METHODS OF TRANSPORTATION

KR30703
OIL AND GAS TRANSPORTATION AND STORAGE
TS DR NORZILAWATI MOHAMAD
Overview on Upstream, Midstream and Downstream
 Upstream
Midstream

Finding, lifting, and

processing oil & gas from
subsurface into surface and Transportation and
ready for transportation. storage of crude oil
Also known as Exploration and natural gas
and Production (E&P). from E&P plant for
further processing
by pipeline, railway,
road, or tanker.
Downstream
Further processing of
crude oil and natural
gas into useful final
product or raw material
for other industry.

 Fundamental upstream, midstream and downstream https://drive.google.com/drive/folders/17-nTOs1KvGodItdWN6h2H-UAbkXKOyRT

 Overview Malaysia’s Oil and Gas Industry

 Malaysia’s economy is heavily reliant on oil and gas,

with the sector generating 8.19% of the country’s
gross domestic product (GDP) in 2020.
 Malaysia holds the fourth-biggest oil reserves and the
sixth-largest natural gas reserves in the Asia Pacific
region.
 Petronas dominates the upstream sector, where it
enters into production-sharing agreements (PSCs) with
other local and foreign companies to explore and
develop Malaysia’s oil and gas resources.
 Foreign players in the domestic fuel
 O&G companies have established a strong presence in Malaysia. New opportunities in enhanced oil
recovery (EOR), marginal oil fields and deepwater developments have attracted more global companies to
use Malaysia as their base and to form join ventures or partnerships with domestic companies
6

 Malaysia’s large reserves makes it an ideal base for expanding into Asia’s oil and gas markets
 Oil & gas opportunities in Malaysia upstream and downstream
 Oil and Gas Industry Sector Boundary

 Actually, the boundary between upstream, midstream, and downstream is sometimes not clear /
gray area.
 Pipeline from upstream industry to downstream industry may be owned by upstream company or
independent midstream company.
 LNG industry is normally considered midstream or downstream industry, however with FLNG
revolution, it is now part of upstream sector.
 Due to large investment & complex requirement, normally a company only involve in one sector
only, however some very large companies involve in upstream- midstream-downstream sector,
known as integrated oil & gas companies, i.e. Shell, ExxonMobil, and Petronas.

Summary oil and gas exploration, production and transportation;

https://drive.google.com/drive/folders/17-nTOs1KvGodItdWN6h2H-UAbkXKOyRT
 Natural Gas Production

SARAWAK Liquefaction Export as LNG

Power Generation &

Petrochemical

SABAH, PENINSULAR
MALAYSIA & OTHERS Process
Natural Gas Production
Fuel for Industry Commercial &
Residential
Natural Gas Business
Gas Industry Structure in Malaysia

Petronas Gas Malaysia Industrial

Sale
Wholesale
Wholesale
Commercial
Residential

Power Plant

Large Industry
Upstream Oil and Gas Life Cycle
 Production Facilities

 A set of equipment to extract (lift) oil & gas

from subsurface to surface, process, &
export it to customer as per requirement
specified in the contract.
Offshore
 Based on the location, it consists of Oil tanker Surface
subsurface (wells) & surface facilities. FPSO
Facilities
 Optimum facilities size will depend on
reservoir size & contract duration which
Wells
will define the optimum production rate

Reservoir
 Surface Production Facilities

 Surface Facilities consist of wellhead, processing, and exporting

facilities.
 Wellhead is the top part of the wells which is used to control the flow,
protect from excessive pressure, and interface between surface and
reservoir.
 Main processing function is to separate the mixture of oil, gas, water, and
other contaminants (i.e. CO2, H2S) and to condition the crude oil and
natural gas as per required sales specification.
 Once crude oil processed, it will be exported through pipeline, oil tanker,
truck, or railway.
 For natural gas, it can only be exported by pipeline. If the volume is too big
or the distance is too far, gas has to be liquefied and exported in liquid phase
by LNG tanker.
 Based on the location, it can be placed on land (onshore) or sea (offshore).
Oil and Gas Processing Facilities

 Oil-gas-water mixture is separated in

separator.
 Oil will be stabilized by removing more
gas, then pumped to pipeline or FPSO.
 Gas will be treated to remove more liquid,
then compressed to pipeline.
 Water will be treated before disposed
overboard / re- injected into reservoir.
 Oil Transportation - Onshore

 Since most of the oil & gas field is located far from the civilization, it is crucial
to deliver the crude oil & natural gas to increase its value.
 Initially, produced oil is stored inside wooden barrel which then delivered by
using horse carriage. It is the beginning of using “barrel” as oil volume
measurement unit.
 1 barrel = 42 US gallon = 159 liter.
 After invention of gasoline & diesel engine, horse carriage is replaced by
truck & train.
 Once the volume getting bigger and the distance getting further, barrel
method become uneconomic and pipeline was introduced.
 Pipeline is a long connected pipe to transfer liquid/gas. Pipeline characteristic
is mainly defined by diameter, length, material, and thickness.
 Oil Transportation - Offshore

 Normally, offshore pipeline laid on the seabed

used to convey oil from offshore platform to
onshore facility.
 However, if the distance is too far or the volume
Subsea Storage is too low, transporting liquid via pipeline can be
technically and economically challenging.
Tanker  In this case, oil will be stored offshore (by
using FPSO, FSO, or subsea storage) and then
transported by using oil tanker.
*FPSO (Floating Production Storage and
Offloading) and FSO (Floating Storage and
Offloading)
 Gas Transportation

 Initially, gas is considered by-product which is only disposed by burning or commonly known as
flaring.

 Only after gas can be monetized / sold (petrochemical plant, power plant), gas transportation is
required.

 Since natural gas cannot be stored easily like liquid, produced gas has to be delivered soon after
processed by using pipeline, either onshore or offshore.

 However, if the distance is too far and the volume is too big, pipeline become un-economical.

 In this case, gas has to be transformed into liquid phase by condensing it up to -162o C in
atmospheric temperature to reduce its volume by 600 times, which is known as Liquefied Natural
Gas (LNG). LNG Tanker
 LNG can be transported in a specially designed cryogenic (very cool) tank attached to vessel (known as
LNG tanker) or truck.
 Floating LNG (FLNG)

 If large gas field is located very far from shore, transporting large quantity of gas via pipeline is technically &
economically challenging.
 Small & medium size gas field located far from shore sometimes cannot justify the large investment to built
LNG plant onshore.
 Another problem with onshore LNG is land acquisition.
 Long research had been conducted to bring LNG process and export facility into a floating platform.
 First Floating LNG project sanctioned is Shell Prelude on May 2015. It is located on Browse Basin, 475 km
from Broome, Western Australia.

 3D image of Shell Prelude FLNG with LNG tanker along side. The
FLNG size is approximately 4 times football field, make it the
largest vessel ever built so far.
 Acts, Standards and Codes of
Practice

KR30703
OIL AND GAS TRANSPORTATION AND STORAGE
TS DR NORZILAWATI MOHAMAD
 Code and Standards

 Difference Between Code And Standard?

 Code is a rule, a rule that must be run on a project, in which there is
already a design that is proven to be truly saved, so we just have to follow.
Examples of code are ASME, ASTM etc.
 Codes are generally the top-tier documents, providing a set of rules that
specify the minimum acceptable level of safety for manufactured,
fabricated or constructed objects.
 Standards are documents that establish engineering or technical
requirements for products, practices, methods or operations
 It contains a size that is used in all places, such as the standard. Examples of
standards- flange size, pipe thickness, bolt size and so on.
 Codes are generally broad in nature and scope and are also referred to as “Design
Standards”. Codes provide general guidelines for design.
 However, codes do not have design procedures and formulas for specific situations.
Codes do provide recommended equations to calculate maximum allowable limits for
stresses.
 Every code makes it clear to the user that information in codes cannot substitute
rigorous calculations and sound engineering judgment.
 The code is used to obtain "acceptable" from a case.
 An example of the case:
“there is a pipe that has less connection, there is a lack of fusion in the weld. And when
the NDT test, ultrasonography, the defect is discovered and becomes a problem.”

“And here is where the role of engineering
is needed, he needs to clarify whether the
defect can be accepted or does it have to be
re-welding? Thus , it must refer to the
code and standard.”
“What do we count at that time? are we
see the thickness that is still left from the
defective weld, we calculate the thickness
that is still left. In accordance with ASME
B31.3 Para 304.1, we calculate the
thickness requirements for the pipe”
 Why are the definitions of code and standard always
joined?
 For example, the code is API 570, while the standard is
Piping Inspector.
 The answer is, the code is a guide to requirements, while
the standard is a technical guideline.
 The code is more a legal rule, where standards can also be a
code if it has become the guideline of one or more
government agencies and it becomes a legal basis.
 Codes and standards are subjected to public debate and
comment during development. The main committee is
divided into groups having narrower focus on topics such as
design, fabrication and materials. Code committees meet at
least twice in a year to discuss issues, updates and
amendments.
 Functions And Purposes

The three objectives of the code and the standard are :

 Design Guide
 Uniform Design
 Safety Reason

1. Design Guide

 Each state has its own rules and regulations, because they have their own designs, finally
the manufacturer has difficulty making a vessel that can be received in all states.
 Now here is the function of the Design Guide of code and standards, so that everyone has
the same understanding and rule in designing
 There is a code of ethics of their own, there is a guide itself that must be followed together
so that the design is as expected.
2. Uniform Design

 If we already have unity and agreement in terms of design that is set in code and standards,
then in other countries, it will also use the same design. So it can be used globally, in all
places and countries have the same standard.

3. Safety reasons

 Safety has two sides, both the object and the person, the human. Objects can be replaced or
hacked, but for life, it can't be driven or even bought. That's where the purpose of code and
standards is.
 In the code and standard, there are rules, all of which are not necessarily immediately
designed but have gone through the stages of testing. Some experts have gathered to
formulate something, considering it then doing testing before the code and standard is
available to be used by many people.
List of Organizations Involved in the Generation and Publication of
Pipeline Codes and Standards
The following are the major codes and standards used in the design, operation and
maintenance of pipelines:

 ASME B31.4: Pipeline Transportation Systems for Liquid Hydrocarbons and other
Liquids.
 ANSI/ASME B31.8: Gas Transmission and Distribution Piping Systems.
 ASME B31.8S: Managing Systems Integrity of Gas Pipelines.
 ASTM A 53: Specification for Pipe – Steel, Black and Hot-Dipped, Zinc-Coated, Welded and
Seamless.
 ASTM A 105: Specification for Carbon Steel Forgings for Piping Components.
 ASTM A 106: Specification for Carbon Steel Pipe for High – Temperature Service.
 NACE MR 0175/ISO 151556 Parts 1 to 4: Petroleum and Natural Gas Industries –
Materials for Use in H2S Containing Environments in Oil and Gas Production.
 MS 830 - Storage, Handling and Transportation of LPG
 MS 930 - Installation of Fuel Gas Piping Systems and Appliances
 International Standard and Local Standard

For example, American companies have their own standards, says API. Australia, he has his own
standards, US. and Germany with its DIN. But because the coverage is still small, we use a lot of
American International Standards, which are usually listed in the contract project.

ASME specifications for components

ASME B 16.5, Pipe Flanges and flanged fittings - up to including NPS 24 "
ASME B 16.47, Large diameter steel flanges - NPS 26 "through 60"
ASME B 16.20, Metallic gasket for pipe flanges - Ring Joints, Spiral wound, and Jacketed
ASME B 31.3, Process piping
ASME B 31.4, Pipeline transportation System for hydrocarbon and other liquids
ASME B 36.10M, Welded, and seamless wrought steel pipe
ASME B 36.19M Stainless Steel pipe
Other Standards for equipment

API 510, Pressure Vessel Inspector

API 570, Piping Inspector
API 579, Fitness for Service
API 620, Design of Large, Low-Pressure Storage Tanks
API 650, Welded Steel Tanks for Oil Storage
API 653, Tank Inspection, Repair, Alteration, and Reconstruction
API 2000, Venting of Atmospheric & Low-Pressure Tanks
API 2003, Protection Against Lightning Stray & Currents
API 2510, Design and Construction of LPG Installations
As for the mechanical, in this case, equipment, ASME is used as a code that is usually known as BPVC (Boiler & Pressure Vessel Code). The
coded summary is as follows:

ASME Section I - Rules for Construction of Power Boilers

ASME Section II – Materials

ASME Section III – Rules for Construction of Nuclear Facility Components

ASME Section IV – Rules for Construction of Heating Boilers

ASME Section V – Nondestructive Examination

ASME Section VI – Recommended Rules for the Care and Operation of Heating Boiler

ASME Section VII – Recommended Guidelines for the Care of Power Boiler

ASME Section VIII – Rules for Construction of pressure Vessels

ASME Section IX – Welding and Brazing Qualifications

ASME Section X – Fiber-Reinforced Plastic Pressure Vessels

ASME Section XI – Rules for Inservice Inspection of Nuclear Power Plant Components
ASME Section XII - Rules for the Construction & Continued Service of Transport Tanks
  Malaysian Standards (MS)

 STANDARDS MALAYSIA is to foster and promote standards, standardization and

accreditation as a means of advancing the national economy, promoting industrial efficiency
and development, benefiting the health and safety of the public, protecting the consumers,
facilitating domestic and international trade and furthering international cooperation in
relation to standards.

 Malaysian Standards (MS) are developed through consensus by committees which comprise
balanced representation of producers, users, consumers and others with relevant interests,
as may be appropriate to the subject at hand.

 To the greatest extent possible, Malaysian Standards are aligned to or are adoption of
international standards.
 American Society of Mechanical Engineers (ASME)

 ASME is an American professional association that, in its own words, "promotes the art,
science, and practice of multidisciplinary engineering and allied sciences around the
globe" via "continuing education, training and professional development, codes
and standards, research, conferences and publications, government relations, and other
forms of outreach.
 In 1905, A boiler explosion occurred at a factory in Brocton, Massachusetts, killing 58
people and injuring 117 workers. This caused a quarter billion dollar loss. This
catastrophic event made the Massachusetts population see the importance of regulations
for the manufacture of a steam boiler, which is none other than for safety reasons.
 Besides that, in other cities and states near the explosion, it was realized that this
incident could be avoided by the existence of good design, construction, and insulation
from boiler or pressure vessels.
THANK YOU