The Pipeline Industries Guild (PIG) has awarded J P Kenny Limited the 2010 Land Based Technology Award for their work on hot oil pipelines. Heavy and waxy crudes generally have higher commercial value and therefore can provide attractive returns. J P Kenny has designed and developed a new hot oil pipeline and flowline solution based on Skin Effect Heating Management System (SEHMS) to economically transport heavy and waxy of crude oil from the field to markets. The SEHMS technology is being used to transport 180,000 bpd of high waxy crude through a buried 24” hot oil pipeline that is over 600km in length.

This crude oil contains significant quantities of wax at a wax appearance temperature (WAT) of 65°C and the crude oil gels at 50°C. The pipeline heating must maintain the oil above the WAT. As such, the crude oil is maintained above 65°C by the SEHMS system fully welded to the pipeline. This SEHMS powered by a parallel 8” fuel gas pipeline. The facilities include pigging stations, intermediate pumping station, 6 export points, oil storage terminals, block valve stations and 37 SEHMS generator stations.

Graham Freeth of J P Kenny say “The exploitation of reserves and transportation of heavy oils and waxy crudes has been an impossible or an un-economical task that has challenged Oil Companies for many years. This technology offers significant cost savings (often >15%) in comparison with conventional diluent and other heating technologies that are traditionally used for Heavy and Waxy Crude pipelines, meaning that Heavy and Waxy Oil field developments are now a viable option.”

J P Kenny's solution has the potential to increase the workable world oil reserves by up to 16%, by cost effectively enabling the transportation of heavy and waxy crude oil to markets. Heavy and waxy oil reserves represent an ever increasing percentage of new reserves, and new reserves are continually being developed as operators are forced away from “Easy Oil” to develop heavy and waxy oil resources that 20 years ago were considered marginal. Meanwhile, as crude prices move above $70 per barrel, the J P Kenny SEHMS Pipeline systems becomes a commercially attractive option for field developers.