Abstract of Papers:-

Malaysia’s Peninsular Gas Utilization (PGU) pipeline network is the backbone of the transmission of
natural gas in Peninsular Malaysia. In operation since the early 1980’s sourcing gas from offshore
Terengganu, the network has been aggressively expanded in the 1990’s to supply 2 Bscfd of gas to
major customers in Peninsular Malaysia.

PETRONAS Gas Berhad (PGB) has conducted an integrity study for the oldest PGB pipelines i.e. 36” sales
gas, 8” propane and 8” butane pipelines located at Kerteh, Terengganu. The pipelines are inspected via
in-line inspection to ascertain the conditions, and the periods of inspection are as follows:
• 36” sales gas – in year 1994 and 2002
• 8” propane and butane – in year 1996, 2001 and 2006
Abstract of Papers (cont’d):-

Extensive repair activities have been performed for the pipelines

since year 2003 to ensure that the integrity of the pipelines are
secured and remain intact. Common causes for repairs are due to
extensive coating damages i.e. disbondment, cracking, peeling,
wrinkling etc., external corrosions and dents.

The pipelines are equipped with impressed current cathodic

protection (ICCP) system to act as secondary protection from external
corrosion. The primary protection is the external coating i.e. coal tar
enamel coating system (which currently is no longer in use).
Nevertheless, the ICCP does not provide sufficient protection
predominantly between KP 8 to KP 22 of the pipelines.
The ICCP remains inefficient despite all the efforts to mitigate the issues i.e. bonding the Loop 1’s ICCP
with the Peninsular Gas Utilization (PGU) I’s ICCP, upgrading rectifier station and installation of sacrificial
anodes. Due to the above, the external corrosion growth rates for the pipelines have increased as
manifested in the in-line inspection results.

PGB also carried out root cause analysis (RCA) to analyze in detail the problems and issues faced by the
pipelines. From the investigations, it is evident that the external corrosion control from KP 8 to KP 22 is
not effective due to the environment that the pipelines are located. The pipelines are located in
graphitic, rocky and hard soil areas where there is virtually no electrolyte to transmit ICCP current to
protect the pipelines. The rocky and hard soil also induced damages to the coating i.e. disbondment,
cracking, peeling, wrinkling etc.
Abstract of Papers (cont’d):-
Few options have been studied to solve the root causes of the problem and the one that deem feasible
is replacement of the pipelines from KP 8 to KP 22 and relocate that portions to Loop 1’s Right Of Way
(R.O.W) which is less hilly without rocky and hard soil thus good soil for ICCP system.

Based on corrosion rates derived from integrity studies performed in 2001 and 2006, the 8-inch
propane and 8-inch butane have remaining life of less than 3 years. Similarly, the 36-inch sales gas
pipeline has 15 years remaining life. The remaining life is calculated based on a “do-nothing” approach.

There are many challenges while executing the project which will be shared during the presentation.
The presentation will share the experience of PGB in tackling the problems through its in house
technical capabilities. Among the key items are:
• Tools in executing detail designs
• Experienced of the team
• Changes in the route during detail design
• Authorities requirements
• Correct assessment of the site
 8” PGU I Butane Pipeline
Relocation Project
- The Challenges
11-12th October 2011
7th Asian Pipeline Conference and Exhibition

Ir. M Nasahie Akbar Ali

M Nazri Ahmad

© 2011 PETRONAS Gas Berhad (PGB)

All rights reserved. No part of this document may be reproduced, stored in a retrieval system or transmitted in any form or by
any means (electronic, mechanical, photocopying, recording or otherwise) without the permission of the copyright owner.
 Objective

 To share with APCE delegates on Challenges for PGB in

maintaining pipeline integrity for 8” PGU I Butane Pipeline and
Project Execution Challenges

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 BACKGROUND, ISSUES AND
DECISION MAKING

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 Background - Oldest pipelines in PETRONAS Gas Bhd
- Transmission Operation Div. (PGB-TOD)
 The PGU I pipelines were constructed in 1982
GPP A and commissioned in 1984, 27 years in
operation.
PGU I Pipelines
(36” SG, 8” C4, 8” C3)
 The pipelines’ length are as follows:
 36” Sales Gas – 32 km from GPP A to Telok
Kalong Regulating Station
Loop 1 Pipelines
(36” SG, 8” C4, 12” C3)  8” Propane – 44 km from GPP A to Export
Terminal, Telok Kalong
 8” Butane – 44 km from GPP A to Export
Terminal, Telok Kalong

Telok Kalong
 To protect from corrosion, they were coated
Export
Regulating
Terminal with coal tar enamel coating and equipped with
Station
impressed current cathodic protection (ICCP)
system.

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 Oldest pipelines in the system and located in
graphitic, rocky, hilly and dry terrain

Rocky, Hilly and Dry terrain of PGU I with sample of Graphitic rocks found at the
locations along Right of Way (ROW)
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 Rocky and hard soil conditions on all hilly areas of
PGU I ROW

Hard Soil below the pipe that repair crew needed to hack and loosen out using
hydraulic hacking machine.
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 The rocky and hilly conditions induced various types
of damages to the coating
Coating Damage i.e. coating break due to pipeline resting on rock

Pipeline

Graphitic rocks

Pipeline sitting on top of

graphitic rock/hard soil
typical of PGU I R.O.W

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 Ineffective CP still persist due to the environments
i.e. graphitic, rocky, hilly etc.

CIPS 2007

3.00

2.50
Potential (mV)

2.00

1.50

1.00

0.50

0.00
0 12 24 36
Chainage (km )

ON Potential Instant OFF CP Criteria

CIPS results show that Cathodic Protection (CP) under protection mostly at hilly
areas. Issue of CP under protection has been prolonged for 10 years at least
despite mitigations that we have performed i.e. ICCP upgrading and sacrificial
anode installation.

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 Summary from Integrity Study

PGU 1 Pipelines Requirement

Both 8” PGU I & LOOP 1 is required.

8” PGU 1 Butane (C4) Selective Locations between KP 8 to
KP 24 of 8” PGU I C4 have Remaining
Life of < 3 years.

Only 12” LOOP 1 is needed & capable

8” PGU 1 Propane (C3) to cater customers’ demands
Selective Locations between KP 8 to
KP 24 of 8” PGU LOOP 1 C4 have
Remaining Life of < 3 years.

Both 36” PGU I and LOOP 1 are

36” PGU 1 Sales Gas
needed to cater customers’
demands. Remaining Life <15 years

(Remaining life = “do-nothing” approach).

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 Decision Making

 8” Propane and 8” Butane have

GPP B GPP A remaining life of less than 3 years.
KP 0
C3
C1
Loop 1 C4
PGU I C4  8” PGU 1 Butane pipeline needs to be
Pipelines B2 Junction
Pipeline
maintained but portion from KP8 until
PGU I C3 Pipeline KP24 need to be replaced and
To abandon C3
7.0 km
Pipeline (44 km) relocated.
KP 8
 8” Propane pipeline can be safely shut
To abandon C4
Pipeline between down and abandoned as an existing
KP 8 to KP 24
KP 24 PGU Loop 1 12” Propane pipeline is
sufficient to meet customers’ demands
3.0 km Customers

ROW for  The 36” PGU 1 Sales Gas pipeline needs

Loop 1
Pipelines
Tlk. Kalong Export to be maintained. Since remaining life
Regulation
Station Terminal for the pipeline is 15 years, it is not
KP 32
Relocated pipelines
required to be replaced immediately.
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 PROJECT EXECUTION &
CHALLENGES

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 CHALLENGE NO 1: SAFETY !!!

Check
Weld Number
Compare to Welding Book
for Confirmation

Make A Trial Hole

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 CHALLENGE NO 2: Pipeline Lifespan !!!

Both 8” PGU I & LOOP 1 is required.

8” PGU 1 Butane (C4) 8” PGU I C4 have Remaining Life of <
3 years.

PROJECT START in 2010 … expected lifespan up to May 2011

So what do we do…
a) In-house Detail Design by Owner
b) Early discussion with Authorities, ensuring early approval from
Authorities
c) Early Land Acquisition
d) In-House procurement of long lead items
e) Engaged PCC Contractor with PGB Lead in Executing Commissioning

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 CHALLENGE NO 3: Abandonment & Decommissioning !!!
Abandonment
 1st time in Malaysia
for Onshore Gas
Pipeline ~ 44 km

 Continuous Supply to
customers. Short
duration of windows
given by Producers
(GPPs)

 Liquid arrangement

 Customers’ different
requirements

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 CHALLENGE NO 3: Abandonment & Decommissioning !!!
No!
We want dedicated gas GPP B GPP A
from Gas Processing Plant A
KP 0
!!! C3
C1 PGU I C4 Pipeline
Loop 1 C4
Pipelines B2 Junction PGU I C3 Pipeline

Abandon overall PGU I C3

7.0 km Pipeline (estimated 44 km)
KP 8

Abandon C4 Pipeline
between KP 8 to KP 24

KP 24

3.0 km Other Downstream

Client i.e MTBE
ROW for
Resistance from Client Loop 1 Tlk. Kalong Export
Pipelines Regulation
Station Terminal
KP 32
Relocated pipelines Note : Not to scale

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 CHALLENGE NO 3: Abandonment & Decommissioning !!!
Customers’ different requirements

 Performance test run, Sampling of product: Impact of commingling. In house

certified lab analysis

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 CHALLENGE NO 4: Construction Challenges !!!

 Seasonal Swampy Area - only on swampy and no in between access

using push pull method
 Construction access is impossible considering others land/no access on
either side of the pipeline

Seasonal Swampy Area

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 CHALLENGE NO 4: Construction Challenges !!!

Location of
Seasonal Swamp
What we do ???

Step 1: Transferring the pipe

Swampy area:
Pipe transferred using Mechanical Plug insertion and enough for pipe buoyancy.
Pipe transferred using pulling by excavator.

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 CHALLENGE NO 4: Construction Challenges !!!

Step 2: Welding Stations and Pulling of Pipe

Step 3: Fit-Up Floated pipes with Set-On Weight/Waiting for Seasonal

Swamp dry

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 SUMMARY

The Concept of doing it ourselves shows a positive

progress, many benefits to the company, partners and
people

PGB Concept of “From CRADLE TO GRAVE”

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Thank You

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