Executive Q&A viewpoint

The gas processing industry continues to improve its focus on safe practices for humans and the environment. To serve both objectives, Bureau Veritas Consumer Products Services was founded in 1828. The firm is a world-leading testing, inspection and certification solution provider for the global energy industry and other industries.

Bureau Veritas works with gas processing companies to effectively manage quality assurance needs throughout their supply chains and mitigate risks to quality, health, safety, social responsibility and environment. 

Gas Processing talks with Raul Vieira, Vice President of Energy Services for Bureau Veritas North America Inc., about today’s safety challenges and solutions.

GP. What are the most important environmental and safety issues for the oil and gas midstream industries in 2015 and 2016?

Vieira. The topic covers a wide range of midstream sector activities. For example, crude oil is increasingly transported by rail. The safety and environmental impacts of crude transport by rail have come into the spotlight due to recent accidents in the US and Canada. The increase in frequency of such accidents can partly be contributed to the high volume being transported today, and partly to the inappropriate regulatory framework for applying the best-available and safest technologies.

GP. How do we increase the safety of these systems?

Vieira. In light of these accidents, the US Department of Transportation introduced new rules to strengthen safety and emergency response activities. The US Pipeline and Hazardous Materials Safety Administration (PHMSA) and the Federal Railroad Administration (FRA) have worked with their Canadian counterparts to issue new rules that focus on the safety aspects of the tank car and the environmental aspects of accidents.

GP. Does Bureau Veritas also evaluate liquefied gas transportation?

Vieira. Yes. Several LNG export terminals are under development in the US and other regions of the world to benefit from the availability and low price of gas. The siting, design, construction and operation of LNG facilities, and related land and marine safety and security issues, are regulated by the US Federal Energy Regulatory Commission (FERC), the US Coast Guard and the US Department of Transportation’s Office of Pipeline Safety.

Although these entities have in place an Interagency Agreement, determining that FERC is to take the lead, the actions required to address the different aspects involved in the design, construction and operation of these terminals are still to be fully set in place and tested.

GP. Can you also comment on oil and gas storage facilities?

Vieira. With US storage capacity at its highest, and subject to much less regulatory scrutiny as compared to the upstream and downstream sectors, there is a need for further analysis on how the sector applies best practices to avoid catastrophic incidents.

GP. What processes or procedures are integral to organizational safety programs, such as training, documentation, regulatory oversight, etc.?

Vieira. A successful organizational safety program must integrate many aspects: policy and safety goals, procedures for implementation, compliance to regulatory frameworks, integration with health/safety/environmental management, integration with asset integrity management, identification of safety-critical elements, development of performance standards, integration with contractor management, management of change, training of personnel (employees and contractors), documentation and data management.

GP. What are today’s challenges for companies hoping to achieve their environmental and safety goals?

Vieira. The main challenge is how to balance the current economic scenario of the market with regulatory requirements, public perception and—last but not least—social responsibility of the organizations engaged in midstream markets.

Many organizations have already come to the realization that investment in environmental and safety programs is key to long-term sustainability of the business. Today, we can establish a clear relation between compliance to safety and company safety culture.

GP. Do merger and acquisition activities interfere with, or enhance, organizations’ environmental and safety processes and procedures?

Vieira. The balance tilts toward the strength or weakness of the safety and environmental culture of the dominant or acquiring organization. Companies with a strong safety culture will be more likely to look into best practices and processes adopted by the acquired entities, and leverage on safety to speed up the post-merger integration process. Calls to action in relation to safety resonate positively in these cases.

GP. How can Bureau Veritas help oil and gas companies achieve their environmental and safety goals?

Vieira. Bureau Veritas has been involved with all segments of the midstream oil and gas industry: oil transport by pipeline, rail and tanker; storage facilities; CNG pipelines; LNG carriers; and storage. We provide integrated solutions for the improvement of safety and compliance to environmental regulations throughout the lifecycle.

In the concept phase, Bureau Veritas assists in the qualification of new technologies. In the design stage, it has extensive experience in reviewing and validating design using methods like risk assessment, reliability assurance, environmental impact assessment, risk-based inspection, reliability-centered maintenance, pipeline integrity management solutions, detailed analysis, and finite element and computational fluid dynamic tools.

In the procurement stage, Bureau Veritas has successfully performed many multimillion-dollar vendor audits, shop inspections, supplier technical assessments and conformity assessments of equipment, among other functions.

In the construction stage, Bureau Veritas performs site inspections and has helped customers with site integration issues. In the operation phase, it delivers asset integrity management services, air quality monitoring, HSE compliance, and material testing, to name a few.

Bureau Veritas has multidisciplinary teams in more than 150 countries to assist customers in meeting global and local requirements, as well as company safety and environmental goals. GP

Raul Vieira, Vice President of Energy Services for Bureau Veritas North America Inc., has more than 30 years of experience in the execution of design assessment; the development of design assessment criteria; the qualification of personnel to execute assessment; and the management of design, fabrication, construction and installation projects. Such projects involve the classification, certification, verification and qualification of materials, equipment, systems and projects in relation to regulatory frameworks, with a focus on the safe operation of assets. Mr. Vieira has been directly responsible for the implementation of Bureau Veritas technical centers in different areas of the world. He has more than 25 years of experience in managing projects concerning the certification of oil and gas installations. He also has general management experience with engineers, inspectors, surveyors and multinational project management teams, including profit and loss, personnel administration and technical qualification management. Mr. Vieira is certified on the verification of conformity of equipment and systems to EU directives, including ATEX, LVD, EMC and PED.