Corrosion Monitoring System

YESTERDAYS EXPERIENCETODAYS TECHNOLOGY

Today's OutlineWho is TXINSCorrosion Market Drivers General CorrosionCorrosion & Corrosion-Assisted CrackingHydrogen DamageCorrosion InhibitorsHow TXINSs Monitor WorksOverview of the TXINS System ApplicationsInstallationData Acquisition & ReportingBenefits, Limitations & CostsCommon Questions Asked

Who is TXINS?

TXINS :Corrosion MonitorsNACE InspectonsIndustrial Coating Specifications

TXINS is a group of individuals dedicated to the Corrosion Protection Industry with well over 100 years of experience. TXINS takes years of experience coupled with todays technology and produces accurate, real-time, cost savings for their clients.

Whats Driving the Market Approach to Corrosion Monitoring?

Corrosion expenditures increasingMajor drivers:Aging infrastructureHigher pressures and temperaturesHigher concentrations of acid gases (e.g., CO2, H2S, Cl-)Environmental costs associated with leaks or spills and lost production & commodity

Whats Driving the Market Approach to Corrosion Monitoring? (cont.)

Drilling in environmentally sensitive areas under stringent regulations & environmental impact legislation.

Integrity management programs costs $2.8 $4.6 billion annually, about 10 15% of companys maintenance expenditures.

Internal Corrosion is #1 Issue for Production PipelinesTotal # of Releases 12191, Pipeline Releases by Cause for all years combined57.7%

Chart1

57.7

12

5

3.5

4.5

1.6

2.8

3.5

1.7

2.2

5

AEUB Statistics 2007 Leaks and Ruptures Only

Sheet1

Internal Corrosion57.7

External Corrosion12

Damage By Others5

Weld3.5

Construction Damage4.5

Over Pressure1.6

Pipe2.8

Joint3.5

Earth Movement1.7

Value/Fitting2.2

Other5

Sheet1

AEUB Statistics 2007 Leaks and Ruptures Only

Sheet2

Sheet3

Whats Driving the Market to Change its Approach to Corrosion Monitoring?Current corrosion detection methods employed are reactiveHigh-resolution smart pigging, measures wall loss, REACTIVEHydrostatic testing, integrity of the pipe wall PRO-ACTIVEDirect assessments, visual inspection, REACTIVECorrosion Coupons, weight loss, REACTIVEFSM-IT inspection, again wall loss, REACTIVELiquid and Gas sampling, PRO-ACTIVE, but limited to sampling areas is an intrusive technologyTXINS Monitoring, PRO-ACTIVE, monitors the change in the production of hydrogen directly proportional to the corrosion rate.

Corrosion Monitor Comparison

FeatureCouponsER ProbesLPRElectro-Chemical NoiseUltrasonic ScanFSM-ITTXINS Monitoring SystemData ReadCorrosion over timeElectrical signalPolarization resistance Fluctuation in current and voltage noiseWall thicknessWall lossHydrogen productionDetects CorrosionYesYesYesYesNoNoYesMulti-phase Corrosion MonitoringNoNoNoNoNoNoYesDetects Pits or Wall LossNoNoNoNoYesYesNoInhibitor MonitoringNoNoYesNoNoNoYesProactive or ReactiveReactiveProactive with real-time communicationProactive with real-time communicationReactiveReactiveProactiveIntrusiveYesYesYesYesNoNoNoShut Down to InstallYesYesYesYesNo, except for safety reasonsNo, except for safety reasonsNoRetrieval LimitationShut Down / pressureShut Down / pressureShut Down / pressureShut Down / pressureNoneNoneNoneCan be Used in High Temperature EnvironmentsLimitedLimitedLimitedLimitedLimitedYesYes (320F/ 160C)Or weld attachmentCan be Used in High Pressure EnvironmentsLimitedLimitedLimitedLimitedYesYesYes

Corrosion Monitor Comparison

FeatureCouponsER ProbesLPRElectro-Chemical NoiseUltrasonic ScanFSM-ITTXINS Monitoring SystemService EnvironmentsAllAllConductive AqueousConductive AqueousAllAllAll except high O2 environmentsPresence of ElectrolyteNoNoYesYesNoNoNoArea of CoveragePointPointPointPointPoint/SectionPoint/SectionSectionPigging CompatibleNoNoNoNoYesYesYesContinuous MonitoringNoYesYesYesNoYesYesSatellite CommunicationNoNoNoNoNoYesYesCost to Production from ShutdownsHighHighHighHighMinimalMinimalNoneCost of EquipmentLowMediumMediumHighHighHighMediumLabor Cost to InstallLowMedium MediumMediumHighHighMediumLabor Cost to RepeatHighHighHighHighHighLowLow

General Corrosion

This term is reserved for straightforward dissolution of a metal in corrosive water Example: dissolution of steel in HCl. Simple systems like this serve to demonstrate the electrochemical basis of corrosion reactions, e.g.: anodic reaction: Fe ----> Fe++ + 2 e- (e = electron) cathodic reaction: 2 H+ + 2 e- ----> H2 (hydrogen gas)

Corrosion and Corrosion-Assisted Cracking

Depending on the reservoir composition, carbon dioxide (CO2)hydrogen sulfide (H2S), or a combination of both can be present in hydrocarbons. The terms "sweet" and "sour" are used in the oil and gas industry to identify hydrocarbons that contain CO2 and H2S, respectively.

Corrosion and Corrosion-Assisted CrackingIn the oil and gas industry, water is the catalyst for corrosion. When water is combined with CO2 or H2S the environments form the following reactions: H2CO3 Reaction: Fe+H2CO3->FeCO3+H2

H2S Reaction: Fe+H2S+H2O->FeS+2HOr combination if both gases are present

Hydrogen DamageHydrogen may enter a metal surface by the cathodic reduction of hydrogen or water: 2H+ + 2e- 2H Absorbed (acidic waters) 2H2O + 2e- 2H Absorbed + 2OH- (neutral waters) Normally, the absorbed hydrogen at the surface recombines to form hydrogen gas: 2H Absorbed H2 Sulfide (S2-), prevents Hydrogen gas from forming.

Hydrogen DamageHydrogen Induced Cracking (HCI), or Blisters.

HHH2OutsideMetal SurfaceInsideMetal SurfaceCorrosive Environment

Hydrogen DamageHydrogen may enter a metal surface by the cathodic reduction of hydrogen or water: 2H+ + 2e- 2H absorbed (acidic waters) 2H2O + 2e- 2H absorbed + 2OH- (neutral waters) Normally, the absorbed hydrogen at the surface recombines to form hydrogen gas: 2HAbsorbed H2 Sulfide (S2-), prevents Hydrogen gas from forming.

Corrosion Inhibitors?d

How TXINSs Monitor Works

Permeation Rates of H0 VS Carbon Steel Thickness

Table of Corrosion Scenarios Hydrogen Permeability of Steels

ATOMIC HYDROGEN FROM CORROSIONNon Intrusive Hydrogen monitoring CapTXINSsT-1 or T-2 MonitorRemoteCommunicationsVia SatelliteTXINS T-1 or T-2 System

ApplicationsPipelines (Natural Gas)Pipelines (Condensate)TreatersVesselsAmine TowersRefineryPipelines (Sour)Pipeline (Sweet)Gas PlantsWater DisposalPetrochemicalWater FloodsClosed or Sealed Rolling Stock (rail cars or tanker trucks)Any metal substrate where hydrogen is being produced as a result of the corrosion process.

ApplicationsGas and Oil Production (H2S)

Oil/Gas Gathering and Transmission Lines

Oil/Gas Well Heads

Sour Water Flood Lines

Underground Gas Storage Facilities

ApplicationsGas-Oil Separation Plants and Gas Plants (H2S)Amine Units Inlets, Outlets, transfer linesContactorsAbsorbersFlash DrumsWash Columns and DrumsBlow down DrumsFlare LinesSour Water StrippersSour Gas Gathering LinesFractionatorsCatalytic Cracker overhead recovery systemHot WellsHigh and Low pressure sour gas separators

ApplicationsRefinery HF Alkylation Units

Acid Settler TanksAccumulatorsCondensorsDepropanisersTransfer LinesRecontactors

Installation of the Equipment

Site preparation hand tool only to white metal

Bonding the vessel to the pipe - Liquid epoxy

Mechanically clamp the vessel to the pipe

Mount monitoring equipment to a pole above ground or to secured area on the rolling stock

Reporting

Graphical representation of corrosive activity

Programming alarms can be set by Client

All client information is password protected for their use only

Graph Showing 2 Corrosion EventsABC Co.1st Event2nd Event

Customer #2

Customer #2

BenefitsReal time dataRecords Non-intrusive Low maintenanceRemote capability Coordinates corrosion programsCost effective

Benefits (cont.)

No down timeWorks in Conjunction with other TechnologiesEarly Corrosion DetectionHigh Risk Remote Areas Can be MonitoredLow Installation and Operating CostsHigh Temperature Installations (200C) Can be placed on higher temperature if welded

Limitations of the TechnologyNo correlation of TXINS data to intrusive probes or corrosion coupons

Does not work in fully oxygenated water systems or ponds

Each system has to be looked at individually, no comparison

CostsStandard Satellite Unit costs will vary dependent on how many transducers are included

Remote Satellite data collection and download of data at competitive rates $75-100/month/unit

Remote Cellular data collection and download of data at competitive rates

Installation costs will vary as a result of location and number of units to be installed

Commonly Asked Questions and Answers

Q1: Does your Hydrogen Vessel work in Sweet and Sour Gas Systems?A1: Yes

Commonly Asked Questions and Answers

Q2: Does the internal process pressure affect the hydrogen flux process?A2: No

Q3: Does temperature influence the monitors accuracy?A3: No and yes

Commonly Asked Question and AnswersQ4: Can the TXINS monitor environments containing bacterial corrosion or iron sulfide deposits?A4: Yes

Q5: Does the formation of Hydrogen polarization film caused by cathodic protection on the external of the pipe affect the TXINS monitor? A5: No

Commonly Asked Questions and AnswersQ6: Is the TXINS monitoring system capable of monitoring internal environments that have been internally coated?A6: Yes Q7: Where do you typically install the TXINS caps? A7: Each application will be different

Commonly Asked Questions and AnswersQ8: Can the TXINS monitor help in evaluating the effectiveness of my corrosion inhibitors?A8: Yes Q9: Can the results of the TXINS monitor give me a metal loss per year (MPY) value? A9: Yes and No

Commonly Asked Questions and AnswersQ10: Will the TXINS monitor work in all my corrosive environments?A10: No

Q11: Will the TXINS monitor work in a high ph environment?A11: Yes

Conclusion

TXINS Monitor is:Non-intrusivePro-active corrosion monitorCost effective Remote communication and installationsTXINS gives the flexibility required to meet all our customers, corrosion monitoring needs.

**Today we are going to cover the above items listed in this slide.****This slide is taken from the Alberta Energy Utility Boards 2007 Statistics on Leaks and Ruptures on Pipelines. As you can see the number one cause for Leaks or Ruptures is still internal corrosion at 57.7%.****General corrosion This term is reserved for straightforward dissolution of a metal in corrosive water. Theoretically, corrosion is evenly spread over the surface of the metal. Also referred to as "weightloss corrosion" or wall thinning. Example: dissolution of steel in HCl. Simple systems like this serve to demonstrate the electrochemical basis of corrosion reactions, e.g.: anodic reaction: Iron ----> Iron (2)++ + 2 e- (e = electron) cathodic reaction: 2 Hydrogen (plus or positive)+ + 2 e- ----> H2 (hydrogen gas) Part of the exposed surface (normally one half) supports the anodic reaction; the remainder supports the cathodic reaction. The rates of these reactions adjust themselves until electrical equilibrium is obtained. Each reaction has an electrochemical potential associated with it; at equilibrium these are equal. Evenly distributed corrosion is uncommon in practice. *Depending on the reservoir composition, compounds such as carbon dioxide (CO2), hydrogen sulfide (H2S), or a combination of both can be present in hydrocarbons. The terms "sweet" and "sour" are used in the oil and gas industry to identify hydrocarbons that contain CO2 and H2S, respectively. Carbon dioxide and hydrogen sulfide in the presence of water when subjected to pressure and temperatures during separation are two main contributors to corrosion of process facilities and piping systems.*In the Oil and gas industry, water is the catalyst for corrosion, When water is combined with CO2 or H2S the environments form the following corrosion reactions which produce Atomic Hydrogen. Fist the acid gases CO2 or H2S dissolve into the water and change the pH by forming acidic solutions. The presence of carbonic acid (H2CO3) reduces the pH of the water, resulting in localized corrosion such as pitting. A similar effect occurs with hydrogen sulfide except that the reaction produces iron sulfide, which is unprotected and easily removed. One of the products of this reaction is atomic hydrogen. The reactions for H2CO3 and H2S are outlined below: H2CO3 Reaction: Iron + Carbonic Acid form Iron Siderite + Hydrogen gas

H2S Reaction: Iron + Hydrogen Sulfide + Water -> Iron sulfur+ two hydrogen

Or combination of the two formulas stated above if both gases are present, if both are present the rate of corrosion swings would be faster and greater in intensity.*Hydrogen may enter a metal surface by the cathodic reduction of hydrogen or water: The following reactions demonstrate this process:2Hydrogen atoms + 2 electrons 2 hydrogen atoms Adsorbed (acidic waters) 2 Water molecules + 2 electrons 2 hydrogen atoms absorbed + 2 hydroxide (neutral waters) Normally, the adsorbed hydrogen at the surface recombines to form hydrogen gas: 2 hydrogen atoms Adsorbed Hydrogen gas However, recombination poisons such as sulfide (S2-), prevent hydrogen gas from forming and the adsorbed hydrogen moves through the metal, thereby weakening it. Hydrogen sulfide (H2S) is especially aggressive in promoting hydrogen damage because it provides not only the sulfide poison, but hydrogen ions (H+) as well.

*Hydrogen Induced Cracking (HIC) or hydrogen embrittlement is a brittle mechanical fracture caused by penetration and diffusion of atomic hydrogen into the crystal structure of an alloy. The cracks are usually non-branching and fast growing, and are more often transgranular (through the grains) rather than intergranular (through the grain boundaries). HIC occurs in high strength steels when atomic hydrogen dissolves in the crystal lattice of the metal rather than forming H2 gas. In the oilfield, the presence of H2S gas often leads to sulfide stress cracking (SSC), which is a special case of hydrogen induced stress cracking.

To summarize, corrosion involves the production of atomic hydrogen, which in turn creates hydrogen within the metal itself or on the outside of the steel. This is why our monitor is so import in helping to show the amount of hydrogen being generated and what the corrosion rate is like inside the structure.*Hydrogen may enter a metal surface by the cathodic reduction of hydrogen or water: The following reactions demonstrate this process:2Hydrogen atoms + 2 electrons 2 hydrogen atoms Adsorbed (acidic waters) 2 Water molecules + 2 electrons 2 hydrogen atoms absorbed + 2 hydroxide (neutral waters) Normally, the adsorbed hydrogen at the surface recombines to form hydrogen gas: 2 hydrogen atoms Adsorbed Hydrogen gas However, recombination poisons such as sulfide (S2-), prevent hydrogen gas from forming and the adsorbed hydrogen moves through the metal, thereby weakening it. Hydrogen sulfide (H2S) is especially aggressive in promoting hydrogen damage because it provides not only the sulfide poison, but hydrogen ions (H+) as well.

*Various chemicals can be injected to reduce the corrosivity of an environment. Problem is to prove that they work under practical conditions, and that the injection is not stopped for any logistic reason. Many of them have side effects like emulsion forming. Most of the inhibitors are supposed to form a protective water-repellant film with or without the aid of the inhibitor solvent. New regulations in Canada are asking the only companys to prove that the inhibitor layer is there and in tacked. Some inorganic inhibitors induce passivity. CO2 corrosion in wet gas pipelines can be controlled by adding certain glycol compounds, which also has the advantage of controlling "top-of-line corrosion" in two-phase (gas/liquid) situations. *This diagram is an example of one of our hydrogen vessel attached to the external of a pipeline. Now that we know how the hydrogen gas is produced and absorbed through the pipe wall, the above diagram illustrates how our technology monitors the production of hydrogen gas.

As you can see in the diagram, when the atomic hydrogen permeates through the steel and then forms Hydrogen gas. The rate of atomic hydrogen produced in the pipeline is directional proportional to the corrosion rate. Therefore, when the corrosion rate changes inside the pipe as a result of corrosion inhibitors or change in environment (upset in the process or a new well) so does the production of hydrogen gas on the outside of the pipeline. With our monitor you can measure the effectiveness of your inhibitor programs in remote areas along the pipeline and help your company in meeting the new regulations requiring you to prove your inhibitor film effectiveness and life. This will also help you in determining the batch frequencys of your inhibitors.*As you can see by the arrows it only takes 2 hours for an increase in the production of atomic hydrogen to flow through the pipe or vessel wall and increase the pressure inside our vessel. Since we take 1 measurement every day, we can show the increase in corrosion before the pipeline or vessel is damaged. An other example of how fast the atomic hydrogen can flow through the steel is if we had a pipeline that was inch thick at 10C it would take between 6 8 hours for that atomic hydrogen to flow through the steel wall.*Above is a table that shows a broad range of environments where our TXINS cap will work.*InstrumentationVessel with known volume under vacuumPressure MonitorTemperature gaugeData LoggerCommunication: Satellite, cellular or manualReporting, variable reporting that can be downloaded from the internet via a password**The first event was after Company X acidified a well and the acid was brought back up. Company X then flushed/ pigged the lines to remove all the acid and water in the line, however about two weeks later more acid came out of the well and settled in a low lying area of the pipeline where our monitor was, Due to the increase in pH of the water and the breakdown of the inhibitor our monitor showed an increase of corrosion. The company then pigged this 6 inch line and found an extra 55 drum of acidic water had come up out of the well and was trapped in the low lining areas of the pipeline. Without our monitor this acidic water would have just been left there until there next pig run.*This was an other situation where a company was doing work on one of there wells, the beginning of the graphs shows a relatively flat line showing general corrosion for over 6 months. Just after the well was worked on the Hydrogen monitor showed and increase in corrosion to the point were we re-evacuated it. The company keep tell us that there was something wrong with our equipment so we keep going back to the site and checking for leaks and re-evacuating it. We did this re-evacuation numerous time until they finally ran a pig and found 155 barrels of water in this line. The water was tested and found to have a pH of 3, without our monitor showing an increase in corrosion this acidic water would have been left in the line again. This was one of our first installations so we were not sure what was happening, thats why we doubted our selves at first and keep going back to re-evacuate.*This graphs shows the average vacuum or pressure increase per day based on the previouse graph between evacuations. As you can see the corrosion rate differed between evacuations and the most dramatic event was Sept 19 21.*Real time data - Early warning indicator of corrosion programs effectiveness Records corrosion events as they occur Non-intrusive No interruption to operation or infrastructure during installation Low maintenance Minimal service/ depending on corrosion rates the vacuum can last as long as a year or more before the site has to be revisited Remote capability Downloads & reports accessed via Internet. Receive your reports and data from each site at your office Coordinate corrosion programs- by indicating when and where the increased corrosion rate began

*Read Slide*Read the first two bullets.Third Bullet Each system has to be looked at individually, no comparison can be made between different lines due to no internal environment are exact. Therefore, no two corrosion rates are the same.*Standard Satellite Unit $12,500us/unit-discounts available on purchase of multiple unitsRemote Satellite data collection and download of data at competitive rates $75/month/unit- Discounts available on multiple units in operationRemote Cellular data collection and download of data at competitive ratesInstallation costs will vary as a result of location and number of units to be installed*Yes, even in sweet gas environments there is corrosion, no gas environment is 100% free from corrosion. Due to the sensitivity of the hydrogen vessel we can detect even the smallest amounts of hydrogen flux generated by corrosion. The placement of the cap is crucial to its success in monitoring these systems. In Sour services the effect of the hydrogen flux through the steel substrates are more dramatic then in sweet gas services.

*A2: No, Hydrogen flux is not influenced by pressure, the hydrogen being monitored is a result of the corrosion process and the diffusion of the atomic hydrogen the steel wall.A3: Internal temperature fluctuations have very little effect on the accuracy of the TXINS monitor because the cap is non-intrusive and is attached to the outside wall of the vessel, pipeline, railcar etc. Fluctuations of the internal temperature will have an effect on the corrosion rate of the internal environment.

*A4: Yes, Due to the large area and proper placement of the TXINS cap, monitoring of these types of environments can be successful. Also we have to remember that there are numerous factors that influence corrosion from micro-organisms , organic/in-organic acids, pH of the liquids and gases, cathodic de polarization, aerobic and anaerobic bacteria etc.

*A6: Yes, in theory there should be no corrosion to be monitored. However, when this internal system begins to fail the monitor will indicate this failure first and inspection and corrective actions can then be scheduled.

*A8: Yes, Due to the sensitivity of the monitor it will show you the difference in the corrosion rate as a result of the injection of the inhibitors. It will also show you the effectiveness of the inhibitor even when the line is out of service, and help in determining the batch frequencies of the corrosion inhibitor.

*A10: No, the TXINS monitor will not work in environments that are highly oxygenated or open to the atmosphere.A11: Yes, hydrogen flux still occurs in high pH environments like amine services. It has been theorized that the formation of a thin film of iron compounds are responsible for the creation of hydrogen flux as a result of corrosion.