08 - Mark Masters Final Asme Value Oil & Gas Rio Preso Aug2010

Conformity Assessment Overview for the Oil and Gas Industry

ASME Codes and StandardsASME Codes and Standards

Presented By: Mark H. Masters, P.E.General Manager – Latin America

HSB Global Standards

OverviewOverview

• ASME Codes and Standards Summary• ASME Standards for Oil and Gas• Development and Evolution of the ASME Code• The ASME Code Conformity Assessment Process• Uses of the ASME Code by Regulators• Use of the Code by Pressure Equipment Buyers• Arguments For/Against “Stamping” • The Advantages of Specifying Stamped Equipment• Case Study

ASME Codes and Standards SummaryASME Codes and Standards Summary

• Authorized Inspection• Automotive Lifting Devices• Boilers• Chains• Conveyors• Cranes & Hoists• Drawings & Terminology• Elevators & Escalators• Fasteners• Fitness-for-Service• Flow Measurement• Gauges• Keys• Manlifts• Metric System• Nuclear Power

• Operator Qualification and Certification

• Performance Test Codes• Piping and Pipelines• Plumbing Products• Pressure Vessels• Pumps• Reinforced Thermoset Plastic• Screw Threads• Steel Stacks• Surface Quality • Tools• Turbines• Valves, Fittings, Flanges, Gaskets• Verification and Validation

ASME Standards for Oil and GasASME Standards for Oil and Gas

• Fabrication and Operation– B31 – Piping and Pipeline Codes– B16 Valves and Fittings– Boiler and Pressure Vessel Code

• Pressure Equipment Asset Assessment– API-579/ASME FFS-1 – Fitness for Service– API-579-2/FFS-2-2209 – Fitness for Service Example

Problem Manual


• B31 – Piping Codes:– B31.1 – Power Piping– B31.3 – Process Piping (used in petroleum and chemical

plants)• Covers design, fabrication and testing rules.• Used all over the world• Referenced by ISO 15649• Presented in SI Units.

– B31.5 – Refrigeration Piping– B31.12 – Hydrogen Piping and Pipelines– B31E – Standard for the Seismic Design and Retrofit of

Above-Ground Piping Systems.


• B31 – Pipeline Standards:– B31.4 – Pipeline Transportation Systems for Liquid

Hydrocarbons and Other Liquids– B31.8 – Gas Transmission and Distribution Piping Systems– B31.8S – Managing System Integrity of Gas Pipelines – B31.11 – Slurry Transportation Piping Systems– B31G – Manual for Determining Remaining Strength of

Corroded Pipelines– B31Q – Pipeline Personnel Qualification


• B16 – Valves and Fittings Standards:• 33 Standards covering gaskets, valves, flanges and fittings• B16.5 – Pipe Flanges and Flanged Fittings

• Pressure-temperature ratings, materials, dimensions, tolerances, marking, testing and methods of designating openings for pipe flanges and flanged fittings

• SI Units, US Customary units in an Annex

• Fitness for Service (API-579/ASME FFS-1 and API 579-2/FFS-2-2009 Example Problem Manual)• Procedures that cover both present integrity of a component given

its current state and the projected remaining life. • Assessment techniques to evaluate flaws and assess equipment

condition.


• The Boiler and Pressure Vessel Code (“the Code”)– Section I – Power Boilers*– Section II – Materials– Section III – Rules for Construction of Nuclear Facility

Components*– Section IV – Heating Boilers*– Section V – Non-destructive Examination– Section VI – Recommended Rules for the Operation and

Care of Heating Boilers

* - denotes “Construction Code”


• ASME Boiler and Pressure Vessel Code (“the Code”)– Section VII – Recommended Guidelines for the Care of

Power Boilers– Section VIII - Pressure Vessels*– Section IX – Welding and Brazing Qualifications– Section X – Fiber-reinforced Plastic Pressure Vessels*– Section XI – Rules for Inservice Inspection of Nuclear Power

Plant Components– Section XII – Rules for the Construction and Continued

Service of Transport Tanks*

* - denotes “Construction Code”

Development and Evolution of the CodeDevelopment and Evolution of the Code

• Developed nearly 100 years ago by representatives of:– Industry (Manufacturers, Owners/Users)– Regulators – Insurance Companies

• Managed by Committees whose members represent those same interests.

• Committees meet quarterly to discuss changes to the Code.– New materials and manufacturing methods.– New testing methods.– Design methodologies.

Development and Evolution of the CodeDevelopment and Evolution of the Code

• Committee Meetings are open to the public and membership details are published in the preface to each Code Section.

• ASME’s International Interest Review Group includes representatives of international regulatory bodies and provides a forum for using the ASME Code to support their interests.

• Code requirements are communicated through published Editions (issued every two years), Code Cases and are clarified by Code Interpretations.

The ASME Code Conformity Assessment ProcessThe ASME Code Conformity Assessment Process

• Manufacturers are certified to fabricate “Code items” to one or more construction sections of the Code.– An audit (Joint Review) is performed to determine the

manufacturer’s ability to meet the Code requirements.– Joint review team members include an ASME Team Leader,

and representatives of the Authorized Inspection Agency (AIA).

• After a successful review, Certificates of Authorization are issued to the manufacturer. They are generally valid for three years.

• Continued compliance verification is performed by the AIA’s Authorized Inspector(s).


• After all Code requirements have been met, the Manufacturer certifies its product(s) using a Manufacturer’s Data Report.– Each Code item is documented.

• The Authorized Inspector certifies also that the product described on the data report meets the Code.

• The product is identified with specific markings, including the Code Symbol, traceable to the data report.


• The ASME Code is unique in that conformity assessment is incorporated into the standard.

• Within ASME, third-party inspection by an Authorized Inspector is considered to be a technical requirement that supports the design margin used in the Code.

• The Authorized Inspector’s duties are clearly defined and the inspector qualification process is rigorous:– Must have demonstrated experience in the design, fabrication operation

and/or inspection of pressure equipment.– Formal training, including On-the-Job training is required and maintenance

of qualifications must be demonstrated.– The inspector candidate must also pass a written examination.– The inspector must be employed exclusively by an AIA that takes

responsibility for the duties performed.

Uses of the Code by RegulatorsUses of the Code by Regulators

The ASME Code is the predominant standard used internationally to regulate fabrication of pressure equipment. Variations of use by regulators include:

1. Formal ASME certification is required by law (States of the United States, Provinces of Canada), or…

2. Formal ASME certification is encouraged by waiving inspection and/or import requirements of newly installed equipment if that equipment is “stamped,” or…

3. The ASME Code is one of several internationally-recognized standards that may be used to meet regulatory requirements (and additional requirements are imposed).*

* - Such as with Brazil’s NR-13 regulation, and the European Community’s Pressure Equipment Directive (PED).

Uses of the Code by Pressure Equipment BuyersUses of the Code by Pressure Equipment Buyers

Buyers typically use the Code in one of these two ways:

1. Equipment must be certified to ASME (i.e. stamped), or…

2. Equipment is ordered “in accordance with ASME”– Absolute conformance with ASME can range from very little to

almost fully compliant. Typically…• No third-party inspection by Authorized Inspector(s)• ASME Code is used for design, but fabrication requirements are not

measured or required• Manufacturers may not be certified by ASME• Manufacturers may not work to an accredited QC program• Local materials are substituted for ASME-approved materials• Qualification of Welding/NDE procedures and personnel is not assured.

Arguments For/Against “Stamping”Arguments For/Against “Stamping”

Arguments For:• Design/Fabrication rqmt’s are

clearly defined.• Code compliance is verified by

an qualified third-party.• Equipment details are defined

and documented (MDR).– Repairs/Alterations.– Asset sale or relocation.

• Simplifies multi-sourcing for parts and/or assemblies.– Eliminates cost of redundant

inspections.– Ease of documentation and

project management.

Arguments Against:• “The Code’s inspection

requirements add cost.”• “It’s difficult to find local certified

manufacturers.”• “It’s difficult to find ASME

materials locally.”• “There’s no real difference

between equipment that is stamped and equipment that isn’t stamped.”

The Advantages of Specifying Stamped EquipmentThe Advantages of Specifying Stamped Equipment

Point One - “The Code’s inspection requirements add cost.”

Counter – The use of third-party inspectors is a given when ordering pressure equipment. So inspection costs are unavoidable. The key is to ensure there is value delivered for the money spent.– Value is increased by ensuring that the inspectors used are qualified to

verify Code compliance. They should have accountability and backup.– The use of Authorized Inspector(s) adds an important player (the AIA) to the

team of project stakeholders. The AIA has a vested interest in ensuring the Code requirements are met.


Point Two - “It’s difficult to find local certified manufacturers.”

Counter – ASME lists the certified manufacturers on its website (asme.org). The list is growing rapidly with nearly all growth coming from outside of North America.– Manufacturers can be found by country and by the type of certificate held.

The exact scope of the certificate is also provided.– Authorized Inspection Agencies can also help the buyer find a qualified

manufacturer.– By omitting stamping from the purchase order, buyers actually encourage

manufacturers that have invested in certification to abandon their certificates as they realize no return on their investment to be certified and to maintain a Code-compliant quality program.


Point Three - “It’s difficult to find ASME materials locally.”

Counter – The ASME Code provides flexibility in certifying equivalent materials to the Code. – The Code allows certified manufacturers to certify material to a Code spec.

once they’ve verified that the chemical and mechanical properties of the non-Code material are identical to the ASME requirements.

– The design factor used in the Code, assumes that the chemical and mechanical properties of the materials meet Code requirements. When they don’t, the integrity of the equipment designed to the Code cannot be assumed (i.e., it’s either Code or it’s not Code.)

– Non-Code materials are frequently used in equipment ordered “…in accordance with ASME” (i.e., not stamped). There are also serious implications for welding when Code material is not used.


Point Four - “There’s no real difference between equipment that is stamped and equipment that isn’t stamped.”

Counter – The differences between stamped and non-stamped equipment are significant. Some include:– Third-party verification that Code requirements are met for the equipment in

question, and that the manufacturer is controlling its processes (design, material procurement, welding, inspection, calibration, testing and non-conformities, etc.) in accordance with the Code requirements.

– Ongoing verification that the QC program is maintained is important in addressing employee turnover and evolving Code requirements.

– The design of welded joints and qualification of procedures and personnel are verified when stamping is required. Weld quality is frequently sacrificed when stamping is waived.

– Documentation of equipment (as-built) is required with stamping and is useful for future asset repair, alteration or sale.

Case StudyCase Study

• Two ASME-certified Heat-recovery Steam Generators (HRSGs):– Three Certificate holders participated:

• Designer (United States), • Manufacturer (Indonesia),• Assembler (Ecuador, assembly site in Mexico).

– Installed in New York City.


Certification Process Summarized.

1. Designer certifies its design and documents the certification on a Manufacturer’s Data Report.– Authorized Inspector reviews design package certifies also

that Code requirements were met.

2. Manufacturer(s) fabricates parts to design, including materials, NDE, joining, and testing. Certify ‘parts’ on partial data reports.– AI verifies Code compliance by inspection, witnesses final

tests and internal inspections, certifies also that Code requirements were met.

– Parts are stamped and shipped to assembly site.


Certification Process Summarized.

3. Assembler “receives” parts, verifies traceability to partial data reports, assembles to drawings, performs final welding and testing.– Authorized Inspector verifies through inspection that Code

requirements were met, witnesses final test and certifies.

4. Any field-fabricated piping is also certified and documented on a data report.

SummarySummary

• The Case Study is representative of other similar projects with global sourcing.

• The ASME Code facilitates global sourcing through:– Clear design and manufacturing rules that include

documentation of Code activities.– Uniform qualification of third-party inspectors and their

employers (AI’s and AIA’s).– Flexibility regarding the use of equivalent materials.

• Open Committee system, ensures that all stakeholders in the use of the Code are represented, and that advances in technology and actual operating experience can be used for the continued improvement of the Code.

Thank You for Your AttentionThank You for Your Attention

• Topics can be discussed through the week,• Also by contacting:

Mark Masters

General Manager – Latin America

HSB Global Standards

713-722-3411 (Houston, TX)

[email protected]

08 - Mark Masters Final Asme Value Oil & Gas Rio Preso Aug2010

Documents

Transcript of 08 - Mark Masters Final Asme Value Oil & Gas Rio Preso Aug2010