Effective Pipeline Integrity Management in the Magallanes Region of Chile

Empresa Nacional del Petro´leo (ENAP) is an energy company, wholly owned by the Chilean Government. With regards to overall management, the company comprises of two Business Divisions: Exploration and Production (Up-stream) and Refining and Logistic (Down-stream), complemented by corporate managerial structures. The objective of ENAP’s Exploration and Production (UpStream) business line is the exploration and exploitation of hydrocarbons (oil and natural gas) in the South of Chile (Magallanes) and abroad, as well as geo-thermal energy, in this case, associated with private entities in areas of Northern Chile. Within the Magallanes region ENAP operates approximately 2,200 km of natural gas, crude oil and refined product pipelines. These pipelines range in diameter from 4 to 20 inch and the majority of pipelines are over 30 years old. Due to operational reliability reasons, since 1998 ENAP has been regularly inspecting its pipelines using intelligent in-line inspection tools. Furthermore, since 2006, as part of an overall pipeline integrity management plan ENAP has been conducting Fitness for Service assessments on selected pipelines including a risk-based assessment considering pipeline condition and the impact on the continuity of operation. The Integrity Management Plan implemented by ENAP in the Magallanes region has been applied to all pipelines transporting gas, crude oil and refined products, including those built after 1990. This plan comprises the construction phase, from which invaluable information is gathered for later use. The primary aims of ENAP’s integrity management plan are: - To protect the public; - To protect the surrounding environment by preventing pipeline failures; - To ensure efficient usage of the budget available to conduct maintenance tasks; - To prevent damage to the pipelines, e.g. due to corrosion activity; - To provide clarity of activities being performed by ENAP in order to ensure an efficient, safe and reliable pipeline system. This paper provides a description of the integrity management strategy adopted by ENAP and includes a review of a number of the challenges encountered during its implementation.