Hot Tapping Calculations
Hot Tapping Calculations
Hot Tapping Calculations
Learned
From Natural Gas STAR Partners
Hot tapping is an alternative procedure that makes a new pipeline connection while the pipeline remains in
service, flowing natural gas under pressure. The hot tap procedure involves attaching a branch connection and
valve on the outside of an operating pipeline, and then cutting out the pipe-line wall within the branch and
removing the wall section through the valve. Hot tapping avoids product loss, methane emissions, and disruption
of service to customers.
While hot tapping is not a new practice, recent design improvements have reduced the complications and uncer
tainty operators might have experienced in the past. Several Natural Gas STAR transmission and distribution
partners report using hot tap procedures routinely—small jobs are performed almost daily while larger taps
(greater than 12 inches) are made two or three times per year.
By performing hot taps, Natural Gas Star partners have achieved methane emissions reductions and increased
revenues. Gas savings are generally sufficient to justify making all new connections to operating lines by hot
tapping. The payback period for utilizing hot tapping is often immediate.
1
Annual savings and costs are based on an average 320 hot taps (of various sizes) per year.
2
Assumes a natural gas price of $3.00/Mcf.
3
Other savings shown are for inert gas.
4
Other cost includes the O&M and contract services cost.
This is one of a series of Lessons Learned Summaries developed by EPA in cooperation with the natural gas industry on superior
applications of Natural Gas STAR Program Best Management Practices (BMPs) and Partner Reported Opportunities (PROs).
In natural gas transmission and distribution systems, it is frequently neces
Technology sary to relocate or expand existing pipelines, install new valves or repair old
Background ones, install new laterals, perform maintenance, or access lines during emer
gencies. Historically, it has been common practice to shut down the portion
of the system during the alteration, vent the gas within the isolated segment,
and purge the pipeline with inert gas to ensure a safe connection.
The procedure for performing the shutdown interconnect differs slightly de-
pending on system pressure. In high-pressure systems, the surrounding
valves are closed to isolate the pipeline segment and additional stoppels
(inserted plugs) are placed next to the valves to prevent natural gas leakage
and improve the safety conditions at the interconnection site. In a low-pres
sure system, the length of pipeline that is shutdown is typically much shorter.
Rather than shutting the surrounding valves, stoppels are used to isolate the
portion of the pipeline directly around the area of the tap. In both cases, the
gas in the isolated pipeline segment is vented and the line is purged.
Hot tapping equipment is available for almost any pipeline size, pipe mate-
rial, and pressure rating found in transmission and distribution systems. The
primary equipment for a typical hot tap application includes a drilling ma-
chine, a branch fitting, and a valve. Hot tapping equipment is described be-
low and shown in Exhibit 1.
2
★ Drilling machine. The drilling machine generally consists of a mechani
cally driven telescoping boring bar that controls a cutting tool. The cut
ting tool is used to bore a pilot hole into the pipeline wall in order to cen
ter a hole saw that cuts out the “coupon,” or curved section of pipeline
wall.
★ Fitting. Connection to the existing pipe is made within a fitting, which
can be a simple welded nipple for small (e.g., one inch) connection to a
larger pipeline, or a full-encirclement split-sleeve tee for extra support
when the branch is the same size as the parent pipeline. The tee wraps
completely around the pipeline, and when welded, provides mechanical
reinforcement of the branch and carrier pipe.
★ Valve. The valve on a hot tap connection can be either a block valve or
a control valve for the new connection, and must allow the coupon (sec
tion of pipeline wall cut out by the drilling machine) to be removed after
the cutting operation. Suitable valves include a ball or gate valve, but not
a plug or butterfly valve.
3
Exhibit 2 provides a general schematic of a hot tapping procedure. The
basic steps to perform a hot tap are:
Hot taps can be vertical, horizontal, or at any angle around the pipe as long
as there is sufficient room to install the valve, fitting, and tapping machine.
Current technology allows for taps to be made on all types of pipelines, at all
pressures, diameters, and compositions, even older pipes merging with
new. New, lightweight tapping machines are also available that allow a hot
tap to be performed by a single operator, without additional blocking or
bracing.
4
Safety manuals and procedural outlines are available from the American Pe
troleum Institute (API), American Society of Mechanical Engineers (ASME),
and other organizations for welding on in-service pipelines for all sizes, flow
rates, and locations. These manuals provide information on what to consider
during welding, including burn-through prevention, flow in lines, metal thick
ness, fittings, post weld heat treatment, metal temperature, hot tap connec
tion and welding design, and piping and equipment contents.
Vendor manuals and equipment catalogues are also good sources for deter-
mining which size and type of equipment is most appropriate. Several ven
dors have published comprehensive outlines and guides for performing hot
tap procedures, including information on tapping on various materials, job-
site evaluation and preparation, selection and installation of fittings and other
equipment, and safety precautions. Most importantly, because this is a haz
ardous procedure, each potential hot tap must be evaluated on a case-by-
case basis and a detailed, written procedure should be prepared or
reviewed before starting each job to ensure that all steps are taken properly
and safely.
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isolation in the event of an accident, the desired tap diameter, working space
Five Steps for Assessing Hot Tap around the connection, location of other pipeline welds, and imperfections or
Economics: obstructions. Operators should also determine if the line is “looped,” as
many gas transmission companies avoid operational disruptions by shifting
I. Determine physical conditions of existing
line. the load to a parallel line. It is advisable to develop and follow a written plan
2. Calculate cost of performing a shutdown to assure full and proper evaluation of a future connection.
interconnect.
3. Calculate the cost of a hot tap procedure.
Step 2: Calculate cost of performing a shutdown interconnect. The cost
of an actual project would include direct costs such as material and equip
4. Evaluate the gas savings benefits of hot
tapping. ment, welding requirements, quality control, blowdown and purge costs,
5. Compare the options and determine the labor, and scheduling expenses. Additional indirect expenses or “hidden”
economics of hot tapping. costs might include the cost of shut-off valves, advertising if service is to be
interrupted, relighting of customer services, and excavating for stopples and
purge connections. Operators would be advised to reference historical data
to determine these costs.
For the purposes of this scoping analysis, material and labor costs for cut
ting out the line section and welding in a tee connection in the shutdown
method are assumed to be comparable to the cost of welding on the fitting
and performing the hot tap when the branch connection is the same size as
the pipeline. However, the costs of the gas lost through venting and inert
gas purging are unique to the shutdown interconnect.
6
Exhibit 3: Calculating the Cost of Shutdown Interconnect
Given:
D = diameter of pipeline (inches)
T = taphole diameter (inches) - for low pressure shutdown with tapholes for stoppers
L = length of pipeline between tapholes (feet) - for high pressure shutdown
P = line pressure (psia for low pressure, psig for high pressure)
Ppgas = current purge gas market price ($/Mcf) - assumed $4/Mcf
1.
2.
3.
4.
5.
6.
7
Exhibit 4: Hypothetical Scenario and Example Calculation of Lost Gas and
Purge Gas Costs for a Shutdown Interconnect
Given:
A pipeline company requires numerous shutdown or hot tap connections as follows:
Pipeline Diameters, Inches 4 8 10 18
Pipeline Pressures, psig 350 100 1,000 200
Pipeline Lengths , miles
1 2
2 1 3 2
Annual Taps , number
3
250 30 25 15
(1) Calculate: Vg = Volume of Natural Gas Lost
Vg (Mcf)
Vg
Vg
Vpgas (Mcf)
Vpgas
Vpgas
(3) Calculate: Value of Gas Lost by Shutdown Interconnects (Including Purge Gas)
Cost
Cost
Cost = $74 for each of the 4 inch pipeline shutdown interconnects
1
Isolation length between block valves or stoppers
2
Formula requires length in feet. 1mile = 5,280 feet.
3
Scenario is based on partner and vendor information
4
Inert gas assumed to be nitrogen
Step 3: Calculate the cost of a hot tap procedure. When comparing the
up-front costs of hot tapping with shutdown interconnects the only signifi
cant difference is the cost of the hot tap equipment. The tee fitting or full
encirclement sleeve, and the valve have nearly the same cost for either
method when the branch is essentially the same size as the pipeline (infor
mation on fitting types and costs is shown in the Appendix). The cost of
welding a full encirclement sleeve is nearly the same as the cost of welding a
tee fitting in a line. Labor cost for cold cutting the pipeline and hot tap cut
ting out a coupon are sufficiently close for this type of feasibility evaluation.
Maintenance costs apply only to hot tap equipment, such as drill sharpening
and other equipment care and replacement.
Tapping machines come in several sizes, and a single machine can perform
hot taps from 3 to 12 inches. Less expensive machines can be purchased
to perform small (e.g., 1 to 3 inch) taps. In general, capital costs for purchas
ing the hot tap machines typically used by gas companies for the most
common sized connections range from $13,200 to $23,000.
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company records to determine the number of times similar connections
have been performed.
Typically, a company that performs several hot taps a year will find it eco
nomical to own the equipment, especially in sizes up to 12 inches, and to
maintain trained personnel to perform the service. These jobs are usually
simpler and require less specialized training than larger hot tap jobs. For
larger and less frequent hot taps a company might consider it more cost
effective to hire a contractor who will supply the equipment and trained
personnel. Most hot tap vendors will supply all necessary tapping equip
ment, including the drilling machine, fittings, valves, cutters, and repair
services. The majority of vendors also offer contract services for larger or
infrequent jobs, or will rent out the tapping equipment. Supplying support
services, such as excavation, welding, and cranes, can reduce the costs of
using an outside contractor.
Other factors, such as the line material and thickness, system pressure, and
temperature, should also be considered when determining the alterna-tives
of purchasing hot tapping equipment or hiring contractors. A company
should evaluate how often the tapping equipment would be used and if they
would realize savings by owning and maintaining the equipment and training
operators.
Exhibit 5 presents ranges of hot tapping costs for both equipment purchase
and contracted services. The cost ranges shown include all materials;
addi-tional expenses will result from labor and maintenance expenditures,
as dis-cussed above. Vendors state that the operations and maintenance
(O&M) costs can vary greatly, depending on the number of taps performed
and equipment and procedural care.
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Exhibit 5: Hot Tap Expenses
Connection Capital Cost ($) Contracting Equipment
Size Service Cost O&M Cost
Machine 1 Material ($) ($/yr)
1
Hot tap machines can last from 5 to 40 years. A company can perform as many as 400
small taps per year.
2
Most companies will find it more economical to contract out large hot tapping jobs, and
would not therefore incur these costs.
Note: Cost information provided by Hot Tap manufacturers and contractors. Prices are only
provided for the most economic options.
Exhibit 6 shows the equipment, O&M, and contractor services cost to per-
form the 320 taps per year in the hypothetical scenario first described in
Exhibit 4. The assumption is made that the 4”, 8”, and 10” taps (a total of
305 taps) would be performed by the company. Because few taps equal to
or larger than 18 inches are performed each year, these taps (a total of 15
taps) would be contracted to vendors. The equipment cost includes the
purchase cost of two small (<12”) tap machines. For the purpose of this
lessons learned, the average value of the purchase, O&M, and contracting
service costs listed in Exhibit 5 are used to complete the cost analysis for
the hypothetical scenario. Based on these assumptions the total equipment
cost is calculated at $36,200, the O&M cost at $5,500 and the contract
services cost at $37,500.
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Exhibit 6: Estimated Annual Hot Tap Costs for the Hypothetical Scenario
Given:
Equipment Cost per machine = $18,100 1
Operations and Maintenance (O&M) Cost per Machine = $2,750 1
Contract Services cost per tap = $2,500 1
Number of hot tap machines = 2
Number of contracted taps = 15 (all taps 12 inches and larger)
Calculate:
Total Equipment Cost = $18,100 * 2 = $36,200
Total O&M Cost = $2,750 * 2 = $5,500
Contract Services Cost = $2,500 * 15 = $37,500
1
Average costs from ranges in Exhibit 5
Step 4: Evaluate the gas savings benefits of hot tapping. Exhibit 7 pres
ents the natural gas and purge gas savings associated with hot tapping on
small and large diameter high-pressure pipelines in the hypothetical scenario
of 320 taps per year. The values are calculated using the equations in exhibit
3, multiplied by the number of annual connections. Gas losses associated
with shutdown interconnects are the primary savings when these connec
tions are made by hot tapping.
1
The sizes and number of taps from scenario given in Exhibit 4.
2
Example for 4-inch pipe interconnect shown in Exhibit 4.
3
Natural gas valued as $3 per Mcf, inert gas (nitrogen) valued at $4 per Mcf.
12
Step 5: Compare the options and determine the economics of hot tap-
ping. The economic analysis shown in Exhibit 8 compares the significant
cost and benefit differences between hot tapping and shutdown intercon
nections for the hypothetical scenario of 320 taps per year. The significant
costs are the purchase, operation and maintenance of hot tapping equip
ment and/or contracting for hot tapping services. In this scenario, both costs
are included: the purchase of two hot tapping machines for $36,200 for the
smaller sizes and contracting the 15 large taps at $37,500 per year. The
purchased hot tap machines are operated and maintained at $5,500 per
year. All these costs are calculated in Exhibit 6. Many expenses, including
the cost of fittings, valves and basic labor, are assumed to be similar in both
hot tap and shutdown procedures, and therefore can be excluded in the
comparative analysis. A more complete analysis can be done by evaluating
and including the company specific “hidden” costs per Exhibit 3.
The significant benefit differences are the reduction in natural gas loss by
eliminating venting and the inert purge gas used in the shutdown intercon
nect procedure. As summarized in Exhibit 7, annual natural gas savings total
24,440 Mcf for the hypothetical hot tapping scenario, worth $73,320 per
year at $3 per Mcf gas price. The annual inert gas savings of 1,710 Mcf is
worth $6,840 per year at $4 per Mcf of nitrogen, for a total annual benefit of
$80,160. Additional benefits from avoiding gas leakage through pipeline
block valves during shutdown interconnect would further improve the hot
tapping economics.
Payback (months) 12
IRR 113%
NPV1 $104,665
1
Net Present Value (NPV) based on 10% discount rate for 5 years.
13
In conclusion, hot tapping has been found to be more cost effective than
shutdown interconnects. Even when the system must be taken out of serv
ice, hot tapping presents opportunities for both time and cost savings. While
hot tapping is a practice that has historically been performed by companies
for reasons other than the gas savings, consideration of the methane reduc
tion benefits can often serve to justify hot tapping over the shutdown inter-
connect procedure in a variety of circumstances.
A vendor reports that, for a gas transmission client, one day of gas service in a
36” natural gas pipeline operating at 1,000 psig is worth $365,000 in gross rev
enue. It would take approximately 4 days to perform a shut down connection at a
cost of $1.5 million, not including the cost of venting the pipeline contents in
order to perform the tie-in with shutdown. A hot tap connection would eliminate
this loss of revenue by enabling uninterrupted service.
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structions concerning possible burn through or hydrogen cracking dur
ing welding.
★ All equipment must meet minimum industry and federal standards for
pressure, temperature, and operating requirements.
★ If conditions of temperature, pressure, pipe composition, or tap diameter
are encountered that are unusual for your system, be sure to consult the
manufacturer of the tapping equipment or fittings.
★ Industry and federal codes and standards should be consulted for more
specific specifications (e.g., ASME B31.8, API 2201, API 1104, API
D12750, 49 CFR 192).
★ Record emissions reductions associated with using hot taps and submit
them with your Natural Gas STAR Annual Report.
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American Petroleum Institute. Procedures for Welding or Hot Tapping on
References Equipment in Service. API Recommended Practice 2201, Third and Fourth
Editions, October 1985 and September 1995.
McElligott, John A., John Delanty, and Burke Delanty, “Use of Hot Taps for
Gas Pipelines Can be Expanded,” Oil and Gas Journal, 11/30/98.
McMicken, Mike and Brian Boucher. Team Industrial Services, Inc. Personal
contact.
U.S. Code of Federal Regulations. Title 49, Part 192 (49 CFR 192), Subpart
D, “Transportation of Natural and Other Gas by Pipeline: Minimum Federal
Safety Standards; Design of Pipeline Components”.
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Valves. Valves used in hot tapping are typically full opening ball or wedge
Appendix: gate valves. Pipe suppliers can usually supply prices for valves and fittings, if
provided with the scenario information including pipe size, outlet size, and
Supplemental line content, pressure, and material.
Information
Tees/Fittings. There are several different types of mechanical and welded
fittings applicable to hot tapping including weldolet, threadolet, scarfed nip
ple, tapping tee, or full encirclement saddle. The most common tapping fit
ting is a split cast iron sleeve. Fittings are typically priced by size, flange
(ANSI/pressure) rating, and any special characteristics. Typical vendor fitting
costs are presented below.
16”x16” $2,000
18”x18” $3,000
20”x20” $5,000
24”x24” $6,000
30”x30” $9,000
40”x16” $2,500
60”x16” $2,500
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Topaz - Full Encirclement Saddle Costs ($)
Size (pipeline x outlet) Part 1 Part 2
Other additional costs exist, such as scheduling, labor, overtime, and adver
tising, but are unique to each company, and beyond the scope of this study.
These costs can be estimated based on past shutdown experience. An
operator should examine past records to determine what, if any, costs are
being avoided by performing a hot tap versus a shutdown connection.
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1EPA
United States
Environmental Protection Agency
Air and Radiation (6202J)
1200 Pennsylvania Ave., NW
Washington, DC 20460
EPA430-B-03-010
December 2003