The year of the NGL

So far 2013 has been all about NGL (Natural Gas Liquids) processing equipment.  Because Precision Pipe has been building process equipment for NGL for over 30 years 2013 has proven to be a very busy year.  In addition, our clients (new and old) are looking for expertise in the field of gas processing equipment design and fabrication.  We have nearly completed fabrication on our 2 NGL process plants this year and we have a 3rd plant on order.  These plants have been turnkey units with fully integrated controls and electrical.  We are still building 1 off pressure vessels and various TEMA type heat exchangers but skid packages seem to be whats driving our markets.

Precision Pipe, LLC Gas processing plants

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Safety Message: Without Safeguards, Pressure Vessels Can Be Deadly

 A fantastic Article found on: http://www.csb.gov/newsroom/detail.aspx?nid=293

November 09, 2009

Without appropriate safeguards, pressure vessels can pose lethal dangers.

Washington, DC, November 9, 2009 – CSB Chairman John Bresland released a new video safety message today asking jurisdictions across the country to adopt the ASME Pressure Vessel Code to reduce the number of accidents involving catastrophic pressure vessel failures in process industries.

The safety message can be viewed on CSB.gov and on the CSB’s safety message channel,www.youtube.com/safetymessages.

In the safety message, Chairman Bresland warned that without appropriate safeguards, pressure vessels can pose lethal dangers. Chairman Bresland said, “Pressure vessels store tremendous amounts of energy and you should never become complacent about the risks.”

Particular danger exists when vessels are improperly installed, welded, or modified, or when they lack effective pressure relief systems. Mr. Bresland refers to several incidents investigated by the CSB including an explosion at a Louisiana natural gas well that killed four workers when a tank rated only for atmospheric pressure was exposed to gas pressure up to 800 pounds per square inch.

In April 2003, an 8-foot tank used to heat sugar caramel exploded when the vent line became blocked, killing an overnight operator, releasing large amounts of ammonia, and forcing a community evacuation. The vessel had no pressure-relief system.

Additionally, in 2004 a pressure vessel weighing 50,000-pounds exploded at a chemical plant in Houston, Texas, throwing heavy fragments into the community, which damaged a church and businesses.  The CSB found that the company improperly modified and welded the vessel.

Chairman Bresland stated that these accidents can be avoided if states implement long-established codes for safe use. He said, “There are only eleven states that do not require companies to follow the Pressure Vessel Code of the American Society of Mechanical Engineers (ASME). I ask all jurisdictions to adopt the Pressure Vessel Code and related boiler standards. Lives will be saved as a result.”

The ASME Code provides the fundamental safeguards for pressure vessels, including design, welding procedures and fabrication, testing, and pressure relief. In 2006, the CSB called upon the City of Houston to adopt the Code to protect residents and industrial facilities from these incidents. However, Houston has failed to implement this recommendation despite reoccurring pressure vessel failures such as a summer of 2008 heat exchanger explosion in a resin-production facility that killed a veteran supervisor.

The CSB is an independent federal agency charged with investigating industrial chemical accidents. The agency’s board members are appointed by the president and confirmed by the Senate. CSB investigations look into all aspects of chemical accidents, including physical causes such as equipment failure as well as inadequacies in regulations, industry standards, and safety management systems.

The Board does not issue citations or fines but does make safety recommendations to plants, industry organizations, labor groups, and regulatory agencies such as OSHA and EPA.

A powerful reminder about the purpose of the ASME code and the dangers of not using a qualified and certified ASME code shop for repairs and alterations.  The nominal costs of making proper repairs to ASME pressure vessels is insignificant to the potential loss of human life. Likewise, the risk of installing non-code vessels is equally dangerous and potentially deadly.

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Depropanizer and Deethanizer Tower, Great Price Better Delivery

Since this summer Precision Pipe and Vessel, A Denver ASME welding and fabrication shop has built and delivered two 80 foot plus deethanizor and depropoanizer towers.  By all standards these are not the largest towers on the market, but are a large enough to serve a major sector in gas processing plants.  These towers were built in Denver and will be shipped all the way to Pennsylvania for their final installation.  This project was conducted with a Nationwide RFP process and it was discovered the Precision Pipe had a competitive price (even with expensive trucking costs) and even better delivery schedule.

As the gas boom seems to be gaining traction, it seems many ASME shops are becoming back logged with large vessels such as these.  Many gas processing companies turn to the same fabricators over and over again and are willing to wait months for delivery at the expense of production and revenue.  As project managers become familiar with companies they tend to turn to the same companies time and time again.  This is probably a safe bet with long established business relationships, but the petroleum is a high risk high reward kind of business.  From the early stages of drilling, installation, permitting, and well stimulation this is in all reality a high stakes business.

Any company that is seeking a competitive edge should be looking for energetic and motivated businesses qualified to provide the same products on a better delivery date (any ASME code vessel will require the same QA QC and inspection).  The cost of lost production is much more expensive than a few thousand dollars in added cost or even shipping, yet procurement specialist and project managers turn to the same companies over and over again without looking at the competitive advantage they may have by using a new vendor with better delivery times.  As dollars are wasted waiting for equipment it seems more logical to strike up new business relationships based on better delivery schedules. Give us a call and see if we can get you to revenue quicker than your go to guy, you might be surprised!

http://www.precision-pipe.com

304 Stainless deethanizer tower

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Power, Fuel, Gas…

I once had a friend that ask me how I could possibly make a living by making pressure vessels, implying there can’t be any demand for such products.  From an outsiders view he didn’t really know what a pressure vessel was or what it really did. I was amused by his comment because I knowingly realize that Pressure Vessel’s certainly lack any kind understanding by the general public, but the need, and application for pressure vessels is certainly in high demand.  I imagine most people must think this is really a quirky business but don’t really know what pressure vessels are, what they are used for, and how their application is important to our daily lives.  As long as there is a need for petroleum products, natural gas, heat, and cooling there are a network of pressure vessels that are necessary to keep our infrastructure safe and operational.  Likewise, pressure vessels are used in cosmetics, pharmaceuticals, breweries (yeah beer), food processing, water treatment, and countless other applications that enhance our daily lives. In fact, any component, piping, or tank that is designed to hold 15 psi or more is subject the guidelines and compliance of the ASME code for boilers and pressure vessels.

The American Society of Mechanical Engineers (ASME) has set the standards for pressure vessel design and manufacturing that has enabled our country’s infrastructure to become a complex and vast network.  While this is nothing short of a modern marvel it is truly remarkable how the ASME guidelines have kept workers and the public safe from the explosive high pressure gases.  In fact, the ASME standards have proven to be completely effective as long as the code is followed by everyone who has ASME certified components.

Likewise, it is scary to hear about explosions, fires, and other catastrophic events in the oil and gas industry as well as commercial boilers.  These failures almost always occur when an operator of the equipment is either too lazy to follow code or is ignorant about the effects of not following ASME guidelines.  Recently, I heard about a repair on a Government owned and operated boiler (in an ASME compliant state) that had overlooked using an ASME qualified shop for more than an decade.  This repair required an “S” stamp to perform the work, but upon inspection there had been no less than ten previous repairs performed by a non-qualified company.  This was alarming for a few reasons.  First, the state was failing to oblige by their own guidelines.  This was a public hazard and a huge liability for the State, the licensed boiler operator, and for the welder who did the repairs.  It is imperative to any repair on an ASME component (boiler, pressure vessel, heat exchanger)  that such repairs are performed by a certified welder by a qualified shop.  In other words, the company performing such repairs, at a minimum, must have a National Board “R” stamp in good standing.  Further, the repairs must be performed in compliance of the applicable code as designated by the ASME and NBIC code guidelines.  It is alarming to see States that designate compliance to code construction fail to recognize the necessary steps to keep their own equipment in compliance.

What does this mean to the average person? Not much to be truthful. However, to anyone that has process equipment it is absolutely imperative to recognize the importance code compliance has on the safety of those aruond us.

The ASME helps the global engineering community develop solutions to real world challenges. Founded in 1880 as the American Society of Mechanical Engineers, ASME is a not-for-profit professional organization that enables collaboration, knowledge sharing and skill development across all engineering disciplines, while promoting the vital role of the engineer in society. ASME codes and standards, publications, conferences, continuing education and professional development programs provide a foundation for advancing technical knowledge and a safer world.

Therefore, the next time you fire up your gas grill (you can verify your propane tank is ASME / NBIC certified) remember that countless hours of engineering, design, review, materials and code compliance, nondestructive testing, and third party inspection have gone into keeping you and your loved ones safe, even if you don’t know what a pressure vessel is.

http://www.Precision-Pipe.com

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Repairs of ASME Pressure Vessels

Tonight we have the opportunity to go into a major sporting arena and perform a weld repair on a pressure vessel. After being in the pressure vessel industry for almost 12 years I sometimes forget that not everyone understands what is involved in this type of undertaking. The repair itself is very simple. The unit has been in service for the last fourteen years and after years of vibration a pinhole or crack has promulgated through the heat effected zone around one of the welds. So the repair will consist of grinding out the defect and welding in new material. Simple enough. It’s the paperwork side of things that most people are not familiar with. ASME does not actually have a “Code” for the repair of Section VIII, Division 1 pressure vessels. Repairs fall under the Nation Board of Inspectors Code (NBIC). The National Board is the agency that contends with the requirements for repairs and alterations. The following list is typical of the process for a repair:

• Investigate the repair that is required
• Procure or purchase a copy of the original U1-A report from either the manufacturer or The National Board
• Review the original U1-A to verify materials of construction, Fabrication requirements, Examination requirements, and Testing requirements
• Prepare a repair plan that includes a field traveler with hold points for the Authorized Inspector (AI)
  • Identify the weld procedure to be used
  • Identify the welder to be used and verify his/her qualifications
  • Prepare any drawings, calculations, and or engineering data
  • Procure and review documentation of any new material that must be utilized
  • Specify and non-destructive testing that is required
  • Specify any final inspection requirements
  • Specify any Post Weld Heat Treat requirements
  • Specify the type and range of any pressure test that is required
  • Prepare a nameplate
  • Prepare applicable R Form
  • All of the above information must be available for the AI to review
  • Perform the repair as stated in the repair plan
  • Perform testing as required by the NBIC
  • Sign off on the appropriate documentation

As you can see there is more to a “Code” repair the simply fixing the weld. Depending on the vessel the testing portion of the repair plan may take a substantial amount of time. Keep all of these items in mind when you call a company asking that a repair be made the same day as same day service tends to cost a little more. Here at Precision Pipe we jump at these opportunities to start new relationships that hopefully last a life time.

 

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Policies and Procedures

We recently avoided a costly mistake.  Our vendor had issued a quote on materials for a job that our customer needed expedited.  Throughout the chaos of organizing resources, work space, and reading through material quotes, it would have been somewhat understandable for us to award the materials to the lowest bidder and tell them to get them coming.  Fortunately for us, we have a few procedures in place that keep us from turning something around that quickly.   We stayed true to our practices and within a few minutes of going through our purchase review, we uncovered discrepancies within material and quantities, navigating ourselves out of an impending storm.

Procedures and Policies are good as long as they allow you to work efficiently.  Conversely, when Policies and Procedures are cumbersome and do not allow your organization to be nimble, it is time to examine the reasons behind the P&P and come up with better alternatives or more streamlined versions.

What Policies and Procedures hold you back from becoming better?

 

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Utilizing an ASME Specialist

It wasn’t too long ago that I walked onto a refinery job site that Precision Pipe was supply equipment to.  At this site I saw an interesting event about to transpire.  A welder who was not associated with our company was getting ready to light a torch next to a vessel we had just delivered the day before. It appeared to me that he intended to cut into the vessel. Surprised to be seeing this, I quickly made my way over to him to see what he was doing.  He informed me that the construction manager (from a well respected and large engineering firm) instructed him to make a modification to the pressure vessel as a solution to a piping problem.  I asked him to stand by for a second so that we could discuss with plant manger the implications his modifications might have.

The welder became rather irritated with me and informed me he had his directions and he intended to follow them.  For those of you that are unfamiliar with the ASME code, let me explain the implications of this kind of modification in the ASME code world. First, if the welder had actually brought his torch to the shell of the vessel he would have undone the ASME certification on that vessel.  In other words the vessel would have no longer been a certified ASME pressure vessel and the customer would have wasted several thousands of dollars on that pressure vessel.  As the manufacturer I would have been required to remove the name plate from that vessel the moment I saw the flame come into contact with it. Second, that vessel would have no longer been acceptable to use on the job site as it was being implemented at a refinery in an ASME mandatory site and State.  Lastly, Precision would have likely had to of retaken possession of that vessel, repair it according to ASME standards, re-certify and qualify the vessel as meeting the ASME code.  The vessel would have also required a second name plate identifying it as an “R” or “Repaired” pressure vessel.

The reality of the situation was, the construction manager was under immense pressure to complete the project and at that point he was willing to cut corners.  What he didn’t anticipate was getting caught in a major blunder which would have added greater delays and expense to his project.  Anything worth doing is worth doing right and this is especially true for engineered products like ASME vessels. Knowing what the proper proceeders are for welding and modifying an ASME pressure vessel is imperative.  In this situation, the only way to modify the vessel is following the ASME code by using a qualified ASME shop with an “R” stamp.  Any welding or cutting on an ASME pressure vessel must be performed by a qualified shop that is in good standing with the National Board.  The pressure vessel will have to be reinspected by a third party authorized inspector and may need to have X-ray and hydrostatic testing to keep the ASME certification and name plate.

As an ASME qualified shop we encourage anyone to use us or another code shop as a resource to answer any question you may have on qualifications, modifications, and inspection of ASME pressure vessels, Heat Exchanger, or Boiler’s.  We would rather take a few minutes to understand and explain what your options are according to the code then risk an accident or injury .  In addition, if we can simply answer your question this a a free service we offer to any prospective customer.  If you are a plant manager and you are unsure if you can use any certified welder?  Give us a call and we can walk you though what it takes to maintain your ASME certifications.  If you have an ASME pressure vessel, Heat Exchanger, or Boiler that needs work or an addition of a nozzle or coupling.  Call us we can tell you what you must do to add the new components in a safe and code qualified manner.

As it turns out I was able to get the welder to wait a minute.  Explaining to him the consequences of his modification calmed him down long enough to bring in the decision makers.  The plant manager, the construction manager (having tucked his tail between his legs), and I all discussed the changes that were necessary and it was ultimately decided a ‘T’ in the process piping was the most effective work around for the problem.  Having an ASME specialist onsite that day saved thousands of dollars, countless hours, and potentially the integrity of the plants operational safety in the future.  Don’t be shy to email or call us or any other ASME qualified shop to discuss your project or equipment with ASME name plates. Your local rig welder or fabrication shop may be good, they may be able, they may even have a piece of paper that  say’s they are certified to make a weld. However, it is imperative you at least speak with a shop that is ASME qualified before you make any welds on a certified ASME pressure vessel.

http://www.Precision-Pipe.com

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Almost there…

How do you feel when a project is due to ship in two-weeks time?  Now how about one-week?  Is there a sense of confidence or sheer panic?  When it’s crunch time who/what do you turn to make your deadline?  There are only two choices:  One, ramp up with resources to get the job done. OR, Two, go to your customer and explain why you won’t make your deadline.  (Side note:  When it comes to excuses, I always think of John Belushi in the movie, Blues Brothers, giving Carrie Fisher a long list of why he couldn’t make it to their wedding.)

We know that the two options have serious problems.  If we ramp up resources, our margins slip away fast.  When we go to our customer with a list of why we can’t, we look incompetent and incapable of completing a task we said we could do.  Neither of the two options sound very appealing to me, yet businesses engage in them countless times, usually, with no shame.

How then, do we carry our project through on time and on budget and mitigate the risks and unknown problems that may arise during the project lifespan?  Two words: Hard Work.

It takes hard work to plan out resourcing and stay on task.  It takes hard work to stay motivated to see a project to its completion, but the payoff – well, it’s usually worth the hard work.   Usually, there are simple steps that we can take to make sure we stay on task and that our hard work is not in vain.

Years ago, a mentor of mine encouraged me to write on a 3×5 note card the three most important things I had to do the next day.  (At the end of my day, everyday)  That way, when you come in the next day, you know exactly where to start and what is important to accomplish.  The great thing about this advice is that it keeps you on track in the midst of a chaotic day.

Another great tip from my mentor is to hold a 10 minute meeting at the beginning of each day with various leads and managers of the project that is in progress.  This gives you as project manager  the forum to ask of your leads:  “What are your priorities for the day?”  This in turn, leads to greater communication and accountability within the team.

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Material Tracking and Identification

Material tracking is important.  We all know that.  This part of internal logistics is key when quoting jobs but is essential when working the job.  Nobody wants to be the reason for lost time, and if the reason is they can’t find the material, that is unforgivable.  Ensure you know what material you have and where to find it when it is needed.

While material tracking is important, of growing concern is the proper identification of the material.  PMI (Positive Material Identification) and  MTR’s (Material Test Requirements) are becoming necessities from companies to be part of the job package to properly identify the materials used for the job.  PMI uses a tool shaped like a gun and when aimed at any material, the trigger is pulled and the screen on the gun tells what material it is.  Simple?  Not hardly as training is required before you can use it.  Cost effective?  Possibly.  That depends on the size of your company and how much material goes through it’s doors.  The PMI tool costs upwards of $50,000, so this is not for the small business that is trying to get by in this economy.  The more cost effective method of material identification is the utilization of MTR’s.  MTR’s are copies of the paperwork telling where material comes from, it’s heat number, chemical composition, physical dimensions, and other details.  You can have your material supplier provide this paperwork when you order your material.  When you receive your material, be sure to verify the heat numbers on the material with the heat numbers on the MTR’s.   It doesn’t help to have an MTR if it does not match the material you have.  While not as quick as using the PMI tool, MTR’s will do the trick as long as you use some diligence, keep your paperwork up to date and ensure the heat number is prominent on material, even after it is cut.

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Renewables Fabrication

As an ASME code shop it has been very beneficial to our business having the added segment of renewable energy projects.  Throughout our 30 year history as a company most of our success and failure has coincided with the success and failures of the oil and gas industry.  As it stands today we are still very dependent on our traditional energy clients and their projects, as this makes up at least half of our overall business each year.  However, it is great to have another segment that is not dependent on the price of oil and gas to keep our fabrication shop afloat while gas and oil prices are down.  Last year the lions share of our work was in alternative fuels, clean energy, and clean-tech segments.  Not having this industry 10 years ago (not to say it didn’t exist it just wasn’t as lucrative at that time) this recession would have been much worse than it is even now. During the downturn we saw big decreases in our back log but we were able to secure and build several projects and skidded packages for clients that are trying to bring new clean technologies to market.  Some of these technologies improve pollution and energy consumption while others aim and finding a competitive replacement to petroleum products.

As we look to the future in this new energy economy Precision Pipe is excited to be at the cross roads.  We are very optimistic about the continued and successful use of fossil fuels and their associated projects and we are thrill to see these projects getting back on their feet again.  All the while we are also embracing new companies that are developing technology to change the way the world uses energy and fuels itself.  In the near future we hope to be building NGL refrigeration plants and gas separators alongside catalyst beds and gasification plants to power our nation and world.  As it is clearly a new world for fabrication, Precision Pipe  is well positioned as a leader in developing new technologies.  We strive to help our clients build prototypes of their own proprietary technologies for this new segment of the US economy in addition to building components for established petrochemical processes.

http://www.Precision-Pipe.com

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