TRANSCANADA TECHNOLOGY INNOVATIONS. Australian Pipeline Industry Association Seminar May 22, 2008 Brisbane

Transcription

1 TRANSCANADA TECHNOLOGY INNOVATIONS Australian Pipeline Industry Association Seminar May 22, 2008 Brisbane

2 Introduction Leading North American energy company Competitively positioned in pipeline and energy infrastructure Almost $26 billion of premium pipeline and energy assets ($Cdn at Dec. 31, 2006, excludes ANR) Employ approximately 3,550 people in nearly 50 professions, trades and fields Strong financial position 2

3 - Extensive Energy Network approx. 59,000 km (36,500 miles) of wholly owned pipeline. transports 15 billion cubic feet/day (Bcf/d) from virtually all major supply basins on the continent. 2,969 km of proposed oil pipeline, capable of transporting 590,000 barrels per day. 16 power facilities with 7,700 megawatts of power generation. two proposed liquefied natural gas facilities total capacity 1.5 Bcf/d. significant gas storage capacity in Canada and the United States, 360 Bcf. 3

4 The Value Pipeline 4

5 Technologies Technology Implementation X100 pipe technology Alternative Integrity Validation (AIV) High Productivity Welding High Performance Composite Coating (HPCC) Composite Reinforced Line Pipe ( CRLP) Gas Transport Module (GTM) Pressure Vessel Marine Road transportation Storage 5

6 Technology Implementation Program use the technologies to drive down the cost to the benefit of shipper and has a staged process for technology development Concept and feasibility study Fundamental technology development Controlled field implementation Standard practices Controlled implementation of technologies in Stittsville and Deux Rivieres projects Install 5.5 km X100 pipe in Stittsville project Fully implement AIV in Deux Rivieres project Apply tandem welding and mechanized tie-in welding for both Use HPCC as the baseline coating 6

7 X100 Pipe Installation 7

8 X100 Pipe Technology Installed 7.3km in Class 3 Locations in Stittsville project 5.3km supplied by JFE Steel 2km supplied by IPSCO Significant accomplishment Gained NEB acceptance Enhanced understanding on production capability and property consistency Improved confidence in quality consistency Increased construction experience 8

9 Alternative Integrity Validation (AIV) AIV is an alternative to post-construction hydrotest to demonstrate pipeline integrity. Plan to implement AIV on both Stittsville and Deux Rivieres Stittsville Loop was hydrotested as planned Waiver of hydrotest for Deux Rivieres was approved by NEB First successful NEB waiver for onshore pipeline Substantial benefits in environmental protection and cost savings Continue to develop AIV process for regular and large scale applications 9

10 High Productivity Welding Mainline welding used a higher productivity mechanized GMAW with twin wire systems (tandem) to achieve higher productivity Tie-in welding with utilize mechanized FCAW and manual welding Apply to both Stittsville and Deux Rivieres Welding went generally well 10

11 Mechanized GMAW 11

12 Welding 12

13 The Gas Transport Module Technology Resin Composite Reinforced Pressure Vessel Technology Glass Fiber CRLP & GTM - Manufactured under license from NCF Industries, Inc. US & Foreign Patents Issued & Pending Steel Pipe and Heads 13

14 Composite Reinforced Line Pipe (CRLP) Outer-protection Composite Reinforcement Primer CRLP & GTM - Manufactured under license from NCF Industries, Inc. US & Foreign Patents Issued & Pending Steel Liner 14 5/16/2008

15 CRLP Historical Development 1972 Swimmer delivery vehicle 1975 Fireman s breathing apparatus 1975 Mountain climber s oxygen tanks 1981 Natural gas vehicle storage tank 1986 Pipeline repair sleeves (ClockSpring ) 1991 Natural gas pipeline trial installation (Enron) 1996 Due Diligence Study 1998 Pipe Replacement Installation (100 m) 2001 Two 24 projects ( 2kms, 50 m) 2002 One 48 project (100 m) 15

16 Studies Analysis and design methodologies Ultimate pressure capacity Fracture arrest capability Mechanical damage resistance Constructability Long-term performance Corrosion resistance Field trials 16

17 Safety Advantages Excellent fracture arrest Resistance to mechanical damage Factor of safety on burst >

18 Fracture Control 18

19 Fracture Arrest Composite arrests cracks in both directions 19

20 Cost Savings Material - up to 10% less than all-steel Transportation and Handling - 40% weight savings Construction - Reduced handling costs due to lower weight - Welding savings 20

21 Net Project Cost Savings % Total Project Savings from CRLP Net Project Savings Pipe Costs Transportation Welding 40 % 10 % 4.0 % 8 % 20 % 1.6 % 10 % 20 % 2.0 % Total: 7% - 8% 21

22 Material Properties Material Property Steel Pipe Composite Wrap Yield strength MPa n.a. Ultimate strength MPa MPa Elastic modulus 207,000 MPa 48,000 MPa Ultimate strain >20% 2% Thermal exp. 12 x 10-6 / C 7-9 x 10-6 / C Poisson s ratio

23 Typical Stress-Strain Curves Stress X70 steel pipe composite reinforcement 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% Strain 23

24 Hydrostatic Test Internal Pressure (MPa) composite steel Hoop Stress (MPa) 24

25 Operating Stresses Internal Pressure (MPa) composite steel Hoop Stress (MPa) 25

26 Buffalo Creek Pilot Test Objectives: 1. Constructability in North 2. Cold weather bending, joining 3. Long-term performance 4. Validate manufacturing process 5. Confirm cost savings 26

27 Joint Wrapping 27

28 Pipe Bending 28

29 Russell Creek Test Objectives 1. Long-term performance 2. Constructability 3. Bending, joining 4. Long-term corrosion resistance and performance 29

30 Installation and Monitoring 30

31 Saratoga CRLP Objectives First spiral weld composite wrapped 48 pipe Composite designed for pressure capability Constructability Joining capability Long term performance 31

32 Saratoga Loop Project 32

33 Conclusions CRLP a viable technology for many pipeline applications Successful results of current field studies will expedite use Canadian Standards Association Pipeline Systems Z662 Approval in

34 Great Product, But... Small market for CRLP Very conservative industry. Market driver for lightweight, less expensive pressure vessel for transportation of Compressed Natural Gas (CNG) in marine, road and storage applications 34

35 Key Drivers for Marine CNG Record high petroleum products pricing with oil >>$100US Increase in global gas demand/price Increase and more interest in gas discoveries Power plant fuel replacement imported oil results in electricity charges >>$0.30US/kwh Anti-flaring regulations/kyoto Government directives/incentives for CNG vehicle use CNG a local solution with price determined by regional market CNG can provide a secure and reliable delivery Diversification of energy sources Locally available gas not subject to dynamics and volatility of global gas markets 35

36 Marine CNG Applications Stranded gas Associated gas Stranded Markets Incremental capacity Provide seed gas to create the market to support a pipeline May replace need for a pipeline Provides more market flexibility Can be moved to other fields at end of life Pipeline environmental and political issues avoided 36

37 CNG is the Solution CNG is a viable solution: kilometres million scm/d Re-injection/flaring not feasible or desirable Smaller fields may be economic due to high reinjection costs Reduced capital and operating costs versus LNG GTM technology (under license from NCF Industries) is approved and commercially available Power plant user must have incentive for switching from liquid fuel cost differential CNG well suited for broader list of reserves smaller than required for LNG 37

38 Economic Volume and Distance for CNG Transportation Economic Volume and Distance for CNG Transport Distance (nautical miles) First Projects Marine CNG Volume (mmscfd) New LNG Marine CNG or Pipelines Pipelines 38

39 Environmental Benefits of CNG Local recovery of stranded or otherwise unused energy Provides inexpensive natural gas for use Carbon credits available - $5-$25 US per tonne CO2 Natural gas ~ 2 kg/ m3 CO2 Emission reductions if replacing/displacing other fuels: CO2 by 29% compared to oil, 44% to coal NOx & SOx by % Particulates between % CNG delivery consumes 5% energy vs % for LNG and 38% for Methanol and Gas to Liquids 39

40 CNG System - Typical Process Schematic Low Pressure Fill Bypass Inlet Gas Compression Gas Cooling Gas Chilling (Optional) Dehydration Pipeline to Loading Mooring Buoy or Dockside Unloading System Mooring Buoy or Dockside Loading System Pipeline to De- Compression Station Gas to Fuel System or Compression for Pipeline Heat Letdown Valve 40

41 GTM Fully Tested and Approved ASME Code Case #2390 approval - October 2002 All containment system testing completed in 2001 Prototype under test Demonstration Unit 41

42 System Approvals and Standards American Bureau of Shipping (ABS) approval for inland barge use November 2001 Approval in Principle (AIP) of GTM based ocean going carriers received from Lloyds Register - September 2003 DNV Rules for Compressed Natural Gas Carriers Revision 1 October 2002 for external hearing Det Norske Veritas 42

43 GTM System Advantages ASME Code vessels approved by all major class societies and provides the safest, most reliable design available on the market Larger size and lower cost than conventional seamless tube steel and all composite gas cylinders; minimizes valving and manifolding. GTMs are up to 40% lighter than an all-steel containment vessels built to the same code with the same safety factors. Ships operate at ambient temperature so require no complicated loading schemes or refrigerated hold. Loading facilities require only compression, cooling, dehydration, and loading connections - similar to offshore crude loading. Unloading facilities require letdown station, compression and unloading connections. 43

44 GTM System Advantages Simplicity of system provides low initial capital commitment to initiate gas flow. Easily scalable by adding ships and additional loading facilities to increase gas deliveries. Flexibility of system allows ships to be re-deployed to other production areas or markets when no longer needed. Simplicity of loading and unloading facilities means little stranded capital. Economic over large range of flows and transport distances - lower volume and distance thresholds than LNG. 44

45 Cargo General Layout 45

46 Generic CNG Project Value Chain Upstream Facilities Loading Marine Transportation System Unloading Pipeline to Powerplant 46

47 The /OSG Partnership 47

48 World Class Delivery of Energy and OSG joined forces to provide a complete CNG marine transport service through TransCNG International (TCI): The most advanced compressed natural gas cargo containment system design, testing and approval program. Both teams are financially capable and able to achieve favourable financing structures for any proposed operating entity for CNG transport Previous CNG transport experience Long Term commitment to energy transportation Building to world recognized ASME code ensures ease of regulatory/environmental approvals Ships can be staffed with local crews ensuring local employment benefits 48

49 Marine CNG Safety TCI system based on proven, reliable experience operated by professional, world class energy transportation companies Safety is built into the system, meeting or exceeding all codes and regulations System is designed to perform and has the full backing of and OSG to deliver Gold Standard service over the life of the contract. 49

50 Operations Training and Support Safety is a cornerstone of /OSG operating philosophy Training of crew/staff of marine transportation operator during execution phase at training facility in Canada Gas safety, handling, gas loading and unloading, operational training and emergency procedures Gas maintenance practices, troubleshooting, monitoring and simulations Hands on training in operating facilities 50

51 Marine CNG Training Facility 51

52 Floating Pipeline Company (FPC) Manufacturing License awarded to FPC Inc. Plant Developed in Saint John, New Brunswick, Canada Deep Water Loading, Unloading and Ship Outfitting Capability World Class Facility: ASME Section VIII, Div 3 and Section X and ABS Approval for GTM Trailers Production commenced December

53 FPC Marine GTM Production 53

54 FPC CNG Trailer Volume: ~ 240,000scf (6,800 m3) Weight: ~ 42 tonnes Length: m Number of GTMs: 3 ISO Container Frame Standard ISO Container Chassis Trailer 54

55 CNG ISO Containers Volume: ~ 240,000scf (6,800 m3) Weight: ~ 29 tonnes Length: m Number of GTMs: 3 55

56 Storage Capability Shore storage of CNG provides for: Extra supply in event of disruption of supply chain Extra gas for electricity peaking Flexibility in ship unloading rate/docking configurations Availability for establishing Mother/Daughter CNG refueling stations Stack (3 Modules High) Storage Module (2 GTMs) 1m 2.3m 26m 56

57 GTM Storage Stack 57

58 Mother/Daughter CNG Stations 58

59 FPC GTM Trailer Loading 59

60 Recent Publicly Announced Potential CNG Projects Artumas Energy Tanzania Progas Pakistan Oman to Pakistan Todd Petroleum Offshore New Zealand Husky Energy Offshore Newfoundland Philippines Imports Indonesia in various places Israel from Turkey Jamaica imports Panama imports Trans Caspian Sea New Zealand Imports Barbados Imports Alaska to Hawaii 60

61 Summary More natural gas into energy mix in next few decades Many fields too small to be developed for LNG or too far for pipelines = CNG Niche Market Marine CNG can provide lower cost gas supply to stranded markets without the need for expensive infrastructure Power plant fuel replacements are an ideal candidate for CNG as the volume will underpin CNG development for industry and vehicles in local area CNG truck deliveries and storage can provide mother/daughter supply opportunities Green benefits converting from liquid fuels to CNG for power plants and vehicles TCI marine CNG transportation services the complete solution 61

62 Canadian Energy Pipeline Association (CEPA) Mission The Canadian Energy Pipeline Association is dedicated to ensuring a strong and viable transmission pipeline industry in Canada in a manner that emphasizes public safety and pipeline integrity, social and environmental stewardship, and cost competitiveness. Priorities Pipeline safety and integrity Environmental stewardship/climate change Economic regulation and competitiveness Regulatory efficiency Aboriginal relations Landowner relations 62

63 Canadian Energy Pipeline Association (CEPA) 6 trillion cubic feet of natural gas 950 million barrels of liquid hydrocarbons 100,000 kilometres of pipe $C67 billion in exports 63

64 Engineering Internship Program at the Schulich School of Engineering This award-winning program is the largest of its kind in Canada, with a participation rate of around 80% by students with a GPA of 3.0 or greater. Their goal is to produce "Superior Graduates". They strive to be the "School of First Choice". They currently have over 320 students on internships of consecutive months. 10% of their interns work internationally - in Switzerland, Japan and the United States. 64

65 Co-op/Internship Students s Internship program provide an opportunity for to hire skilled, motivated, career-oriented students on a year-round basis starting in January, May and September. They are an excellent source of temporary assistance for peak/seasonal overloads, special projects or backfills for vacation leave or longterm assignments. As a requirement of their degree/diploma program, co-op or internship students alternate periods of full-time work with their academic terms to acquire practical experience prior to graduation. Normal co-op term assignments are four to eight months. Internship is similar to co-op education, usually with longer work terms of 12 months. A co-op student's year or more of employment can be used towards required experience for a professional designation. 65

66 Pipeline Engineering Centre (PEC) The University of Calgary's Pipeline Engineering Centre (PEC) is affiliated with the Schulich School of Engineering's Department of Mechanical and Manufacturing Engineering. The Centre offers educational support and direction to the pipeline industry through the development and delivery of courses, seminars and workshops to industry in addition to the development of degree specializations and programs for graduate students. Through research, the centre seeks to be a leader in the generation and development of leading-edge knowledge and information for application in the area of pipeline engineering. 66

67 Contacts For more information: Gary Stephen Phone: Greg Cano Phone: OSG Angus Campbell Phone