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4 PIPELINE TECHNOLOGY JOURNAL THIS ISSUE’S COMPLETE CONTENT MAY 2019 / ISSUE 3 Operations & Integrity Management and Compliance in an age of IIOT Steve Hill Honeywell Process Automation Solutions 6 Intelligent Predictive Maintenance in the context of Maintenance 4.0 for Oil & Gas Industry Dr. Rama Srinivasan Velmurugan GAIL (India) 16 The Big Data Revolution: Detecting Pipeline Leaks, Encroachments and more Using Satellites John Zhou & Caroline Beck Satelytics 28 New Technologies Drive Operational Performance by Connecting Smart Stations to Distribution Networks Rossella Mimmi Emerson Automation Solutions 12 Digital disruption will occur in Midstream as it is underway in other asset intensive industries Sam Hemeda Arundo Analytics 24 Best Practices for Cybersecurity Diagnosis in Industrial Environments Ernesto Landa Compania Operadora de Gas del Amazonas 34 Company Directory Page 42     Pipeline Technology Journal - ptj @pipelinejournal www.pipeline-journal.net Pipeline.Technology.Conference ptc Review 40 Event Calendar 47

Operations & Integrity Management and Compliance in an age of IIOT Steve Hill > Honeywell Process Automation Solutions Abstract There are approximately 4 million miles of pipelines spanning some 120 countries across the globe, carrying oil, gas and other potentially volatile liquids and gases. The pipelines cross deserts, oceans and some of the most inhospitable environments known to man. Honeywell have provided control systems for pipelines for over 30 years, and now we see how IIOT is being used by Maintenance and Operations staff with innovations such as Intelligent Wearables to bring plant critical data back to a central location and how it can be analysed and used to make the right decisions expediently. UAV’s are now being used to detect hairline fractures in pipelines, as well as providing high-resolution images to assist with security and maintenance procedures. Remote Operations is becoming more prevalent with the shortage of skilled personnel driving this demand, we will share some of the technologies involved in this solution, along with this we will also discuss what the modern control room looks like and the drivers to replace Modbus and how this forms part of a modern Cyber Secure facility. The move from Operation to Business Management and how technology can empower staff to combine the knowledge they have with powerful analytics to make intelligent decisions is leading to increased profitability with the knowledge the process is being managed with the highest level of safety.

8 PIPELINE TECHNOLOGY JOURNAL RESEARCH / DEVELOPMENT / TECHNOLOGY Figure 5: Unmanned Aerial Vehicle Another technology that has come to the fore in recent years is the UAV or ‘Drone’. Originally seen as a novelty, the enhancements such as lift technology, GPS, gyroscopic stabilisation, 4k camera miniturisation and lithium battery technology and, most importanly of all, the intelligent soft- ware advances, have meant that these units are now used for a variety of industrial applications, such as :- Pipeline Inspection Crack detection • • • Maintenance inspections • • • • • GIS mapping Flarestack inspections Solar farm inspections Security routines Vegetation management This technology, in the hands of trained pilots, along with the right analytical software is attracting new clients every week, making operations safer, proactive and more cost-effective, as well as streamlining maintenance routines and providing access to topographically and geo- graphically challenging terrains. er layer of responsibility is introduced for an increasingly pressurised work-force to manage. This is exacerbated by the retirement of the ‘Baby-Boomers’ and ‘Generation X’ taking with it a valuable amount of knowledge and experience which is very difficult to capture and transition to a modern workforce, who are extremely capable but have not benefited from the experience and learning the transition from pneumatics to electronic processes have afforded the earlier generations. Figure 7: Mitigation of risk We need a comprehensive solution with several touchpoints to address the various risks industries face. If we look at the physical and the logical, they each bring their own set of unique challenges. From the physical perspective, we have USB-interfaces hosting keyboards, mice, pen-drives etc, RJ-45, serial and parallel (for us older users!) amongst others. The logical entry points are innumerable but not unmanage- able. Layered defence is the best approach: using advanced threat intelligence; live risk management reporting on Network & Endpoint security, Patching and Back-up status and physical checkpointing of hardware all backed up by an over-arching remote Security Operations Centre. Legislation, external forces and technol- ogy are forcing companies to look to the future, today Steve Hill “ REMOTE OPERATIONS Figure 6: The rise of Cyber attacks With the introduction of legislation and regulation such as ISO 27001 and IEC 27443 and the Directive on Security of Network & Information Systems (the NIS Directive) anoth- Traditionally remote operations were the preserve of clients with pipelines assets in uninhabitable or hard to reach locations. There is now a real push to locate services and applications in datacentres (either managed by third-parties like Microsoft or by the client themselves), this is driven by the lack of IT resources needed to manage the server infrastructure, including patching, upgrades, maintenance and repair or to capitalise on much reduced CAPEX costs involved in a remote installation, preferring instead to move to a predictable SaaS model.

10 PIPELINE TECHNOLOGY JOURNAL RESEARCH / DEVELOPMENT / TECHNOLOGY Multi-platform support is provided and the migration path from legacy OPC is straightforward. incorporating, ICSS, DCS, ESD, F&G and PABX onto a single working environment capable of safe operation by one or two operations staff. THE MODERN CONTROL ROOM So, what does the modern control room look like? What does it offer the operator and how does it allow them to move from Pipeline Operator to Pipeline Business Operator? WHERE TO START? How do we start to incorporate this thinking into our new or existing projects? no longer an option… it’s a must Embracing technology and adapting is Steve Hill “ UAV Figure 10: Operations, Engineering & Management collaboration The figure above shows us what is happening now, we can use Collaboration Stations to share ideas, data-sheets, P&ID’s and live video streams to analyse pipeline operations in real-time and make sound business decisions rapidly us- ing the most up-to-date information. If we then couple this with intelligence we can import from Wearable Solutions in conjunction with input from experts who can also access the live data remotely and provide input via Skype or other video streaming tools, we can start to see how the Operator moves towards a Business Operator role because they have the correct information, at the right time with the best anal- ysis, allowing them to move from a reactive to proactive/ predictive operational standpoint. Figure 11: The Orion Console The advances we have made in recent times bringing this data together complements the solutions we have had for many years with our Console Stations shown below, If we look at UAV technology, the hardware costs have fallen and sophisticated units can be made available for a tenth of the cost they were even five years ago, couple that with the advanced analytical software that has been developed and the availability of certified pilots and it can seen that this offering is within reach, starting with proof of concept programme offerings to establish value, through to fully managed support contracts with training, reporting and remedial capabilities with three deployment centres in Central Europe alone. INTELLIGENT WEARABLES Intelligent Wearables have been adopted by a number of major Oil & Gas companies, the ability to train, maintain and inform in real-time is seen as a major benefit and, according to independent research, is welcomed by the ‘Millennial Generation’ who demand instant information access and have been proven to respond well to this delivery method as opposed to the traditional classroom approach (which still has a place for certain trainees). Trial programmes are again available and the range of product and solution training we offer is growing all the while. CYBER SECURITY As of May 2018, Governments were under obligation in Europe to identify Critical Infrastructure as part of the NIST directive. At Honeywell, we have worked closely with industry to provide consultative services as well as engineering support to analyse customer’s needs, implement protection programmes and provide ongoing 24*7 support to provide piece of mind, active threat analysis and on-line patching. We can also offer ‘Ethical Hacking’ to pressure test systems as part of our consultative service in order to establish a base- line for new clients prior to putting together a solution. This is augmented by our hardware solutions including SMX, or Se-

New Technologies Drive Operational Performance by Connecting Smart Stations to Distribution Networks Rossella Mimmi > Emerson Automation Solutions Abstract Natural Gas distribution companies have been historically slow to adopt new technologies, especially so-called “Smart” technologies, in their networks. Their counterparts in electric utilities, process plants, and even gas transmission have widely adopted connected components and solutions to quickly give them access to data to make decisions, improve the safety of their systems, and provide them with the functionality they need to improve their operations. Recently, the Natural Gas distribution segment has begun to catch up by adopting these types of technologies to enjoy similar results. Solution providers in the industry have developed customized systems for customers and when coupled with a digital ecosystem, they can drive substantial value for gas utility companies.

14 PIPELINE TECHNOLOGY JOURNAL RESEARCH / DEVELOPMENT / TECHNOLOGY Improvement in Gas Delivery Efficiency 1. System Risk Management 2. 3. Emphasis on System Infrastructure and Design 4. Environmental Stewardship All the critical strategies just described often come with exe- cution challenges that cost operators unnecessary expenses and lost product. However, advancements in technology available to gas distribution will effectively address all four of these common themes. Using innovative and interconnected solutions through the entire lifecycle of Natural Gas, especially in Distribution, allows companies to optimize their operations, keeping an optimal timing, utilizing resources in a more effective way and improve systems safety. SOLUTIONS & METHODOLOGIES What are the features and functionality of “Smart” gas systems, and how can they assist distribution companies in achieving their strategic goals? Smart technologies are essentially scalable systems which enable local and remote control and monitoring of the pressure reducing stations. They are based on dedicated logic, and they can be customized to meet customers’ specific requirements. existing networks is also vitally important for the success of any system upgrade. Local and remote communication capabilities (webserver, USB, Ethernet, GPRS, etc.) and the possibility to interface with existing SCADA system (through MODBUS, TCP/UIP Protocols) are desirable features of equipment in such networks. Let’s now analyze the more interesting functionalities. SAFETY AND RISK MANAGEMENT: The ability to remotely monitor and operate smart gas systems is one of the main advantages of this technology. Not only are operators able to manage the system quicker, but also fewer trips to the field are required, meaning fewer safety concerns from sending people to remote and potentially hazardous areas. Noise levels are a common concern at such stations; this technology enables mainte- nance personnel to distance themselves from high noise levels. The system is also able to split the total flow into more lines and control the flow through each regulator, further reducing the noise emitted from a station. In addition, the capability of precisely control the flow in each of the reducing line has a positive effect on the regulators, enabling them to work in their ideal range and avoiding unnecessary stress on these devices. Figure 2: Smart Skid Demo Unit These systems consist of a central unit which receives system parameters (temperature, pressure, flow), processes that information, controls pressure management equipment and interfaces with control loops. It could be used at an indi- vidual station or for multiple pressure reducing and metering points across the distribution grid. An interface can control various components such as solenoid valves, pressure transducers, and temperature sensors. Communication with Figure 3: Axial Flow Pressure Regulators equipped with RAF system Another application of Smart technologies is represented by odorant injection systems. Gas needs to be odorized to ensure that eventual leaks can be immediately smelled. The quantity of odorant liquid to inject into the gas must be very accurate; both under-odorization and over-odorization bring some issues. In case of under-odorization, the gas will not be correctly odorized and that brings a high safety concern in case of a leak. On the other end, over-odorization can expose all devices to a potential risk (odorant liquid is highly corro- sive) and ownership costs will increase due to the high cost of the liquid. Moreover, a small discharge of gas during, for example, the opening of a relief valve, will cause an intense

Intelligent Predictive Maintenance in the context of Maintenance 4.0 for Oil & Gas Industry Dr. Rama Srinivasan Velmurugan > GAIL (India) Abstract Scenario of oil prices fluctuations has not only forced inefficient Oil & Gas companies to improve their productivity and supply chain costs, but it will also push the efficient companies to find ways to protect their top & bottom lines. A set of new digital technologies such as Internet of Things (IoT), Industry 4.0 promises to aid Oil & Gas companies tack- le the challenges arising out in this new oil price regime. IoT basically integrates sensing, communications, and ana- lytics capabilities of equipment, infrastructure like pipelines, etc. using digital technology and to manage their existing assets in an efficient manner. Thus, purpose of this paper is to investigate the impact of these new digital technologies on predictive maintenance practices. A detailed literature survey has been carried out in order to identify and describe the conceptual constructs contributing to predictive maintenance within a Maintenance 4.0 setting such as value creation through Internet of Services (IoS), Internet of Things (IoT), Smart Solutions (SS), Smart Factory (SF), Cloud Computing (CC). Further, a survey through Focus Group Discussions/ Semi-structured Interviews was conducted in Indian Oil & Gas companies with reference to identified conceptual constructs. A conceptual Intelligent Predictive Maintenance (IPM) framework and CSSI (Create-Share-Synthesize-Implement) model have been developed in this study for the aspects related to IPM such as value creation through smart services, remote- service delivery, smart solutions & digital innovation, digital analytics, data-driven operational excellence, machine-to-ma- chine communication, and mobile & cloud computing and merits of this framework. This study shows that it is possible to perform & provide a remote technical assistance and asset maintenance support using intelligent sensors, real time condition monitoring, predicate analytics, and distributive system technologies with need of least manual intervention. IPM framework and CSSI model is beneficial to practitioners such as asset maintenance engineers and managers in the midstream Oil & Gas companies in the industry in order to decide on the development of IPM infrastructure and its implementation in their organizations. Key challenges with recommended actions based on IPM framework are also proposed.

18 PIPELINE TECHNOLOGY JOURNAL RESEARCH / DEVELOPMENT / TECHNOLOGY 2.0 INTELLIGENT PREDICTIVE MAINTENANCE – MAINTENANCE 4.0 CONCEPTUAL CONSTRUCTS 2.3 SMART SOLUTIONS 2.1 INTERNET OF SERVICES The data emerged in the age of Internet of information is named as Internet of Services (IoS). The two key contribu- tors for technological or business purposes are Web Service Interface (WSI) and Service Oriented Architecture (SOA) (schroth & Janner, 2007). The purpose of these services avail- able in these platforms is interconnection of people, process, objects and systems. It can also facilitate features such as adaptability, collaborative use application support, and process deployment of diverse mobile end devices along the lines of the system software applications with safety, securi- ty and reliability guarantee (Industrie4.0_Final_Report, 2013). This can be explained with an industrial application such as that one cross country pipeline network located in south part of the country can be connected to another cross-country pipeline network located in north part of the country through system application software in order to access the process parameters such pressure, temperature, flow, etc. so that the information can be used to optimize the operations & maintenance of pipelines. The benefits of IoS/Smart Services should be utilization of resources based on online data. One of the examples to such kind of application is the oil compa- ny (Total) can able to get maintenance decision support for its new Martin Linge Field in Norway based on maintenance data from their older Ofon Field in River Niger’s delta area of Nigeria through cloud-based data service. 2.2 CLOUD COMPUTING The definition of Cloud computing: it is a model for enabling ubiquitous, expedient, on-demand network access to a shared poll of configurable computing resources such as networks, servers, storage, applications and services. Cloud computing can be rapidly stipulated and released with least management effort or service provider interaction (Mell & Grance, 2011). Therefore, Cloud computing is a cluster of service that can be leveraged using Industry 4.0 concepts (Bai, Ma, & Zhu, 2012). This theory defined the three major components of Cloud computing model with the following compositions: Five essential characteristics such as On-de- mand self-service, Broad network access, Resource pooling, Rapid elasticity, and measured services; Three service mod- els like Software as a Service (SaaS), Platform as a Service (PaaS), and Infrastructure as a Service (IaaS). Four deploy- ment models such as Private cloud, Community cloud, Public cloud, and Hybrid cloud. Cloud computing helps to share the huge amount data emerged out of Intelligent Predictive Maintenance infrastructure. Maintenance 4.0 concepts are the key to a thriving Oil & Gas Sector in the future. Smart Solutions can be factored in to both Smart Products and Smart Services. Smart Products are also called as Cyber Physical Systems (CPS). These smart products are offering new features and functions based on network connectivity. Smart services open up ways for new business models & markets through innovative deliv- ery models and service assistance. These smart solutions integrate selfmanagement and communication capabilities. Then, this can trigger new business models in the age of decentralized decision making and independent operations (Lee & Wang, New technologies for maintenance in complex system maintenance handbook, 2008). The smart products are equipped with Cyber Physical System with the ability to do equipment-to-equipment communication, embedded in- terfaces and enables interaction with human users. The con- cept can be extended to Cyber Physical Production Systems (CPPS) in an industrial maintenance scenario. The smart solutions have the advantages such as indicates early warn- ings, mitigate surprises, etc. Therefore, any smart solution is well suited to predictive maintenance applications within the ambit of the industrial internet. One such example can be Gas Turbines interacting with social & equipment networks to decide on its service needs. This means operator requires attention only when Gas Turbine triggers for maintenance support. Further, smart products could also able to self-main- tain its configuration & function during its lifecycle based on interconnectivity with OEM who can able to provide wealth of information for product optimization and innovation. 2.4 INTERNET OF THINGS Today the internet connectivity provides connection over one billion of people through social network platforms. The in- vention of advanced and cheaper sensing devices connected through internet protocol IPv6 networking helps to manage such kind of wide connectivity throughout world. Basically, the wide network is managed by assigning Internet Proto- col (IP) addresses to every sensing device such as sensor, actuator or any other object. All these devices are networked directly with the Internet using IP addresses (Indsutrie4.0_ Report, 2013). Therefore, The Internet of Things refers to such kind of insidious network society in which a lot of objects are connected to have common connectivity in order to share information (Yan, Zhang, Yang, & Ning, 2008). IoT can be views as a subset of the Cyber Physical Systems which is discussed above. Authors interchangeably use these terms IoT & CPS with the influence of their area (or) region in which they carry out their research.

20 PIPELINE TECHNOLOGY JOURNAL RESEARCH / DEVELOPMENT / TECHNOLOGY The above literature survey concludes that the midstream Oil & Gas companies are targeting for higher network integrity and new commercial opportunities. For creating such huge data across the pipeline networks, sensors play the crucial role. The key solution to the midstream sector is investing in sensors so as to capture every as- pect of the facilities in order to implement the predictive maintenance frameworks. Therefore, the above discus- sion suggested that the key enablers for implementation of intelligent predictive maintenance framework are Reli- ability, Scale of Operations, Pipeline/Asset Integrity, and Creation of data using Sensors. 4.0 CONCEPTUAL FRAMEWORK OF INTELLI- GENT PREDICTIVE MAINTENANCE FOR OIL & GAS COMPANIES IN MIDSTREAM SECTOR In Section 2, Conceptual constructs related to Intelligent Predictive Maintenance (IPM) in the context of Maintenance 4.0 are discussed in detail. In this section, Conceptual constructs emerged out from this study are summarized in the context of Intelligent Predictive Maintenance Framework with the specific reference to Oil & Gas companies. The conceptual constructs identified through literature survey and the key enablers developed from the major reports from Oil & Gas Industry are compared together. Accordingly, a conceptual frame work of Intelligent Predictive Maintenance based on the concepts of Maintenance 4.0 has been developed and presented in Figure 1. P2: Future are the key enablers for Smart Factory Smart Solutions, Cloud Computing and Factories of Smart Factory & Smart Solutions are Growth P3: Drivers for effective implementation of Intelligent Predictive Maintenance in the context of Maintenance 4.0 Reliability, Integrity, Scale of Operations, and Cre- P4: ation of new data using sensors are the major enablers for Intelligent Predictive Maintenance. The major enablers such as Reliability, Integrity, P5: Scale of Operations, and Creation of new data using sensors and the growth drivers such as Smart Factory and Smart Solutions together contributes for effective implementation of IPM. Focus Groups were set up to deliberate on the new devel- opments of Maintenance 4.0 within the environment of Industry 4.0 and the effective implementation of Intelligent Predictive Maintenance based on Maintenance 4.0 con- cepts for midstream Oil & Gas companies in the industry. Focus Group participants were from the senior executives from the midstream Indian Oil & Gas companies. Focus Group discussions were conducted for an hour and the discussions were audio taped and recorded. The Focus Group discussions were conducted by an experienced moderator. The questionnaire was developed based on the above prepositions (P1- P5) and questions were asked in a semi-structured manner (Kruger, 1994). Transcribed interview recordings were analyzed using constant comparison method. This method is undertaken by constant comparison of data and con- trasting data to assess the range of possibilities that emerge from the Data (Glaser & Strauss, 1967). The empirical data emerged out from the data analysis could prove the above prepositions P1 to P5 are valid in the context of Maintenance 4.0. The detailed discussions and results are presented in Section V. 5.0 DISCUSSIONS & RESULTS Figure 1: Intelligent Predictive Maintenance Framework based on Maintenance 4.0 for Midstream Oil & Gas Companies The following prepositions are emerged out from the detailed study of the proposed conceptual IPM framework. Smart Services such as Internet of Services & Smart P1: Products such as Internet of Things are the technology en- ablers to Smart Solutions Maintenance 4.0 could able to provide crucial support in the present business scenario to operations & maintenance in order to sustain operational efficiency and increased productivity. It sug- gests the creation of new business models and also forms the basis for new and novel services. One such example of novel service emerging out in the Oil & Gas industry is dis- tributed cloud-based systems for implementation of Asset

22 PIPELINE TECHNOLOGY JOURNAL RESEARCH / DEVELOPMENT / TECHNOLOGY The above proposed intelligent predictive maintenance framework is not only contributing to theory in the area asset maintenance management, it is also helpful to prac- titioners such as asset maintenance engineers and man- agers in the midstream oil & gas companies in the industry to decide on the development of IPM infrastructure and its implementation in their organizations. Author Dr. Rama Srinivasan Velmurugan GAIL (India) General Manager ra.velmurugan@gail.com 6.0 CONCLUSION The findings in this paper demonstrated that the relatio- ships among Smart Solutions & Smart Factory concepts of Maintanance 4.0 within the environment of Industry 4.0 and Intelligent Predictive Maintenance. Literature survey and industrial Focus Group Discussions aimed at finding conceptual constructs related predictive maintenance in the context of Maintenance 4.0 and developing the con- ceptual framework for Intelligent Predictive Maintenance. Further, suggesting a working model for implementation of Intelligent Predictive Maintenance in midstream Oil & Gas companies. The prepositions developed in theory are vali- dated through industrial experts and their valued opinions/ experiences are also aggregated in to the theoretical study. Industry experts recommended for support in research on the unique challenges and opportunities in the areas of CPS security & cyber-human systems development. Few sug- gestions are minimal operating systems to create CPS with smaller attack planes, newer ways to detect and prevent strange network traffic, and high-level policy languages for specifying permisible communication patterns. The developed CSSI model along with the IPM framework contributes significantly to the practitioners in midstream Oil & Gas company asset managers. Limitation of this study is the generalization of the results to the indus- try. Further research is therefore required to do large empirical survey involving major Oil & Gas companies worldwide. The research outcomes should be deliberat- ed through an active dialog between key constituents of the community, including government, industry, and academia. This will ensure that the challenges are met in a timely manner and that the Intellgent Predictive Mainte- nance model based on Maintenance 4.0 concepts has the greatest impact possible in the plant operations. References [1] Bai, H., Ma, Z., & Zhu, Y. (2012). The application of cloud computing in smart grid status monitoring in Internet of Things. Springer Berlin Heidelberg, 3, 460-465. [2] Colombo, A., & Karnouskos, S. (2009). Towards the factory of the future: A service oriented cross layer infrastructure. ICT Shaping the World: A Scientific View, European Telecommunications Standards Institute, 65-81. [3] Gautreaux, B. (2014, June). Right midstream strategies enable oil and gas producers to maximize profitability. Retrieved from American Oil & Gas Reporter: www.aogr.com/magazine/sneak-peek- preview/right-midstreamstrategies-enable-oil-and-gas-producers-to-maximize [4] General Electric. (2014, September 9). GE‘s industrial internet will monitor a vast shale gas pipeline network. Retrieved from GE: www. manufacturing.net/news/2014/09/ges-industrial-inter- net-will-monitor-a-vast-shale-gaspipeline-network [5] Glaser, B., & Strauss, A. (1967). The discovery of grounded theory:Strategies for Qualitative Rese- [6] [7] [8] arch. Newyork: Aldine De Gruyter. Indsutrie4.0_Report. (2013). Recommendations for implementing the strategic initiative Industrie 4.0. Industrie 4.0 Working Group. Industrie4.0_Final_Report. (2013). Recommendations for implementing the strategic initiative INDUSTRIE 4.0. Jesse, S. (2014, August 18). Pipeline firms turn to new technolgoies as publicscrutiny intensifies. Retrieved from Alberta Oil: www.albertaoilmagazine.com/2014/08/sensing-failure/ [9] Koch, V., Geissbauer, R., & Schrauf. (2014). Industry 4.0 Opportunities and challenges of the industrial internet report. [10] Kohlleffel, K. (2015, March). The power of advanced analytics for midstream oil and gas. Retrieved from Hortonworks: http://hortonworks.com/blog/the-power-ofadvanced-analytics-for-midstrea- oil-and-gas/ [11] Kruger, R. (1994). Focus Groups: A practical guide for applied research (2nd ed.). Thousand Oaks: Sage. [12] Lars Larsson. (2014, September 19). Midstream investment in pipeline management solutions. Retrieved from Oil & Gas Monitor: www.oilgasmonitor.com/midstream-investment-pipeline-ma- nagementsolutions/7805/ [13] Lee, J., & Wang, H. (2008). New technologies for maintenance in complex system maintenance handbook. London: Springer. [14] Lee, J., Kao, H., & Yang, S. (2014). Service innovation and smart analytics for Industry 4.0 and big data environment. CIRP proceedings, (pp. 3-8). [15] Lucke, D., Constantinescu, C., & Westkamper, E. (2008). Smart factory a step towards the next generation of manufacturing systems and technologies for the new frontier. London: Springer. [16] Mell, P., & Grance, T. (2011). The NIST definition of cloud computing. [17] Michael, E. R., & Mark, J. C. (2015). The more things change: Value creation, value capture, and the Internet of Things. Deloitte Review 17. Retrieved from http://dupress.com/articles/value-creati- on-value-capture-internet-of-things [18] Penn Energy. (2014, May 30). The role of satellites in oil and gas pipeline monitoring for leak and theft detection. Retrieved from www.pennenergy.com: www.pen¬nenergy.com/articles/pennener- gy/2014/05/the-role-of-satellites-inoil-and-gas-pipeline-monitoring-for-leak-theft-detection.html [19] Schaeffler Technologies AG & Co. (n.d.). Report on Schaeffler Technologies. Germany. Retrieved from www.schaeffler.de/en [20] schroth, C., & Janner, T. (2007). Web 2.0 and SOA: Converging concepts enabling the internet of services. IT Professional, 3, 36-41. [21] Souza, M., Sacco, M., & Porto, A. (2015). Virtual manufacturing as a way for the factory of the future. Journal of Intelligent Manufacturing, 17(6), 725-735. [22] TransCanada. (2014, August). Research and Development (R & D) at TransCanada. Retrieved from www.transcanada.com: www.transcanada.com/docs/About_Us/TransCanada-research-and- de- velopment. pdf [23] World Economic Forum. (2015). Industrial Internet of Things: Unleashing the potential of connec- ted products and services. World Economic Forum. Retrieved from http://www.weforum.org/docs/ WEFUSA_IndustrialInternet_Report2015.pdf [24] Yan, L., Zhang, Y., Yang, L., & Ning, H. (2008). The Internet of things: from RFID to the next generati- on pervasive networked systems. CRC Press. [25] Zorzi, M., Gluhak, A., Lange, S., & Bassi, A. (2010). From Today‘s Intranet of Things to a Future Internet of Things: A wireless and mobility related view. 17, 43-51. 15th Pipeline Technology Conference Europe‘s leading pipeline conference and exhibition Pipeline T Conference 2010 SAVE THE DATE 30 March - 2 April 2020 Berlin, Germany

Digital disruption will occur in Midstream as it is underway in other asset intensive industries Sam Hemeda > Arundo Analytics Abstract The massive growth in Permian production further underscores the role Midstream companies play in the Hydrocarbon value chain. A lack of processing facilities and pipeline capacity adversely impacts the value of E&P onshore pure plays. The access to markets is curtailed for these E&P companies by lack of capacity to process and transport production to refining facilities and/or export markets. Midstream operators must adopt a technology-based approach to guarantee the readiness of aging asset, maximize utilization and guarantee the safety of resources. Additionally, tap into a treasure of operational data for a precise un- derstanding of equipment behavior, deploy “proven value” analytics to optimize operation, maximize the yield without compromising safety or environmental regulation. The article highlights key functions areas within Midstream Value Chain that can benefits from embedding analytics in workflow, additionally a quick recipe for digital transformation and key success factors.

26 PIPELINE TECHNOLOGY JOURNAL RESEARCH / DEVELOPMENT / TECHNOLOGY PIPELINES The installation of sensors and use of SCADA is widespread among many Midstream operators. However, aging assets with obsolete SCADA and legacy technology can stifle digital transformations. Aging infrastructure is a prime candidate for a technology upgrade, installing Edge Devices, replacing an- alog sensors with digital, mounting strain sensors, vibration monitoring coupled with terrain and topography information enables Midstream operators to visualize and pinpoint weak spots in the pipeline. Commercial drones are being deployed to canvas pipelines network using thermal, infrared sensors to identify weak points within the network and stream data to operation team for critical operational decision. Many Midstream operators have adopted a 1st principal equations for computational monitoring such as leak detection, spills and theft. Running smart PIGS for In Line inspection (ILI) data is a key input in Integrity management programs and a leading indicator of internal corrosion. Using advanced analytics and incorporating data from ILI and, metallurgy and previous historical data provide a self-learn- ing models for the optimum corrosion prediction. Advanced analytics tools offer engineers acceptable means to predict the outcomes of future operational decisions and monitoring the integrity of the pipelines with/out the absence of PVT simulation models. Virtualizing the pipeline and boosting stations by creating a digital-twin that mimics the behavior of the assets will prove valuable in exploring optimal operational scenarios and determining remedies for bottleneck and unplanned events. Compressor and pump performance is monitored and machine learning tools offer a “look-ahead” early warning of failures. TERMINALS Terminals operation is a complex system of processes, exe- cuting a significant number of orders, as well as delivery and storage of various products. The focus on quality, safety and efficiency is paramount. Terminal operation has benefited from installing ERP systems for handling massive amounts of data with remarkable success in streamlining opera- tions. The U.S. onshore production and demand fluctuation, increased U.S. export and LNG spot buying adds another level of complexity to terminal operations. Running Terminals analytics can trim few percentages in operation expenditure while increasing capacity. THE RECIPE Data quality, availability and veracity is essential, digital read- iness, vision and business value among other should be ascertain before rushing into “low hanging fruit” initiative. The following Spider Web diagram touches upon some of the key variables. Midstream companies can adjust the diagram appropriate to their operations and objectives. Additionally, determining “Business Value” has always been the subject of many budget discussions and Go/No Go decisions. Companies can tap into the possibilities of creating a mock-up or a proof of concept (PoC) use cases to explore the value and feasibility of scaling. However, once deployed on larger scale, the expected value might be diminished due to other variable such as Change Manage- ment, implementation risk and management appetite to re-create the business model. Therefore, while the PoC results might be very attractive, what are the expected benefits of ramping up. Figure 2: Key factors to consider in drafting a Digital Transformation Initiative MANAGEMENT COMMITMENT There is often too much hype around new technologies for the C-suite to ascertain what will work and what won’t. A large set of the C-suite find challenges in making the digital opportunity real. They hesitate because it is complex and outside the realm of other tech/management initiatives of the past like ERP, or quality practice like Lean Six Sigma. There are many different components, many moving parts and many are unproven technologies. Creating mock-ups and PoC’s , getting the C-suite to experience first-hand new technologies proved beneficial in generating a deeper un- derstanding of digital transformation and its contribution to business value. DIGITAL STRATEGY As we indicated earlier, many Midstream applications -currently in use- offer a digital transformation head-start. However, that fact does not guarantee successful outcomes. The objective of Digital strategy is business performance improvement, exploring new products, re-inventing current

The Big Data Revolution: Detecting Pipeline Leaks, Encroachments, and more Using Satellites John Zhou & Caroline Beck > Satelytics Abstract Benefiting from the vast capacity and speed provided by cloud computing, remote sensing technology is quickly expanding from infrequent projects to becoming an integral part of on-going operations. We have seen many innovative applications in this arena, particularly at oil & gas, pipeline, and power companies, where their large spatial footprint is challenging for conventional approaches. In this article, we make the case for applying Remote Sensing Technology (RST) and Geospatial Analytics (GA) for on-going operations and give two examples to demonstrate RST in operation could significantly reduce risks and liabilities for pipeline operators. This technology can also be used to monitor pipelines and the rights-of-way for hydrocarbon leaks, change detec- tion, land slips and slides, vegetation growth, water temperature, illegal (hot) tapping, and many more biological and chemical constituents of both land and water. We are confident that with the rapid commoditization of remote sensing data collection, RST/GA will be widely adopted in pipeline, oil & gas, and power companies.

30 PIPELINE TECHNOLOGY JOURNAL RESEARCH / DEVELOPMENT / TECHNOLOGY ture tasks, such as the following: • Mapping and analysis of right-of-way conditions, encroachments, and third-party interference; Liquid leak detection; Gas/methane leak and emissions detection; Asset integrity; Permitting and siting; and Triggering emergency response. • • • • • Early detection of oil spills and leaks can improve protection of critical habitats and identify sources of pollution. Detect- ing threats to pipeline infrastructure using a spectroscopic approach with digital analytics enables pipeline operators to quickly react to a multitude of conditions. Changes in the vicinity of pipeline infrastructure can arise from many sources. Third-party interference and liquid hy- drocarbon leaks are the major cause of pipeline failure and cause a significant risk for health, safety and the environ- ment. Geohazards and land movements can be precursors to events that lead to unwelcome operational disruptions and regulatory consequences. Easily preventable, but unmitigat- ed natural changes like landslides or riverbank erosion can lead to damaged infrastructure that interrupt operations, contaminate local ecologies, and pose health and safety risks to workers, residents and the environment. To detect hydrocarbon presence, certain bands of spectral data are analyzed to detect subtle changes in reflectance of the target. These changes, when present, illustrate the hydro- carbon chemical effect in surface materials. Affected areas shown by increased or decreased energy absorption are interpreted by Satelytics’ analytical software and the spectral data showing evidence of leakage is displayed visually. The spectral indices of vegetation growing near oil and gas pipelines are other excellent indicators of hydrocarbon leakage. Remotely sensed hyperspectral data has long been used to monitor phenology and to measure the rela- tive density and health of vegetation. Established indices, in particular the Normalized Difference Vegetation Index (NDVI), allow scientists to classify typical growing condi- tions. Once those normal growth parameters are estab- lished, any changes due to hydrocarbon pollution (leaks, spills) can be identified. Oil spills directly cause biophysical and biochemical alteration of vegetation and surface soil which is detected in the spectral signature. Hydrocarbon leaks alter the soil and interfere with nutrient and oxygen uptake, thus weakening the photosynthetic cycle. Chlo- rophyll concentration and water absorption are affected, and in turn the plant foliage characteristics change. Since vegetation health indices register the norm, even minute changes can be detected by Satelytics software. In short, the concept is similar to early mining days where a canary was the most important companion for the miners, e.g. using a sensitive surrogate (vegetation) to indicate existence of dangerous material (oil/gas leak). EXAMPLES ANALYTICS IN ACTION: EAGLE FORD The Eagle Ford Shale Play in Texas, the most capital intense oil and gas development in the world, has had a huge impact on the oil and gas industry. Nearly $30 billion (USD) went into the development of the Eagle Ford Play since it began in 2013. The Eagle Ford, Texas area is potentially expected to recover 10 billion barrels of oil. This hydrocarbon-rich area lies directly beneath the Austin Chalk, an historically well-known onshore oil and gas play that extends across south-central Texas into southern Louisiana. This huge oil producing region relies heavily on pipelines to transport the shale oil to refineries. The area has shallow soil with concentrated sodium and chloride ions (salts), and the shale oils themselves contain hydrogen sulfide (H2S), all of which set the stage for aggressive corrosion. The operator in our case study discovered the original four Figure 2: February 9, 2015 (left) and August 10, 2015 (right). The yellow ovals indicate areas of leakage confirmed by the operator

32 PIPELINE TECHNOLOGY JOURNAL RESEARCH / DEVELOPMENT / TECHNOLOGY Figure 6: New structure detected within the right of way Figure 7: New vehicle detected within the right of way

Best Practices for Cybersecurity Diagnosis in Industrial Environments Ernesto Landa > Compania Operadora de Gas del Amazonas Abstract In recent years attacks against information infrastructures have become ever more frequent and complex, while at the same time perpetrators have become more professional. Every day the mass media around the world releases news related to cyber activities, which report the attempts of one country trying to get advantage over another country using cyber tools. Stuxnet is an example of this type of activities. This is a cyber weapon designed for a very particular objective. It can alter physical processes by taking advantage of the logical vulnerabilities information systems have. The Stuxnet attack was a turning point for Governments who witnessed for the first time how physical infrastructures can be altered from the cyber space. This fact forced them to take measures to improve the resilience of their infrastructures. Most Governments have decided to protect their Critical Infrastructures since they are an essential element of their National Security Strategies. Even industries that for many years had not paid any attention to the cyber security prin- ciples, have been forced to consider them in their operations security strategies. In fact, it is increasingly common to find cybersecurity requirements as part of customer demands or in national laws. Before designing an effective cybersecurity strategy, we have to fully understand the entire technological industrial architecture of our company. We cannot protect what we cannot see o what we do not know. It is useless to imple- ment cybersecurity controls in one part of the infrastructure if we do not protect the other part due to ignorance or negligence. Sooner or later the attackers will discover the unprotected part and at that moment all the efforts invested in the protection of the other part will be in vain. The main objectives of the industrial cybersecurity diagnosis are to assess the cybersecurity of industrial plants identifying the vulnerabilities and risks they are facing. It proposes as well actions to overcome such risks. To achieve such objective, it must be taken into consideration the specific requirements for this type of environments assuring the operation of the productive process.

36 PIPELINE TECHNOLOGY JOURNAL RESEARCH / DEVELOPMENT / TECHNOLOGY • Non-responsibility clauses: The supplier agrees before starting the activities, to identify the tasks and the impact that those may have in industrial processes. From this point on, it must be agreed contingency actions between the customer and the supplier. The customer must understand that this type of activities have an inherent risks and agree on the actions and limits in the case that this happens. 3. METHODOLOGY Cybersecurity diagnosis in industrial environments has four parts: 3.1 PREPARATION The preparation phase must offer detailed information on the environment, the production process and the physical locations where these processes take place. This is very important information to optimize the time for the visits. If the installations are in remote places, there are usually restrictions for visits and access. During this phase, it is requested the following information: System inventories Policies and procedures • Network maps • • Addressing plans • • Organization charts • • • • Antecedentes de Incidentes de Ciberseguridad. General information on the installation Third party agreements Cybersecurity reported incidents. 3.2 FIELD WORK The field work means to physically visit the installations on which the diagnosis will be performed. Information must be compiled that will be presented during the report phase. Information is compiled during this phase through person- al one-to-one meetings. These meetings take place with key installation staff such as the plant responsible, the pro- cess owner, the security responsible, the Chief Engineer, the maintenance responsible, and plant operation person- nel in general. One of the main problems in this phase is that of staff availability, since they usually work in shifts with busy working scheduled and they are not available for the meetings when they are requested. For this reason, it is very important to assign a Point of Contact (PoC) during this phase; this is someone belong- ing to the Company and that helps in identifying the ap- propriate persons to interview. Many of these installations have complex work safety processes and procedures that may interfere in third party visits. Very often the people interviewed will not cooperate, in particular if they perceive the diagnosis job as a threat. A way to face with this situation and get a closer involve- ment is explaining why the information is needed and the objectives of the job assigned. This phase is very import- ant because the diagnosis will depend on the information gathered during this phase. The role of the PoC at this point is very important; this person will be in charge of assuring that the person to be interviewed schedules the meeting, prepare in advance the questions and how long the meeting will be. The interviewer will have an outline to be adapted to the specific situation and to be modified in the circumstances request to do so. There is valuable information inferred between lines during the conversation. Some specific aspects will be covered and the interviewed person may not want to answer to some of the questions that could enclose any type of damage. Once the interviews finish there will be may information available from reliable sources. However, this information does not offer either an integral or accurate view. There- fore, the information collected should be reviewed access- ing the installation systems. At this point, there are two main problems: the large amount of industrial systems and the risks for accessing to them while on production. Discovering and inventorying the industrial network sys- tems must be done using passive techniques. These tech- niques are process and procedures that cannot potentially influence the appropriate operation of the inspected sys- tems. The baseline principle for this type of environments is to never interfere with the industrial process. 3.3 REPORTING Once the verification phase is completed, the collected information must be organized. The organization that acquires this type of services will get accurate and updated information on their systems. Reporting the results is, as a consequence, an essential task. The reports must con- tain organized information, research of events discovered during the field work, review of configuration files, data correlation and consolidation from different sources, and updating the network configurations. When doubts emerge during the report, the Point of Con- tact may arrange some type of communication with the appropriate person and even, given the case to visit again the installation.

38 PIPELINE TECHNOLOGY JOURNAL RESEARCH / DEVELOPMENT / TECHNOLOGY • Limited Segmentation and Filtering In general, industrial networks are not highly segmented and there are very few filtering devices installed in them. Very often, this filtering device is a router or general purpose firewall that isolates the corporate network from the rest of the networks related to the industrial process. • Non-controlled Direct Accesses One of the main cybersecurity risks at industrial networks are devices that can be accessed directly from Internet. Bob Radvanovsky has used the Shodan Internet searching engine to develop the SHINE project (Shodan Intelligence Extraction) (3). This project has identified more than a million of in- dustrial control directly connected to Internet. As a consequence, a main task will be to identify if there are control network devices directly connected to Internet, for eventually analyze them and define the access and security measures to be implemented. The final objective of these measures is assuring the security of the devices themselves as well as of the installation. • Non-controlled Devices External non-controlled storage units or units be- longing to third parties are one of the main vectors for entering malware to the industrial installations. These no controlled devices are usually USB units and suppliers’ personal computers or working sta- tions, connected directly to the industrial network with non-security measures. Actually, industrial networks must exchange infor- mation with other networks inside the organization, and in many cases this task must be done through mobile USBs, because both environments are iso- lated for security reasons. While developing the diagnosis service, it must be identified if the industrial network is applying this type of practices, the real need for them, and if there are other alternatives to develop such tasks in a secure way. It must be defined as well if there is a common practice inside the organization, connecting devices belonging to third parties, the real need for this and the inherent risks. 5. VULNERABILITY ASSESSMENT Once the network systems are identified, it is very import- ant to identify vulnerabilities that may affect the instal- lation security. When dealing with a corporate network, the tool used is a vulnerability scanner that identifies the existing weak points in the different systems; it generates reports on results and recommendations as well. However, in industrial environments again, this type of automated tools is not recommended for the potentially damaging traffic they may generate. Again, passive techniques must be used. These techniques will have the following phases: To select a representative system sample 1. 2. To store the software and firmware versions existing in the simple. 3. To search manually vulnerabilities in public reposito- ries such as: - National Vulnerability Database - Open Source Vulnerability Database http://www.osvdb.org/ http://nvd.nist.gov/ This is a tedious task that takes time; it may cause as well false positives. However, it will not damage the operation of any system. The false positives must also be taken into account since it is better to solve them beforehand that once they have happened. When found a false positive this must be report- ed and discarded at a later phase if appropriate. Authors Ernesto Landa COGA Information Security Officer ernesto.landa@coga.pe STAY UP TO DATE WITH THE PTJ-NEWSLETTER https://newsletter.eitep.de https://newsletter.eitep.de

40 PIPELINE TECHNOLOGY JOURNAL CONFERENCES / SEMINARS / EXHIBITIONS 750 PARTICIPANTS 78 EXHIBITORS 54 DIFFERENT NATIONS 80 Pipeline System Operators from Europe, Asia, MENA and South America Ensure Success for Exhibitors during 14th ptc in Berlin Europe’s leading pipeline conference and exhibition, the Pipeline Technology Conference (ptc), has been held successfully from 18 to 21 March 2019 in Berlin, Germany. The outgoing Conference Chairman Dr. Klaus Ritter emphasized at the handover of this function to Dennis Fandrich the following: 750 participants from 54 differ- ent nations, and delegations from almost 80 different pipeline system operators as well as 78 exhibitors have joined and contributed to the event. This makes ptc 2019 the biggest and most successful event so far. It enables technology and service providers from all over the world to get in direct contact with many potential clients and to show them new products and solutions. Exhibiting compa- nies went home with folders full of notes and orders. ptc’s attractiveness results especially from the insightful plenary sessions and panel discussions. The event tackled some of the most important challenges for pipeline system operators, providing them with important impulses and sug- gestions for the fulfilment of their tasks - and making ptc to an attractive address for pipeline system operators. The topics were: • • Digital Transformation & Cyber Security in the Eurasian Pipeline Forum: Linking East and West Pipeline Industry Pipelines 2050: From Fossil Fuels to Renewable Fuels • Illegal Tapping • • Public Perception of Pipelines and Pipeline Projects • Qualification and Recruitment of Pipeline Personnel The core of the ptc have again been 25 Technical Sessions with more than 80 lectures reviewed by the members of the Dr. Klaus Ritter President EITEP Institute Outgoing ptc Chairman Dennis Fandrich Director Conferences New ptc Chairman

42 PIPELINE TECHNOLOGY JOURNAL COMPANY DIRECTORY . Association IAOT - International Association of Oil Transporters Czech Republic www.iaot.eu/ DVGW - German Technical and Scientific Association for Gas and Water Germany www.dvgw.de Automation Siemens Germany www.siemens.com Yokogawa Japan www.yokogawa.com Certification Bureau Veritas Germany www.bureauveritas.de DNV GL Norway www.dnvgl.com TÜV SÜD Indutrie Service Germany www.tuev-sued.de/is Cleaning Reinhart Hydrocleaning Switzerland www.rhc-sa.ch/rhc/ Coating 1/2 Denso Germany www.denso.de Kebulin-gesellschaft Kettler Germany www.kebu.de POLINOM Russia www.rikol.ru Coating 2/2 Polyguard Products United States www.polyguard.com Premier Coatings United Kingdom www.premiercoatings.com/ RPR Technologies Norway www.rprtech.com/ Shawcor United States www.shawcor.com Sulzer Mixpac Switzerland www.sulzer.com TDC International Switzerland www.tdc-int.com TIAL Russia www.tial.ru TIB Chemicals Germany www.tib-chemicals.com Construction 1/2 BIL - Federal German Construction Enquiry Portal Germany www.bil-leitungsauskunft.de Herrenknecht Germany www.herrenknecht.com IPLOCA - International Pipe Line & Offshore Contractors Association Switzerland www.iploca.com Liderroll Brasil www.liderroll.com.br LogIC France www.logic-sas.com

44 PIPELINE TECHNOLOGY JOURNAL COMPANY DIRECTORY Inspection 2/2 Leak Detection 2/2 EMPIT Germany www.empit.com Integrity Management Metegrity Canada www.metegrity.com Pipeline Innovations United Kingdom www.pipeline-innovations.com Leak Detection 1/2 Asel-Tech Brazil www.asel-tech.com Atmos International United Kingdom www.atmosi.com Direct-C Canada www.direct-c.ca Entegra United States www.entegrasolutions.com Fotech Solutions United Kingdom www.fotech.com GOTTSBERG Leak Detection Germany www.leak-detection.de Liwacom Germany www.liwacom.de MSA Germany www.MSAsafety.com/detection OptaSense United Kingdom www.optasense.com Pergam Suisse Switzerland www.pergam-suisse.ch PSI Software Germany www.psioilandgas.com sebaKMT Germany www.sebakmt.com SolAres (Solgeo / Aresys) Italy www.solaresweb.com VEGASE France www.vegase.fr Monitoring Airborne Technologies Austria www.airbornetechnologies.at Krohne Messtechnik Germany www.krohne.com PHOENIX CONTACT Germany www.phoenixcontact.de/prozess SolSpec United States www.solspec.solutions Operators 1/2 Transneft Russia www.en.transneft.ru/

Promoted and Organized by: Platinum Sponsor Gold Sponsor Bronze Sponsor Copper Sponsor Institutional Support JULY 2019 In the next Edition of ptj: Pipeline Planning & Construction The next issue of Pipeline Technology Journal (ptj) will address Pipeline Planning & Construction This is a great opportunity for skilled authors to submit insightful papers and to contribute to the global pipeline industry’s constant professional exchange.

Pipeline Technology Journal You have interesting content to share with the global pipeline community? You want to enhance or maintain your international visibility as a company? Submit an Article! Book an Advertisement ! Use ptj as a platform to report about your news, projects, innovations and technologies. If you are interested in submit- ting insightful technical articles to be considered for the ptj, please send us an abstract for review. North America 37,8% Europe 33.4% Mena Region 6.8% Africa 2.5% South America 4.5% Asia 12.6% China special e-mail list of 20.000 recipients Oceania 2.5% The ptj-brand offers a multitude of advertisement opportunities to increase visibility and reputation to- ward pipeline professionals worldwide. Make use of the extensive ptj-portfolio and reach over 30,000 Experts. ptj-brand-audiences Audience Job Levels 11% CEO 20% Director 26% Manager 43% Executive A manifold database We deliver content to local practicioners and global de- cision-makers alike, making the ptj-brand a suitable tool for global knowledge distribu- tion as well as developing and upholding overall visibility in the global pipeline industry. Company types 23% Operators 61% Techn. / Service Providers 11% Researchers 4% Authorities