Cost Optimization in Onshore Pipeline Design and Construction

Abstract

"Optimization" or "Fit for Future" is the new norm for any industry in this competitive global environment. To encounter the challenges and to embed 100% HSE, efficiency, performance and profitability in operation, maintenance and new constructions, there is an urgent necessity to review and update existing design and construction specifications related to Pipeline. Hence, this paper summarizes the latest specification optimization efforts in pipelines material engineering without compromising the safety and integrity of the assets. In ADNOC Gas Processing, specifications for various engineering disciplines namely, process, automation, control, electrical, static/ rotating equipment, piping/ pipeline, civil/ structural are followed in engineering, construction and maintenance activities. These were developed over years to steer the Company towards unparalleled reliability, operability and integrity. Now, the challenging market demands adaptability, agility and forward thinking with a need to "balance the performance with efficiency and profitability", without compromising HSE. Hence, a "Lean" approach towards the specifications is emphasized by focusing on cost-saving and value addition in terms of optimized schedules and enhanced efficiency. A set of pipelines DGSs were reviewed internally based on International standards/specifications, best engineering practices, lessons learnt from involvement with Operation and Projects and consultants optimized specifications. Through this paper, major changes in pipeline specifications are elaborated highlighting potential areas of optimization and realized cost savings. ADNOC Gas Processing (AGP) plays a strategic role in ADNOC and the UAE hydrocarbon value chain by contributing significantly for the development of the Emirates. ADNOC Gas Processing (AGP) operates and manages an integrated Pipeline Network of approximately 3500km length of Pipelines with the mission of uninterrupted supply to its Customers and any impact on the upstream plants. Various fluids are transported via pipelines such as Sales gas, Crude oil, NGL, Condensate, Water, Nitrogen and associated gases wherein majority of network contains Sales Gas. AGP is involved in executing many Major Pipeline Projects. This paper presents "Fit for Future" initiative that has changed the organizational culture and reflects effectively in all activities across the Company. As all the technical activities are based on DGSs, update plan and potential cost realization are the main drivers for enhancing the performance without compromising HSE. This approach of re-visiting the technical specifications in the light of "high efficiency with low cost" can be adopted across other OPCOs and move towards common specifications for ADNOC.