Presentation of preliminary findings of the Transmission Pipeline Sour Service project to the NACE MR0175/ISO15156 Maintenance Panel.

Presentation to the CHOA on Crude Quality and why it is important and an introduction to how the CCQTA efforts help to inform industry. Presentation includes an overview of past and current projects.

Trevor Place of Enbridge Pipelines presented at NACE 2016 to the MR0175 Maintenance Panel.

Presentation Outline

• Introduce the CCQTA – the technical association through which a research project is proposed including: History, participants, mandate
  
• Present a vexing problem related to the misapplication of MR0175 in some Pipeline Regulations
  
• Technical challenges —> the reason this meeting was requested
  
• Describe the project being proposed
  
• Seek input from the MP on the proposed approach including: Issues, redirects, suggestions)
  

CCQTA President, Randy Segato, gave this presentation at the December 2015 CCQTA General Meeting. The presentation gathers data from numerous CCQTA projects, coupled with existing and proposed regulations to provide a picture of the state of H2S measurement and the use of data.

Presented to National Academy of Science, Transportation Research Board Sub-Committee on Crude Oil Transportation.

Introductory presentation on the types and uses of H2S scavenger in relation to the transportation of crude oil.

Presentation to the Canadian Heavy Oil Association (Edmonton Chapter). Presentation describes the challenges associated with classification of crude oil for the purpose of transport of dangerous goods. The TVP/RVP project is detailed including the sampling and testing methods that have come out of that project.

Introduction to the CCQTA, meaning of crude oil quality, value chain of crude oil quality, key considerations, and future direction of crude oil quality.

TransCanada is conducting work to improve the accuracy of the existing TVP/RVP nomograph for Western Canadian crude oils. Work is ongoing to:
1. Determine the optimal sampling method
2. Validate the RVP test method for crudes with high light ends fractions
3. Validate the relationship between TVP and RVP for common Western Canadian crude oils.

Limits exist on TVP and RVP of crude oils for reasons of safety, pipeline license restrictions, environmental emissions, and volume loss control. Accepted RVP test methods can provide differing results for the same crude oil sample. Problems exists with correlations of RVP as measured by differing methods.

In order to comply with regulatory limits on TVP, an accurate measurement of RVP is required, which can then be used with API MPMS 19.2 (old API 2517) to provide the TVP. However, the applicability of the Chapter 19.2 nomograph/relationship is questionable for today’s crude oil blends.

TransCanada is currently working on defining the RVP/TVP relationship across the crude oil types transported on the Keystone system, defining any impact of seasonal dilution requirements. It expects to generate sufficient data to ensure industry acceptance of the need to modify the currently accepted Chapter 19.2 relationship.

Cameron Konecnik, TransCanada, on “Keystone Pipeline – Optimizing Delivered Quality.” The Keystone Pipeline originates at Hardisty, AB and delivers crude oil to Wood River and Patoka, IL, and Cushing, OK at a nominal throughput of 590,000 b/d. Between Hardisty and the several destination points, there are no breakout points. This, together with rigorous batch detection instrumentation encompassing density, viscosity, and temperature and pressure help to preserve batch integrity. Various operational controls including minimum batch sizes and adherence to a batch train sequence that minimizes contamination further helps to preserve quality. Several examples of monitoring results were presented to illustrate the effectiveness of these measures.

► Mr. Konecnik’s presentation (document).

Tammy Sauer, Kinder Morgan Canada, Inc., on “Life is a Batch – Supply and Quality Challenges on the KMC Pipelines.” As the largest midstream company in North America, with over 75,000 miles of pipeline and 180 terminals, Kinder Morgan faces a number of challenges in maintaining quality of its deliveries. Among its facilities are:

• Trans Mountain Pipeline;
• Puget Sound Pipeline; and
• Express and Platte Pipelines.

Quality is controlled and maintained through a suite of strategies that includes:

• Batch sizing and staging;
• Use of buffers;
• Common streaming; and
• Provision of merchant storage.

Charles Ward, Alberta Department of Energy (ADOE) on the “Alberta Bitumen Assay Program – Overview and Technical Challenges.” The majority of Alberta’s oil sands are government-owned. Royalties are collected on produced bitumen, based on the prevailing WTI price. Currently, the bitumen is valued with a bitumen valuation methodology (BVM) using density as the variable. To better assess value, ADOE plans to implement an assay program for production from 20 projects accounting for >90% of the bitumen produced in the province. An RFP has been issued for an independent laboratory to collect and analyze samples over a two-year period. Charles presented a matrix of the assay requirements, and discussed the issues believed to be associated with sampling and analysis. The program should commence no later than 3Q2012.

Berry reviewed the capabilities of some of their bench top and on line instrumentation designed to measure S, Cl, Si, P and a selected group of transition metals in both oil and water matrices. Through the use of specialized optics and a dynamic window module, XOS has achieved sub ppm detection limits for the X-Ray analysis of many elements of interest in the oil industry.

Results for both field and lab analysis of chorine and metals were provided to demonstrate the capabilities of the on line analyzer to generate meaningful plant data, and highlight the opportunity to expand the analysis matrix to more than one element at a time.

Berry pointed out that in the last few years XOS has invested significant resources expanding the use of MWD XRF technology, beyond its historical use for sulfur analysis of finished product, to measuring for the presence of a number of contaminants in crude oil.

Steve Fekete, Purvin & Gertz, on “North American Crude Oil Market Overview.” Since 2008, there has been a significant decline in product demand resulting in a number of refinery turndowns. The U.S. is now a net exporter of refined products, mostly diesel fuel. Refinery rationalizations have seen closing of the Hovensa refinery in the Caribbean and three Philadelphia-area refineries that provided nearly one-half of the products consumed in East Coast markets. Tight oil resources such as the Bakken, in both Canada and the U.S. are impacting global markets and helping North America to become less dependent on imports. These resources are, however, resulting in changes in transportation and refining logistics. Crude by rail shipment are increasing dramatically, pipelines are being reversed, and refiners are having to adjust to crude slates of differing quality than customarily processed. One major change in this latter respect is streams with little or no residuum that can be fed to cokers.

Eric Vetters' presentation highlighted some of the challenges faced by Phillips 66 refineries when processing Canadian crude and the approach they employ to help manage these challenges.

Four areas of interest were briefly reviewed with some data and case histories provided. The role of feedstock variability, particularly as it applies to contaminants like solids were highlighted as potential contributors to desalter upsets and fouling issues. Asphaltene stability issues when blending crudes were also linked to preheat fouling and desalter upsets.

One specific incident involving high corrosion rates in a vacuum resid line was discussed. This corrosion, usually attributed to naphthenic acid, occurred despite no evidence of TAN increase in the feedstock. This incident also occurred with accompanying fouling/corrosion in other streams, highlighting the importance of continuing to improve Phillips 66 understanding of the refinery impact of feedstock quality.

In addition to their ongoing efforts with in-house research, Phillips 66 actively participates in industry projects, like those found within the CCQTA.

Technologies for Oil Sands Crude Quality Improvement

Heather began her presentation by pointing out that Alberta Innovates – Energy and Environment Solutions (AI-EES) has contracted Jacobs Consultancy to perform a review of upgrading technologies. Their study concluded that while separation technologies have inherent advantages over conversion processes, they have had limited application due to low yield, poor contaminant segregation, and poor chemical and physical characteristics of the product.

AI-EES and NRCan has initiated a program to find new approaches to help remove or segregate metals and chlorides, maximize product yield, reduce naphthenic acid content, improve extraction of oil from water, clays, and sand, and minimize tailings formation.

The goals and objectives of the program were reviewed including a summary of progress to date. This includes some work to assess the components of fouling and corrosion issues, develop pilot scale separation test facilities, review separation technology patents, and develop designs for future pilot plant construction.

The program is looking for assistance/participation from industry partners such the CCQTA and its members.

Discussion of COQA’s proposed “Domestic Sweet / WTI Specifications.” Historically, Domestic Sweet as traded at Cushing, OK, was a blend of various low-sulfur crude oils produced in Texas, Oklahoma, and surrounding areas. Today, however, this stream may contain, high-TAN crudes from Africa, Canadian blends, and Brazilian heavy crude oils and still meet Nymex specifications. The proposed additional specifications are meaningful, attainable, and will not limit liquidity of Domestic Sweet. In illustrating this, Dennis provided data on TAN, MCR, yields, and Ni + V.

Walt Giesbrecht, Flint Hill Resources, on “Challenges of Processing Heavy Canadian Crudes.” Flint Hill Resources processed predominantly heavy Canadian crude oils at its 300,000 b/d Pine Hill, MN refinery. In doing so, it has faced a number of challenges including:

• Effectively desalting the incoming crude oils;
• Handling solids downstream of the desalter units that go to the wastewater treatment plant; and
• Monitoring and controlling corrosion resulting from the high TAN levels.

For each of these, Walt discussed their adverse impacts in a refinery. For example, effective corrosion control programs will differ depending on the process unit and its operating parameters.

Hillary Stevenson, Genscape, on “Tracking of Pipeline Movements of Crude Oil and Condensate Between Canada and the U.S.” Genscape currently monitors approximately 165 million barrels of crude oil storage capacity, 7 million barrels per day of pipeline throughput, and 0.5 million barrels/day of rail loadings/unloadings in the U.S. and Canada. Monitoring involves over flights where changes in tank levels are observed and tracking of power consumption for pipeline movements. In addition to these, Genscape tracks progress in construction of new storage and transportation infrastructure. Data is disseminated through a web dashboard, PDF reports, and real-time email alerts. In illustrating her presentation, Hillary provided examples for Spearhead, Keystone, and Southern Lights pipelines, storage at Cushing, OK, and construction at Patoka, IL.

Darren Curran, Cenovus Energy, on “WRB Refining Wood River CORE Project – Expanding heavy oil processing.” WRB Refining is a 50:50 business venture with Phillips 66 for refineries operated by the latter at Borger, TX and Wood River, IL. At Wood River, a new 65 Mbbl/d coker project was recently completed that increased diesel yields by 5%. The coker was designed to process synbit to mitigate light ends handling in the refinery. Modules were constructed in Mississippi then transported by barge up the Mississippi River. Barge deliveries were hampered by unusually cold conditions and extreme ice, then flooding that impacted air drafts under bridges spanning the river. Coke produced at the refinery is to be shipped by barge and used for power generation.

Paul Tsounis, Albert Department of Energy on “Alberta’s Energy Markets: Opportunities and Challenges.” A number of key issues are driving today’s oil markets. Among these is the uncertain economic situation in Europe and the U.S., Iran, slowing growth in the Asian Pacific region, and increased crude oil supplies resulting from turndowns in consumption in many areas. Alberta is well positioned to meet some of these challenges. Its natural gas potential is high, but faces competition from growing production of shale gas in the U.S. from the Marcellus and other deposits. Similarly, Alberta’s crude oil resources are increasing in availability but adequate transportation infrastructure is lacking, environmental concerns continue, and competition from the Bakken, Niobrara, and Utica shale among others is growing.

Ashok Anand, Enbridge Pipeline, on “Enbridge System and Commodity Consolidation.” Currently, Enbridge moves 54 commodities through their system, which includes 176 receipt and delivery points at 70 locations. With increases in production, system capacity is being challenged. While at an early stage in discussions with shippers, Enbridge is looking to consolidate similar commodities and to improve scheduling. A conceptual consolidation matrix for these commodities involving 10 pools was presented. Besides its pipeline operations, Enbridge has a rail shipment in North Dakota where they are handling approximately 100,000 barrels / day of Bakken.

Viscosity can be measured by several methods, each of which has its advantages and disadvantages. Critical factors in viscosity measurement are the measurement temperature and, if non-Newtonian, the shear rate. Viscosity is a specification for transportation on pipelines, and heavy crude oils must be diluted with a less viscous diluent to meet that specification.

Estimating the viscosity of a blend of diluent and heavy crude oil can be done using the Wright Blending Method or the ASTM blending method. The Wright method is considered more accurate, but requires more viscosity/temperature data to use.

Normally Maxxam will prepare a set of real blends of heavy crude with diluent, spanning the dilution range of interest. Then viscosity tests are performed on each blend at multiple temperatures. This provides input on incompatibility issues, shrinkage data, and can be used to extrapolate the required dilution data for the viscosity target blend.

Challenges exist in viscosity measurement due to butane blending, presence of stable/unstable emulsions, and slurries.

Trevor and Jenny provided separate presentations on two active projects investigating issues of crude oil corrosivity during pipeline transport. For the former the work is being sponsored by Enbridge Pipelines, while the latter is being carried out by AITF under the supervision of a working group.

Trevor discussed Enbridge internal corrosion focus, which is under-deposit corrosion caused by settled pipeline sediment, and emphasized that crude corrosivity measurement is expected to augment, not replace, their current processes. Trevor presented Enbridge crude corrosivity measurement experience, stretching back to 1995. Current Enbridge efforts include improvements and adaptations of the NACE TM0172 standard test method (to be published at IPC this year) and experience using the December 2010 ASTM G205 guideline document. Since G205 is only a guideline and not a method, Trevor also reviewed some of the modifications undertaken by the project group to develop a test method fit for purpose. Improvements are still required and Trevor is seeking feedback/suggestions from members of organizations such as the CCQTA & COQA.

The AITF project operates under the auspices of the Pipeline Integrity and Corrosion Management Group (PiCoM). PiCoM is an industry working group that gathers to discuss operator experiences and proactively directs research addressing industry issues related to the integrity of pipeline systems. The current focus of PiCoM is to develop a mechanistic understanding, monitor, and mitigate under-deposit corrosion. Laboratory testing methodologies have been developed to evaluate the relative corrosivities of various sludges. In order to better simulate actual flow conditions that could affect the accumulation of water and other corrodents, an oil flow loop has been constructed using online corrosion monitoring systems for real time measurements and provide feedback on the effectiveness of mitigation treatments. The flow loop offers a balance between the ability to control operating parameters and simulation of field conditions. Sludge retrieved from crude oil transmission pipelines is introduced to the flow loop test section to simulate corrosive field conditions. The system has been designed to allow for batch inhibited runs, in addition to pigging of the test section.

Travis’ presentation focused on providing an update of the public’s perception of the oil sands industry and the impact of recent communication efforts.

CAPP’s marketing and communications efforts in Canada over the last 16 months have improved the public’s perception of the oil sands industry in general, the industry’s willingness to communicate with the public, and their efforts at minimizing environmental impacts. Most of this progress has occurred with the undecided/neutral parties.

In the US, the public’s perception of the Canadian oil industry is somewhat more positive. The environmental impact of oils sands is a concern although there is a belief that proper development can be managed. Hot topics such as the development of the Keystone XL pipeline are a higher profile issue for politicians, than for the general public. Overall the US consumer favors an increase in the use of Canadian crude oil.

Tammy Sauer, Kinder Morgan Canada, Inc., on “Life is a Batch – Supply and Quality Challenges on the KMC Pipelines.” As the largest midstream company in North America, with over 75,000 miles of pipeline and 180 terminals, Kinder Morgan faces a number of challenges in maintaining quality of its deliveries. Among its facilities are:

• Trans Mountain Pipeline;
• Puget Sound Pipeline; and
• Express and Platte Pipelines.

Quality is controlled and maintained through a suite of strategies that includes:

• Batch sizing and staging;
• Use of buffers;
• Common streaming; and
• Provision of merchant storage.

TransCanada is conducting work to improve the accuracy of the existing TVP/RVP nomograph for Western Canadian crude oils. Work is ongoing to:
1. Determine the optimal sampling method
2. Validate the RVP test method for crudes with high light ends fractions
3. Validate the relationship between TVP and RVP for common Western Canadian crude oils.

Limits exist on TVP and RVP of crude oils for reasons of safety, pipeline license restrictions, environmental emissions, and volume loss control. Accepted RVP test methods can provide differing results for the same crude oil sample. Problems exists with correlations of RVP as measured by differing methods.

In order to comply with regulatory limits on TVP, an accurate measurement of RVP is required, which can then be used with API MPMS 19.2 (old API 2517) to provide the TVP. However, the applicability of the Chapter 19.2 nomograph/relationship is questionable for today’s crude oil blends.

TransCanada is currently working on defining the RVP/TVP relationship across the crude oil types transported on the Keystone system, defining any impact of seasonal dilution requirements. It expects to generate sufficient data to ensure industry acceptance of the need to modify the currently accepted Chapter 19.2 relationship.

Fractal systems has developed JetShear proprietary technology, which reduces the viscosity of heavy oils and bitumens without dilution. This system has been successfully applied in a field scale test, the results of which are described in this presentation.

Presentation of Keystone Pipeline system design, operations, shipping, and initial crude oil deliveries quality

Perspectives, Paradigms & Polarization: Technology's Role in Meaning-Based Debate

Crude oil production forecast, market demand forecast and pipeline capacities

Review of Enbridge's ITS quality metrics program for 2005 - 2009, performance summary and recommended metrics changes.

Introduction to the CHOA, recent changes in the CHOA, future initiatives, and taking "The Next Step"

Process for new CRW specifications development and list of new CRW specifications

Overview of SAGD and upgrader project, aerial mapping of plant upgrading units, the gasification process, and an update on plant operations

Introduction to the CHOA, growth and development plans for heavy oil in Canada, and challenges and opportunities associated with increasing heavy oil production

Presentation on SAGD production, focused on water treatment and steam production/quality issues

Discussion of planned Marathon Detroit refinery modifications to accomodate planned increase in Canadian heavy crude oils

Discussion of planned Marathon Detroit refinery modifications to accomodate planned increase in Canadian heavy crude oils

Discusses investments that COP is planning to deal with increased volumes of Canadian oilsands derived crude oils, anticipated issues with processing these crude oils such as desalter operability, corrosion in units and products yield distribution and quality

Overview of BP's US refineries, planned expansions at Whiting and Toledo to handle increased volumes of Canadian heavy crude oil, and possible impacts to refinery operations

BP refinery upgrade plans, and issues with refining Canadian crude oils

ConocoPhillips refinery upgrade plans, joint ventures, and issues with processing synbits and dilbits from oil sands production

Canadian crude oil production forecast, refining volume projections and pipeline expansion projects.

Discussion of COP joint venture with EnCana, refinery modifications planned to accomodate massive increase in Canadian heavy oil processed, and technical challenges anticipated such as desalter operation, corrosion impacts, and yield distribution changes

Introduction to CHOA, heavy oil growth and development plans in Canada, challenges and opportunities associated with the increased production of heavy oil

Quantitative and qualitative determination of sulfur in petroleum distillates by multidimensional gas chromatography

Review of the 2007 CAPP crude oil production forecast, refinery survey results, and expected distribution of Canadian crude oil

Discussion of the application of the Canadian Light Source to industrial applications such as sulphur speciation, etc.

Review of Alberta energy reserves, AERI, gasification technologies, AERI collaborations with industry on gasification and upgrading techologies, and advances in technology

Discussion of the nature and impact of foulants found in NOVA Chemicals Corunna petrochemical refinery, thought to be associated with foulants identified in NGL/field butane processing in Western Canada

Review of service and quality metrics incorporated in the 2005 ITA negotiations

Presentation on the use of x-ray transmission tomography to obtain accurate phase equilibrium, diffusivity, and emulsion/dispersion property measurements for heavy oil and bitumen+light hydrocarbon and water mixtures

Overview of EnCana crude oil operations, heavy oil production forecast and factors leading to the development of the WCS stream

Discussion of the logistics and LP impacts of using Western Canadian crude vs. international crude alternatives

Presentation on the nature and potential sources of unexpected particulate fouling in DIB heat exchangers

Activities for the control of petroleum quality on Enbridge Pipelines

Discussion of CAPP's purpose, structure, priorities and quality initiatives

Introduction to testing of corrosivity of metals in oil using radioactive tracers and real time monitoring

Introduction to the structure, mandate and activities of the Canadian Heavy Oil Association

Discussion of naphthenic acid corrosion controlling parameters and analytical methods for naphthenic acids

Discussion of existing and future transportation impacts on crude oil quality and the challenges associated with improving the situation

Discussion of the potential impact of well stimulation activities on organic chlorides content of crude oils

Discussion of the issues of mercury present in crude oils and the state of knowledge about Canadian crude oil levels

Discussion of the compatibility of crude oil blends, and the effect of this in the field, transportation and refining

Fine solids can stabilize emuslions in mined sands such that standard technologies cannot resolve the emulsions

Definition of stability and compatibility, modeling of compatibility, effects of thermal processing on stability of crude oils

Discussion of recent activities regarding the development of TVP testing for application to crude oils

Concerns of Enbridge Pipelines regarding the increasing practice of blending butane with crude oils

Reasons for use of a non-phosphate hydrocarbon gellant system, and the chemistry of a new non-phosphate gellant

Information about the valuation of crude oil and the factors that impact upon that valuation

Discussion of the impact of crude quality and contaminants and the variability of those on refinery operations

Carbon Disulfide Impact at NOVA Chemicals Corunna Petrochemical Refinery

Information about conventional crude issues, their financial impacts, and a high level description of the refinery operational impacts of those issues

Information about conventional crude issues, their financial impacts, and a high level description of the refinery operational impacts of those issues

Information about On-line Quality Measurement of Heavy Crude using NIR and correlations to laboratory measured properties such as sulphur, residue levels, Ramsbottom carbon

Information on crude oil monitoring trends, techniques and parameters,, comparisons between the results of physical distillation and simulated distillation, and the benefits of an ongoing crude oil quality monitoring program

Information on the Refiners Crude Oil Quality, including their focus, objectives, structure, membership, and current projects