LLC " Magnetic devices"

We have developed and continue to develop a method of non-contact diagnostics of pipelines on foot and with the use of unmanned helicopters. It is also the only inspection technology in the world that can concurrently identify the stress-levels of defects in a pipe whilst simultaneously moving on an unmanned helicopter according to a given flight program. In this case, the monitoring performance increases many times.

To date, the project has justified the technical requirements, performed mathematical modeling, sketch and technical design, carried out an examination of the project, developed mock-up options, developed intelligent software for interpreting measurement results, defined the technical characteristics of products and conditions for their use, conducted tests, prepared 2 applications for an invention (device and method), selected suppliers of unmanned aerial vehicles, negotiated with customers for work. Currently, the complex is being tested at various facilities and conditions of use.

Global crude oil consumption is estimated at 99 million barrels per day (15,717 million liters) and 123 trillion cubic feet of natural gas (3,482 trillion liters), water and heat consumption is 4 times higher. For the most part (90%), these products are transported through a network of underground metal pipes called pipelines. This infrastructure is of strategic importance for the normal functioning of our economies and societies. Any mechanical failure can lead to leaks and spills with significant damage to human health and the environment (toxicity, fire, explosion ...).
1) The total global underground pipeline market volume is about 7.5 million km. It includes oil and gas pipelines (more than 3 million km ), product lines (about 0.5 million km), heat and water networks (more than 4 million km).
2) According to preliminary estimates (even if you have one complex for one large object), the need for these systems is about 200 thousand units. If you take large and medium-sized objects-up to 1 million units.
3) Customers: service of main pipelines – gas pipelines and oil pipelines; maintenance of pressure pipelines and pipelines of external transport; service operation of gas distribution pipelines; maintenance of field and inter-field pipelines; maintenance services water canal, housing and communal services.
4) The objects OF control of contactless inspection methods are: pipelines that are not available for in-line diagnostics; new pipelines for assessing the technical condition of the quality of welds before putting pipelines into operation; field pipelines of high risk categories with the number of pipeline breaks of more than 0.1 PC / km / year; pipelines in areas of high seismicity and complex geological conditions; for inspection and early detection of critical conditions of underground pipelines with the possibility of further confirmation of conditions in the pits by non-destructive testing methods.

Further development requires continued integration of measurement systems and unmanned helicopter, integration of magnetometric and electrometric channels, a set of statistics and improvement of metrological measurement methods, intelligent methods of processing measurements based on expert methods, development of specialized unmanned helicopters for different application conditions. Unmanned helicopters must fly on a flight mission, in space with high accuracy, at a given altitude (2-3M) and speed (up to 30 km/h), avoiding obstacles at a distance of at least 10-15 km (in the future, 50 km) from a single point.

Periodic flyby on a flight task and measurement of physical fields over the pipeline, special software methods for interpreting the results will allow you to switch from a one-time diagnostics system to a continuous monitoring system for the pipeline, increasing the accuracy of measurements and reducing the cost of maintaining the resource.
Аn unmanned helicopter and Induction magnetometer scanner (IMS) is non-invasive: the inspection does not require a change in any of the operating parameters of the pipeline such as pressure or flow rates. Furthermore, there is no need to place sensors on the pipeline to amplify the magnetic field or to conduct an excavation after inspection to calibrate results. The pipeline remains in its normal operating condition throughout the IMS inspection process. During IMS inspection, the field an unmanned helicopter directly above the pipeline carrying an array of sensitive magnetometers that remotely collects the pipeline’s natural magnetic field data down to nanotesla level. Survey-grade GNSS equipment tracks the movement of the operator stamping cm accurate locational positioning information on the magnetic data 40 times a second as it is collected in real-time. This data is then downloaded into software that analyses the magnetic signatures detecting and quantifying all areas of abnormal localized stress in the pipeline wall. IMS detects and estimates the stress caused by all types of metallurgical and mechanical defects (including Stress Corrosion Cracking (SCC) and weld defects) in the pipeline wall, irrespective of clock position and whether or not the defect is internal or external to the pipe.
ECONOMIC EFFECT OF IMPLEMENTATION FOR CONSUMERS:
● Reducing the cost of diagnostics per linear kilometer of pipeline by 2-3 times, compared to analogues;
● Reduce the number of overburden operations by 30%;
● Reducing the cost of maintaining the resource as a whole by 15-20%;
● Reduce accidents and increase inter-repair mileage.

Competitive environment in the field of contactless pipeline inspection methods:
1) in Russia: LLC transcor-K, LLC POLYINFORM (total market volume 20-25%) - Do not use UAVs, use one magnetic measurement channel.
2) In the UK: SPEIR HUNTER LTD, Nottingham (total market volume 30-35%) - Do not use UAVs, conduct tests on UAVs, use one magnetic measurement channel.
3) Malaysia: Petronas (underwater measurements with ROV) (total market volume 60-65%) - Do not use UAVs, use one magnetic measurement channel.
4) France: Skipper NDT (total market volume 50-55%) - Do not use UAVs, conduct tests on UAVs, use one magnetic measurement channel.

The technology have the following advantages, which have no analogues: The technology includes two control methods. The magnetometric method allows inspection of the metal condition of the pipeline. The electrometric method allows inspecting the condition of the insulation coating of the pipeline. An improved system of highly sensitive antennas, which allows to detect defects at a distance of up to 5 m above the pipeline; The combination of magnetic and electrometric methods of diagnosis increases the reliability of detection; The possibility of measurements with the use of unmanned copters increases productivity by 5 times (now up to 10 km fr om one point and in the future up to 100 km from one point); A high-precision defect positioning system with RTK mode and accuracy in place up to 0.1 m; Intelligent mathematical methods of signal processing allow increasing the reliability of the interpretation of the results; The cost of diagnosis of one linear kilometer of the pipeline is significantly lower than that of analogues. The technology is harmonized with international standards ASME B31G, DNV RP F101, API 574:2016.
KEY METRICS: IMS has demonstrated its consistent accuracy through field projects showing a repeatability of detection to cm accuracy and estimation of stress repeatability within +/- 10% of modelled predictions. The key metrics of IMS’s capabilities at its current stage of development are summarised below and expanded in the technical specification at the end of this document. Probablity of Detection of SCZs: Not less than 80% of verified inspection locations with a confidence level of 95% in conditions wh ere no magnetic interference is experienced. Locational Accuracy: <1m (axial); +/-10cm (lateral).Pipeline Depth: ± 5% of the actual depth to a confidence level of 95%.
Moving the UAV on a flight task at a distance of 5 km (from a single point,
including return) at extremely low altitudes (2-4 m with the ability to circumvent the terrain and fly over obstacles) for uniform movement (at a speed of no more than 30 km/h in a spatial corridor of no more than 1.5 m), a load capacity of up to 1.5 kg and high-precision determination of the spatial coordinates of defects (SKO no more than 1 m). The control system must be resistant to external disturbances and wind up to 10 m / s and be able to work out control actions on spatial coordinates with an accuracy of no more than 0.1 m. the navigation System must be able to determine the spatial location with an accuracy of no more than 0.1 m.

Technical and economic efficiency indicators: 1) Expenses payroll - 35%; Purchase of components and materials-33%; Overhead - 12%; Taxes-20%. 2) Sales: the first year-25%, the second-65%, the third-90% with increasing volume. 3) the payback Period of the complex is up to 1.7 years (for an optimistic forecast) and 2.2 years (for a pessimistic forecast). 4) the index of profitability of implementation was 3.9 , and the index of discounted costs was 2.4, which in turn indicates the sustainability of the project. 5) Net discounted income at the end of the third year for the developed technology $4,4 million ; for an optimistic forecast $1,1 million for a pessimistic forecast. 6) Net profit of the developed technology at the end of the third year is 273% (for an optimistic forecast) and 168% (for a pessimistic forecast).

MODEL 1. The "two-Way market"model is proposed for business development. The "two-Way market" business model facilitates mutually beneficial interaction between two complementary groups, acting as a Locomotive (Zala enterprise, Rosteh Concern) and a Car (technology owner). Due to the fact that Zala has about 70% of the pipeline inspection market in the Russian Federation with aircraft-type UAVs, negotiations are underway with them to integrate the technology into the business processes of Zala.
MODEL 2: Direct delivery of services to major Customers (Gazprom, Rosneft, LUKOIL, NOVATEK, Transgaz, Transneft, Surgutneftegaz, etc.), abroad – dealer network.
MODEL 3: Deliveries through a network of dealerships in the UAE, USA, Canada, China, Malaysia, India, Mexico, Brazil, etc.

It is planned to generate revenue from sales: 1) providing services for pipeline inspection. 2) Sales of hardware and software measuring systems (APIC and UAV lines); 3) Training in the use of products; 4) Service and post-warranty maintenance of products; 5) supply of spare parts.

IT IS NECESSARY TO IMPROVE: the basic product line, integration of magnetometric and electrometric channels with the use of intelligent methods of aperture synthesis, testing of products for different conditions and tasks, development of specialized unmanned helicopters, conduct laboratory, bench, polygon, industrial tests, adaptation of measurement methods and calibration scales for different conditions, development and approval of measurement standards, obtaining permits for the use of products. Prepare production for mass production of products.

The investor is invited to enter the project through the purchase of a share of the business. Specific conditions are negotiated by the parties. In the third year, if the investor wants to exit the business, the exit is possible due to a partial buyout of the share by management (up to 70% of the investor's share with a yield level of at least 30-35%).

Risks: 1. The appearance of a product on the market before us-Reaction: creating a product with significantly better characteristics and properties 2. Copying the product that we bring to the market-Reaction a) Our product has special internal settings that have a serious degree of information leakage protection; b). Special sensors of our own production, measuring systems and software are used for production. 3. Copyright and know - how-Reaction: patenting is planned In Russia and abroad. 4. The results do not satisfy customers due to a large number of false detections: response-a) explain the limitations of the method to the customer; b) exclude areas with limitations fr om consideration; C) increase the reliability by using special methods of data interpretation.

LIMITATIONS
- The fundamental requirement of IMS is that the target pipeline must be constructed from a ferromagnetic material. If not, IMS cannot be used.
- Anomalies in the pipeline's magnetic field caused by underground metal objects such as debris, such as discarded welding rods, scrap, are identified by IMS during data analysis and are a limitation for IMS verification.
- Above-ground physical objects and geographical features that prevent the IMS operator from walking above the pipeline to collect data. Examples: buildings, walls, fences, steel overhanging structures, stairs.
- A restricted sky-view can impact the GNSS signal accuracy and increase the length of time required to inspect the pipe. Example: Pipeline routes that run through urban areas with many high buildings or dense forests wh ere the canopy restricts the sky view.
PIPELINE PHYSICAL CONFIGURATION LIMITATIONS:
- Parallel pipes can cause interference of data collected from the target pipe.
- Pipeline depth of burial can affect the strength of the magnetic field of a pipeline.
- Pipeline diameter can affect the strength of the magnetic field of a pipeline.
- The Magnetic Memory (MM) Threshold.
- Limitation caused by previous inspections using In Line Magnetic Flux Inspection (MFL)
LIMITATIONS ON THE USE OF AN UNMANNED HELICOPTER
- Width (3M) and height (1m) of vegetation above the flight path
- Positioning accuracy of the control system no more than 1m
- The wind force is limited to 10m / s
- The flight range is limited by GNSS capabilities.

Participation in the program Development of contactless diagnostics tools for PJSC Gazprom Neft.
Development of underwater technical means and contactless diagnostics device for JSC "Gidropribor".
The development of Unmanned diagnostic complex for JSC "Samotlorneftegaz" ("Rosneft").

PJSC Gazprom Neft - The project of the contactless pipeline diagnostics complex received the Gazprom science and technology award.
JSC "Gidropribor" - The project was awarded an award and a diploma.
JSC "Samotlorneftegaz" (NK "Rosneft"). The complex is being tested at the facility under the program of Advanced innovative projects.

METHOD OF FLOW LOCATION OF PIPELINE AND UNAUTHORISED BREAKOUTS IN PIPELINE AND DEVICE FOR ITS IMPLEMENTATION (RU2 379 579 C1 МПК F17D 5/02, 2006.01
METHOD TO DETECT PIPELINE FLAWS AND UNAUTHORISED TAP-INS INTO PIPELINE AND DEVICE FOR ITS REALISATION RU2 572 907 C2 МПК F17D 5/02 2014.01
METHOD OF FLOW LOCATION OF PIPELINE AND UNAUTHORISED BREAKOUTS IN PIPELINE AND DEVICE FOR ITS IMPLEMENTATION Application for invention no. 2019102535/12 (004524) dated 29.01.2019