminatory common carrier principle for all users; Tariff for the pipelines to be
approved by Regulator. For details refer to http://www.pngrb.gov.in/
Functions of the BoardProtect consumer
interest by fostering fair trade & competition
Register & Authorise entitiies
Declare pipeline as common/contract
carrier
Regulate access & transportation rather on common/ contract carrier/ CGD network
Enforce retail & marketing service
obligation
Ensure adequate availability and
equitable distribution
Monitor prices & prevent restrictive
trade practices
Maintain databank information
Lay down technical standards/
specifications
Perform other functions entrusted
by central government
Conclusions
The challenges faced by any company, is more or less conventional as
faced by any pipeline construction.
• Land acquisition for the ‘right of way’ will be the biggest challenge
• Limited offshore weather windows
• Lag far behind in pipeline infrastructure
• Produced 2/3rd of gas consumed by power and fertilizer sectors; GOI given
special thrust to these sectors to provide gas in priority
• Expected expenditure in the next 5 years will be approx $5 to 6 billion in
pipeline
• RIL, ONGC,GSPCL have made several major discoveries including ultra
deepwater in its KG basin blocks
• Major investment expected in rural water pipeline infrastructure.