China Oil And Gas Pipeline Standard System

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THE FIFTEENTH U.S. - CHINA OIL ANDGAS INDUSTRY FORUMCHINA OIL AND GAS PIPELINESTANDARD SYSTEMWu, ZhongliangPetrochina Natural Gas and Pipeline Company18th September 2015The 15th U.S. - China Oil and Gas Industry Forum1

Report outline1. Establishment of Oil and Gas Pipeline Standard System2. Composition of Oil and Gas Pipeline Standard System3. Development of Oil and Gas Pipeline Standard SystemThe 15th U.S. - China Oil and Gas Industry Forum 2

Introduction So far, China’s onshore long-distance oil &gas pipelines has reached a total lengthof 120,000 km. In which, Petrochina is managingnearly 80,000 km of these pipelines inChina. Natural Gas and Pipeline Company iscurrently managing 61,000 km of operatingpipelines. Among which, 9,400 km arecrude oil pipelines, 8700 km are refinedoil pipelines and 43,000 km are natural gaspipelines.The 15th U.S. - China Oil and Gas Industry Forum 3

1. History ReviewIn December 1958, China's first crude oil pipeline project, Karamay-Dushanzi pipeline finishes itsbuilding. Thereafter from early 1970s to early 1990s, a number of oil pipeline projects includingQing-Fu, Qing-Tie, Tie-Qin, and Tie-Da in northwest China, as well as Dong-Huang, Qin-Jing, RenJing in north and east China, are completed. Based on these engineering practices, the first version ofnational standards entitled ―Code for Design of Gas Transportation Pipeline Engineering‖ (GB50251-94) and ―Code for Design of Oil Transportation Pipeline Engineering‖ (GB 50253-94) werereleased in 1994. Their main references are Russian long-distance oil & gas pipeline designstandards.From 1990s to the early 21st century, with the completion of Petrochina projects such as, Shan-Jingpipeline, Shan-Jing Second pipeline, Ku-Shan pipeline, Lan-Cheng-Yu pipeline, as well as SinopecYong-Hui-Ning and Chang-Hang pipeline projects, oil & gas pipeline construction in China hasgradually absorbed North American and European standards, the old standards are updated and reindexed to ―GB50251-2003‖ and ―GB50253-2003‖.Over the past decade, China has experienced a period of its great pipeline development. Duringwhich, West-East Gas Second pipeline, Third pipeline, Shan-Jing Third pipeline and Sichuan-EastGas pipeline projects has been completed successively. These has enabled further revision of itspipeline standards with reference to North America, Europe, Russia, Japan, and internationalstandards, and finally updated to current version of ― GB50251-2015‖ and ― GB 50253-2014‖, whichare published as the core of its oil and gas pipeline standards.Following the above three pipeline construction peak times, China oil and gas pipelinestandards has experienced three major revisions in publishing year 1994, 2003 and 2014 (2015).The 15th U.S. - China Oil and Gas Industry Forum 4

2. Standardization Administration OrganizationsChina exercises its standardization responsibilities by undertaking an unified administrativesystem with sub-division management responsibilities. Standardization Administration of China (SAC) is an unified management agency for allnational standards. State Council departments, industry association standard bodies are in charge of their relateddivision of industry standard. E.g., National Energy Administration is responsible forpetroleum and petrochemical industry standard; Ministry of Housing and Urban-RuralDevelopment is responsible for housing and construction industry standard. Local and regional standards are managed by local authorities in charge.GeneralAdministrationof QualitySupervisionChina NationalInstitute ofStandardizationCertification andAccreditationAdministrationof ChinaStandardizationAdministrationof ChinaChina Associationfor standardizationStandardPublishersIndustry and localgovernments, researchagencies, TCs /SCs, associationsThe 15th U.S. - China Oil and Gas Industry Forum 5

LNG Sub TCEnvironmental Protection Sub TCNational Energy Administration is incharge of centralized management ofpetroleum and petrochemical industrystandards and its national standards.National Oil & Gas StandardizationCommittee and Petroleum IndustryStandardization Technical Committeeare overall technical and standardizationorganizations.Oil Field Chemicals Sub TCPetroleum Geological Prospecting Sub TCPetroleum Geological Prospecting SCGeophysical Prospecting Sub TCPetroleum Exploration SCDrilling Engineering Sub TCPetroleum Drilling Engineering SCNationalOil & GasStandardizationCommitteeOther specific standardization subcommittees cover subjects such as oil &gas storage and transportation, tubing,safety, project construction and othertopics.Logging Sub TCPetroleum logging SCOil & Gas Field Development Sub TCOil & Gas Field Development SCOil & Gas Extraction Sub TCOil & Gas Extraction SCOil & Gas Storage and Transportation Sub TCOil & Gas Storage and Transportation SCOil & gas measurement and analytics sub TCOil & gas measurement and analytics eeOil Country Tubular Goods Sub TCOil Country Tubular Goods SCOffshore petroleum Engineering Sub TCOffshore petroleum Engineering SCEnergy Saving and Water Saving Sub TCEnergy Saving and Water Saving SCPetroleum Meter and Instruments SCSafety SCPetroleum Engineering Construction SCOil Industry Labor Quota SC*TC (Technical Committee)*SC (Standardization Committee)Petroleum information and applied Computing SCAffiliated Metering Calibration and Specification SCThe 15th U.S. - China Oil and Gas Industry Forum 6

3. Relation with international/national standardization organizationsOver the years, Natural Gas and Pipeline Company has established effectivecommunication and exchange mechanisms with standardization organizationssuch as the International Organization for Standardization (ISO), the InternationalElectrotechnical Commission (IEC), American Petroleum Institute (API),Institute of Petroleum (IP), American Society for Testing and Materials (ASTM),American Society of Mechanical Engineers (ASME) and National Associationof Corrosion Engineers (NACE) etc., and actively participated in standardizationresearch by tracking and adopting state-of-the-art international, national andindustry standards.The 15th U.S. - China Oil and Gas Industry Forum 7

Domestic counterpart technical unites with followinginternational / national standardization organizations:International / National Standardization OrganizationDomestic Counterpart Technical UniteISO/TC193Natural gasNatural Gas Research Institute of Southwest Oil & Gasfield CompanyISO/TC193 /SC1Natural gas / Analysis of natural gasNatural Gas Research Institute of Southwest Oil & Gasfield CompanyISO/TC193 /SC3Natural gas / Upstream areaNatural Gas Research Institute of Southwest Oil & Gasfield CompanyISO/TC 67Materials, equipment and offshore structures forpetroleum, petrochemical and natural gas industriesStandardization Research Institute of Petroleum IndustryISO/TC67/SC2Pipeline transportation systemsTubular Goods Research Institute, BAOJI Petroleum Steel Pipe Co.,Ltd., Petrochina Pipeline R&D CenterISO/TC67/SC6Processing equipment and systemsChina Huanqiu Contracting & Engineering CorporationISO/TC67/WG 10Liquefied Natural Gas installations and equipmentChina National Offshore Oil CorporationISO/TC 207/SC 4Environmental management/Environmentalperformance evaluationResearch Institute of Safety & Environment TechnologyISO/TC 263Coalbed methane (CBM)Coalbed Methane Co., Ltd.OIML/TC8International Organization of Legal Metrology/Instruments for Measuring Quantities of FluidsNational Petroleum & Natural Gas Mass Flowrate Calibration StationAPIAmerican Petroleum InstituteStandardization Research Institute of Petroleum IndustryNACENational Association of Corrosion EngineersChina Petroleum Planning and Engineering InstituteThe 15th U.S. - China Oil and Gas Industry Forum 8

4. Main results of standardization workSo far, we have established a series ofnational and industry standards that containspecifications of all subjects that coverwhole life cycle pipeline stages.It starts from pipeline design, procurementand construction, and extends to pipelineoperation, maintenance and abandonments.These standards have technically supportedpipeline construction and operation work inChina.System Architecture of Oil &Gas Pipeline StandardsThe 15th U.S. - China Oil and Gas Industry Forum 9

Requisite & core standards are complete in all key areas, and somestandards have taken advance on an international ground Completed software platform design, standard-based planning studies for selfdeveloped oil and gas pipeline SCADA system, and achieved initial systemintegration. Developed technical specifications of X80 and X90 high strength steel sheets andpipes for making high strength pipelines. Designed matched production process andtechniques for elbow pipe and pipe fittings. Finished kilo-ton trial production, andapplied these pipes to West-East Gas Third pipeline and China-Russia East RouteNatural Gas pipeline projects. Established oil and gas pipeline integrity management system based on mandatorynational standard entitled ―oil and gas pipeline integrity management practices‖ . Developed techniques and specifications for adding pour point depressant (PPD) anddrag reducing agent (DRA) to oil and gas pipelines. Promoted safe and economicoperation of the pipeline. Summarized a large number of experiences towards construction, maintenance andoperation of mountain tunnels and water tunnels, developed industry standardentitled ―Specification for maintaining of oil and gas pipeline aerial section andattaching installation‖.The 15th U.S. - China Oil and Gas Industry Forum 10

(1) Publication of pipeline construction standards and its developmentBy targeting key pipeline projects, quantities of technical bottlenecks are overcome to meetthe needs of centralized large-scale pipeline construction. At national and industry levels, comprehensive amendments were made towards improvingpipeline design and construction standards, this has therefore enhanced overall pipelineconstruction technology. From 2011 to 2015, a total revision and publication of 12 nationalstandards, 62 industry standards are made, which include: GB 50423-2013 “Code for design of oil and gastransportation pipeline crossing engineering” GB 50253-2014 “Code for design of oil transportationpipeline engineering” GB 50369-2014 “Code for construction and acceptance of GB 50251-2015 “Code for design of gas transmissionoil and gas long-distance transmission pipeline engineering” pipeline engineering” GB/T 31032-2014 “Welding and acceptancestandard for steel pipings and pipelines” SY/T 0452-2012 “Standard for welding procedure qualification of oiland gas metal pipeline” SY/T 4125-2013 “Welding specification for steel GB/T 50818-2013 “Mechanized ultrasonic testing technologypipeline”specification for oil & gas construction pipeline project” SY/T 4109-2013 “Nondestructive testingstandard of oil and gas steel pipeline” SY/T 0086-2012 “Electrical isolation of cathodicallyprotected pipelines” SY/T 0315-2013 “Technological specification of externalfusion bonded epoxy coating for steel pipe” SY/T 6854-2012 “Technical standard of liquid epoxyexternal coating for buried steel pipeline” GB/T 50698-2011 “Standard for AC interference mitigationof buried steel pipelines”The 15th U.S. - China Oil and Gas Industry Forum 11

(2) Establish business knowledge base and management system fornatural gas and pipeline industry at group company levelAccording to CDP document types, asix (projects) by six (document types)document structure has been formed withfive-leveldocumentclassificationsystem, to comply with Petrochinaknowledge base and its existingmanagement system.The 15th U.S. - China Oil and Gas Industry Forum 12

Petrochina Natural Gas andPipeline Company has established aseries of technical specificationsand working standards towardssubjects such as oil & gas storageproject design, construction andproject acceptance.The published practice namely―Code for Design of Oil & GasStorageand TransportationProject‖ (known as CDP), hasincorporated serialization of designmodules, design & constructionmanagement information platformsand databases.Shell——DEP ―Designing & Engineering Practice‖ contains five types ofdocuments including manuals, technical specifications,procedural specifications, procurement documents andsheets.BP——ETP ―Engineering Technology Practice‖ contains five types ofdocuments including group practices, group supplyinstructions, instructive guidelines, references and specificprocurement indexes.Petrochina——CDP ―Code for Design of Oil & Gas Storage and TransportationProject‖ contains six five types of documents includingstandard formats, standard lists, technical specifications,guideline documents, modularization documents andmanagement procedures.The 15th U.S. - China Oil and Gas Industry Forum 13

(3) Accelerate the pace towards standards globalization and promotepipeline standards to consists with international standards Actively adopt international standards and absorb advanced concepts. ―Petroleum and natural gas industries -- Pipeline transportation systems -- Reliability-based limitstate methods‖ (ISO 16708-2013); "Petroleum and natural gas industries -- Steel pipe for pipeline transportation systems" (ISO 31832012); "Petroleum and natural gas industries -- Pipeline transportation systems"(ISO13623-2000) . Participate development of international standards, expand international influence. Drafting three ISO standards as principal developer entitled "Petroleum and natural gas industries -Pipeline integrity management specification -- Part 1: Full-life cycle integrity management foronshore pipeline", "Petroleum and natural gas industries -- Pipeline integrity managementspecification -- Part 2: Full-life cycle integrity management for offshore pipeline" and "Petroleumand natural gas industries -- Geological hazards risk management of oil and gas pipelines "; Drafting two NACE standards entitled "Test Method for Measurement of Gouge Resistance ofCoating Systems" and "Test Method for Measurement of Peel Strength of Pipeline Coating Systems". Carry out adoption and benchmarking work, especially on North America and Russian oil & gaspipeline construction and operation management standards. Setup multi-level technical exchanges withcompanies including NGT&S, UniversalPegasus, TransCanada, Spectra Energy and Enbridge etc.The 15th U.S. - China Oil and Gas Industry Forum 14

Report outline1. Establishment of Oil and Gas Pipeline Standard System2. Composition of Oil and Gas Pipeline Standard System3. Development of Oil and Gas Pipeline Standard SystemThe 15th U.S. - China Oil and Gas Industry Forum 15

1. Oil and Gas Pipeline Standard System frameworkPetrochina oil and gas pipeline standard system is divided into three levels. The first levelconsists of fundamentals and general standards; The second level contains twelve subjectsincluding field pipeline management, pipeline traversing & crossing, utility systemengineering etc.; The third level has 35 child subjects which are divided from upper levelparent subjects.Fundamentals and generalstandardsProcessUtilityField pipeline Traversing system Tubular Welding operation Machineryandequipmentmanagement & crossing engineer goodscontroling Fieldpipelineengineering Pipelinemanagement Traversing General Crossing drawing Watersupplyanddrainage Heatingandventilation Architecture Transmission pipes Screwthreadjoints Testingandevaluation Weldingprocessandacceptance Heatingfurnace Compressor unit Storagetank Pump Valve ProcesspipelineElectric system,communicationand instrumentautomationErosioncontrol Cathodic Electricprotectionsystem Communic Anticorrosion coating andationinsulation Instrumentautomation Testing andevaluation Stray current TestingmethodIntegrityMetrologyManageand testingment Risk Physicalassessment property Defecttesting.inspection Measuringandandevaluation meteringEnergy saving,safety andenvironmentprotection OccupationalHealth andpersonalprotection Safety Environmentprotection Fireprevention andcontrol Energy saving第15届中美油气工业论坛 16

At the level of national and industry standards, a total of 334 standards are oiland gas pipeline standards, which includes 272 published and currently effectivestandards and 62 other standards to be drafted and released.Tubular goods54 standards15.9%Pipeline safety26 standards7.8%Pipelineoperation53 uction201standards60.2%Percentage distribution of number ofstandards among subjects243Voluntarystandards86%Percentage distribution of number ofcurrent effective standards betweenmandatory and voluntary第15届中美油气工业论坛 17

2. Major oil and gas pipeline construction standardsChina aims to develop high grade steel, high-pressure, large-diameter, long distance, automation,digitalized and intelligent pipelines for its oil and gas pipeline construction. Over the years, it haslaunched a series of significant science & research projects and major field trials to preserve advancedtechnologies. Subjects such as pipeline design technology, high grade steel pipe manufacturingtechnology, pipeline welding technology, pipeline construction technology, quality inspection andcontrol and other aspects of pipeline technologies has been drastically improved.The above technology achievements have been recorded and converted in standardization process, andtherefore produced/amended a total number of 170 relevant standards, of which 32 are Chinese nationalstandards, 138 are industry standards.Pipeline constructiontechnical standardsDesigntechnologyHigh-gradesteel uctiontechnologyQualityinspectionand control第15届中美油气工业论坛 18

(1) Pipeline Design StandardsRevised and published national standardsincluding "Code for design of oiltransportation pipeline engineering"(GB 50253-2014), "Code for design ofgas transmission pipeline engineering"(GB 50251-2015), "Code for design ofoil and gas transportation pipelinecrossing engineering" (GB 504232013), etc.第15届中美油气工业论坛 19

(2) Standards for large diameter high grade steel pipe productionThe fast development of oil and gas pipe production technology has promoteddomestic high-grade steel pipe production standards to upgrade and comply withinternational standards. National standard ―Petroleum and natural gas industries – Steel pipe for pipelinetransportation systems" (GB 9177-2011) Petrochina has independently developed large wall thicknessand large diameter pipe induction heating manufacturingtechniques, and has therefore published three nationalstandards.GB/T 29168.1- Petroleum and natural gas industries. Induction bends, fittings and2012flanges for pipeline transportation systems. Part 1:Induction bendsGB/T 29168.2- Petroleum and natural gas industries - Induction bends, fittings2012and flanges for pipeline transportation systems - Part 2: FittingsGB/T 29168.3- Petroleum and natural gas industries—Induction bends, fittings2012and flanges for pipeline transportation systems—Part 3:Flanges第15届中美油气工业论坛 20

(3) Standards for pipeline welding techniquesThe centralized large-scale pipeline construction hasaccelerated consistent improvement of weldingoperation mechanization and automation techniques,and therefore updated relevant standards on weldingprocess and techniques to meet construction needs.The establishment of standards on self-developed fullautomatic welding equipments has enabledautomation of large-scale pipeline welding andconstruction work.GB/T 31032-2014Welding and acceptance standard for steelpipings and pipelinesSY/T0452-2012Standard for welding procedure qualificationof oil and gas metal pipelineSY/T 4103-2006Welding specification for steel pipelineDouble TorchAutomatic WeldingEquipment第15届中美油气工业论坛 21

(4) Technical standards for pipeline construction & engineeringPetrochina has carried out concentrated research on developingpipeline construction & engineering technologies and itsequipments, to promote innovation standardization. It hasrevised and published a series of standards including corenational standard entitled "Code for construction andacceptance of oil and gas long-distance transmission pipelineengineering" (GB 50369-2014), to meet construction needs forlarge diameter, high-grade steel pipe, large area and longdistance pipelines. National standard "Code for construction and acceptance of oil and gas long-distancetransmission pipeline engineering" (GB 50369-2014)First enacted in 2006. Revision version released in 2014 with reference to ASMEB41.4 and ASME B31.8. Based on focused engineering practice andequipment research & development, standardentitled "Specifications for trenchless pipelinecrossing engineering" has been published toregulate trenchless pipeline crossing processes.Trench excavation第15届中美油气工业论坛 22

(5) Standards for pipeline quality inspection and controlDriven by the centralized large-scale pipeline constructionprojects, self-developed technologies such as full-automaticultrasonic pipeline inspection tools and non-destructivepipeline testing equipments have been successfully appliedin pipeline quality inspection and control process.The published standards on these subjects are as follows:GB/T 50818- Mechanized ultrasonic testing technology specificationfor oil & gas construction pipeline project2013SY/T 4109-2013Non-destructive TestingNondestructive testing standard of oil and gas steelpipeline第15届中美油气工业论坛 23

3. Major oil and gas pipeline operation standardsWith the of China’s oil and gas pipeline networks expands from east to west,north to south, and gradually to overseas, automation andinformationization condition of pipeline operation management has graduallyimproved. Remarkable progress has been made on subjects such as processoperation, integrity management, security & safety warning, emergencyrepair and oil & gas measurement etc., which collaboratively helps toestablish a comprehensive oil and gas pipelines operation standard system.At national and industry levels, a number of 116 standards regarding oiland gas pipelines operation have been published, in which 43 itemsare national standards, 73 items are industry standards.第15届中美油气工业论坛 24

(1) Pipeline process operation standardsStandards for Oil and gas pipeline SCADA systemSCADA system implements centralized dispatching & control for oil and gaspipeline transportation. Its applications include sequential transportation,equipment monitoring, operation status monitoring of station control systems alongpipelines, pipeline leak detection, pipeline operation software simulation andproduction safety protection etc.Currently, SCADA system owns two national standards and four oil andindustry standards, which are all converted from Petrochina enterprise standards Developed and published three industrystandards regarding oil & gas pipelinesoperation, to enhance the level of pipelinesoperation standard. Developed and published family of standardsfor high pour point, high viscosity and highoil containing wax crude oil transportation.Subjects include heating, heat treatment andPetroChina Beijing Oil & Gasadditive process, to develop to promote safeTransportation Centerand economic operation of the pipeline. 第15届中美油气工业论坛 25

(2) Standards for oil and gas pipeline integrity managementAround the core mandatory national standard entitled "Oil and gas pipelineintegrity management", an integrity management standards system has beenestablished. At present, 45 standards have been published, which include onenational standards and 44 industry standards. Subjects covering pipelineinspection and testing, risk assessment and other aspects of pipeline integritymanagements.National standard entitled " Oil and gas pipelineintegrity management " (to be released) drawsspecial attention from the State Administrationof Production Safety Supervision and the StateAdministration of Quality Supervision, to makespecific specification requirements.Petrochina is also preparing and reservingfor 33 items of its pipeline integrity enterprisestandards to be upgraded to national standardsand industry standards.第15届中美油气工业论坛 26

(3) Standards for safety warning and emergency repair Industry standard ―Specifications for oil and gas pipeline safety warning system" (SY/T6827-2011) regulates selection, installation, testing, inspection, transport and maintenanceprocesses for fiber optic and acoustic pipeline safety warning systems and intelligentcoating systems. These security systems can prevent third-party pipeline sabotages andlocate alarm events. Industry standard "Specifications for maintaining of oil & gaspipeline aerial section and attaching installation" (SY/T 60682014) , summaries experiences based on construction &operation of a large number of mountain tunnels and watertunnels in West Second, West Third and the China-Burmapipelines, and regulates maintenance and service procedures o fthe aerial part of pipeline and its ancillary facilities. Industry standard "Specifications for steel oil and gas pipelinefailure repair" (to be released) , sums up the experiences frommany emergency pipeline events and accidents, and regulatespipeline failures by referring to many international repairstandards and practices.第15届中美油气工业论坛 27

(4) Standards for Oil and gas measurementThe oil qualitative measurement and gas volumetric metering technology of China iscurrently reached an international advanced level with a complete set ofstandards. Natural gas energy metering technology under large-scale application, andhas reserved a good number of technical standards.The China oil and gas pipeline measurement standards system consists of 74 standarditems, which include nine general standards, 36 of crude oil products measurementstandards, fourteen natural gas measurement standards, two LNG measurementstandards and two metrology and testing standards. Formulate and publish "Energy determination for natural gas" ( GB / T 22723-2008) Initially established natural gas energy metering supporting technology and traceabilitysystemGeneralStandardsCrude oil andrefined oilmeteringGasMeteringLNGmeteringMetrologyand testingChina oil and gas pipeline measurementstandards system第15届中美油气工业论坛 28

Report outline1. Establishment of Oil and Gas Pipeline Standard System2. Composition of Oil and Gas Pipeline Standard System3. Development of Oil and Gas Pipeline Standard SystemThe 15th U.S. - China Oil and Gas Industry Forum 29

Further research and development work for China oil and gaspipeline standard system are needed in the following areas: With the development and application of oil and gas pipelinetechnologies such as construction,, operation and management,relevant standard research work needs to follow up and update. Expedite the implementation of natural gas energy measurementstandards on an national level. Increase investments and input into standard research to strengtheninternational standards adoption and benchmarking work.第15届中美油气工业论坛 30

Future research focuses for oil and gas pipeline standards Improve tubular material and production standards for X80 and belowgrades steel pipes to develop standard series on high-strength and antideformation pipeline construction. Carry out high-strength steel pipe defects evaluation, repair andmaintenance research, to develop repair and maintenance standardsfor high-pressure, large-diameter, high-grade steel pipes. Develop abandonment judgment and waste pipeline disposal technicalspecifications for oil and gas pipelines, to meet pipeline managementneeds. Implement the new national "Safety Production Law" and the"Environmental Protection Law", and develop series of pipeline safetyand environmental protection standards (―Oil and gas pipeline safetymanagement practices", "Specifications for water pollution preventionand oil and gas pipeline leak control" etc.), to provide basis for oil andgas pipeline safety operation.第15届中美油气工业论坛 31

The 15th U.S. - China Oil and Gas Industry Forum 4 1. History Review In December 1958, China's first crude oil pipeline project, Karamay-Dushanzi pipeline finishes its building. Thereafter from early 1970s to early 1990s, a number of oil pipeline projects including Qing-Fu, Qing-Tie, Tie-Qin, and Tie-Da in northwest China, as well as Dong-Huang, Qin-Jing, Ren-

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