industrial gas installation directive

State of IsraelMinistry of National Infrastructure, Energy and Water ResourcesNatural Gas Authority

Industrial Gas Installation Directive(IGID)

Prepared for

Natural Gas Authority

Qiryat Hamada 6POB 45140

Jerusalem 90451

Prepared by

Parsons BrinckerhoffBeit Bareket 1

Airport CityPOB 1032

Airport City 70100Israel

www.pbworld.comState of Israel

Ministry of National Infrastructure, Energy and Water ResourcesNatural Gas Authority

Revision History:

Revision #DateReason for change01.2.09Initial draft12.3.09Review with comments222.3.09Review with comments36.4.09submitted to NGA419.11.09submitted to NGA508.08.10Add'l comments in section 1.4, 6 & 7610.09.13General update725.12.13Add'l updates81.12.14Add'l updates

Current Revision Changes:

General updates.

Added abbreviations.

Section 1.1 Clarifications regarding the scope of this Directive and the downstream appliances/gas consumers. Section 2.5 Clarification regarding hazardous areas and the statutorical plans.

Section 4.3.1 Clarifications regarding PE certificates and compliance to SI 71555 part 5.

Section 5.1.11 Clarifications regarding supervision bodies.

Section 5.4.1 Updates regarding pneumatic strength testing.

Section 6.1 Clarifications regarding the request for gassing up letter and the request binder.

Section 6.2 - New construction completion certificate format.

Section 8.4 Clarifications regarding personnel training.

New Appendixes

2

State of Israel

Ministry of National Infrastructure, Energy and Water Resources


Table of Contents

PREFACE

....................................................................................................................... 4 SECTION 1.0 GENERAL ..................................................................................................... 7 SECTION 2.0 RELEVANT STATUTORY PLANS ............................................................ 01 SECTION 3.0 DESIGN OF THE SYSTEM ........................................................................ 12 SECTION 4.0 PROCUREMENT ....................................................................................... 20 SECTION 5.0 CONSTRUCTION ....................................................................................... 24 SECTION 6.0 REQUEST FOR GASSING UP .................................................................. 33 SECTION 7.0 OPERATIONS AND EMERGENCY.......................................................... 34 SECTION 8.0 HEALTH SAFETY AND ENVIRONMENT PLAN ..................................... 01 SECTION 9.0 QA/QC SYSTEM QUALITY ASSURANCE AND CONTROL PLAN ....... 42 SECTION 10.0 INSPECTION AND MAINTENANCE PROGRAM .................................... 43

3State of Israel


PREFACE

The NGA require all gas systems to be safe and operated within tolerable levels of individual and societal risk and maintain the integrity of gas systems throughout the design and operational life of these systems.

All gas system Owners/Operators must demonstrate their design, operational and maintenance philosophy, procedures and safe systems of work which must include identification of all hazards that may impact on the system integrity or tolerable individual and societal risk, risk assessment, mitigation measures and definition of residual risk associated with the management of each risk mitigation strategy.

EXEMPTION OF THE STATE FROM LIABILITY

The Owner/Operator bears the sole responsibility for the safe design, construction, operation and maintenance of the system and shall implement the required procedures, means and methods assuring that the system integrity is maintained throughout its design life.

Approvals issued by the State of Israel to the Owner do not impose any liability on the State of Israel and/or its representatives and will not be used as cause for prosecution or legal action against the State of Israel and/or its representatives by the Owner or a third party.

In the event that the State of Israel and/or its representatives are to compensate any party due to any act or negligence by the Owner, the Owner shall indemnify the State, and/or on its representatives, accordingly. The Owner will bear all legal and other expenses of the State, if any, with respect to such indemnities.

For the avoidance of any doubt, it is hereby clarified that approvals issued by the State of Israel do not affect the powers given to the Minister, the Natural Gas Authority and the Safety Officer granted by law.

4State of Israel


Abbreviation/Definition List

ABD-As Built DocumentationAGI-Above ground installationALARP- As Low As Reasonably PossibleCA/CB-Certifying Authority/Certifying BodyCAR- Corrective action report. Issued to close out a specific NCR.Contractor- The body performing works. Deemed as the 1st party in this

documentCP-Cathodic ProtectionCS-Carbon SteelCTOD- Crack Tip Opening DisplacementDeviation- Deviation from the code requirements.EMP-Environmental Management PlanHAZ-Heat Affected ZoneHAZID-Hazard Identification StudyHAZOP-Hazard & OperabilityHDD-Horizontal Directional DrillingHSE- Health, Safety & EnvironmentIGID- Industrial Gas Installation DirectiveITP- Inspection and Test PlanMIP-Maximum Incidental PressureNCR- Nonconformance report detailing a non-conformity to the design

requirement or a procedure.NDT-Non Destructive TestingNGA-Natural Gas Authority- IsraelOPM-Operating ManualOwner- May be the owner and/or operator and is deemed as the 2nd party in

in this documentP&ID- Process and instrumentation diagramPE-PolyethylenePFD-Process flow diagram(W)PQR- (welding) Procedure qualification record

5

State of Israel

Ministry of National Infrastructure, Energy and Water Resources


QA/QC- Quality Assurance / Quality Control

QP-Quality Plan

SAT-Site Acceptance Test

SCADA- Supervisory Control And Data Acquisition

Shall- Indicates a mandatory requirement

Should- Indicates best practice and is the strongly recommended/preferred

option

SIL-Safety Integrity Level

SMS-Safety Management System

TABA- City Wide Outline Plan for Natural Gas

Statutory-TABAs, VATAL's, Building Permits etc.

Plans

TPI- Third Party Inspection Body. Deemed as the 3rd party supervision

body in this directive

WPS-Welding procedure specification

6State of Israel


SECTION1.0 GENERAL

This document shall be known as the Industrial Gas Installation Directive, hereinafter entitled the IGID. The scope of this document takes into consideration the upstream boundary limits from the NG provider up to the first isolating valve in the appliance skid (Boiler, Gas Turbine, Kiln or other facility). Therefore, it is considered that this valve is the downstream boundary limit and therefore shall not be included in the design package. Please see the diagram attached to the end of this section.

Until further notice, all design, operational, safety and integrity matters related to the downstream gas appliances and their installation environment e.g. boiler house etc. shall be assessed and approved by the Standards Institution of Israel (SII).

The IGID shall be supplementary to the relevant statutory plans (TABAs,

VATAL's, Building Permits etc.), the Natural Gas Law, Safety Decree and other relevant regulations, and shall be read in conjunction with them.

The relevant statutory plans shall be in place and sanctioned independent of the IGID. The IGID provides more detailed specification of some of the requested information necessary to obtain NGA approval for the design, fabrication, installation and operation of Industrial Gas Installation system.

The standards relevant for the IGID are the EN 15001 (series) or the ASME B31.3 (Latest Editions). Hazardous Area Classification shall be carried out as per the requirements of the IGEM/SR/25 or the EN 60079-10. Buried sections of PE pipe shall be designed as per the requirements set by the SI 5664 Part 3.

In case of conflict, the relevant statutory plans and the Natural Gas Law and/or Safety Decree shall govern over the IGID.

7State of Israel


The general objective of the IGID is to present instructions and guidelines required by the Natural Gas Authority (NGA) to the supplier, Owner or Operator (herein, owner) of an Industrial Gas Installation system, with the intention of assisting the applicant obtaining required, necessary permits.

The IGID is applicable to the planning, designing, fabrication, constructing, operating and maintaining of an Industrial Gas Installation system and does not address local and regional permitting.

Owner shall be in full compliance with the IGID. When in full compliance with the requirements of the IGID and all other specific requirements made by the NGA, the NGA will submit written confirmation of compliance to the required Regional Planning Committee.

Once written confirmation has been submitted by the NGA to the Regional Planning Authorities, the owner may continue to apply for the required building permits ( ).

Owners compliance with the IGID shall be verified with the NGA through the ongoing process, as described below. Only upon completion of this process will written approval be submitted, as described in section 1.8.

Owner shall bear all costs associated with Owners compliance with the IGID and application for permits. The NGA shall not bear any commercial or other responsibility related to Owners successful or unsuccessful compliance with the IGID and application for permits.

The NGA shall be the custodian of the IGID. The Owner shall be obliged to obtain the latest version of the IGID inclusive of all its supplements, addendum, etc., from the NGA

The purpose of the IGID is to create conditions for the safe and efficient development and use of an Industrial Gas Installation system in accordance with Israeli governmental law and policy.

8State of Israel


Before Owner can install and subsequently operate an Industrial Gas Installation system, the Owner shall apply for a permit and such permit shall be granted prior to commencement of any installation related activity. The IGID provides guidelines and instructions for Owner to follow in his application procedure for an installation and operating permit.

Exemptions to the IGID may be granted by the NGA only upon written request by Owner and subject to agreed restrictions and conditions. Such agreed exemption shall carry NGA signature. Exemptions to the IGID shall be considered on a case-by-case basis and a given exemption can be withdrawn if:

The data furnished by Owner to obtain it appear to be incorrect or incomplete to the extent that the exemption would not have been granted if the actual data had been known at the time the decision was made.

The circumstances on the basis of which it was granted have changed to the extent that the exemption would not have been granted if the altered circumstances had existed at the time the decision was made.

It cannot be maintained in case a safety hazard develops out of it.

It appears that one or more conditions, under which it was granted, are not complied with.

9State of Israel


Scope of the Main NGA Directives:

10State of Israel


SECTION2.0 RELEVANT STATUTORY PLANS

The design, procurement, construction and operations of the system shall fully comply with the relevant statutory plans instructions (TABAs, VATAL's,

Building Permits etc.), as applicable.

The owner shall verify if more than one statutory permit is applicable to the segment.

The designer shall provide a statement in the design package (as described below) that the design conforms to the relevant statutory plans. Should this not be the case, the designer shall list the non-conformities.

A detailed risk assessment shall be carried out on each Above Ground Installation (AGI).

Any hazardous areas generated by the gas system shall not extend beyond the approved statutorical plan and/or the factory fence.

8

11State of Israel


SECTION 3.0 DESIGN OF THE SYSTEM

3.1 Schedule

As an essential part of the preparation of the design, the Owner shall prepare a detailed schedule providing data on all aspects of the planned project development including but not limited to design, procurement, manufacturing, fabrication, installation, testing and commissioning aspects. This data shall include:

Description of all key activities in logical sequence

Early and late start of these activities

Early and late completion of these activities

Scheduled or available float in all activities

Interfaces with third parties

Milestones

Target dates for obtaining permits

Contingencies and mitigation measures in case of conflicts

This schedule shall take into account the review process of the NGA, as described below. This schedule shall be submitted to the NGA periodically during the life of the project.

This planning stage shall be accompanied by a revision track record that provides information, background of schedule changes and mitigation measures in case schedule changes might create conflicts.

Detailed Design

The Design shall make reference to the relevant statutory plans and shall provide more detailed information complementary to the requested information therein.

12State of Israel


The design shall provide a complete and comprehensive summary of all design related data and criteria applicable to the proposed Industrial Gas Installation system such as:

Reference to the design code stated in section 1.4, guidelines, technical specifications and all addenda to these.

Relevant engineering decisions, their rationality, choice of design related parameters and any other variables having impact on the design.

Software used for design and analyses.

Decisive design factors derived from the route survey, environmental, corrosion and protection philosophy, specific operating criteria, required lifetime for the pipeline, etc.

Code deviations will not be accepted by NGA.

This design should include a description and drawing that shows the boundary limits of this project. These boundary limits should note the upstream provider as well as the downstream owner (as applicable).

The scope of the NGA review takes into consideration the upstream boundary limits from the NG provider up to the first isolating valve in the appliance skid (Boiler, Gas Turbine, Kiln or other facility). Therefore, it is considered that this valve is the downstream boundary limit and therefore shall not be included in the design package.

The design shall be carried out by a recognized, competent, design organisation to assure its robustness. If designed by a local design house, the design shall be approved by a foreign design company with the appropriate experience and track record in the design of similar systems or an international expert with the appropriate qualifications and competencies.

13State of Israel


To support the design, Owner shall conduct a detailed route survey of the proposed system, on both sides of the theoretical centerline of the pipeline corridor as well as around any above ground system facility, (e.g. block valve station, PRMS, etc.) which shall provide the following data along the route:

Land use limitations (as per the relevant statutory plans).

Surface topography.

Location of any infrastructure facilities, infrastructure lines, (i.e. Overhead and Buried High Voltage Infrastructures, below ground pipelines) buildings, above and underground structures, etc.

The data obtained from this survey shall be evaluated and utilized in the decision making process regarding optimization of the proposed pipeline route and or gas network within the plant and be taken into consideration for the pipeline design, particularly taking into account possible hazards to the NG system due to the surrounding areas.

Above ground installations such as an inlet valve station or a PRS etc. shall be fitted with a sunshade.

The detailed design shall include the following items that firmly establish the system parameters, installation and operating criteria and limitations:

List of design personnel names, roles and initials.

Basis of Design Document which include the following, but not limited to:

oProject specific introduction.

oOverall design philosophy and statements of code compliance.

oA list of the codes applied and the precedence code.

14State of Israel


Design pressure and operating pressure ranges. The MIP shall be lower than the design pressure.

Design and operational temperatures. Design temperatures shall be at least -10 to +50 degrees C for buried Carbon Steel pipe and -10 to +65 degrees C for

above ground Carbon Steel pipework. PE pipe design temperatures shall be chosen as dependent on the allowable MOP and the provisions of SI 71555.

Pipe diameters, Material grade (composition, choice of material etc.), flows and velocities. Flow velocities within the scope of the IGID shall be limited to 20 m/s.

oThe Pipe and Valve Specifications used.

Protection system against over pressurization and the system's Safe Operating Limits and coordination with the upstream supplier.

oP&ID and PFD indicating the battery limits.

All tie-in interfaces between the upstream provider (INGL or the Distribution Companies) and the inlet valve station shall be above ground and flanged.

Isolation Joints and/or Isolating Flange Kits shall be installed above ground. Isolation Joints shall be installed in

the Horizontal position only.

The plant inlet valve station shall be equipped with a Fail Close remotely operated valve, a pressure indicator transmitter. A temperature transmitter shall be considered by the designer based on the upstream equipment and supply conditions. The inlet valve station shall not be

visible from the public domain.

oWall thickness calculations at least 1 mm of corrosion allowance is required by NGA.

Design drawings, Isometrics and an aerial photo (Tatza) with the pipe route, valve station, gas consumers etc.

superimposed.

oHazardous area classification report and drawings for the

NGA scope.

15State of Israel


oVentilation assessment of any enclosed spaces.

oHAZOP.

oHAZID.

oSIL Assessment, if applicable.

oCorrosion protection measures. (Corrosion coating, CP,

impressed current).

oPipe depth of cover shall be at least 1.2 meters.

PE to CS interfaces details and drawings. The transition fittings shall be installed at or close to the buried pipe level

and the buried CS section shall be cathodically protected. o Geotechnical report.

oRisk assessment which considers the upstream supplier's skid (when applicable) with an A2 or larger drawing detailing the calculated distances superimposed on the plant layout and fence.

Fire and Gas assessment and mapping. Any pit, building or room containing a gas piping installation has to be ventilated to prevent the accumulation of gas such as could occur from minor gas escapes and achieve the desired hazardous area zone type required.

oElectrical basis of design and drawings.

o Control and Instrumentation basis of design and drawings. o Earthquake design.

oPipe support calculations.

oSpecific HDD Design, as applicable.

Protection measures (burial, backfill, concrete coating, saddles, vehicle crash protection etc.)

Installation criteria and limitations i.e. code allowable stress limitslevels and stress control during all phases of

the pipeline design, installation and operational activities.

Stress analysis using commercially proven software, such as Autopipe or Caesar II, which considers the influences of the upstream and downstream pipeline stresses on the AGI stress analyses.

16State of Israel


The submitted stress analysis files for design review shall include the following:

Input echo file with the geometry and restraints applied, materials, process data used e.g. T1, P1, soil

stiffness values (taken from the soil report) etc.

Load case table (Sustained, Expansion, Occasional, Operational, Hydrostatic and Fatigue). Electronic copies of the output files.

Restraint summary report inclusive of the forces and moments at each support type. Code compliance summary report.

Stress isometrics generated by the software.

Pressure Test Plan which shall include the following:

A table containing the various test sections (numbered and color coded), design and test

pressures, test medium and test duration.

General Arrangement Drawing or Pipe Isometrics indicating the highlighted test sections in color and

cross referenced with the table detailed above. Only one golden weld is permitted.

The detailed design package shall be signed and approved by the designer, the international design firm, or an international expert, and the owner.

The designer shall provide a statement that approves that the design meets the requirements of the design code as found in section 1.4 as well as the relevant statutory plans.

The Owner shall provide a statement approving the above as well and stating his readiness to own and / or operate this line in a safe manner.

17State of Israel


Pressure reduction from high pressures (over 16 barg) to low pressures shall be carried out by the upstream supplier and by the factory.

The design of a system which includes any gas compressors, either within the NGA scope of as part of the gas appliances, shall be coordinated with the upstream supplier to avoid any disruption to the upstream network or existing gas infrastructure in the factory. Any mitigation means against such effects shall be detailed in the design.

Provision of the Package

The owner shall provide the NGA with three color copies of the design packages, during regular office hours, as well as three CDs that include all documents found in the hard copies.

Office hours for submitting design packages and other material are 09:00 - 15:00 on weekdays.

The NGA Review Process

The NGA shall review the design for content and shall be allowed to reject the design out of hand, should the package quality not meet the required high standards.

In the event that the package is rejected as such, the owner shall have the right to reissue the package upon revision as described above. This reissuance shall include a specific table of changes made to the package that will assure that the package is robust. This revised package shall also be approved by the experienced and independent international design firm prior to submission for NGA review.

Upon initial acceptance of the design package, the NGA shall carry out a design review and issue an approval or design comments. These design comments will be provided in a tabular format to the owner for response.

18State of Israel


Responses to these comments shall be provided to NGA within the table format to assure tracking of the comments. Revised documentation shall be provided in the format as described above.

The tracking of this design review stage shall be carried out strictly through the table and therefore, it is advised that a highly detailed response be provided within the table along with a specific mention of the location of the document within the revised package.

Upon conclusion of the review, a final revised design package shall be provided, as per the method described above.

The final design package shall be signed and approved by the designer, owner and the international design organization employed.

The NGA shall provide the design approval for this package upon completion of this review as well as other requirements of the NGA described elsewhere.

19State of Israel


SECTION 4.0 PROCUREMENT

Manufacturing of the System

Based on the approved design package, the owner shall begin to carry out the procurement process.

The Owner shall obtain all materials from reputable suppliers with proven track records.

Owner shall establish acceptance criteria associated with suppliers and demonstrate that these are met through conducting a pre-qualification process.

This process of approval by the owner shall be fully documented for the possible audit by NGA.

Procured pipes shall be hydrostatically pressure tested at the mill.

Procured valves shall be API 6D compliant. Ball valves shall be of a solid ball type. The UK HSE HSG 253 (the safe isolation of plant and equipment) document shall be used for determining the type of valves intended for use.

The use of unlisted components is not permitted in ASME B31.3 systems.

Lawful code

Line pipe and pipeline components shall be specified in compliance with lawful codes and NGA approved specification. Before commencement of any manufacturing, fabricating or procurement, the NGA and Owner shall have agreement on the material specification, the manufacturing process and the QA/QC plan in place to assure compliance of the materials with the specification and codes in place.

20State of Israel


Certificates

4.3.1 PE

Each pipe and fitting shall have relevant documentation proving manufacturing, inspection and test certificate to the applicable code which shall be presented to the NGA or its appointed representative for final acceptance. The Owner shall verify that all welded components meet with the requirements of SI-71555 part 5.

4.3.2 Steel

Each completed pipe or part (e.g. bend, T, valve etc.) shall have its own unique manufacturing, inspection and test certificate which shall be presented to the NGA or its appointed representative for final acceptance. Components on high pressure systems (above 16 barg) shall be supplied with an EN 10204 3.2 inspection certificate. The project independent third party shall accept the definitive material certificate by signing off the original documents. The certificates of components fabricated/manufactured from other certified parent components shall be provided with the certificate of the parent component.

Traceability

4.4.1 PE

Each PE pipe and fitting shall have a fully traceable history of its manufacturing process and acceptance testing.

4.4.2 Steel

Each pipe or part shall have a fully traceable history inclusive of its base plate certificate and all steps of its manufacturing process and acceptance testing.

21State of Israel


Material Specification

4.5.1 PE

Material specification for PE pipes and fittings shall be in accordance with the applicable codes.

4.5.2 Steel

The Material Specification shall provide details for the manufacturing method, limitations, acceptance and rejection criteria, inspection method and the material traceability method, of the following related elements (as applicable):

Bare Line pipe

Line pipe corrosion coating

Line pipe weight coating and/or protection coating

Anodes

Line pipe bends

Flanges, Tees, valves and any other components

Corrosion coating for Flanges, Tees, valves and any other components

As a minimum, the following data shall be verified:

Chemical composition of base materials in compliance with chosen material grade.

Mechanical properties of base materials based testing as per the relevant code.

Destructive tests may include: tensile testing (longitudinal and traverse), fracture toughness, hardness (Charpy V, CTOD), lamination detection, bending, etc.

Mechanical properties of all welds inclusive of HAZ.

Mechanical properties after bending, forging, heat treatment, forming of base materials.

22State of Israel


Corrosion sensitivity of end product. Accelerated corrosion testing of weld, HAZ and base material sample.

Dimensions.

Measurements of wall thickness, pipe straightness, pipe body ovality, pipe end ovality.

23State of Israel


SECTION 5.0 CONSTRUCTION

Construction of the system

Upon completion of the above items, the owner may commence with the construction document's submittal. NGA will review and provide comments to the issues stated above. Owner shall provide response to these comments in a timely manner. No construction activity should take place prior to resolving all comments to the satisfaction of NGA. The construction procedures review process may be timely and should be taken into account when developing the schedule. 60 days prior to construction the owner will provide the following information:

Quality Management System procedure

The Owner shall be responsible to supply the NGA with a detailed Quality Management System Plan. This plan shall be assessed by the NGA on its safety aspects through a formal and systematic review of the installation plan with the objective of hazard identification and execution concerns. The plan shall provide full details of the pipeline installation aspects with emphasis on management of personnel safety and pipeline integrity control during all phases of the installation. Procedures shall be developed for all specific installation aspects such as the pipe laying, pipe burial, pressure testing etc. The procedures shall noticeably address how human safety and pipeline integrity are managed through all steps of the installation, how this is monitored and judged.

Spread Supervision Procedures

Spread Supervision procedures shall include a description of the project that is to be carried out as well as the roles and responsibilities of each supervisory entity in the project.

24State of Israel


Inspection and Test Plan

Inspection and Test Plan shall include specific construction actions and the inspection and supervision coverage that is required by each entity on the project, inclusive of the contractor and supervisory bodies. A definition of each method of coverage should be included to assure that the definitions are fully understood by all parties.

Organogram

Organogram shall include the role of each person on the project inclusive of the contractor's personnel as well as the supervisory staff's.

Schedule of project

As an essential part of the preparation of the design, the Owner shall prepare a detailed schedule providing data on all aspects of the planned pipeline development including but not limited to design, procurement, manufacturing, fabrication, installation, testing and commissioning aspects.

Risk Assessment for construction

Risk Assessments shall include any risks that may arise during the construction phase. This may include but is not limited to personnel risk, equipment risk, material risk, and environmental risk.

Construction Procedures

Construction procedures shall include a detailed process for each and every construction action that is expected to take place on the project. These include, but not limited to, the following procedures:

Welding and Inspection QA plan.

Welding consumables handling procedure.

25State of Israel


Polyethylene Butt welding and Electrofusion Visual Inspection Procedure.

Painting procedure.

Coating procedure.

Holiday Detection procedure.

Pipe and Fitting Alignment procedure.

Excavation and Trenching procedure.

Lowering Procedure.

Backfilling procedure.

Stringing procedure.

Pipe and Fitting Site Storage.

Receiving, Transporting and Piling of Pipes and Fittings procedure.

Site Acceptance procedure.

Pipe and Fitting Identification and Traceability procedure.

Change Control procedure.

Document control procedure.

Pressure test procedure.

Drying and cleaning procedure.

WPS, PQR, welder qualifications and NDT Examination for the project

Owner shall develop, test and implement approved welding and NDT procedures for all of the welding of the pipeline in obedience of the lawful codes and the requirements of the design code, stated in section 1.4, augmented with the additional requirements to be detailed in a project specific specification.

An independent Certifying Body shall verify compliance with the codes for all phases of the weld procedure development inclusive its mechanical and chemical testing. The NGA or its representative shall have the right to witness the welding qualification process.

The WPSs shall not be written by the 3rd party supervision body used in the specific project.

26State of Israel


Welder's qualifications and PQRs shall be performed to the specific WPSs issued for the project.

Owner shall apply a strict material traceability record of all base material, weld consumables and test coupons identification and verification procedures. Similarly Owner shall apply strict recording of the applied welding parameters including the WPS used and the welder number. The approved welding procedure shall have been signed by independent Certifying Body and supplied to the NGA for review.

Each welder or welding machine operator shall be qualified in accordance with design code requirements prior to the start of production welding by making a test weld using the qualified welding procedure whereas Owner shall assure that only qualified welders and welding operators are employed during the welding of the Industrial Gas Installation.

Production welding shall not commence until the qualified welding procedures, qualified welders and qualified inspection personnel lists have been reviewed and supplied to the NGA and satisfy the inspection requirements of the independent third party.

All CS pipeline and station welds (100%) shall be non-destructively examined. (NDT) Weld quality shall be in accordance with design code requirements.

NDT shall be carried out to written procedures, which shall be submitted to the NGA or its representative prior to the commencement of the work and shall be reviewed and accepted by independent third party certifying body.

Owner shall submit detailed procedure and technique sheets for NDT examination signed off by independent Certifying Body for approval by NGA prior to the start of production.

27State of Israel


Electrical and Instrumentation Procedures shall describe the method of construction of these systems.

The Cathodic protection procedures shall describe the methods of installation of the CP system to assure that the system is protected both temporarily and permanently as per the requirements of the approved design.

Specific Construction and Supervision Requirements

The Owner shall employ piping contractors certified to ISO 3834-2.

The Owner shall employ the services of a

supervision body to operate on his behalf (2nd party supervision) to supervise all aspects of construction i.e. mechanical assembly works, welding, civil works, control and instrumentation CP etc. and to issue reports accordingly. All personnel performing these supervision activities shall be certified, experienced and competent to perform their respective tasks and duties. All welding inspectors shall successfully complete an NGA approved Welding Inspector's course.

The Owner shall employ the services of a third

party supervision body to oversee specific key items in the project, as per the ITP, and to issue a final inspection certificate and report. The inspectors performing these inspection activities shall be directly employed and approved by the 3rd party supervision body to perform their specific tasks in their respective disciplines. The third party supervision body, or inspectors on their behalf, shall not be hired by the owner as a consultant in the project.

Supervision activities shall be carried out by the Contactor, 2nd party and 3rd party, as per the

approved ITP. The presence of a certified welding

28 State of Israel


inspector on behalf of the 2nd party supervision body is required during all welding activities.

The NDT contractor shall be employed by the Owner.

Re-repairs of carbon steel welds are not allowed.

Unless otherwise required by the applicable standard or asset owner, a cut-out and inspection of a minimum of one production weld shall be carried out during the course of construction (two, one from each system, if both PE and CS piping are used). Additional welds shall be cut out for testing as per best practice and the results of the testing of the first production weld/s cut out.

NGA Supervision

The NGA will visit the project over the course of the project and review issues such as mechanical works, welding works, NDT, CP and Electrical, Control and Instrumentation.

Contact between the third party agency and the NGA should be open and independent. The reports of the third party agency shall be provided to NGA for information, as needed.

The owner shall provide the supreme supervision reports written by the designer.

Owner shall routinely update the NGA with regards to the project schedule and the foreseen upcoming construction activities.

In the event of a significant design change, the owner shall provide a design change with the revised drawings/documentation to the NGA for review and subsequent approval.

29State of Israel


Notification to the NGA

The Owner will provide NGA with notification of the following activities at least 72 hours in advance. NGA will have the option to attend these actions as appropriate.

Welding of sample for WPS approval.

Destructive tests at a certified lab.

Approval of welder's to the WPS.

Commencement of mechanical construction activities.

Completion of 30% of the project.

Completion of 75% of the project.

Pressure testing (strength, tightness).

Function testing and SAT.

The Owner shall notify NGA if the repair rate of welds exceeds 5% during any stage of construction.

Testing and Commissioning

Owner shall conduct and successfully complete pressure strength and tightness testing before taking the system into service. The testing shall only be initiated after all construction activities inclusive any remedial work, have been successfully completed and the body, as a whole, shall no longer be subjected to any loading, displacements, other than those for normal operating.

Pressure testing of the complete system shall be carried out to meet with the minimum requirements of the precedence code and the approved test procedure.

IGEM/UP/1 shall be used as a guidance document when determining the test acceptance criteria, appropriate safety distances, strength and tightness test durations etc. It shall be emphasized that the minimal requirements set by the precedence standard shall be met. Please note that UP/1

30State of Israel


infers that the Maximum Operating Pressure is to be taken as the Design Pressure.

It is acceptable to pneumatically strength test at test pressures not exceeding 6 barg providing a satisfactory risk assessment has been carried out and the constraints on pipe diameter required by IGEM/UP/1 are satisfied.

Pneumatic tightness testing is normally executed in after the strength test whereby the tightness test pressure is lower than the strength pressure. A pneumatic tightness test is permitted after the successful performance of a hydrostatic pressure test, as per the

provisions of IGEM/UP/15.4.2 Owner shall develop and present to the NGA a detailed pressure test procedure based on the designer's pressure test procedure submitted during the design stage. NGA reserves the right to review the test specification and to request for changes and/or amendments, before pipe testing begins.

The agreed Test Specification shall be accepted by the independent third party certifying body and designer and shall contain as a minimum the following key criteria:

Testing criteria to meet inclusive settings, allowable margins.

Test rejection criteria.

Remedial action in case that the test fails.

Following the completion of the hydrotest, the owner shall provide the NGA with an acceptance of hydrotest certificate as well as back up documentation that includes:

Pre-hydrotest checklist.

Pressure test report.

Filling reports.

Equalizing reports.

Gauging reports.

Table of pressures.

31State of Israel


Graphs of pressure and temperature values.

This certificate shall be approved and signed by the contractor, the supervision team on behalf of the owner and the third party agency.

As built Documentation Provision

The Owner shall supply the NGA with two hard copies and two electronic copies of the As Built Documentation (ABD). The ABD shall encompass as-manufactured, as-built and as-installed data of the completed pipeline system and all its parts. This includes but is not limited to:

All line pipe-manufacturing records, approved and signed by a recognised and by the NGA accepted independent Certifying Body and procured from pre-qualified known manufacturers.

Inspection and acceptance certificates of all associated materials such as flanges, elbows, anodes, valves, etc., signed by a recognised and by the NGA accepted independent Certifying Body and procured from pre-qualified known manufacturers.

WPSs, PQRs and WPQRs.

All welding and NDT records of welds. All RT films shall include the letter 'B' for Backscattered Radiation control.

Pipe log book and a daily welding log book.

All inspection and test reports of the field joint coating.

All other construction reports pertinent to the system.

As laid co-ordinates of the pipeline and stations on the original design layout.

As buried data of the buried pipeline and station sections with confirmed depth of cover.

Civil engineering as made documentation.

Cathodic protection as made documentation.

Electrical and instrumentation and loop diagram as made documentation.

32State of Israel


SECTION 6.0 REQUEST FOR GASSING UP

Request Requirements

Upon completion of the construction and testing stage, the owner shall issue a formal request for gassing up to NGA. This request will include the following items:

A formal letter addressed to the NGA requesting approval to gas up the system for the purposes of hot commissioning. This letter should clearly define the system which is under request, list all of the parties involved, system diagram or highlighted P&ID with the battery limits, design and operating conditions of the system and confirmation that the system complies with all code requirements, ready for gassing up and safe up to the design pressure.

Construction Completion certificate (see Appendixes 2 and 3) signed by the contractor, the supervising company, the third party agency, the owner and other relevant supervision. This certificate should base its approval of completion to the design code stated in section 1.4.

The owner shall provide the letter he receives from the or upstream provider stating the readiness to supply gas at the relevant pressures, quantities, flows, etc.

Operation, Maintenance and Emergency procedures.

Pressure test results and approvals inclusive of mechanical completion checklist that was issued prior to the pressure test commencing.

Cold Commissioning Checklist when the system includes an AGI such as a PRMS, PRS, Metering Station etc.

A copy of the building permits.

List and approved copies of all NCR/CAR/ deviation reports.

Full As Made Documentation in separate binders.

The final inspection report issued by the 3rd Party Supervision Body.

33State of Israel


Construction Completion Certificate

Upon completion of all work and documentation, the construction completion certificate detailed in Appendixes 3 and 4 will be provided to NGA.

Any request for concession from the above language shall be raised, in writing, to NGA.

NGA Review

The NGA shall review the documentation provided for the above items and will provide comments and request clarification as necessary. Owner shall allow for sufficient time for NGA review of these items.

Provision of Gassing up permit

Upon fulfillment of the requirements of this chapter, NGA shall provide a gassing up permit to the owner for the initial startup phase.

34State of Israel


SECTION 7.0 OPERATIONS AND EMERGENCY

Procedure Details

The owner shall prepare a copy of an emergency and operations procedure that will be reviewed by NGA.

The emergency procedure will take into account the natural gas facilities in the premises as well as any potential mutual influences possible from other, nearby gas works and/or other infrastructure in the area. This plan shall provide all possible emergencies related to the operation of an Industrial Gas Installation system.

Owner shall identify and classify emergencies and their consequences on HSE.

For all cases Owner shall analyze the short term and long term effects of such emergency and the response to the occurrence.

For each type of emergency, Owner shall have a pre-established response and effect mitigation plan with the objective of avoiding or, at least, limiting the negative effect on HSE. To accomplish this Owner must demonstrate to the NGA that an effect mitigation / limitation philosophy is in place, that a personnel rescue and evacuation procedures is in place, that associated spare/repair materials are in stock, that specialist contracts are in place, that repair and clean-up procedures are developed, etc.

This emergency procedure will also include a valve by valve opening and closing status to assure proper closure in the event of an emergency.

The owner shall prepare a copy of the operations procedures that will

include venting, gassing up, start up, restart and operations, and commissioning and decommissioning procedures (air to N2 to NG and NG to N2 to air) and will include specific valve maneuvering and

assurances of safe practices on site. Valve maneuvering tables shall

35State of Israel


be prepared that clearly note the status of each and every valve during the operation to assure safe practices. These tables will provide for signature of at least two people for each and every maneuvering action of valves.

The operations manual shall provide more detailed and specific information applicable to the Industrial Gas Installation system, complementary to the requested information therein.

The operations manual shall address the following topics:

Steady flow operating conditions of the pipeline

Planned shut-down of the system

Unplanned shut-down of the system

Planned re-start-up of the system

Emergency shut-down and blow-down

Corrosion management

Inspection and maintenance

For the above operations, Owner shall develop detailed procedures, inclusive of step-by-step description of necessary actions, plans, drawings, signs, manpower requirements, organisation, names and contacts.

System Final Approval

Upon successful completion of the hot commissioning of the system, and completion of the necessary adjustments to the downstream systems and appliances the owner shall provide a request for a permanent approval and a "completion of hot commissioning and transfer to normal operations" certificate to the NGA as per Appendix 1.

36State of Israel


SECTION8.0 HEALTH SAFETY AND ENVIRONMENT PLAN

General safety

Health, Safety and care of the Environment are of prime importance to the NGA. Owner shall be committed to maintain a safe, healthy and injury free workplace for its employees and any person working on behalf of the Owner. Furthermore, Owner shall be committed to avoid damage to the environment.

Adherence to Procedures

Adherence to agreed procedures, work-plan, operating philosophy, etc., of all personnel is fundamental to ensuring safe and efficient working conditions. It should be stressed that the responsibility for Health, Safety and care for the Environment is the responsibility of the owner and shall be an integral part of and, is inseparable from all daily operations.

HSE Objectives

Owners HSE objective shall be to:

Provide effective safety systems and plans for managing HSE in all his operations to ensure those risks are assessed and reduced to level: As Low As Reasonably Possible (ALARP).

Properly inspect and maintain all equipment and tools.

Promote safety awareness, near miss reporting and a healthy, responsible attitude amongst all personnel.

Ensure effective emergency response arrangements, backed-up with trained and exercised personnel.

Establish and maintain clear written standards and procedures to control the risk to HSE and ensure these are adhered to

Ensure that all personnel involved, either staff or subcontractors, are competent and able to perform their tasks safely.

37State of Israel


Ensure prompt investigation of incidents and those adequate corrective actions are taken.

Promote joint consultation and lateral learning for all personnel

Provide sufficient resources for HSE advisory and audit services to assist management to meet set HSE policy objectives.

8.3.10 Co-operate with statutory and professional bodies to promote workable, practical standards and improve codes of practice and legislation in relation to HSE matters.

Training and Material Maintenance

The NGA requires that all work under supervision of the Owner shall be carried out with due observance of all legal requirements to achieve the required statutory standards for Health, Safety and Environment.

Owner shall ensure that for all parties, personnel, contractors, working on behalf of Owner, are fully familiar with and will adhere to statutory health, safety and environmental standards and regulations. The HSE-Plan shall include for regular audits, inspections, HAZIDs and HAZOPs. The NGA reserves the right to witness audits, inspections, HAZOPs, HAZIDs and if considered required, the NGA request for changes and/or amendments of the plans prior to implementation.

All gas personnel shall be trained and certified in an NGA approved course. Full compliance with the NGA FOMED directive shall be in place.

Safety Management System

Owner shall develop and implement a safety management system (SMS).

The SMS is a systematic approach to safety and health aspects in the execution of onshore pipeline installation operations.

38State of Israel


The approach must be laid down in a formal description in which it must be demonstrated that the work is organized in such a way that it can be executed safely.

The SMS relates to all phases and combination of phases involved in

installation operations.

34

The SMS must in general contain objectives relating to safety and heath:

The way it is intended to accomplish these objectives.

The standards applicable to accomplish these objectives.

The way in which observance of these standards will be monitored.

The description of the SMS should satisfy the principles of quality management as formulated in the ISO-9000 series and should contain, as a minimum, the following elements:

Safety policy and control.

Establishment of safety management evaluation criteria.

Design, safety margins, review, applicable codes.

Operations, HAZOPs, compliance with statutory regulations and industry standards, environmental limitations,

Personnel required training standards, required courses, and job selection criteria.

Supervision, required experience, job analysis, risk identification, incident and near miss reporting, accident and incident investigation

Emergency planning and drills

Items to be addressed in HSE Procedures

Disposal of chemicals used for the commissioning and conservation of pipelines such as dye, corrosion inhibitors, oxygen scavengers, biocides, etc.

39State of Israel


Any limitations to exposure to the environment of chemicals i.e. zinc anodes.

For each project installation a HSE plan shall be developed. This plan needs to address all measures taken to support safe and healthy working conditions for all personnel involved and all measures taken to avoid pollution of the environment. The HSE shall include safety training of personnel, health and safety measures related to personnel transport to and from the offshore installation sites, health and safety training and standards applied for hazardous.

The HSE plan shall provide details of and schedule for safety audits.

Environmental Responsibility

An Environmental Management Plan shall be prepared by the Owner. The EMP shall address the effects of materials, anodes, and coating on its environment. With respect to cleaning and testing of the pipeline/AGI's using inhibited water, the used chemicals shall be of a biodegradable nature. The EMP will specify all areas of possible impacts due to the construction of the pipeline and all proposed mitigation measures.

Incident reporting

Any incident occurring during the course of the manufacturing, construction, installation and commissioning phase shall be reported, by written statement, to the NGA within 48 hours of the incident. Such Incident Report shall provide a full description of the course of such an incident and the measures to mitigate reoccurrence of a similar type of incident. Owner shall maintain statistics with respect to the incidents occurring. These statistics shall be evaluated against threshold values, pre-agreed between the NGA and Owner. In case unacceptable levels of incidents take place, the NGA shall instruct Owner to re-assess his SMS and might stop all work until such re-assessment has been undertaken.

40State of Israel


Similarly Owner shall report near-misses, situations that have not caused incidents but had the potential to do so. Owner shall actively pursue near miss reporting amongst all personnel involved in the work.

Hazard Identification Study (HAZID)

Owner shall apply a structured manner in hazard identification, by conducting frequent assessments of the work. These HAZIDs shall be in the form of a meeting in which a multidisciplinary brainstorming season shall be held about the work activities, the circumstances on the work place, the human factor, etc. The end result of a HAZID should lead to identification of potential hazards, shortcomings and out of this, possible recommendation, improvements could be accomplished.

The objective of HAZID is to provide the NGA assurance that:

The Owner selected technology can be applied with confidence so as to provide a safe and operable Industrial Gas Installation system.

The manufacturing, fabrication and installation of the system can and will be achieved without unacceptable dilution of design intent.

That the Owner is adequately prepared to commission and operate the pipeline

The system is achieving an acceptable level of safe operation consistent with commercial intend.

41State of Israel


SECTION 9.0 QA/QC SYSTEM QUALITY ASSURANCE AND CONTROL PLAN

Owner shall develop, implement, maintain and report using an approved Quality System, which shall be in accordance with ISO 9000 series. Owner shall present the NGA his quality system as a document hereinafter referred to as the Quality Plan (QP). The QP shall address the measures taken to assure that all aspects of manufacturing, procurement, installation and commissioning are executed to internationally and/or domestically recognised standards and, as a minimum, to ISO 9000 series.

The QP shall include for hold points related to, witnessing, inspection and acceptance hold points by the NGA. The NGA reserves the right to review the QP and to request for changes and/or amendments, before the QP is implemented.

Upon implementation of the QP, Owner shall timely invite the NGA for witnessing the agreed hold points. It will be up to the NGAs discretion to witness these hold points.

The independent third party shall further check the quality of the work and the effectiveness of Owners quality system on spot check basis. Owner shall carry out all remedial actions as a result of such sampling.

Contractors, sub-contractors, suppliers, fabrication and installation contractors, proposed by Owner for the pipeline work, shall be reputable, pre-qualified entities. Owner shall, on request, supply the NGA information regarding the proposed entities track record, reputation, pre-qualification criteria and compliance with these, audit results. On request, Owner shall supply the list of pre-qualified entities.

The QP plan shall further include for an inspection, test and audit plan.

42State of Israel


SECTION10.0 INSPECTION AND MAINTENANCE PROGRAM

Owner shall develop and submit to the NGA a system inspection and maintenance program for the lifetime of the complete system including all sections. The inspection of the pipeline shall be internal and external.

The internal inspection shall confirm the internal pipe body integrity. The pipeline internal integrity could be jeopardized as the result of corrosion, pitting, and buckling resulting from internal or external accidental loads.

The external inspection shall confirm that the external pipeline body has not suffered from accidental loads.

External inspection shall be conducted using approved methods of inspection.

The NGA or its appointed representative shall be invited by Owner to witness the inspection.

If the inspection results give reason for concern and the pipeline integrity is considered to become a HSE concern, the NGA has the right and will request Owner to shut-down the system and to make it safe without delay.

43State of Israel


Appendix 1 Statement Regarding the Successful Completion of Hot Commissioning

44Contractor Logo

Owner Logo

Appendix 2 - Construction Completion Certificate

Project Name:

Scope:

Date:

#Statement / SignaturesOwner2nd Party3rd partyContractorDesigner

SupervisionSupervision

(Name and Stamp,(Name and Stamp,(Name and Stamp,(Name and Stamp,(Name and Stamp,

Date, Signature)Date, Signature)Date, Signature)Date, Signature)Date, Signature)

All materials have been

1fabricated and constructed

N/A

accordance with the approved

design.

State of Israel






All materials were purchased by

2Owner, or on his behalf, and

N/A

N/AN/A

supplied in accordance with

approved the design and

standards.

All welds have been checked,

3approved and accepted in

N/A

accordance with the standards

and design.

46State of Israel






4All works have been constructed

in accordance with the approved

design.

5Holiday detection was performed

N/A

in accordance to the standard.

47State of Israel






All pressure tests, dewatering

and drying of the pipeline and

6stations have been performed in

N/A

accordance with approved

procedures and the results have

been completed and accepted in

accordance with the standards.

7All Golden Welds were

N/A

performed and accepted by all.

48State of Israel






8All NCRs and CARs have been

successfully closed out.

Permanent Cathodic Protection

has been put in place as per the

9design and relevant standards

N/A

and accepted by all.

49State of Israel






All electrical and grounding

10works have been constructed as

N/A

per the approved design and

relevant specifications and are

ready for startup of the facility.

The SCADA/Control (as

applicable) system has been

11constructed as per the approved

N/A

design and relevant

specifications and is ready for

operation upon startup of the

facility.

50State of Israel






The firefighting system has been

12constructed as per design

N/A

N/A

specifications, successfully

hydrotested and is ready for

startup of the facility.

13All safety and security measures

N/AN/AN/AN/A

are in place and are ready for

startup of the facility.

51State of Israel






14Cold commissioning has taken

N/A

place successfully and accepted

by all.

The system is ready for gassing

15up as per the design and

relevant specifications.

52State of Israel






Operations, Maintenance and

Emergency Procedures are

16complete and approved, all

N/AN/AN/AN/A

operators have been trained, all

parties are aware and

knowledgeable of the

emergency procedures.

53State of Israel


Appendix 3 - Risk Assessor and Geotechnical Engineer Approvals

Statement / SignaturesOwnerRisk AssessorGeotechnical Engineer

(Name and Stamp, Date,(Name and Stamp, Date,(Name and Stamp, Date,

Signature)Signature)Signature)

All issues and recommendations raised in

17the risk assessment during the design

N/A

phase have been successfully addressed

and the system is ready for gassing up.

All issues and recommendations raised

18during the geotechnical and/or structural

N/A

assessments carried out during the design

phase have been successfully addressed in

the construction of the system.

54

industrial gas installation directive

Documents