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5/9/2016

2.1 Front-End Loading (FEL) Phases - Road to Success - IPLOCA WIKI Collaboration Platform

2.1FrontEndLoading(FEL)Phases
CreatedbyHenningDresp,lastmodifiedbyMustafaAbusalahonFeb17,2015

Someofthekeyconsiderationsthatneedtobedefinedduringthe
threeFELphasesinclude:
Product
availability

Applicable
codesand
standards

Design
temperature

Stations(compressor,
pump)

Designcapacity

Abovegroundinstallations
(valvestations,pigging
stations,meteringstations,
offtakestations)

Riskofnatural
hazards
andhuman
threats

PipeOD

SCADA/telecoms

Pipelineroute
anditsright
ofwaycorridor

Pipewall
thickness

Maintenanceand
inspectionrequirements

Topographic
and
geotechnical
data

Inspection
requirements

Materials
(linepipe,
valves,tees,
flanges,traps)

Pigging
devices/integrity
assessment

Corrosion
allowance

Protection
requirements
(trenchdepth)

Inspectionphilosophy

Corrosion
coating,field
jointcoating

Expansion
mitigation

Schedule

Cathodic
protection

Isolationvalve
spacing

Insulation

Crossings
design

Costestimates

Operational
philosophy
(hydrates,
waxing,
asphaltenes)

Overpressure
protection
(surge
protection,
linepack)

Constructionmethodology

Productquality

2.1.1BusinessPlanningFEL1
2.1.2FacilityPlanningFEL2
2.1.3ProjectPlanningFEL3

Camps
Clearingandgrading
Materiallogistics
Ditching
Welding
Pipebending
Fieldcoating
Backfilling
Hydrotesting
Finalgrading

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5/9/2016

2.1 Front-End Loading (FEL) Phases - Road to Success - IPLOCA WIKI Collaboration Platform

Designlife

Leakdetection

Pipelineoperations

Design
pressure

Metering
requirements

2.1.1BusinessPlanningFEL1
Beforestartingaproject,thepipelineowner/investor(thebodyfundingtheproject)mustprovetheeconomic
viabilityandneedfortheprojecti.e.willtheprojectproducetherequiredrevenuesandprofit?Thisphase
capturesthereasoningbehindinitiatingtheprojectandcantakeconsiderabletimetoprepare.
FEL1includes:
Businesscase
Strategicobjectives
Economicanalysis
Projectexpectations
Marketanalysis
Competitorsreview
Environmentalconstraints

2.1.2FacilityPlanningFEL2
ThepurposeofFEL2facilityplanning(sometimesreferredtoasfeasibility,preliminary,orpreFEED),istoensure
theselectionofanoptimumsolutionandputsomedetailsbehindtheproject.Herewecanconfirmthephysical
viabilityandanticipatedcostofaprojectbeforeanyunnecessarytimeandenergyiswasted.Thisstageofthe
plancantakefrom26monthsdependingonprojectcomplexity.
FEL2facilityplanningincludesthereviewof:
Environmentalandsocialissues
Routing
Pipelinedimensions(OD,WT,length)
Inlinefacilities(pumps/compressorstations)
Regulatoryandgovernmentalrequirements
Preliminaryschedules
Ledbytheowner,developeroranappointedandexperiencedengineeringcontractor,theseissuesareperformed
byajointteamandshouldincludearangeoftechnical,engineering,environmental,socialandlegalspecialists.
Thelevelofcostestimateatthispointistypically+/30%.

2.1.3ProjectPlanningFEL3
ProjectplanningortheFEEDphaselookstodeveloptheapprovedselectedsolutionbynarrowingthecost
estimateto+/15%andachievingahigherlevelofdevelopmentschedule.Atthispointanyprojectshowstoppers
wouldhavebeenidentifiedaspartoftheenvironmentalandsocialimpactassessmentprocessandsuitable
mitigationmeasuresagreedwiththerelevantstakeholders(aspartoftheprojectconsent).Itisonlywhenconsent
hasbeengrantedthatprojectsanctiontakesplaceandparticularlysinceitisthenpossibletoplacematerial
ordersforlongleaditems(LLIs)atthisstagesoastomeetthedevelopmentschedule.Projectplanningcould
takefrom612monthsdependingonthecomplexityofprojectandtheenvironmentthroughwhichitisrouted.If
thepipelinehasnotmanagedtoavoidsensitiveenvironments,timescalesfortheFELprocesscanbeextended
bymanymonthswhilstdetailedecologicalorculturalstudiesareperformed
Incomparisonwithplantprojects,thecostofFELdevelopmentsforapipelineprojectaretypicallylower,except
forpossiblyinternationalcrossborderpipelinesorcomplexsystemssuchashightemperaturepipelines(design
temperature>70C),highpressurepipelines(designpressure>200bars),orfasttrackprojects.
However,whilstthecostofthedevelopmentactivityislower,itisstillsignificantandoftenunderestimated.
Pipelineprojectfacilityplanning(FEL2)forexamplecanrangefromonethirdtothreequartersoftheactivity
associatedwithplantdevelopments.However,thetimetakencanincertaincircumstancesbelonger.
Continuewith2.2KeypointstoaddressduringFEL
Backto2.DevelopmentPhasesofaPipelineProject

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