PT KHI Pipe Industries (KRAKATAU STEEL GROUP)

HEAD OFFICE Krakatau Steel Building, 7th Floor, Jl. Gatot Subroto kav.54

Jakarta - Indonesia

Ph. (62-21) 5254140, 5212761, Fax. (62-21) 5204002

www.khipipe.com

FACTORY Jl. Amerika I, Kawasan PT. Krakatau Steel, Cigading 42435

Cilegon - Banten- Indonesia

Ph. (62-254) 392438, 391020, 391971, Fax. (62-254) 392083

COMPANY PROFILE

2

Overview

Founded in 1972, as a part of PT. Krakatau Steel Group

First production of spiral welded pipe since January 1973

First Production line of High Frequency Resistance Welding ( HFRW ) since January 2006.

2nd Production line of large diameter High Frequency Resistance Welding (HFRW) since 2014.

First Production of New Coating Technology Application ( FBE, 3 Layer Polyethylene / Polypropylene, Internal Coating ) since January 2007.

2nd production line for Coating application of FBE, 3 Layer Polyethylene / Polypropylene) started January 2014.

Expansion of concrete weight coating and Asphalt Enamel facilities since October 2012.

API monogrammed since 12 October 1977 with Certificate No: 5L 0203.1.

ISO 9002 Certified since 23 November 1993 and has been upgraded to ISO 9001: 2000 Since October 2002 and ISO 9001: 2008 Since October 2010 certified by ABS .

OHSAS 18001:2007 certified since July 2013 by SGS.

Plant Location : Krakatau Industrial Estate Cigading – Cilegon, Banten Indonesia 3

API Monogram For Product

API 5L ( Specification For Line Pipe ) ISO 9001 , For Quality Management

System

International Quality and Safety Certifications

OHSAS 18001 Monogram For Health &

Safety Management System

TKDN Certificate (ERW)

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TKDN Certificate (Spiral)

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SKUP MIGAS

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SKUP MIGAS

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Pipe and Coating Facilities Location

KHI Pipe Industries

Pipe Mill &

Coating Plant, Cilegon

Facilities

Pipe supplied by

KHI

Map of Indonesian Integrated Gas Pipe Line Project

Competitive Advantages

• Long Experience as Line Pipe Manufacturer and Coating Applicator.

• Complete Production and Inspection Facilities.

• Integrated Pipe Mill ( Helical SAW line for medium up to larger diameter and HFRW line for smaller diameter ) and Coating Applicator such as FBE, 3LPE/PP, Coal tar Enamel, CWC, and Internal Coating ( Flow Coat and anti corrosion ).

• As Subsidiary Company of PT.Krakatau Steel (the biggest steel manufacturer at South East Asia Countries ) .

• The position of Mill integrated with Steel producer ( KS ) , private and Public Port Facilities (PT.KBS and Cigading Port).

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Market Segment of Products

Oil and Gas Industries Key players of oil and gas operators in Indonesia such as Exxon Mobil, Total E&P,

Pertamina, BP, State Gas Company (PGN), ConocoPhillips and Chevron Pacific Indonesia already used spiral and/or ERW welded steel line pipe since many years mostly using API 5L specification, DNV, BS, AS and other customer specification for the following services: Oil Transmission and Distribution Pipe Line Gas Transmission and Distribution Pipe Line Steam Pipe Line

Construction and Structural Industries All of key players (Domestic & International) in this sector used of spiral

welded for structural pipe and pilling pipe refer to ASTM, BS EN, JIS, AS and other customer specification.

PT. KHI Pipe Industries already exported ± 150,000 ton of pipe to the 14 countries in the world mostly for the structural / pipe piles

Water Pipes Industries All of key players in Indonesia using spiral welded pipe for water transportation

refer to AWWA Standard.

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Pipe Manufacturing Corrosion Protection Additional Coating

External Coating Internal Coating

Spiral Welded Pipe

ERW Pipe

3LPE/3LPP

FBE

Epoxy

Cement Lining

Epoxy

Asphalt/Coaltar

Concrete Weight Coating

- Impingement

- Compression

Product and Services

Total Design Capacity : 150,000 tons

Diameter : up to 80” Wall Thickness : 3.2 mm – 25 mm Material : Up to API 5 L X-80

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1st Line of High Frequency Resistance Welding ( HFRW ) Total Design Capacity : 70.000 Ton

Range Of Diameter : 4 “ up to 12 “

Range Of Wall Thickness : 3.2 mm up to 12.7 mm

Spiral Welded Steel Pipe

Production Capacities Plant and storage area : 46 Ha.

Concrete Weight Coating (CWC)

Total Design Capacity : 300.000 sqm/year

Pipe Diameter : up to 48 “

CWC Thickness : up to 120 mm

CWC Density : up to 190 pcf

Corrosion Protection External

3 LPE/PP : 800.000 SQM/year

FBE : 800.000 SQM/year

Asphalt Enamel : 800.000 SQM/year

Internal

Flow Coat Epoxy : 800.000 SQM/year

Cement Lining : 600.000 SQM /year

2nd Line of High Frequency Resistance Welding ( HFRW ) Total Design Capacity : 150.000 Ton

Range Of Diameter : 10 “ up to 20 “

Range Of Wall Thickness : 4.78 mm up to 16 mm

Material : Up to API 5 L X-80

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HRC Auxiliary-Leveling Skelp End Cutting Skelp End Joint

Levelling Edge Preparation Edge Prebending Forming Inside Welding Outside Welding

Automatic UT for spiral weld

8 probes

Oscilating UT for

Pipe body 2 probes Traveling cut off

Preliminary

Visual and

Dimensional

Inspection Manual UT Radiography

Inspection

Hydrostatic Test

End Facing & Beveling Final Visual &

Dimensional

Inspection

Customer

Inspection

Weighing

& Measuring Marking

SPIRAL WELDED SAW LINE PIPE PRODUCTION PROCESS

Off Line UT

Shipping

Heat

Treatment as

alternative for

sour service

Radiography

Inspection if

Necessary

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Conductive & Inductive

HFRW Method

Post Annealing

End

Facing

HFRW PRODUCTION PROCESS

Uncoiling

Leveling

Strip End

Welding

Inside & Outside

Flash Trimming

Accumulator

Sizing & Straightner

Edge

slitting

(optional)

Flying Cut off

Hydrotest Automatic

Ultrasonic Offline

Visual &

Dimensional

Inspection

Marking,

Weighing &

Measuring

Customer

Inspection

Shipping

Roll Forming Strip Auto U/T Lamination

Pipe Manufacture and Coating Plant Facilities

ERW Line Spiral Pipe Line

Internal & External

Coating Line

New Line Production of Large Diameter High Frequency Resistance (ERW) Welded Facility

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Automatic UT off-line

Hydrostatic Tester UT Manual on Pipe end

Non Destructive Examination Facilities for HFRW

Strip Auto U/T Lamination

Non Destructive Examination Facilities

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H

a

n

d

X

-

y

Online Automatic UT Offline Automatic UT

Fluoroscopy Hand Held UT X-Ray / Radiography

Hydrostatic Test

Laboratory Test Facilities

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Tensile & Bend Test Hardness Test

Chemical Composition Test

Flattening Test

Micro Structure

Examination

Macro Section Helical SAW Pipe

Macro Section ERW Pipe

Charpy Impact Test

Guided Bend Test

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HDPE Graftedadhesive

Epoxy

PE/PP

Adhesive

Anti-corrosion/FBE

In-Coming Rack

(Hold Point) Pre-Heat External Blast Clean Blaster

Inspection Rack

(Hold Point)

Reject / Hold

Reject (Re-blast)/

Hold

Cut-Back Tapping

Fusion Bonded Epoxy Coating Flow Process

* Transfer pipe identification

* Check for surface contamination

* Check surface condition

(i.e. damage free .. etc.)

* Check surface cleanliness

* Check blasting profile

• Monitor elapsed time between blasting and

coating (Weather Control: %RH)

* Check for steel defects (i.e. slivers, lamination)

* Check for salt contamination

* Check pipe surface temperature

* Check pipe wall thickness (if excessive grinding)

* Check coating thickness

* Check coating visual appearance

* Check for holiday

• Pipe marking / colour coding

• Check cut-back dimension and taper

•I nstall rope separator (3-off per joint)

Induction Heat FBE Base Coat Application FBE Topcoat

(Rough coat) Water Quenching Inspection Rack

(Hold Point) Reject (Re-process)/

Quarantine

Cutback

Brushing

Conditioned pipe

Holiday Testing

Temperature Control In-house QC

Lab

(Hold Point)

To CWC Plant

To FBE stockpile area

In-Coming Rack

(Hold Point) Pre-Heat

Inspection Rack

(Hold Point)

Reject / Hold

Reject (Re-blast)/

Hold

Cut-Back Tapping

* Transfer pipe identification

* Check for surface contamination

* Check surface condition

(i.e. damage free .. etc.)

* Check surface cleanliness

* Check blasting profile

• Monitor elapsed time between blasting and

coating (Weather Control: %RH)

* Check for steel defects (i.e. slivers, lamination)

* Check for salt contamination

* Check pipe surface temperature

* Check pipe wall thickness (if excessive grinding)

* Check coating thickness

* Check coating visual appearance

* Check for holiday

• Pipe marking / colour coding

• Check cut-back dimension and taper

Induction Heat FBE Base Coat Application Water Quenching Inspection Rack

(Hold Point) Reject (Re-process)/

Quarantine

External Blast Clean Blaster

Cutback

Brushing

Conditioned pipe

Holiday Testing

Temperature Control In-house QC

Lab

(Hold Point)

To Concrete Coating

Plant

To FBE stockpile area

Extrusion of Adhesive

and Top Coat

3 Layer Polyethylene/Polypropylene Coating Flow Process

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Laboratory Of Coating Plant Facilities

Cathodic Disbondment Test

Tensile Test/Test Impact Test

Bending Test Adhesion Test

Differential Scanning Calorimeter (DSC) Analysis

Peel Constant Rate

Requirements of 3LPE Coating In Service Performance : Peel Test

Peel Test Constant Rate Method Peel Test Hanging Weight Method

Internal Flow Coating Flow Process

* Check wet and dry film thickness

* Check coating visual appearance-

glossiness and roughness

* Check for pinholes (glass slides)

* Check for adhesion, cureness,

flexibility and hot water immersion

(steel panel)

* Check cut-back dimension

* Re-stencil pipe marking and colour

coding

Reject (Re-

process)/

Quarantine

Inspection Rack (Hold Point)

In-house QC

Lab

(Hold Point)

Inspection Rack

(Hold Point)

Internal Cut-Back Taping

Internal Mechanical Blast Line

Paint Spray Line

PE/PP Coating Line

(Endo Conveyor)

PE/PP Storage Area

PE/PP Coated Pipe Stockpile

Internal Coating Inspection (Hold Point)

To Concrete Coating Plant

To PE/PP Coated Pipe Stockpile

PE/PP Coated complete with Internal Flowcoat

Pipe Stockpile

Enclosed curing area

complete with air blower

Fume Extraction (Air blower & Suction Fan)

Internal Coating Testing

Pin Hole Test

Measurement of Roughness Stripping Test

Internal Bending Test

Adhesion Test

Incoming Feed Rack of Concrete Plants

(Hold Point)

Damage/ Hold for

Repair

Concrete Weight Control

(Hold Point)

Reject / Hold / Repair

DELIVERY

Concrete Weight Coating (CWC) Impingement Process

* Batch Plant Calibration

• Plant parameter adjustment

• Wire mesh machine adjustment

* Rubber drum throwing unit djustment

* Check holding and feed hoppers

* Concrete repairs (if any Spalling)

Holiday Testing

Concrete Coated Pipe Curing Bay / Storage

* Clean concrete cutback

• Check girth measurement (OD)

• Check concrete weight

* Check concrete finishing

• Calculate NB and Concrete Density

• Draw cube samples for Concrete Strength

Concrete Cutback

Preparation

Concrete Gap for Anode at Mid-center of Pipe

(As required)

Weighbridge

In-house QC

Lab

(Hold Point)

Concrete Application

(Impingement)

FBE Coated Pipe Stockpile

Pipe transfer to curing bay

Concrete Mixing

(Iron ore, cement, water)

Wire Mesh

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Batching Plant Machine Facilities

CWC Application CWC Pipe

CWC Machine Facilities

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Laboratory Of CWC Plant Facilities

Compressive Strength

Drying Oven Specific Gravity Analysis

Shear Strength Test Sieve Analysis

Electric Resistant Check

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Application of Spiral Welded Pipe for Piling Structure

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Pilling Pipe for International Cruise Terminal Project – Singapore

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Application Heavy Wall Spiral Welded Pipe For Onshore Oil & Gas Transmission Pipeline

Stringing Pipe Line activity of Gas Transmission &

Distribution for PGN, API 5L X-65, 2005

Coated Linepipe for Gas Distribution

Pipeline of Bojonegara-Serpong

Project, PT PGN, Tbk, Dia. 24”x12.7

mm WT API 5 L X-65

Coated Line pipe of LTRO Project, South of

Sumatera Dia. 8 inchx9.53 mm WT API 5 L X-46

(Sour Service) – Conoco Phillips (Grissik Ltd), 2010

Major Experience of PT. KHI Pipe Industries, Line Pipe in Oil & Gas Industries

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Customer Year Ton Size Spec Project

ARCO 1994 7000 24” x14.27 mm WT API 5 L X-65 ARII Submarine Gas Pipeline

Qadipur Gas Pipeline Pakistan 1994 3300 26”, 30”x8.74 mm WT API 5 L X-65

Exxon Mobil Indonesia 1995 8000 30”x9.52mmWT API 5 L X-60 Sour Gas Pipeline

Total Fina Elf 1995 14288 12”, 14”,32” API 5 L X-65 Tunu North -114

State Gas Company (PGN) 1997 85600 28”x8.74 ,10.31, 12.7 mm WT API 5 L X-65

Bontang Train H, East Kalimantan Indonesia

1997 11591 42”x14.27 mm WT API 5 L X-65

TOTAL Elf 1998 12075 20”, 36”x12.7 mm &15.88mm WT

API 5 L X-65 Tunu Phase 07

Pertamina Proyek Pengembangan Gas Sumatera Selatan

2005 32254 28”, 32” & 11.9 mm & 14.27mm & 15.88 mm, 19.05 mm & 20.06mm WT

API 5 L X-52

State Gas Company (PGN) 2006 28000 32”x14.3, 17.5, 20.6 mm WT API 5 L X-65

State Gas Company (PGN) 2009 12000 24”x12.7mm WT API 5 L X-65

Exxon Mobil (MCL 2009 10000 20”x9.52mm WT

Total E&P Indonesie 2012 500 14”x9.52 mm WT API 5 L X-60 M

PT pertagas 2013 3602 24”x12.7 mm WT API 5 L X-52 Arun Belawan Project

State Gas Company (PGN) 2013 6124 24”x14.27 mm WT API 5 L X-65 Bitung – Cimanggis Project

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PT. KHI Pipe Industries Experiences for Supplying HFRW Pipe

Customer Year Length Size Project Location

Perusahaan Gas Negara ( PGN )

2007-2009 60 KM 4 – 12.75 Inch Gas Distribution For Banten Area , Batam

and Surabaya

East Java, Riau, & East

Java Indonesia

Chevron Pacific Indonesia

2007-2009 260 KM 4 – 12,75 Inch North Duri Development Project

Riau Indonesia

VICO Indonesia

2007- 2009 42 KM 6 Inch East Kalimantan Gas Distribution System

Balikpapan East Kalimantan

Indonesia

Medco Indonesia 2008 30 KM 6 – 8 Inch Crude Oil Pipeline System

South Sumatera Indonesia

EMP kangean 2008 12 KM 6 Inch East Java Gas Pipeline East Java Indonesia

PERTAMINA 2007- 2009 60 KM 4 – 12 Inch Crude Oil Pipeline System Sumatera and Java

Indonesia

Pertamina 2010 75 Km 10 Inch Oil Transmission West Java Indonesia

ConocoPhillips 2012 54 Km 12.75 Inch Gas Distribution South Sumatera

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PT. KHI Pipe Industries Experiences for Supplying HFRW Pipe (Continued)

Customer Year Length Size Project Location

PT Pertamina Hulu Energi ONWJ

2014 28.67 KM 10,752 Inch Proyek FPRO – ECOM North West Java

PT Wijaya Karya (Persero) Tbk

2014 17.59 KM

31.42 KM

4.5 – 20 inch

4.5 – 20 inch

- Proyek Upgrading Fasilitas Penimbunan Gasoline di Tanjung Uban

- Proyek Pengembangan TBBM Pertamina Pulau Sambu

Tanjung Uban

Pulau Sambu

Major Experiences of FBE and 3LPE/PP Coating

Customer Year Length Size Project Location

Pertamina 2007 6 KM (3lPE) 32 Inch Relocation of East Java Gas Pipeline Project

East Java Indonesia

Pertamina 2008 120 KM (3LPE) 16 Inch Cikampek Balongan Oil Pipeline Project

West Java Indonesia

Perusahaan Gas Negara ( PGN )

2008 40 KM (3LPE) 6 – 12 Inch West Java Gas Distribution System

West Java Indonesia

PLN – Power Plant 2008 24 KM (3LPE) 24 Inch Gas Pipeline System For Power

Plant

Muara Karang Jakarta Indonesia

EMP kangean 2008 12 KM (3LPE) 6 Inch East Java Gas Pipeline East Java Indonesia

Perusahaan Gas Negara

2009 74 KM (3LPE) 24 Inch Bojonegara – Serpong Gas Pipeline System

Banten Indonesia

Pertamina 2010 75 KM (3LPE) 10 Inch Ujung Berung - Tasikmalaya West Java Indonesia

ConocoPhillips 2012 54 KM (3LPE) 12 Inch Letang Tengah Rawa Optimization

South Sumatera

ConocoPhillips 2012 14.4 KM (3LPP) 6 Inch Letang Tengah Rawa Optimization

South Sumatera

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Customer Year Length Size Project Location

PT PGN, Tbk 2013 57 KM (3lPE) 32 Inch PGN CP 10 (Bitung-Cimanggis)

Bitung – Cimanggis

PT PGN SBU Pusat 2014 23 KM (3LPE) 12 & 16 Inch PGN SBU I Jabodetabek and West Java

Major Experiences of FBE and 3LPE/PP Coating

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Client / Project OD

(INCH) WT (INCH) Grade Length (M) Remarks

IAPCO / MAXUS 20 0.375 X - 52 5500 Line pipe included CWC

ARCO / ARII 24 0.562 X - 65 31000 Line pipe included CWC

TOTAL TUNU Ph. 7 20 - 36 0.5 - 0.622 X - 65 10000 Line pipe included CWC

TOTAL E&P INDONESIE 14 0.374 X-60 6000 Line pipe included CWC

KPM Oil & Gas/PHE ONWJ 36 20000 CWC

PT RPE/CNOOC 10 8.5 X-52 1104 CWC

Major Experiences For Offshore Application

Major Export Market ( Spiral SAW ) to 14 Countries

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No Customer Project / Location Country

Pipe Size

Spec Qty (Ton)

1 PT. Prima Comexindo Sudan Water Supply Sudan 28” AWWA C200 2,602

2 Mitsubishi Corp. Qardipur Gas Line Pakistan 26” & 30” API 5L X65 3,303

3 Mitsubishi Heavy Ind. Takasago Power Plant Japan 26” API 5L X65 2,945

4 Oil Serv IOCL Project India 24” API 5L X52 132

5 Pipeco United Kingdom Project England 28” & 42” Comm. Grade 5,225

6 Trade Arbed Changi East Phase 2 Singapore 28” & 32” BS 6323 3,086

7 Coutinho Caro Iran Pipeline Project Iran 63” API 5L X42 137

8 Shark Bay Project Australian Project Australia 47” BS 4363 Gr 55 C 2000

9 Foster Piling – USA Panama Bridge Project Panama 20” Comm. Grade 160

10 Borneo Raya Holland Project Holland Various ASTM A252 1,302

11 Performance Pipe Kuala Baram Bridge Malaysia 60” BS 6323 4,557

12 Mitsubishi Corp. Kenya Steam Pipeline Kenya 16” & 28” API 5L Gr. B 1,576

13 McConnell Dowell Loyang Project Singapore 28 “& 30” BS EN 10219 200

14 Daiho Corporation PNG LNG Project Papua Nuguinie 24” & 16 ASTM A252 2000

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Steel Pipe Manufacturer and Coating Applicator

www.khipipe.com