Incorporating an Asset Integrity Program into the Design Stage of

Incorporating an Asset Integrity Program into the Design Stage of Projects Ray Goodfellow Pangea Solutions Inc May 9, 2008 [email protected]

What is Asset Integrity Asset Integrity is an effective system for managing the integrity of equipment, piping and pipelines throughout the full lifecycle: design construction & installation operation maintenance, (repairs, alterations) integrity assessments decommissioning Developing and implementing an Asset Integrity program at the design stage supports lifecycle reliability and operability

What is Asset Integrity Regulatory Requirements (ABSA/CSA/EUB/) Pressure Equipment Integrity Management System (PEIMS) Pipeline Integrity Management Program Key elements include: Risk assessments Degradation Circuits Material selection Condition monitoring location (CML) selection Inspection, Mitigation, Monitoring Data management Training programs

What is Asset Integrity Typical Equipment within Scope: Boilers and heaters Pressure vessels (including Pressure relief devices) Pressure piping Tanks Non-pressure static equipment Non-pressure piping Pipelines Not in Scope Structural Rotating equipment Electrical

Overview Why: What is the value of incorporating Asset Integrity into the design stage of a project? How: What are the key activities at each stage of the project? Deliverables: What are the deliverables at each stage of the project?

Why De-ethanizer overhead gas line – erosion corrosion failure downstream of mixing point Humber Refinery Fire, Health Safety Executive (HSE) Report http://www.hse.gov.uk/offshore/information.htm\

Why incorporate Asset Integrity into the design stage of a project The goal of each project is to create a business asset that performs its intended function, is safe, environmentally sound and reliable. The project is expected to be executed within the planned cost and schedule *“ I can’t emphasize enough that you’ve got to get this right. You got to get this right. Because when you finally lock the scope, you’re stuck with it for 30, 40, 50 years, so you better not have any regrets when you start building it and running it that you didn’t get it right” Neil Camarta *Petro-Canada Investor Day: Fort Hills—Oil Sands Engine of Growth, Neil Camarta, Senior Vice-President, Oil Sands

“You got to get this right” Incorporate lifecycle asset integrity into the design Have a positive impact: for the project – efficient project execution and optimize capital costs for the operation- improve reliability and operability

Incorporate lifecycle asset integrity into the design Make well thought out decisions to meet project and operations objectives Good decisions include: Involving the right people Having a structured process to guide decision making Maintaining good documentation

Incorporate lifecycle asset integrity into the design Increased upfront engineering can: Support quality decisions regarding CAPEX (design mitigation) and OPEX (operational mitigation) Provide clarity and direction that reduces time in detailed engineering Reduce rework during fabrication and during operations Meet operational reliability expectations for long term plant life

Trend in Industry Understanding of the importance of incorporating Asset Integrity into the design stage is increasing due to serious failures in the refinery, petrochemical and pipeline industry Major corporations now require risk assessments at the design stage. Regulator requires the effective systems for managing the integrity of their pressure equipment throughout its full lifecycle which includes design, construction and installation.

How Incorporate asset integrity activities into key phases of the project Identify key project objectives, development phases, milestones and hold points Utilize defined processes (i.e. Risk Base Inspection) to make decisions Supply defined deliverables at each stage of the project Recognize, understand, and quantify the impacts and values added from asset integrity activities

Key activities and deliverables at each stage of the project Companies have multi step project management processes 1. 2. 3. 4. 5. 6. Select Alternatives Front End Engineering Detailed Engineering Fabrication and Construction Commissioning Turn Over to operations

1. Select Alternatives Key Processes Design Basis Risk Assessment Lessons Learned Study Key Deliverables Asset Integrity design philosophy report Lessons learned report Technical work book with all supporting information. (dynamic document) The work book will form the basis of additional risk assessments and the integrity manuals for the operating facilities

1. Select Alternatives Impact Business basis for integrity management strategy Risk based decisions that consider full asset lifecycle Design mitigation Alloy’s, coatings, equipment design, process changes Operational mitigation Inhibition, process control, inspection, monitoring, run to failure Alternative selection considers potential degradation mechanisms and other hazards

2. Front End Engineering Key Activities Risk Assessment Incorporate lessons learned Development/Updating of Standards Management of Change Key Deliverables Scope and budget includes asset integrity and QA work Technical work book with all supporting information. New or revised specifications Documented basis of integrity related design decisions

2. Front End Engineering Impact Scope and costs for integrity related work are included in project budget Determine first planned shutdown Equipment isolation and inspection plan Design mitigation i.e. select materials and design Operational mitigation i.e. select mitigation and monitoring strategy

3. Detailed Engineering Key Processes Assessment of deviations from initial design Previous Risk Assessment methodology can be used Materials selection report and diagram (MSD) reviews P&ID reviews Development/Implementation of quality assurance program Key Deliverables Reports or recommendations on specific technical issues Equipment Integrity Manuals Based on technical work books Degradation circuits Document the basis of design decisions Incorporates information from reports or recommendations on specific technical issues Foundation of RBI and overall asset integrity program Incorporate EPC Information Condition Monitoring Location (CML) selection Corrosion monitoring locations QA issues

3. Detailed Engineering Impact Provide technical input at project reviews, hold points, and milestones Capture the technical basis and rational behind material, mitigation, monitoring and inspection decisions 3D Understanding the rational allows more effective management of future changes (personal and process) Modeling can be used for selection of CML’s, corrosion monitoring locations, etc.

4. Fabrication and Construction Key Activities Quality assurance and Quality control a key aspect of asset integrity Vendor audits and reviews Assessment of deviations from design Key Deliverables Updated equipment integrity manuals Baseline CML survey on critical equipment and piping completed Start populating equipment data base

4. Fabrication and Construction Impact Final product meets design specifications Have base line data

5. Commissioning Key Activities Assessment of deviations from design Regulatory requirements prior to start up Plan for start up activities Key Deliverables Installation Inspections compete PSV’s serviced Equipment integrity manual complete Equipment database is populated with new equipment Baseline TML complete on critical equipment and piping Complete training for critical tasks

5. Commissioning Impact All critical tasks have been completed prior to start up Installation inspections and PSV servicing Inhibition programs in place Monitoring programs in place Training on procedures completed

6. Hand Over to Operations Key Processes Training Key Deliverables Equipment Integrity Manuals Documentation of deviations from design Populated database Mitigation and monitoring plan Maintenance planning Long term training program

6. Hand Over to Operations Impact A business asset that is safe, environmentally sound and reliable