Innovations™ Magazine July - September 2014

BIGdreams,
BIG dollars, BIG results.
®
V O L . V I , N O. 3 | J U LY- S E P T E M B E R 2 0 1 4

Eliminates need to open/close valves
during launch — innovative flow-through
barrel design helps increase valve life.
Releases a single spherical
pig using dual launch pin system.
Requires less labor to launch —
allows multiple spherical pigs to
be loaded at one time.
*May also be used to launch standard cleaning, batching or inline inspection tools.
Multiple release options —
timed, local push button or
remote signal.
To learn more about the TDW automated combo pigging system
or our entire portfolio of pipeline services and pigging solutions,
contact your nearest TDW representative or visit www.tdwilliamson.com.
NORTH & SOUTH AMERICA +1 918 447 5400
EUROPE/AFRICA/MIDDLE EAST +32 67 28 3611
ASIA PACIFIC +65 6364 8520
OFFSHORE SERVICES +1 832 448 7200
® Registered trademark of T.D. Williamson, Inc. in the United States and in other countries.
™ Trademark of T.D. Williamson, Inc. in the United States and in other countries. ©
Copyright 2014 All rights reserved. T.D. Williamson, Inc.
Scan with your smartphone for a demonstration.
We’re gofor launch.SmartTrap®
Automated Combo Pigging System

1
INNOVATIONS•JULY-SEPTEMBER2014
2 | EXECUTIVE OUTLOOK
These are the “Good Old Days”
4 | GLOBAL PERSPECTIVE
Pipeline challenges meet
pipeline solutions
6 | TECHNOLOGY FOCUS
Tight-oil tidal wave and a
looming threat
8 | SAFETY MATTERS
Making safety automatic:
Automated pigging systems
10 | FUTURE THINKING
Solving O&G challenges
in 3D
12 | MARKET REPORT
Up-and-coming land
down under
20 | TOUCHPOINTS
Pipeline events, papers
and conferences
28 | BY THE NUMBERS
The four phases of
progressive pigging
14 | Cover Story: A Tale as Big as Texas
With increasing regulation, operators work to overcome
the shared challenges of the Eagle Ford Shale play.
22 | New Connections: Europe Reaches
for Energy Security
To ensure against fluctuations in geopolitics, many
European countries are driving toward more stable energy
supplies and the infrastructure needed to support them.
D E P A R T M E N T S
EDITOR-IN-CHIEF Jim Myers Morgan
MANAGING EDITOR Waylon Summers
ART DIRECTOR Joe Antonacci
DESIGN PRODUCTION Kat Eaton, Mullerhaus.net
DIGITAL PRODUCTION Jim Greenway, Ward Mankin
PHOTOGRAPHY Adam Murphy, Cody Johnson
COVER STORY ILLUSTRATIONS Greg Copeland represented
by Deborah Wolfe, Ltd.
T.D. Williamson
North and South America +1 918 447 5000
Europe/Africa/Middle East +32 67 28 3611
Asia Pacific +65 6364 8520
Offshore Services +47 5144 3240
info@tdwilliamson.com | www.tdwilliamson.com
Want to share your perspective on anything in our magazine?
Send us an e-mail: Innovations@tdwilliamson.com
V O L . V I , N O . 3 | J U LY - S E P T E M B E R 2 0 1 4
Innovations™ is a quarterly publication produced by T.D. Williamson.
®Registered trademark of T.D. Williamson, Inc. in the United States and other countries. ™ Trademark of T.D. Williamson, Inc. in the United States and other countries.
© Copyright 2014. All rights reserved by T.D. Williamson, Inc. Reproduction in whole or in part without permission is prohibited. Printed in the United States of America.
14
10 22

2
In 1985, Fortune magazine made a grim pronouncement about
Texas’ position as an energy producer: “The good old petro-days are
gone.” According to Fortune, the only way a downtrodden Texas
could return to prosperity would be by diversifying away from
energy production.
That was 30 years ago. Fast-forward to 2014, and it becomes
clear that Fortune’s verdict was wrong. The oil and gas industry is
flourishing in Texas, and the boom in activity extends far beyond the
Lone Star state’s borders.
Global dynamics — American shale, economic growth in Asia-
Pacific, the reconfiguration of European supply systems, infrastructure
expansion in Russia and the Caspian region — are making this an
exciting and profitable time to be in the oil and gas industry.
In other words, the good old days are here again — in Texas and the
rest of the world.
Transformation is everywhere. The biggest fundamental change in
the United States is the emergence of the shale plays, which is altering
the domestic supply and demand picture and generating a historically
high need for the expansion and modification of pipeline infrastructure.
The traditionally energy-hungry Northeast now finds itself in the middle
of America’s largest gas reserves in the Utica and Marcellus shales. As a
result, energy flows that have been in place for 30 or 40 years are being
reversed, sending newly abundant northern gas southward.
In China, a growing Asian middle class is accelerating energy
demand, creating greater export opportunities for a number of
suppliers, including Australia, the region’s largest gas producer.
Indonesia and Malaysia also need more energy than ever to keep their
fast-growing economies on track, and Japan is continuing to seek
diversified sources post-Fukushima. All together, the need for new
infrastructure and maintenance of existing infrastructure in this part
of the world has never been higher.
European nations are working to improve their energy security
through changes that enable supplies to flow from new and different
sources. In Russia and the Caspian countries, the expanding
production of both crude oil and natural gas has created a tremendous
opportunity to develop the infrastructure needed to grow exports
essential to those economies.
BY BRUCE THAMES
SENIOR VICE PRESIDENT &
CHIEF OPERATING OFFICER,
T.D. WILLIAMSON
E X E C U T I V E O U T L O O K
These are the
“Good Old Days”

It’s hard not to feel exhilarated when you think
about everything that’s happening in the oil and gas
industry right now. Of course we’ll admit that with all
these opportunities a challenge or two can creep in.
I am always amazed and inspired by the commitment
of our people to better serving our customers.
Working alongside our employees to address and solve
our customers’ unique challenges is what motivates
and engages me. It’s the most rewarding part of my
job ... especially during these good old days.
3

Reliable Pipes 2014
Reliable Pipes 2014, a 3-day workshop recently held in Abu
Dhabi, provided pipeline operators with a better understanding of
the root causes of pipeline failure, as well as practical methods
to avoid such occurrences. In addition to detailed analyses of
pipeline design and construction, presenters and attendees
discussed the various phases of Pipeline Risk Management,
application and efficacy of Pipeline Integrity Management Systems
(PIMS), SmartPlug® isolation technology, and Emergency Pipeline
Repair Systems (EPRS).
ABU DHABI ITALY
GlobalPerspective
Refinery Under
Pressure
When a section of a steam line
operating at 235°C becomes corroded
and develops two defective valves,
the consequences can be dramatic,
and steps must be taken to replace
them. When the line is part of a
critical process in a major refinery,
the challenge lies in repairing the line
without disrupting production. Such
was the challenge facing engineers at a
refinery in Sardinia.The refinery, which
processes approximately 15 million tons
of crude oil into petroleum products
each year, leveraged STOPPLE® Train
technology to safely isolate its high
temperature line so that the repair work
could be executed without shutdown or
loss to production.
NORWAY
Preparing for New
In the Utsira High area of the North Sea, new pipeline construction
is underway. In particular, two lines — one 16" gas and one 18"
oil — require pig tracking as part of the pre-commissioning and
commissioning processes.The primary owner/operator of these
lines specified use of the SmartTrack™
pig tracking system on a
rental basis.The system includes transponders, topside monitoring
kit, and remote transceiver, allowing the operator to easily track and
monitor every transponder-fitted pig.
4

CAMEROON
Wildlife Preserved
To avoid submerging two 13-km sections
of the Chad-Cameroon pipeline, as
part of the massive Lom Pangar dam
construction project, modification to the
lines were required. It was essential there
be minimal impact on the environment,
which is home to Deng Deng National
Park. The objectives of the modification
program were to re-route and strengthen
the two pipeline sections to ensure that
they would be capable of supporting
20-meter water columns that would
eventually be installed upon completion
of the dam, all without shutting down
the line. After more than 30 hot tap
and plugging operations, executed by
T.D. Williamson, the isolation project
and pipeline modifications were
completed with no disruption to the
pipeline’s flow and minimal impact to the
surrounding jungle.
Dragging the
North Sea
About 125 km northwest of the Shetland
Islands, in the UK sector of the North
Sea, the primary owner of two gas and
condensate fields suffered damage to a
section of one of its 18" flow lines due to
anchor drag. The contractor tasked with
repairing the line utilized high friction pigs,
retrofitted with transponders, and the
SmartTrack™
monitoring system to safely
carry out the required isolation, pipe
replacement, and necessary repairs.
Pressurized Pipeline Solutions From Around the World
UNITED KINGDOM
GULF OF MEXICO
Friction on the Rise An operator in the
Gulf of Mexico needed to replace two defective flexible joint
components, one on a 14" gas export Steel Catenary Riser, and
one on a 10" oil riser.To avoid depressurizing the pipeline during
maintenance activities, the operator chose to remotely isolate
the 14" riser approximately 45 meters below the joint using the
SmartPlug® isolation system. In addition, the operator chose four
high friction pigs to isolate its 10" oil riser in a similar fashion.
5

At a meeting of the American Fuel and Petrochemical Association,
Michael Wojchiechowski, an economist at Wood Mackenzie, referred to
the production from U.S. shale deposits as a “tight-oil tidal wave” — in
other words, a large, unstoppable, liquid force.
But as operators from the Bakken to the Eagle Ford and Niobrara
to Marcellus know, there are plenty of challenges to keeping that
enormous flow going. One of them is the high paraffin content of
shale oil.
Shale oil is full of highly variable paraffin. In fact, as many as 70
different types turned up in a single oil sample taken from the Eagle
Ford, according to a recent Hydrocarbon Processing magazine report.
In addition to creating processing and refining problems, shale oil
paraffin can lead to financial disasters closer to the wellhead.
For example, stubborn waxy deposits accumulating on gathering
line walls can reduce the pipe’s effective internal diameter, causing
flow rate to slow or production to cease altogether. What’s more, when
wax adheres to the sides and top of pipe interiors, water can collect
in low spots, encouraging bacteria growth that can lead to corrosion
and pinholes. And compressors have to work harder to pump through
paraffin-filled lines, which adds to operating costs.
It’s no surprise, then, that paraffin control is a key concern in
shale plays. This goes beyond simply keeping the pipe bore open: The
ultimate goal is to completely clear the pipeline, then prevent future
wax buildup.
Not only is a clean line fundamental to maintaining performance,
but getting the wax out improves pipeline integrity by facilitating
Tight-Oil
Tidal Wave
and a Looming Threat
6
T E C H N O L O G Y F O C U S

first-run success of inline inspection tools — which
is becoming more important as the Pipeline and
Hazardous Material Safety Administration (PHMSA)
considers regulating gathering line integrity
inspections. PHMSA representative Damon Hill said
that although the agency hasn’t
seen any particular evidence
that shale oil has uniquely
affected pipeline integrity, it
continues to study potential
gathering line hazards.
Increasing
Throughput: Easier,
Less Expensive, Safer
It can take a combination of
mechanical, chemical, and
other cleaning techniques to
eliminate all of the wax and
debris from pipelines that carry
shale oil, waxy crude, or natural
gas liquids (NGLs), says Olga
Kondratyeva, T.D. Williamson’s Director of Pigging
Technology. A good place to start is to soften the
wax with chemicals, then deploy a progression of
cleaning pigs, gradually working up from light
tools — like foam pigs — to more aggressive tools,
utilizing a combination of urethane blades, cups,
discs, and metallic brushes.
Kondratyeva also suggested having plenty of
patience on hand. “Operators have had to manually
run as many as 60 pigs to get a single dirty line
completely cleared,” she says.
Once the pipeline is clean, routine maintenance
pigging — generally performed weekly for
most waxy crude lines — is in order to prevent
contaminants like paraffin from accumulating
and to maximize throughput.
To help operators reach these goals,
pipeline service provider T.D. Williamson
(TDW) has developed an automated
pig-only launcher that can be remotely
programmed to launch up to four cleaning
pigs, sequentially, at designated times and
intervals. The SmartTrap® Automated Pig
System — or “AutoPig launcher,” for short
— is an extension of the SmartTrap product
line, which already includes the AutoSphere
and AutoCombo systems. The AutoPig launcher
is currently in the design validation phase, with
commercialization anticipated later this year.
The AutoPig launcher was created at the
request of operators who appreciated the
capabilities of the AutoCombo
— which launches both spheres
and pigs — and asked TDW
to meet their needs for a pig-
only launcher.
Kondratyeva says the
AutoPig launcher will help
operators respond to cost
pressures by significantly
reducing the number of trips
crews make to the field. She
also estimates a substantial
safety increase, compared to
traditional manual launchers.
“The riskiest part of a
pigging operation is opening
and closing the door,”
Kondratyeva says. “With the AutoPig launcher, the
closure door is opened and closed fewer times than
if you were manually launching pigs. The line is
also pressurized and depressurized less often.”
With a torrent of shale oil continuing to lift the
U.S. oil and gas industry, operators are continuously
seeking new ways to increase throughput. Innovations
like the AutoPig launcher that increase safety and
performance, while reducing costs, will keep them
doing just that —
riding atop the
“tight-oil tidal
wave.”
This goes beyond
simply keeping the
pipe bore open:
The ultimate goal is
to completely clear the
pipeline, then prevent
future wax buildup.
7

8
Consider this scenario: Your production plant is in a
valley. It’s a strategic location, but the lower elevation is less than ideal.
That means having to keep constant vigilance for potential flooding due
to liquid collection in the pipelines. Whether due to water or liquid
hydrocarbons, once you have enough buildup, you’re risking decreased
flow or even stoppage. When pipelines are allowed to accumulate
liquid, your employees and your facility may be at risk of dangerous
consequences: emergency shutdowns, freeze ups, and excessive corrosion,
to name just a few.
You know the manual pig launchers you’re using upstream of the plant
are good, but they require direct attention, and as a result, your pigging
maintenance schedule occasionally gets sidetracked due to unforeseen
circumstances. You wonder, “If I invest in one of the new auto-launch
pigging systems, will it really make things safer and more efficient?”
The answer is “Yes!”
Preparing for Automation
Auto-launch systems allow operators to set predetermined schedules for
routine pigging. These programs can help keep lines clear of elements
that can reduce efficiencies or shut down production, potentially
exposing personnel and the environment to unintended consequences
or uncontrolled conditions. They can also be used as part of a
preemptive pigging program: Operators can launch inline inspection
pigs to measure and monitor pipeline integrity conditions and identify
potential safety problems before they escalate into dangerous scenarios.
Of course, being preemptive and proactive sometimes requires a
bit of creativity and a lot of expertise — especially when it comes to
ensuring an auto-launch system is the right fit for a given location. For
some older pipelines, installation issues arise due to the pre-existing
location of a power source or the production facility. But as piggability
isn’t always the highest priority during site selection or construction,
even newer installations may contend with site topography issues.
This is one reason why it’s critical to perform a thorough site survey
before investing in any new auto-launch system. A site survey will help
you identify any logistical impediments, and give you the answers for a
best-case automated launcher installation and setup.
Sometimes, assuring a safe and efficient installation is as simple as
providing adequate sumps, drains, and containment to areas where
S A F E T Y M AT T E R S
Making Safety Automatic
The importance of
automated launchers
in regard to safety
for workers and the
environment cannot be
underestimated.

There’s really only one “Golden Rule” for the safe
operation of an auto-launch system: start up well.
spills might be likely. It might come down to
making sure there’s a place to vent gas pressure
from the launcher before it’s opened, or employing
different-sized feeding pipes or throttling valves to
compensate for anomalous flow characteristics.
“The Golden Rule”
As many experienced oil and gas professionals will
tell you, there’s really only one “Golden Rule” for
the safe operation of an auto-launch system:
start up well.
That means having an expert engineer on-site to
conduct initial system testing and pressure-up during
commissioning. It also means making sure every
member of your crew is well
trained and comfortable with
the system’s operation. In
addition to field operations
practice, classroom training
is essential to fully leveraging
the benefits of an auto-
launch system, teaching your
crews how to troubleshoot,
reconfigure passwords,
and manually reboot and
reprogram the electronics,
should the system go offline.
Automated launchers may only be one small
component in a vast operation, but their importance
in respect to safety for the crew and the local
environment cannot be underestimated. Operators
who become familiar with this technology soon
realize its benefits.
“Since field personnel don’t have to blow down
an auto-launcher system as often, their exposure
potential is greatly reduced,” notes Lee Shouse,
Manager of Special R&D for pipeline service
provider T.D. Williamson. Shouse, who spent
decades on the construction and operations side prior
to his current role, has educated
dozens of major operators on the
setup and safe operation of auto-
launch systems, including the use
of necessary components such as
the D-2000 quick-opening closure.
As auto-launcher performance
is largely independent of technician interaction,
operators also appreciate their benefits with regard
to consistent operation and
long-term maintenance. In
other words: “Pigs are running
as they should, rain or shine,”
says Shouse.
Flowing
So, your new auto launcher is
in place. It’s been specifically
configured to address the
concerns of your location. It’s
been commissioned, your crew
is trained, and you’re now officially online. Thanks
to the pre-programmed routine — whether liquid
removal with spheres, regular maintenance and
cleaning with pigs, or inline inspection — your
product is flowing efficiently and safely. Flow
restriction due to flooded lines and the drawbacks
of manually launched pigs are a thing of the past.
When pipelines are
allowed to accumulate
liquid, your employees
and your facility may be
at risk for dangerous
consequences.
VIEW THE VIDEO
9

Solving O&G
Challenges in 3DNot long ago, a patient was admitted to University Hospital Coventry in
England with a life-threatening injury. His pelvis was badly crushed. At almost any
other hospital in the world, doctors would have taken a CT scan, done their best to
analyze the injury, and begun the operation. But at Coventry, the surgeons weren’t
satisfied with that plan.
The surgery was going to be complicated. The patient was suffering from a
segmental bone defect, in which the bone was shattered into many parts. The CT scan
showed them a two-dimensional representation of the damage. It was good, but in this
complicated case, it wasn’t good enough. They wanted a hands-on tool to help them
plan the surgery.
They decided to get creative.
Dr. Richard Wellings of Coventry got on the phone to Dr. Greg Gibbons, Head
of Additive Layer Manufacturing Research at the University of Warwick. Dr. Wellings
already knew about 3D printers and their potential applications in medicine, but
he hadn’t yet taken the leap to use one in a crucial situation such as this. He asked
Gibbons if he could make a copy of the accident victim’s pelvis by the next morning.
It was a tight timeline, but Gibbons rose to the challenge. Within seven hours,
Gibbons had used the CT scan to print an exact replica of the damaged bones.
The result: the surgeons could touch and feel the replica, and plan exactly how to
complete the surgery before they ever reached the operating table.
The surgery was a resounding success.
It may be surprising to learn that this story is not especially unique: Although
3D printing isn’t exactly commonplace, it’s getting there. The technology that, just a
10
F U T U R E T H I N K I N G
Rapid
prototyping
helps oil and
gas operators.

few years ago sounded like something out of science
fiction, is now being used in hundreds of industries.
In the food and beverage industry, professional
bakers are using the ChefJet™, a 3D printer that
makes elaborate cake toppers and decorative candies.
In retail, 4 AXYZ, a Seattle-based company, is
experimenting with “smart wood” with embedded
electronics for home automation.
In aerospace, 3D printing is poised to
revolutionize the industry.
The Chinese, for example, recently used titanium
laser additive manufacturing to print the main
windshield frame for a C-919 commercial jet. It
took them only 50 days and about US$50,000 —
significantly less than the two years and US$500,000
it would have taken using traditional methods.1
They also saved an incredible amount of raw
material. According to Gibbons, there is huge waste
in the aerospace industry, an unavoidable byproduct
of the traditional machining process.
“It’s called the buy-to-fly ratio. Twenty
parts waste to one part final product is
not uncommon,” says Gibbons. “You go
through a lot of effort to get a huge block of
aerospace grade titanium, then once you’ve
machined this block [to get the aerospace
part], you have to throw away 95 percent of
it to make other stuff, like golf clubs.”
Because 3D printing lays down just
the material you need, it drastically
reduces the waste. Gibbons estimates
the waste when printing titanium
components to be less than one percent
when using high-resolution laser melting, and
less than ten percent with cladding systems for
making large components.
New Ways to Solve
Old Problems in O&G
The oil and gas industry is also beginning to embrace
the 3D printing revolution, especially in cases where
engineering departments are asked to solve unique
challenges, like inspecting a hydrogen line.
The inside of a hydrogen line is one of the most
brutal environments on the planet. It’s a constant
battle between steel and hydrogen — and hydrogen
is almost always winning. Day by day, the metal
lining of a hydrogen line is slowly corroding as
the hydrogen turns the insides to dust one fallen
molecule at a time. The extremely dry, high-pressure,
high-friction environment is also incredibly rough on
tools, which makes routine maintenance difficult.
So when the operator of an 18-inch hydrogen
line asked for inline inspections, he was turned down
several times before he found a company to say ‘yes.’
That company was pipeline service provider T.D.
Williamson (TDW).
The challenging hydrogen environment forced
design changes and considerations that would not
usually be required in a more “standard” inline
inspection tool design. For example, all metal pieces
— from large tool structures to the smallest screw —
had to be considered for protection from hydrogen
embrittlement. Hydrogen embrittlement causes
many materials commonly used for inline inspection
tools to become brittle and break down very quickly.
One of the most critical parts, the exposed
sensors — responsible for transmitting clear data
about the line’s condition — presented a new
challenge: The materials that could withstand
hydrogen embrittlement were unlike anything the
company’s engineers had worked with before.
That’s where 3D printing came in. With 3D
printing, engineers built sample parts to figure out
the best design options for this challenge.
When building something as complicated as a
new hydrogen inspection tool, there are plenty of
options to investigate. Take wires, for example. In
1
http://igcc.ucsd.edu/assets/001/504640.pdf
ChefJet™
is a trademark of 3D Systems Corporation (“3D Systems”)
CONTINUED ON PAGE 27
The inside of a hydrogen line is one
of the most brutal environments on
the planet. It’s a constant battle
between steel and hydrogen — and
hydrogen is almost always winning.
11

The Up-and-Coming
Land Down Under: What Australia Can
Learn from Shale Successes and Failures in Other Nations
In 2011, larger oil and gas companies like ExxonMobil,
Marathon Oil, Talisman Energy, and Chevron started pouring into
Poland. The United States Energy Information Administration (EIA)
had just estimated the country’s potential shale reserves at 5.3tn cubic
meters — the largest in Europe. The Baltic Basin, a giant shale gas play
stretching from northern Poland up to Lithuania, seemed to be poised
to become the site of the next shale boomtowns, similar to Williston,
North Dakota; Williamsport, Pennsylvania; and Carrizo Springs, Texas.
And yet, by the end of 2013, only 49 wells had been drilled in the
Eastern European country — a sharp contrast to the Marcellus shale play
in Pennsylvania, where 4,969 wells were drilled in the same amount of
time. Forty-nine wells is just a week’s work in a play in the United States,
and it isn’t even enough for exploration companies to fully assess the play.
So after three years of making slow progress in Poland, large energy
companies gradually shifted attention elsewhere. Despite the promise
of significant shale reserves, the quest to unearth them got stuck at an
early stage in the production process — and most operators didn’t wait
around for improvement.
At first glance, Poland’s huge amount of unconventional resources
seem like a sure bet for success. But experts agree that a single, but
critical, factor is holding them back: Thus far, the country’s government
has yet to develop a workable energy policy, and political pushback
against fracking is creating an undesirable environment for operators.
A Checklist for Shale Success
According to an Oil & Gas Financial Journal interview with
Tom Petrie of Petrie Partners, political constraints present one
of the biggest obstacles in shale development. When it comes to
unconventional oil and gas, it’s not enough to simply have a large
amount of estimated reserves and favorable geology. In order to
develop a shale play, a country must also possess — or have the ability
to establish — the following:
Predicting the next big shale
frontier is more complicated
than simply choosing to drill
in viable shale plays.
n Economic incentive
n Service availability
n Market access/pricing
n Infrastructure
n Access to capital
n Regulatory and
environmental acceptance
1212
M A R K E T R E P O R T

13
It is understandably difficult for a shale play
to check off every box on that list. For this reason,
world leaders in production don’t always need to
have the largest amount of potential resources. For
example, the EIA ranks the United States fourth in
technically recoverable shale gas resources — after
China, Argentina, and Algeria — but it is politically
willing to develop its shale plays, which also have
favorable geology. Energy companies in the United
States also benefit from available technology,
plentiful fracking crews, and responsive oilfield
service companies.
Clearly you can see, predicting the next big
shale frontier is more complicated than simply
choosing to drill in a country with “viable” shale
plays. So after carefully weighing the above criteria,
which country will be the next to benefit?
Australia Gets a Green Light
The EIA ranks Australia as the seventh in the world
for technically recoverable shale gas resources.
But while Australia may present a smaller market
than China or Russia, it has the benefit of a more
operator-friendly environment. In fact, a study by
the Economist Intelligence Unit shows that the
country may become the largest exporter of liquefied
natural gas by 2020. Queensland alone has plans
to drill more than 18,000 wells in the next 20 years,
and is expected to produce 25.3 million tonnes of
shale gas per year by 2020.
However, Australia is still in the early stages of
the shale play manufacturing process. Like most of
the world, this country is still in the exploration stage
and at the very beginning of the production stage.
Australia’s geology appears to be adequate, but more
assessment is needed.
“Unfortunately, that’s the risk of this industry,”
says Abdel Zellou, Ph.D. — a market development
director in the gathering and midstream industry
for T.D. Williamson — when speaking about the
complex geology of shale plays. “Even seven years
after the beginning of the shale boom in the United
States, we still see articles about whether reserves are
accurate. There’s a lot of uncertainty.”
Perhaps more notable is the significant political
progress: Overall, the Australian government is
very amenable to oil and gas development. Western
Australia (WA) — home to approximately one-fifth
of the world’s shale gas reserves — is in the process
of passing regulations to start commercial fracking
in the region, and the WA government has stated
that commercial production is five to 10 years away.
Additionally, well assessments have yielded good
results in the Cooper Basin, a shale play located in
the northeast of South Australia. Tudor Pickering has
rated the basin as a “Buy” for its good well economics,
positive fiscal environment, existing rig and frack
capacity, existing
infrastructure,
and the US$1.5
billion already
completed joint
venture deals.
Cooper Basin has already attracted Chevron,
ConocoPhillips, Statoil, Total, Hess, and BG Group.
Learning from Experienced Markets
Australia’s next challenge will be to amass the
infrastructure, expertise, and professional personnel
needed for success. Zellou says Australia and
other countries in the early stages of shale play
development can learn a lot about this from the
market intelligence of the American shale industry.
Zellou stresses the need for Australian
companies to get into a “manufacturing mindset”
and realize that it takes years of drilling and
building infrastructure before a market can start
producing. He also suggests that companies
CONTINUED ON PAGE 27
FACTORS SHALE POTENTIAL
POLITICAL ENVIRONMENT,
INFRASTRUCTURE, EXPERTISE,
PROFESSIONAL PERSONNEL
RANKED SEVENTH IN THE WORLD
FOR TECHNICALLY RECOVERABLE
SHALE GAS RESOURCES
& LARGEST
LNG EXPORTER
BY THE YEAR 2020

14

Like most stories about Texas, the one that’s being
written in the Eagle Ford Shale is full of big dreams, big
dollars, and big results.
The play itself is huge. Covering an area of about 52,000
square kilometers (20,000 square miles), it spans 25 south-
central Texas counties and is roughly the size of Costa Rica.
According to energy consultants Wood Mackenzie, capital
investment in the play is enormous, reaching US$28 billion by
the end of 2013.
And production is immense: Late in 2013, the Eagle
Ford beat the Bakken in the race to reach the coveted one million barrels of oil
equivalent (BOE) per day mark. Some experts even predict that on the strength
of Eagle Ford and Permian Basin production, by the end of 2014 Texas
could become the world’s second largest producer of oil behind Saudi Arabia.
So who would think that something as small as bacteria might affect the
narrative? Bacteria have been an ongoing issue for Eagle Ford operators since
development began in the shale play in 2008. Not only do bacteria eat into
pipelines, creating pinholes, it also contributes to the growth of hydrogen
sulfide (H2
S), a naturally corrosive and deadly gas.
High levels of paraffin wax in the area’s highly variable crude are a problem
too, leaving fouling deposits in pipelines that threaten to reduce throughput.
And concerns over water use continue to occupy the minds of operators and
environmentalists alike.
In short, companies are encountering operational challenges that they hadn’t
experienced in conventional developments.
But the Eagle Ford is far from conventional.
Most operators in the Eagle Ford are candid about the issues they’re
facing. And the good news is that they’re looking to one another for answers,
finding common ground and sharing information at various forums in the
United States and abroad. Operators are also leaning more on their vendors
for support, a point brought home by Valerie Mitchell, General Manager,
Newfield Exploration Co., who called for stronger partnerships between service
companies and operators during her talk at the Midcontinent Developing
Unconventional Gas (DUG) conference in Tulsa, OK, in March.
• Unconventional opportunity
for independents & smaller
companies
• Eagle Ford challenges tax
operators
• High water use in
drought-stricken Texas
• Pipeline regulation on the rise
• Opportunities outweigh the
challenges
COVERSTORY
15
A tale as BIGas
TEXAS
Operating
challenges in the
Eagle Ford Shale

16
MEXICO
UNITED STATES
EAGLE FORD SHALE PLAY
SAN
ANTONIO
AUSTIN
HOUSTON
TEXAS
Unconventional Opportunity for
Independents & Smaller Companies
The Eagle Ford Shale in south Texas is one of the
most complex unconventional plays in North
America in terms of geology and geophysics.
Because the rock unit had such low permeability
— preventing oil and natural gas from flowing
through it into a production well — the Eagle
Ford had garnered little industry attention. That
is, of course, until 2008, when Petrohawk Energy
(which has since been purchased by BHP Billiton
Ltd.) demonstrated the efficacy of “fracking” in the
Eagle Ford, drilling a well that had an initial flow
rate of 7.6 million cubic feet of natural gas per day.
Although fracking opened the Eagle Ford, the
play’s unique characteristics continue to make it
difficult to deal with.
In their report titled, “An Analytic Approach
to Sweetspot Mapping in the Eagle Ford,” authors
Murray Roth, Michael Roth, and Ted Royer
describe the Eagle Ford as “grossly depth-driven.”
In the Eagle Ford, the report explains, oil is
produced at depths of 1,500-2,400 meters (5,000-
8,000 feet) to the northwest, with the play grading
through condensate and natural gas liquids until
dry gas is produced at depths of 3,000-3,600
meters (10,000-12,000 feet) to the southeast.
Combined with well-to-well production variability,
those depth issues make it more difficult to find
sweetspot locations, drill and complete wells,
and optimize production. Those tasks can be so
arduous that some American majors have given up,
and are selling their Eagle Ford assets.
Royal Dutch Shell is among them.
Abdel Zellou, a U.S. midstream and gathering
market expert with TDW, said he learned at a
recent Society of Petroleum Engineers (SPE)
workshop in Dubai that the key reason for the
pull-out is because Shell doesn’t hold sweetspot
areas in the region. Shell recently confirmed
its plans to “concentrate on asset opportunities
with better economic metrics elsewhere in North
America and around the world.”
The company hasn’t yet announced a buyer for
its 106,000 acres of Eagle Ford leases, which are
located in Dimmit, LaSalle, and Webb counties
and produce approximately 32,000 BOE per day.
Although Shell is one of the first integrated oil
companies to publicly back away from U.S. shale
plays, The Hague-based major doesn’t appear to
be alone in having second thoughts about shale,
at least according to a recent Houston Chronicle
article. It reported that two years ago BP wrote
down US$1.1 billion on its shale gas assets because
the value of their reserves dropped along with
natural gas prices. This was after BP’s net share of
production in the United States fell 15 percent.
The Chronicle also noted that Exxon Mobil’s seven
percent return on capital for its U.S. upstream
business last year was dwarfed by the 24 percent

return it collected on its international energy
production business.
While the question remains whether certain
“majors” will continue to participate in the shale-
induced energy surge, there’s no doubt that the
Eagle Ford has created a financial bonanza for
others. After all, production is 25 times higher
today than it was just four years ago: Somebody’s
got to have a hand in all of that growth. The
winners appear to be independents and small
players. In fact, when the Chronicle analyzed data
compiled by Bloomberg, it found that in the three
top shale plays, small companies outweigh the
majors 5-to-1 in terms of acreage.
“The independents jumped all over this right
from the get-go; they got better acreage,” Kenneth
Medlock, senior director of Rice University’s Center
for Energy Studies, told the Chronicle.
According to Standard & Poors, the top Eagle
Ford leaseholders include EOG Resources, Apache
Corp., Chesapeake Energy Corp., BHP Billiton
Ltd., ConocoPhillips, Marathon Oil Corp.,
Anadarko Petroleum Corp., and Pioneer Natural
Resources, among others.
Eagle Ford Challenges Tax Operators
Now that some of the key Eagle Ford characters
have been introduced “in the play,” it’s time to get
back to bacteria and the other antagonists.
At the Tulsa DUG conference, Tom Petrie,
of investment banking firm Petrie Partners,
did a good job of identifying the four general
categories of risk faced by upstream and midstream
companies operating in the Eagle Ford:
»» Environmental
»» Infrastructure
»» Pricing volatility
»» Shifting globalization
Abdel Zellou says he agrees with Petrie’s list —
and he has taken that list a step further by suggesting
that upstream and midstream operators have
different concerns that fit broadly into Petrie’s list.
“Upstream companies are challenged more by
the sheer geology of the Eagle Ford, plus their need
to capture accurate reservoir data,” Zellou says.
“Midstream operations are distinguished by an
entirely unique set of challenges and expectations.”
According to Zellou, the chief issues for
midstream operators in shale plays are:
»» Infrastructure and infrastructure
maintenance
»» Paraffin build-up
»» Internal and external pipe corrosion
»» Environmental issues and constraints
»» Regulation of gathering lines
»» Lack of skilled personnel
»» Price volatility
Obviously, service providers can’t dampen price
volatility or alter hiring patterns, but they can help
operators better respond to other Eagle Ford challenges.
Consider infrastructure maintenance,
particularly as it relates to paraffin and corrosion.
Although a lack of infrastructure is a
recognized problem in the Marcellus and Utica
shales, located in the Northeast United States,
there’s generally sufficient infrastructure in the
Eagle Ford to avoid bottlenecks from the wellhead.
Instead, the challenges in the Eagle Ford
relate to the fact that operators are using existing
pipelines originally intended to move conventional
natural gas to now gather wet gas. The re-use
means problems are cropping up that might not
INNOVATIONS•JULY-SEPTEMBER2014COVERSTORY
17
Apache450
0 100 200 300 400 500 600 700 800
639 EOG
Chesapeake
BHP Billiton
ConocoPhillips
Marathon Oil Corp
Anadarko Petroleum Corp
Pioneer Natural Resources
430
332
204
200
92
227
EAGLE FORD TOP LEASEHOLDERS
Net acreage in 1000 (Standard & Poors estimates
based upon public information, 2013)

occur in purpose-built pipelines.
For example, Eagle Ford wet-gas is full of
natural gas liquid (NGL) condensates that vary
in composition and concentration from well to
well. In a recent report published in Pipeline and
Gas Journal, engineers at San Antonio’s Southwest
Research Institute called particular attention to the
fact that there were considerably more pipeline-
clogging hexanes in Eagle Ford samples than there
were in those from other shale plays. Eagle Ford
production is also laden with paraffin, which
can coat the top and sides of pipelines, allowing
bacteria-infused water to collect at the bottom.
The water can cause corrosion while the bacteria
can create pinhole damage and feed the growth of
potentially deadly hydrogen sulfide (H2
S).
“Paraffin is a problem across the board in the Eagle
Ford. One operator told me they had a quarter-inch
of paraffin covering 75 percent of their pipe,” says
Steve Appleton, Regional General Manager
with TDW. “And the paraffin build-up is
creating unanticipated issues with harmful
bacteria. Operators run biocides in their
lines to kill the bacteria, but if the bacteria are
beneath the paraffin, the biocides can’t reach it.”
To combat these risks, Appleton says,
service providers are helping operators
determine and implement more rigorous
pigging schedules. Not only does regular pigging
promote productivity, it also presents an economic
opportunity, allowing valuable NGLs to be
collected for sale to refiners.
High Water Use In
Drought-Stricken Texas
Because water is the largest component in fracking
fluids, water use and conservation are key concerns
in every American shale play. But in the Eagle Ford,
the issue is further complicated.
In February, Ceres, a Boston-based investor group
focused on sustainability issues, said the Eagle Ford
used more water during an 18-month period than any
other shale region — a total of 19.2 billion gallons,
or 4.5 million gallons per well. As if that amount
wasn’t significant enough on its own, it’s important to
remember that much of Texas has experienced some
level of drought conditions for years. Ceres found
that 98 percent of the Eagle Ford wells were in areas
of medium or high water stress, with 28 percent in
areas of high or extreme water stress.
The report also said operators need to institute
more creative water management. Specifically,
they should minimize freshwater use, and
undertake better long-term planning for the
water infrastructure needed to maintain oil and
gas development. The group also advocates water
recycling, which is more common in the Northeast
than in Texas, although the Eagle Ford’s first water
recycling facility was installed in 2011.
These suggestions hardly took operators by surprise.
Potential water solutions are a stock item on the agenda
at “unconventional” events, and were the centerpiece
of the E&P Technology Panel at last September’s DUG
Eagle Ford conference in San Antonio, TX.
Has that information-sharing brought forth any
progress? Well, Ceres did acknowledge that some
The Eagle Ford has the advantage of existing infrastructure.
But can it cope with the peculiarities of the shale production?
BACTERIA GROWTH
CREATES PINHOLE DAMAGE IN THE PIPE
AND FEEDS HYDROGEN SULFIDE (H2
S)
PARAFFIN WAX BUILD-UP
REDUCES THROUGHPUT AND PREVENTS
BIOCIDES FROM REACHING BACTERIA
18
PIPE

operators are ahead of the game, crediting Pioneer
Natural Resources for installing evaporation covers
on water pits. Omar Garcia, President and CEO
of the industry group South Texas Energy
& Economic Roundtable, said that more
operators are stepping up. Speaking to the San
Antonio Express-News, Garcia noted that some
companies are reporting a decrease in their water use
of as much as 30 percent. He believes that freshwater
use in the Eagle Ford should continue to drop as new
technologies are introduced by operators and the
service companies that support them.
Pipeline Regulation On The Rise
Although the water used in fracking in the Eagle
Ford and other U.S. shale plays is exempt from key
federal regulations, pipelines are a different story.
The U.S. Pipeline and Hazardous Materials Safety
Administration (PHMSA) is considering regulating
gathering pipelines. If that regulation is passed
into law, it will likely require integrity inspections,
creating more pressure on service companies to
provide increasingly robust pigging and inline
inspection services.
But even if the U.S. government doesn’t act,
some states are already taking matters into their
own hands.
In December, North Dakota — home of the
Bakken shale — announced that about 28,968
km (18,000 mi) of previously unregulated
underground gathering pipelines were now
under the jurisdiction of the state’s Industrial
Commission. Lynn Helms, director of North
Dakota’s Department of Mineral Resources,
called the move the “biggest amendment of oil
and gas rules in North Dakota’s history.” And in
April, North Dakota Public Service Commission
Chairman Brian Kalk said it is “very likely” his
agency will ask state lawmakers to create an
inspection program for the state’s oil pipelines, a
proposal coming on the heels of a 20,600 barrel
crude oil spill in a farm field near Tioga, ND.
Although there’s no similar local action
underway in Texas — a state that Zellou describes as
being friendlier than most to the oil and gas industry
— PHMSA regulations might make regulation of
rural gas pipelines a reality within five years.
Opportunities Outweigh
the Challenges
Despite the challenges facing them, Eagle
Ford operators are almost unanimous in their
commitment to the region. According to research
firm GlobalData, drilling and development in
the Eagle Ford are expected to continue unabated,
with nearly all of the more prominent operators
projecting at least five more years of drilling at
the current pace. In a recent Houston Chronicle
interview, David Banks, general manager of the
Eagle Ford region for BHP Billiton Petroleum, said
the company expects to be in South Texas for as
long as 50 years.
“We’re still in the infancy of the shale revolution,”
Zellou says, adding that some E&P companies are
still figuring out the size of their Eagle Ford reserves.
In other words, there are still plenty of chapters
to come in this southeastern Texas tale. And one
look at the September 2013 DUG Eagle Ford
conference agenda — filled as it is with operator-
led sessions on boosting recoveries, handling well
variability, water management best practices, and
more — indicates that companies are increasingly
working and learning together in order to make the
Eagle Ford storyline as successful as possible.
INNOVATIONS•JULY-SEPTEMBER2014COVERSTORY
19
Abnormally Dry
Moderate Drought
Severe Drought
Extreme Drought
Exceptional Drought
Author:
Michael Brewer, NCDC/NOAA
Texas Drought Map
December 10, 2013

20
JULY 2014
21-25 Louisiana Gas Association
Pipeline Safety Conference
New Orleans, LA, USA
22-25 FEPA Summer Symposium
Orlando, FL, USA
28-30 SGA Operating Conference & Exhibits
New Orleans, LA, USA
TDW Events, Papers & Conferences
TouchPoints
IndicatesTDW will present
a white paper at this event
Louisiana Gas Association
Pipeline Safety Conference
21-25 JULY | New Orleans, LA | USA
FEPA Summer Symposium
22-25 JULY | Orlando, FL | USA
SGA Operating Conference & Exhibits
28-30 JULY | New Orleans, LA | USA
Midwest Energy Association
Operations Summit
12-14 AUGUST | Rochester, MN | USA
Western Regional Gas Conference
19-20 AUGUST | Tempe, AZ | USA
The Pipeline & Energy Expo
25-27 AUGUST | Tulsa, OK | USA
NACE 2014 Central Area Conference
25-27 AUGUST | Tulsa, OK | USA
Oklahoma Gas Association
8-10 SEPTEMBER | Norman, OK | USA
Arkansas Gas Association
14-16 SEPTEMBER | Fayetteville, AR | USA
DUG Eagle Ford
15-17 SEPTEMBER | San Antonio, TX | USA
Oil Sands Trade Show & Conference
9-10 SEPTEMBER | Fort McMurray, AB | Canada
International Pipeline Conference & Exposition
30 SEPTEMBER – 2 OCTOBER | Calgary, AB | Canada
TDW 50th
A
15 AUGUST |

21
TDW experts deliver — providing technical presentations and
hands-on demonstrations throughout the world. To learn more:
tdwontour@tdwilliamson.com.
12-14 Midwest Energy Association
Operations Summit
Rochester, MN, USA
15 TDW 50th Anniversary Celebration
Swindon, UK
19-20 Western Regional Gas Conference
Tempe,AZ, USA
25-27 The Pipeline & Energy Expo
Tulsa, OK, USA
25-27 NACE 2014 Central Area Conference
Tulsa, OK, USA
8-10 Oklahoma Gas Association
Norman, OK, USA
9-10 Oil Sands Trade Show & Conference
Fort McMurray,AB, Canada
14-16 Arkansas Gas Association
Fayetteville,AR, USA
15-17 DUG Eagle Ford
San Antonio,TX, USA
30-2 International Pipeline Conference & Exposition
Calgary,AB, Canada
SEPTEMBER 2014AUGUST 2014 INNOVATIONS•JULY-SEPTEMBER2014
Anniversary Celebration
| Swindon| UK
INTERNATIONAL PIPELINE CONFERENCE AND EXPOSITION
September 30 - October 2, 2014
Calgary,AB, Canada
Among 2014’s most anticipated events, the 2014 International Pipeline
Conference and Exposition (IPC/IPE) is designed to inform, enlighten and
motivate. In addition to providing attendees a wide spectrum of technical,
tutorial and panel sessions, IPC continues its support by investing event
proceeds into educational initiatives and pipeline research.
Attend TDW’s poster presentation or visit the booth to learn more about: Integrity
Inspections and the Multiple Dataset Platform with SpirALL® MFL; Advancements
in Non-destructive Evaluation and Positive Material Identification; and First-time
Success with the STOPPLE® Train Double Block and Bleed Isolation System.
Don’t miss this opportunity to engage the technology and experts in person.
IPE Booth 308 T.D. Williamson #IPC2014

In the United States, shale development is being hailed as a way to
improve energy self-sufficiency, reducing American reliance on imported oil
and making the country a net exporter of natural gas in less than a decade.
As it stands, the United States isn’t the only country
with a plan to increase energy security: The 28 states
of the European Union are also on the road to
energy independence, predominantly by diversifying
their natural gas supplies and building thousands of
kilometers of new pipelines. In fact, of the 188,030
kilometers (116,837 miles) of pipelines listed in
Pipeline & Gas Journal’s 2013 survey as being planned
or under construction worldwide, 21,148 kilometers
(13,141 miles) of them are in Europe. That total
includes the recently green-lighted 3,500 kilometer
(2,175 mile) Southern Gas Corridor, which will start
in Azerbaijan’s massive Shah Deniz gas field and end
in Italy, connecting seven countries along the way.
As European natural gas operators expand their
reach, their needs are also growing. More and more,
they’re looking to their service providers not just
for tools, but for comprehensive pipeline integrity
solutions, from preparing pipeline reversals in
Poland to maximizing throughput in The Netherlands.
Drive Toward More Stable Supply
In Poland, coal is king.
Sitting on the world’s largest deposit of the
combustible black rock, Poland is ranked among
the top 10 coal producers on the planet. Coal is the
source of 80 to 90 percent of Poland’s electricity
generation, says the Polish Government Energy
Policy Strategy. It’s also the backbone of the nation’s
industrial-based economy.
But Poland doesn’t run on coal alone. The
country needs crude oil and natural gas to fuel its
transportation and heating sectors. A net energy
importer, Poland gets roughly 95 percent of its oil
and 65 percent of natural gas from other countries,
chiefly Russia.
Now, however, Poland is expanding its own
natural gas network, both to reduce its dependence
on Russian energy exports and to diversify its energy
mix away from coal-fired power in order to meet EU
climate change targets.
By the end of 2014, Polish national operator
GAZ-SYSTEM is expected to have completed a
five-year, €1.95 billion (US$2.69 billion) project
that includes the country’s first liquefied natural
gas (LNG) terminal, being built at Świnoujście
Port on the Baltic Sea to accept supplies from
diversified sources, and more than 1,200
Reaches for Energy Security
NEW CONNECTIONS:
Europe
• For Dutch Gas Supplier NAM,
a Way to Get Through Wax
• Will U.S. Natural Gas Help EU’s Woes?
• Drive Toward More Stable Supply
• Ensuring Friendly Supplies
• It Goes Both Ways: the Bi-directional
Pipeline Solution
22

FEATURESTORY
kilometers (745 miles) of new gas
transmission pipelines. These lines
will link the LNG terminal with the
Polish natural gas network and, through
its domestic grid, with Czech and German
gas transmission systems.
Although it’s unlikely that natural gas will
dethrone coal as Poland’s energy monarch any
time soon, the growth in natural gas infrastructure
means the country is moving toward greater energy
security and cleaner skies. At the same time, Polish
operators are facing increasing demands around
asset management, including pipeline integrity.
Tomasz Olma, an authority with more than 20
years of experience managing T.D. Williamson’s
pigging and inline inspection businesses in Poland,
has seen the nation’s oil and gas industry embrace
increasingly sophisticated methods for maintaining
and rehabilitating their pipelines.
“Since the introduction of the intelligent pig into
Poland in the early 1990s, operators have turned
to leading edge inspection methods like ultrasonic
23

testing of pipeline welds and using magnetic flux
leakage (MFL) technology to detect corrosion,
pitting and wall loss in metallic pipelines,” he says.
Interest in turnkey
solutions from service
providers who bundle multiple
innovations has been high, he
adds, because it allows for the
logical, sequential delivery of
products and services, which
can streamline projects in
terms of both time and cost.
The need is especially
evident as GAZ-SYSTEM
implements its plan to build
new interconnections and
upgrade infrastructure to
enable reverse flows. And
while those moves are
intended to keep natural gas
flowing to Polish citizens, the
motivation for them began
with oil.
Ensuring Friendly Supplies
According to the CIA World Factbook, there
were 14,198 kilometers (8,822 miles) of gas and
1,374 kilometers (853 miles) of oil pipelines in
Poland in 2013, most of which were over 30 years old.
One of them is the Friendship Pipeline, which
originates in the Russian heartland and essentially
bisects Poland, traversing east to west through the
country’s middle.
Also known as the Druzhba,
the Friendship Pipeline has been
in operation since 1962 and
is the world’s longest pipeline,
collecting and carrying oil from
western Siberia, the Urals, and
the Caspian Sea more than 4,000
kilometers (2,500 miles) to points
in Ukraine, Belarus, Poland,
Hungary, Slovakia, the Czech
Republic, and Germany. It has a
capacity of more than 2 million
barrels per day (mbpd), of which
some 1.4 to 1.6 mbpd go directly
to consumers in the EU.
Despite its amicable name,
however, the Friendship Pipeline
has sometimes been a source of
friction as well as energy.
During the winter of 2006,
for example, a contract dispute with Belarus
prompted Russia to halt the flow of oil over the
Friendship Pipeline to Poland, Germany, Hungary,
the Czech Republic, and Slovakia.
Three years later, in January 2009, a
disagreement with Ukraine over natural gas prices
resulted in Russia ceasing nearly all of its natural
“Investment in
the connection of
the Polish section of the
Yamal pipeline and the
transmission system
belonging to the German
operator has fundamental
importance for improving
the transmission
capacities between
Poland and Germany.”
UKRAINE
RUSSIA
BELARUS
POLAND
ROMANIA
GERMANY
ITALY
LITHUANIAYAMAL PIPELINE
DRUZHBA PIPELINE
AUSTRIA
HUNGARY
CROATIA
MOLDOVA
CZECH
REPUBLIC
24

gas exports from multiple pipelines to Europe.
These incidents highlighted the vulnerability
of Europe’s energy flow and served as a reminder
to Poland about the perils of becoming too
dependent on a single energy supplier.
The Economist magazine suggests that the 2009
natural gas crisis was the reason Poland decided to
fast-track the construction of the LNG terminal at
Świnoujście. And there’s no doubt that Warsaw’s
desire to reduce its energy dependence on Russia
was at the root of its decision to make a portion
of the Yamal (or Jamal, in Polish) gas pipeline bi-
directional, capable of transporting supplies from
Germany as a safeguard against fluctuating politics.
It Goes Both Ways:
the Bi-directional Pipeline Solution
Although Poland produces about one-third
of its domestic natural gas, two-thirds of the
country’s demand is met through imports from
Russia, Germany, and the Czech Republic. The
independent news organization Natural Gas
Europe says that, historically, the lion’s share of
Poland’s natural gas imports — about 80 percent
— has come from Russia via the 56-inch Yamal
pipeline, which terminates in Germany. In 2012,
the Yamal delivered 9 billion cubic meters (bcm)
of Russian natural gas to Poland, according to
BP’s annual statistical review.
Following Russia’s cessation of gas exports in
2009, Polish national operator GAZ-SYSTEM
began work to enable reverse transmission
services on a permanent basis on the Yamal
where it links Poland’s network to the German
natural gas system. In case of a disruption of the
supply of gas from Russia, GAZ-SYSTEM will
be able to reverse the pipeline, allowing Germany
to transport its product to Poland’s consumers.
The physical flow opened in April of this year.
It allows for reverse flow capacity of up to 2.3
bcm annually, with the potential to rise to 5.5
bcm in case of supply disruption. “Investment in
the connection of the Polish section of the Yamal
pipeline and the transmission system belonging
to the German operator has fundamental
importance for improving the transmission
capacities between Poland and Germany,” GAZ-
SYSTEM said in a statement.
Over the course of a year, the Warsaw
office of pipeline services provider T.D.
Williamson (TDW) was contracted to perform
an interconnected series of integrity-building
activities that included:
• Conducting a multi-faceted feasibility study that
included analysis of existing data, interviews
with the front-line supervisors responsible for
maintaining the pipeline, and a physical inspection
of the pipeline’s condition
• Preparing a plan for cleaning and inspection that
would utilize a range of pigs to rid the pipeline of
abnormal amounts of condensate, compression
station oil, rust, and sand
• Using hot tapping and plugging capabilities to
replace a section of the pipe that ran under a rail
crossing, along with several valves that were not full
bore and therefore wouldn’t be able to withstand
the pressure change
• Inspecting the pipeline using intelligent inline
inspection tools
• Preparing a pipeline maintenance pump
• Reinforcing areas that displayed external corrosion
with a high-strength composite wrap
• Hydrotesting the line to make certain it can handle
the stress of 1.5 times the maximum allowable
operating pressure (MAOP)
Of course, the ultimate test of the reversible link
with Germany will come if and when Russia halts
natural gas deliveries to its neighbors to the west.
For Dutch Gas Supplier NAM, a Way
to Get Through Wax
While Poland continues to extricate itself from a
sticky geopolitical situation with its primary natural
gas supplier, a major natural gas supplier in The
Netherlands is working on pipeline integrity and
flow assurance, key objectives essential to global
energy security.
Not only does The Netherlands contain the giant
Groningen gas field, the largest natural gas field in
Europe, the country is a key European hub for liquid
INNOVATIONS•JULY-SEPTEMBER2014FEATURESTORY
25

26
fuels transportation and processing. It’s also one of
the largest importers and exporters of crude oil and
petroleum products. As such, keeping its pipelines
flowing is a priority for both the nation and the
Dutch exploration company NAM.
Recently, NAM, a joint venture between Shell
and ExxonMobil, needed to simplify the above
ground connection of two urban exploration and
treatment facilities to the Shell Pernis refinery near
Rotterdam. With a capacity of about 400,000 billion
barrels per day (bbd/d), Shell Pernis is Europe’s
largest refining facility.
The NAM project called for abandoning and
replacing the above-ground scraper situated between
the production facilities and the refinery with an
underground piggable Y piece that could withstand
pressures up to 95 bar (1377.9 psi), then using pigs
to clean the lines. Adding to the challenge was the
fact that the pipelines feeding into the scraper were
different diameters. Because the line originating
at the measuring station was 8-inch, and the line
coming from the gas station was 10-inch, dual-
diameter pigging capabilities were required.
After the initial cleaning pass, NAM engineers
realized there was more wax in the pipeline than
had been originally anticipated and they needed
an even better way to power through the deposits.
The answer came in the form of the PitBoss™ pig
from TDW, a thorough cleaning tool that comes
equipped with spring-loaded wire scrapers. Although
European pigging expert Ann Mariën says that
brushes aren’t normally used to remove wax because
they get “cluttered” immediately, the PitBoss pig’s
self-cleaning capabilities allowed it to dispatch
NAM’s wax problem.
The PitBoss pig also helped engineers take care
of another problem facing the pipeline: corrosion.
“There was corrosion from pitting, and possible debris
that needed to be removed from the pits, which was
performed by the same tool. We also took additional
measures to prevent further corrosion,” said NAM
Pipeline Engineer Cindy Dirkx. “I believe that this
custom-made cleaning solution has contributed to
the fact that there’s been no further degradation of
the pipelines.”
Will U.S. Natural Gas Help EU’s Woes?
New connections and expanded infrastructure
doesn’t change the fact that the EU lacks the fossil
fuel resources to meet all of its needs. The Institute
of International and European Affairs (IIEA) says that
the EU already imports 70 percent of its oil and 50
percent of its natural gas. Adding to those woes is the
International Energy Agency (IEA) prediction that
the EU’s foreign dependency will only grow in the
near term, climbing 20 percent over the next 20 years.
The U.S. is no stranger to the predicament
Europe faces: As recently as 2007, American natural
gas supplies were dwindling to the point that the
Bush administration considered importing supplies
from less stable markets. And although the shale
boom that has buoyed America has yet to be
replicated in Europe, it’s possible that the growing
supplies of natural gas from shale developments
in places like North Dakota and Texas could help
the EU further wean itself from less stable energy
supplies. The U.S. doesn’t export its natural gas yet,
but the Energy Department has begun issuing export
permits to American companies, and there are some
natural gas export terminals already in the early
phases of construction.
In the meantime, European countries will
continue driving toward greater energy security.
Operators will keep building new pipelines and
repurposing existing ones. And service providers
will supply the advanced, comprehensive integrity
solutions that will help Europe to more quickly and
confidently reach its goals.
NAM is Dedicated to Creating
a Sustainable Energy Future
Nederlandse Aardolie Maatschappij BV (NAM)
has explored for and produced oil and gas in the
Netherlands since 1947. Today, NAM is the leading
natural gas producer in the Netherlands, with annual
production in 2012 of 59.6 billion cubic meters,
accounting for 75 percent of total Dutch demand for
natural gas. The Groningen field accounts for roughly
70 percent of NAM’s gas production, with the remainder
coming from more than 175 smaller fields elsewhere
on the Dutch mainland and in the North Sea. NAM also
continues to produce oil, accounting for one-fifth of
the oil produced in the Netherlands. The company is
committed to contributing to Dutch society by applying
innovative techniques that optimize production and help
deliver a sustainable, secure energy supply.
NAM has two shareholders: Shell (50%) and
ExxonMobil (50%). NAM applies Shell’s operational
processes and safety systems.

prototyping, routing wires can be one of the largest
challenges: Tools are typically built in pieces using
CAD. This means that it’s virtually impossible to see
if the wires will fit correctly until the prototype is
built. Wires vary in thickness and bend differential,
creating unexpected kinks. Until an engineer actually
lays down the wires on a test model, they’re really just
making educated guesses about whether they’ll fit.
A 4-inch deformation sensing body is one of the
many parts printed by TDW engineers to help them
with their R&D process.
Using traditional methods, an engineer would
model a new part in CAD, send the CAD drawing
to the machine shop, and then wait a few weeks to a
month for a prototype to be constructed. Only then
could the engineer run preliminary tests to find out
if the new piece was compatible with the other pieces
in the design, and, of course, if the wires would fit.
Using 3D printing, though, an engineer can send a
CAD design straight to the printer, and have those
questions answered in just a few hours.
Needless to say, being able to quickly print
out test designs can save months during a typical
R&D process.
Reducing Duplication,
Increasing Efficiency
3D printing also aids with collaboration: When
engineers are developing different tools through
multiple teams, repetition of work is hard to avoid.
Although companies keep libraries of virtual CAD
parts, engineers can’t physically see how the parts
would work into their designs, so they often end
up spending hours designing and re-creating parts
that were readily available in the library. 3D printing
allows companies to create a physical counterpart to
these virtual libraries: Instead of turning to virtual
designs, engineers can choose pre-made plastic parts
from in-house “boneyards.” Pieces like U-joints and
sensor arms naturally become uniform, not because
“the rules say we should use the standard design,” but
because engineers can see for themselves that the
standard design will work.
“Rapid prototyping is spanning the gulf
between I don’t have it, and I have it,” says
Davin Saderholm, Manager of New Product
Development at TDW.
As for the hydrogen line inspection tool — with
the help of 3D printing rapid prototyping — it
was delivered to the customer on a greatly reduced
timeline, despite the unique challenges faced.
It’s obvious that 3D printing is transforming vital
processes in countless industries. Whether in your
plane or in your pipeline, at home or even inside
your body, it’s all but certain 3D printing will soon
find itself in your life and business.
The Up-and-Coming
CONTINUED FROM PAGE 13
involved in the United States’ shale process
share their knowledge with operators in
Australia. For example, the American oil and
gas industry is currently embarking on a 12-
year, US$890 billion investment in its own
midstream and downstream infrastructure.
Australia can learn from the huge amount of
planning, resources, and workers needed
for this process.
As for professional personnel and
expertise, Australia will face the same
challenges that every shale-developing
country is facing: There is a shortage of
worldwide oil and gas labor, especially in
expert-level positions. One way to navigate
this challenge is for operators to work
with service companies that already have
knowledge in the area — companies that
have already been through the process in the
United States.
Positioned to Succeed
So far, Australia is doing very well on the
checklist for shale play success. The country’s
political environment looks promising and,
as Poland found out, that can be the most
difficult step for many nations. In theory,
actually developing a shale play can be much
easier: Although it requires a tremendous
amount of time and effort, the overall process
for shale development remains the same
across the globe. Australia’s shale-friendly
political environment and willingness to
work with international companies will help
put the country on the road to becoming one
of the largest LNG exporters in the world.
27
Solving Challenges in 3D CONTINUED FROM PAGE 11

PhasesFourBY THE
NUMBERS
28
BY THE
NUMBERS FourPhases
1
2
3
4
FOAM Foam pigs are inexpensive and indispensable, providing operators with valuable information
regarding the condition and piggability of their line. Collapsible and resilient, a visual inspection of a
foam pig at the end of the run will often determine the next step in the progressive process.
CHEMICAL Chemical batching is achieved by injecting a chemical slug between two urethane pigs,
intended to lessen the cohesion of any contaminants or debris that have become attached to the pipe
wall. The discs of the batching pigs will also help disrupt the debris before and after the chemical slug.
URETHANE Urethane pigs are where “progressive” really comes into play. These pigs can range
from simple molded urethane with cups and then discs, to very aggressive, steel-bodied pigs with an array
of molded urethane cups and discs, and hundreds or even thousands of steel pencil brushes.
SPECIALTY The unique challenges of pipeline operators often require a unique solution,
such as ultra-aggressive steel-bodied pigs with spring-loaded steel mandrels (for removing corrosion
deposits within internal pitting), and jet or spray pigs (for debris suspension and removal).

of PROGRESSIVE PIGGING
29
of PROGRESSIVE PIGGING
REDUCED FLOW AND
INCREASED COMPRESSION
means pipeline operators are losing
profit and increasing operational risk.
To mitigate these unnecessary losses
and maximize pipeline throughput, the
industry relies on progressive pigging.
Due to the variety of complex factors
unique to each pipeline, development and
implementation of a progressive program
can be challenging. To help simplify the
process, the program can be divided
into four basic phases: Foam, Chemical,
Urethane, and Specialty. Inclusion and order
of the phases and specific pigs will vary
depending on the particular line conditions.
5% ROUGH DEBRIS
>30% Flow Reduction
>100% More Pressure
5% SMOOTH DEBRIS
10% Flow Reduction
30% More Pressure
CLEAN PIPE
No Flow Reduction
Standard Pressure

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Europe / Africa / Middle East
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+65 6364 8520
+1 832 448 7200
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Trusted Partnership
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Innovations™ Magazine July - September 2014

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Innovations™ Magazine July - September 2014