The fact that the project finally received the green light will be viewed as a significant achievement, not only by those who are waiting to produce, purchase and utilise the much-needed gas that TTM will deliver, but also by the companies who have been involved in making the pipeline project a physical reality.
One such company is Nacap Asia Pacific, the pipeline construction group with operations throughout the region and here in Australia. Following many months of bidding activity and negotiations, Nacap received the news that it had been awarded the lumpsum contract for the Onshore Pipeline System on the TTM Project. This System forms an integral and substantial part of TTM, which comprises three pipelines – one offshore, two onshore – a gas separation plant and associated infrastructure.
As Peter Gregory, Managing Director of Nacap Asia Pacific and Nacap’s Project Director for the TTM Project, confirms, “TTM had been on our radar screen for a very long time. We put a huge amount of effort into bidding the job and there were moments when we did wonder whether it was all going to be for nothing. But our perseverance and commitment paid off. Now the project is in full swing and we are working to ensure mechanical completion is achieved by the due date at the end of this year.”
Lengthy Gestation
The origins of the TTM project date back to 1979 when the governments of Thailand and Malaysia signed a memorandum agreeing to explore the possibilities of jointly developing the then recently discovered gas reserves in the Joint Development Area (JDA). Located approximately 255 km east of Songkhla Province in the Gulf of Thailand, the JDA covers an area of 7,250 km. The Malaysia-Thailand Joint Authority (MTJA) was then established in 1990 to oversee and plan joint activities relating to development of the JDA.
Production operators for Block A-18 were confirmed as Petronas Carigali (JDA) Sdn Bhd, a wholly-owned subsidiary of Petronas Carigali of Malaysia, and the Triton Oil Company of Thailand, with operations controlled by the Carigali-Triton Operating Company (CTOC). Production contractors for the other two blocks are Petronas Carigali (JDA) Sdn Bhd and PTTEP International Limited, the international arm of the Petroleum Authority of Thailand (PTT), a state-run company.
Gas sales agreements were subsequently concluded between the JDA operators and Malaysian national oil company PETRONAS and PTT of Thailand. Gas purchases from Block A-18 are expected to amount to 390 million standard cubic feet per day (mmscfd). This provided the TTM project with the commercial viability it needed to proceed.
Bringing Gas Onshore
Gas will be brought to shore via a 34 in. diameter 277 km offshore gas pipeline. This pipeline is being laid from Block A-18 to the Songkhla Gas Separation Plant (GSP) by international offshore pipeline company Saipem. The GSP will produce natural gas and liquefied petroleum gas, which will be transported to end-users via the Onshore Pipeline System.
This System comprises a 36 in. diameter natural gas pipeline that runs approximately 97 km from Chana, near Songkhla across the border to Changlun, Malaysia, to link up with the Malaysian Peninsular Gas Utilization (PGU III) pipeline system. A second section, an 8 in. diameter pipeline, will carry LPG from Chana to Prai Depot on the West coast of Malaysia, a distance of approximately 241 km.
Comprehensive Remit
Nacap’s scope encompasses the complete spectrum of engineering, design, construction, installation, testing and commissioning of the entire Onshore Pipeline System. The firm is also responsible for procurement and training of personnel. The work is being handled out of three offices, with the main project office being located in Bangkok and the two construction offices in Hat Yai, Southern Thailand, and Sungai Petani in Malaysia.
In addition to the pipelines, Nacap is also responsible for the seven combined LPG/sales gas block valve stations and one sales gas block valve at the Changlun tie-in location, as well as tie-in facilities. There are also 16 stand-alone LPG block valve stations and a Midway Scraper Trap Set. Sales gas and LPG send-out facilities at Chana and a combined LPG/sales gas meter station at Sadao are also part of Nacap’s scope, as are LPG receiving facilities at Prai Depot and a Slug Catcher Receiving Facility.
Moving Ahead
Engineering work is scheduled for completion in July 2004 and efforts are currently focussed on ensuring procurement activities are expedited to ensure delivery of all items as required. “Progress on construction has moved ahead rapidly over the last couple of months as major permanent materials are received and plant and manpower resources are deployed throughout the Thailand portion,” confirms Project Controls Manager, John Sarginson.
Pipeline construction on the Malaysia portion is now entering the final phase, with backfilling activities scheduled for completion in line with the hydrotesting schedule. Work on the block valve stations in both the Thailand and Malaysia portions is progressing according to plan.
The route of the pipelines runs through undulating hilly areas, swamp sections and highway reserves requiring the full range of Nacap’s extensive plant resources to be deployed. “This huge logistical exercise has been rigorously coordinated to ensure that the activities in both countries result in timely completion of the project,” adds Project Manager Steve Marshall.
Specialist Expertise
Horizontal Directional Drilling (HDD), one of Nacap’s core areas of specialist pipeline expertise, is being utilised extensively on the project, both onshore and offshore. Onshore, the Malaysia portion of the pipeline calls for a total of 27 HDD installations. Terrain ranges from hard rock to gravel, to swampy conditions, presenting a variety of challenges for the HDD team.
On the Thailand portion, there are a further 30 drills at 10 separate locations involving 36 in. pipe, 8 in. line for LPG and 4 in. cable duct installations to be completed. Total length of these installations is approximately 9 km, passing through a range of challenging site and ground conditions. As Nacap’s Drilling Manager, Boris de Koning, highlights, the company’s 200 tonne and 275 tonne HDD rigs have been working at full stretch to complete the work required. An additional five crossings will be installed by microtunnelling, to be performed by a specialist sub-contractor.
Nacap has also been involved in the HDD installation of the shore approach for the offshore pipeline at Songkhla. This work has entailed drilling a pilot hole from the beach a distance of 1,175 m. The 1,395 m pipestring is being fabricated onshore in the GSP area and will be pulled from onshore to offshore using a 275 tonne capacity barge-mounted rig. A 220 m section will be concrete coated pipe for Saipem to perform the tie in.
First-Class Safety Record
All this activity is being achieved with stringent attention to safety. As testimony to this, the project recently clocked up over two million man-hours without a lost-time incident. As Project Director Peter Gregory comments, “This is a fantastic achievement given the logistics involved and the number of people working on the project, which is currently running in excess of 2000.”
Second Tranche of Work
More good news came recently for Nacap with the award of a second project in Thailand for PTT. Known as the Third Transmission Pipeline Project, this system will take gas from the onshore gas handling and processing facilities near Map Ta Phut (Rayong), to onshore gas distribution terminals at Bang Pakong, east of Bangkok.
The project kicked off in May this year with civil construction scheduled to start up in the third quarter. Work on the right of way will commence at the beginning of next year with pipeline installation likely to begin at the end of February.
As Peter Gregory adds, “The timing of the TTPP contract will enable us to roll over resources from TTM onto the appropriate phases of the new project. With established facilities already set up in Thailand, we will be able to mobilise equipment and manpower resources rapidly.”