MIDSTREAM AND

DOWNSTREAM ASSET
INTEGRITY MANAGEMENT

A COMPREHENSIVE SOLUTION FOR

EFFECTIVE AND EFFICIENT OPERATIONS
 TABLE OF CONTENTS
I. What is an Effective AIM Strategy? 3

II. Managing the Full Life Cycle Risk 3

III. An Integrated Solution 4

IV. Improving Pressure Equipment Integrity for ASME Compliance 7

V. Reducing Piping Inspection Costs for Elba Island LNG Terminal 8

VI. Achieving Safety and Productivity Gains 9

Midstream and Downstream Asset Integrity Management - Page 2

 WHAT IS AN EFFECTIVE AIM STRATEGY?
Safe, reliable and economic operation of oil, gas and
chemical processes depends on maintaining high
integrity levels of pressure containing equipment such
as pressure vessels, tanks and piping. Understanding
how to effectively manage a facility’s pressure
containing equipment in order to reduce the risk
of failures is crucial to avoiding costly delays and
downtime.

Asset integrity management (AIM) programs have

evolved from engineering design standards (e.g.
boiler and pressure vessel design standards)
into a more data driven, technically robust and
better integrated solution, with business practices
that promote cost-effective and efficient asset
performance. This white paper will examine the
elements that comprise a comprehensive, risk based
AIM solution combining engineering, inspection and
support services to help asset owners understand
the full risk picture with the goals of improving uptime,
reducing inspection costs, facilitating regulatory
compliance and driving operational excellence.

MANAGING THE FULL LIFE CYCLE RISK

Critical pressure assets used in oil, gas and chemical it represents the longest, most critical phase of an
operations must function with maximum reliability, asset’s service life.
safety and efficiency over the assets’ entire
life cycle. Managing asset risks helps As operating organizations focus on
organizations improve stakeholder core business operations, many
value by facilities have found the need to
utilize independent third parties that
• Preserving the organizational license assist with asset/mechanical integrity
to operate
programs in order to efficiently manage
• Achieving/improving the return on net asset risks.
asset value
This full life cycle risk management begins The ABS Group Asset Integrity Management
with verifying proper equipment design, fabrication (AIM) program focuses on improving
and installation and then progresses to appropriate operational performance, increasing asset efficiency,
operational, inspection and testing practices, decreasing downtime and eliminating unnecessary
and finally the proper management of identified costs. Through an integrated offering of technical
equipment damage and degradation. Not minimizing services and tools, our comprehensive framework
the importance of the proper design, most of the addresses three primary areas: Structural Integrity,
asset risk management activities need to focus on the Mechanical and Machinery Integrity and Control
in-service operational phase of the life cycle because System Integrity.

Midstream and Downstream Asset Integrity Management - Page 3

Through our holistic approach to risk management,
extensive technical knowledge and understanding of
the regulations and safety legislation affecting plants
and refineries, our comprehensive AIM strategy can
help clients mitigate risk, improve safety and promote
compliance. Asset owners must apply intelligent data-
driven strategies to optimize performance, increase
efficiency and reduce operational costs.

Performing a damage
AN INTEGRATED SOLUTION
mechanism assessment/
A. Damage Mechanism Assessment/Review
review (DMA/R) has
become an important step
A key technical activity that is often missing from
in developing effective
many inspection programs is performing a damage
mechanism assessment/review (DMA/R). A DMA/R mechanical integrity plans
is a systematic analysis process that is designed in the refining and chemical
to determine credible damage mechanism processing industries.
susceptibilities of pressure-containing equipment.
DMA/Rs are used to help formulate inspection plans
DMA/Rs aid in formulating
to mitigate the risk of loss of containment and/or inspection plans to mitigate
unplanned outages. risk from loss of containment
Properly performed DMA/Rs provide a sound technical and unplanned outages,
basis for inspection programs and are the building and are the subject of
blocks for activities such as risk based inspection
the corresponding API
(RBI) and corrosion management. In addition to the
technical value, DMA/Rs can provide an economic Recommended Practice 571.
benefit to many programs via reduced inspection
costs.

The following types of items are damage mechanisms

which should be considered when developing an AIM
program and documenting potential hazards in your
facility:
• Mechanical loading failures (such as fatigue)
• Erosion can also provide additional relevant information for
• Uniform corrosion, localized corrosion and pitting assisting PHA and Management of Change review
• Thermal-related failures teams in identifying potential hazardous scenarios for
processes. ABS Group can assist in:
• Cracking
• Embrittlement • Performing DMA/Rs

As industry continues to recognize the value of • Determining a risk based approach and developing
tools for using DMA/Rs in a process hazard analysis
conducting and documenting DMA/Rs to enhance
(PHA)
mechanical integrity programs and mitigate the risk of
loss of containment events, the results of these DMRs

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B. Corrosion Management

Another potential safety issue that can incur significant that equipment can perform at optimal levels. As an
operational costs as industrial assets age is corrosion. alternative to traditional prescriptive and time-based
Operators are seeking the most advanced and programs, RBI relies on a predictive–and preventative
data-driven technical solutions to support a full life –maintenance strategy.
cycle approach for controlling the risk of corrosion.
The goal is greater attention to detail and procedures
Corrosion management and AIM should be integrated
that work toward continuous improvement of high-
as part of an overall cost-effective maintenance effort
performance assets and high-utilization equipment
that optimizes service life, safety and operational
through careful, risk-informed planning. ABS Group’s
performance.
approach involves assessing the risk factors,
Corrosion Under Insulation (CUI) is a pervasive benchmarking the appropriate RBI methodology and
damage mechanism that affects almost every facility implementing a data-driven assessment program that
in the world. While many leaks and failures have tracks progress and return on investment.
been attributed to this damage mechanism, current
The basic elements in the development of an RBI
CUI inspection programs may not provide a holistic
program integrate well with our AIM solution. These
approach. ABS Group can help facility owners
elements include:
minimize CUI failures and increase operational
efficiency by effectively organizing and executing a • Determination of risks introduced by the potential
CUI implementation program. Our experienced asset failures of each component
integrity engineers and corrosion specialists are • Identification of degradation mechanisms that can
well-versed in CUI program applications and program lead to component failures
auditing. • Selection of effective inspection techniques

C. Risk Based Inspection (RBI) • Development of an optimized inspection program

• Analysis of data obtained from the inspections and
An RBI program can benefit the overall approach to any installation changes
AIM for maintaining higher specification assets so

ABS Group is an American Society of Mechanical Engineers (ASME)

Accredited Authorized Inspection Agency and a voting member of
the ASME and API joint committee on fitness for service
(API 579-1/ASME FFS-1).

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D. Fixed Equipment Inspection and Certification F. Data Support and System Management

In order to protect their licenses to operate, facility Data-driven, intelligent

owners must verify that their in-service equipment maintenance and integrated
demonstrates the appropriate levels of safety, database management
integrity and reliability. Operators set annual targets to systems are widely used in
maintain maximum production and avoid unnecessary asset-intensive industries
downtime due to mechanical failure or loss of integrity. for a variety of purposes, including industrial
To support these objectives, maintaining equipment control, communication and monitoring. To
documentation facilitates better asset management. support safer, more reliable industry practices
related to maintaining data management systems,
Documentation may be used to:
facility owners and managers must improve their
• Safeguard against catastrophic failures understanding of the common vulnerabilities and
• Describe how the equipment, tool or product potential consequences that could interrupt business
operates to provide assurance of continuous operations when these systems are compromised.
operation
• Provide information such as an instruction manual Inspection Documentation
to explain how to use, install and/or configure the
product • Equipment inspection and piping isometric drawings

• Comply with regulatory and jurisdictional • Condition monitoring location placement

requirements • Inspection and testing procedures
• Establish a record of operational maintenance and
management throughout the equipment’s service life
ABS Group can develop a statistical approach
Plant operators require an efficient and cost-effective
to analyze equipment reliability data in order to
process for assessing mechanical integrity and
develop a list of prioritized systems, equipment and
documenting jurisdictional compliance. For pressure
components. For large, capital-intensive projects
equipment that has minimal or no design and
that generate vast amounts of data, the ABS Group
construction documentation, ABS Group will verify
Global Inspection Management System enables
the mechanical integrity of existing facility equipment
more efficient project quality management and
using these five steps to comply with inspection code
collaboration with clients, as well as improves the
and standard requirements:
way in which they manage, access and archive these
1. Inspect, assess and document the asset’s current data for ongoing use.
condition and identify damage mechanisms
2. Define design parameters and prepare drawings
3. Perform design calculations and a fitness for service
assessment
4. Engage an Authorized Inspector to witness and
confirm pressure testing requirements
5. Once the integrity levels for the maximum working
pressure/temperature and minimum allowable
thickness is verified and the process documented,
attach the nameplate or stamp the equipment

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F. Training: Mechanical Integrity PROJECT PROFILE: IMPROVING
To support the development of a robust mechanical
PRESSURE EQUIPMENT INTEGRITY
integrity program, the ABS Group Training Center
FOR ASME COMPLIANCE
provides a training course addressing OSHA process Pressure vessels are storage containers designed
safety management and EPA risk management to withstand pressures above 15 pounds of force
program mechanical integrity requirements. Attendees per square inch and used in applications such as
learn how to develop and implement an efficient oil and gas refining operations. According to the
mechanical integrity program, as well as increase U.S. Department of Labor’s Occupational Safety
knowledge of both the inspection, test and preventive and Health Administration (OSHA), recent pressure
maintenance (ITPM) activities for equipment in the vessel inspections show that there are a considerable
petrochemical industry and the recognized and number of cracked and damaged vessels in operation,
generally accepted good engineering practices which could potentially result in leakage or rupture
(RAGAGEPs) that are the bases for equipment design, failures. Pressure vessel failures are not only costly
fabrication, installation and ITPM plans. to operators while critical equipment is taken out of
In addition, the course covers the mechanical integrity service for repairs, but these material and mechanical
program requirements for equipment inclusion, breakdowns could potentially have a catastrophic
procedures, training, deficiency management and effect on life and property.
quality assurance. Attendees receive the latest To prevent the loss of integrity, these critical industrial
OSHA and EPA expectations by discussing recent assets must have safer, more reliable designs and
citations from the National Emphasis Programs (NEP) should be installed, operated and maintained in
and receive a copy of the Center for Chemical accordance with the latest material and fabrication
Process Safety’s book, Guidelines for guidelines such as the ASME Boiler & Pressure Vessel
Mechanical Integrity Systems. This high- Code (BPVC).
quality training course is designed to help
attendees implement programs using proven ABS Group conducted a root cause analysis (RCA)
techniques in the areas of safety, security, risk, to examine potential root causes that led to the
reliability, quality and the environment. mechanical failure of a pressure vessel operating as a
separator in an oil and gas application. Understanding
that the manufacturing and fabrication process can
introduce low fracture toughness and cause brittle
failure in steel, our engineers analyzed the mechanical
properties based on ASME BPVC material and
fabrication guidelines to identify performance gaps
and develop corrective actions. These findings may
be used to improve the manufacturing and fabrication
process with the goal of preventing brittle failure
and other mechanical integrity issues in pressure
equipment operations.

ABS Group helped the client:

• Review pressure vessel service life
• Identify the location of the corrosion mechanism
• Determine the failure sequence that led to the
accidental release
• Assess the vessel’s design using the ASME Code
• Identify performance gaps in the manufacturing
process

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 PROJECT PROFILE: REDUCING
PIPING INSPECTION COSTS FOR LNG
TERMINAL
ABS Group is assisting an energy infrastructure
company in establishing mechanical integrity for
an LNG regasification terminal process. Our efforts
include developing an inspection work process
related to damage mechanism assessment, risk based
inspection (RBI), systematization and circuitization
of equipment and piping, and condition monitoring
location (CML) placement.

These work processes have resulted in significant

cost savings due to more technically based and
robust determination of inspection and nondestructive
evaluation (NDE) requirements. For example, the
systematization and circuitization and CML placement
work processes developed by ABS Group have
resulted in the following reductions:
• Approximately a 20% reduction in the number
of piping circuits (based on another consultant’s
circuitization of the piping; this results in a 20%
reduction in piping inspection costs
• Approximately a 50% to 60% reduction in number
of pressure vessel and piping CMLs (over traditional
CML placement approach); this reduction was
accomplished by the ABS Group CML placement
that bases the CML placement on damage
mechanisms and risk
These two reductions, without considering the impact
of the RBI analysis approach, equate to an estimated
30% reduction in inspection and NDE requirements
for the new process, with estimated savings of USD
$300,000 per inspection cycle.

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 ACHIEVING SAFETY AND PRODUCTIVITY GAINS

Industrial manufacturing and heavy process facilities contain critical assets

that must be managed carefully throughout their service life cycle in order
to perform their required functions with maximum reliability, safety and
efficiency. As a holistic, risk-based approach to asset health monitoring
and maintenance, our AIM solution will help industrial asset owners
improve efficiencies in the planning, inspection and repair process as well
as reduce nonproductive time for more reliable operations and increased
profitability.

Discover more insights on asset integrity management by

requesting our Mechanical Integrity Toolkit. Learn more at
[Link]/Knowledge-Center

ABOUT ABS GROUP

ABS Group of Companies, Inc. ([Link]), through its operating subsidiaries, provides technical
advisory and certification services to support the safety and reliability of high-performance assets and operations
in the industrial manufacturing, oil, gas and chemical, alternative energy, marine, offshore and public sectors,
among others. Headquartered in Houston, Texas, ABS Group operates with 1,300 professionals in over 30
countries. ABS Group is a subsidiary of ABS ([Link]), a leading marine and offshore classification society.

[Link]

* ABS Group refers to various subsidiaries of ABS Group of Companies, Inc., including ABSG Consulting Inc. © Copyright 2018 ABSG Consulting Inc. All rights reserved. 10/18