Incorporating an Asset Integrity Program into the Design Stage of Projects

Ray Goodfellow
Pangea Solutions Inc May 9, 2008
rgoodfellow@pangeasolutions.com

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 operation

& installation alterations)

maintenance, (repairs, 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) Inspection, Mitigation, Monitoring Data management Training programs

selection

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? What are the deliverables at each stage of the project?

Deliverables:

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 cant emphasize enough that youve got to get this right. You got to get this right. Because when you finally lock the scope, youre 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 didnt get it right
~Neil Camarta
*Petro-Canada Investor Day: Fort HillsOil 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

Alloys, coatings, equipment design, process changes Inhibition, process control, inspection, monitoring, run to failure

Operational mitigation

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

Understanding the rational allows more effective management of future changes (personal and process)

3D

Modeling can be used for selection of CMLs, corrosion monitoring locations, etc.

4. Fabrication and Construction

Key Activities
Quality assurance and Quality a key aspect of asset integrity
Vendor

control

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 Installation Inspections compete PSVs 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

Key Deliverables

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