Improve Midstream ROI: Adopt One Pipeline Integrity Software for both Pipeline and Facilities

Posted on Mar 29, 2024 | by Metegrity Inc. | Category: Pipeline, Midstream, Refinery, Asset Integrity Management, Pipeline Integrity Software

Few industries understand the rigorous environmental, safety, legal and regulatory requirements of asset integrity management as intimately as the Midstream Oil & Gas sector. Without proper integrity management of their critical network of assets, catastrophic loss of containment could result in increased environmental hazards, loss of life, devastating lawsuits, and unplanned shutdowns – costing owner operators tens of millions of dollars.

Comprehensive Asset Integrity Management (AIM) is paramount for mitigating potential losses. Incorporating pipeline and facility software based on Risk based Inspection principles should be an integral component of the overall mechanical system. This integration not only substantially reduces the likelihood of loss of containment but also provides precise insights into their probabilities. It offers the best method for quantifying the number of defense mechanisms in place and helps operators adopt a proactive approach to risk management, resulting in prolonged equipment life and reduced shutdowns.

While this concept is widely acknowledged, the solution for owner-operators in the Oil & Gas industry extends beyond mere recognition. Midstream assets are part of vast, complex, and large networks of equipment with multiple divisions. It is imperative for this industry to implement a unified system across the entire network. However, many companies still make the critical mistake of deploying separate integrity systems for different segments of their supply chain: one for the pipelines, one for the facilities.

This creates a significant gap in the risk management process due to insufficient communication between divisions. All assets spanning from the facilities to the pipeline are interconnected, both directly and indirectly. So why, then, aren’t the systems managing these assets integrated? There are direct links, such as feed pipeline and fractionation units, as well as indirect links between the divisions – for example, corrosion in a pipeline has the potential to transfer corrosion precursors to the facility if the proper systems for avoidance, recognition, and solution processes are not in place or communicated effectively to the facilities.

When the asset data is managed separately in each division of these companies, critical risk intelligence fails to adequately traverse from the pipeline to the facility. This disconnect exposes companies to heightened risks of equipment failure, unplanned shutdowns, or catastrophic loss of containment. Without crucial information readily and promptly shared between sectors, it becomes impossible to optimize risk mitigation strategies for the entire company.

The solution is simple: Switch to a single repository-based pipeline and pressure equipment integrity program that encompasses the entire enterprise. This program should offer coverage for both facility and pipeline system integrity, protecting all assets within the complex supply chain from a single platform. With such a system in place, divisions can effectively communicate data, and operators can access comprehensive top-level information for the entire network from a single access point. This approach empowers companies with critical insights into the effectiveness of their current damage mitigation mechanisms, enabling a shift from a reactive to a proactive strategy. In addition to the evident financial benefits stemming from significantly reduced loss of containment incidents, operators will experience:

• Catastrophic incident avoidance
• A comprehensive, unified database accessible to all divisions and contractors
• Implementation of an AIM system that gives a company predictive, measurable knowledge of all risks
• Adoption of the most cost-effective AIM solution available
• Extension of equipment lifespan
• Streamlined, rigorous audit compliance across all operations
• Reduced environmental and safety hazards
• Drastic improvement in ROI