VTX ShieldLiner Technology

Major Markets for the “ShieldLiner Technology”

Recently, ShieldLiner Technology (“ShieldLiner”) was introduced in the United States (“US”), for application of trenchless rehabilitation of water, oil and gas transmission and distribution pipe lines – the US has more than 5 million miles of these pipe lines.

Preliminary discussions have now commenced with industry related companies in North America; it is worth noting that ShieldLiner has significant competitive advantages for trenchless pipe line rehabilitation.
The Water Industry Market - “U.S. water & wastewater infrastructure are nearing end of life, as evidenced by 650 water main leaks per day and two trillion gallons of treated water lost every year, costing more than US$2.6 billion” and “US water & wastewater infrastructure investment needs is up to $4.8 trillion over the next 20 years” source - US Majors 2013, Spending on US Water Infrastructure.

The Oil & Gas Industry Market - “US has 2.5 million miles of pipelines that transport 100% of its natural gas, 70% of its oil/products and other hazardous products”, this year the “US Senate Panel approves bill, in response to several pipeline accidents”. source - US Transport Department.

Industries are now recognizing the need and the tremendous advantages of trenchless pipe rehabilitation; however the technology is still evolving.

 A condition report of ShieldLiner trenchless pipe rehabilitation contracts, for local Municipal Councils in 2005 & 2008, is due for release by end of November.

Vortex Pipes Ltd is the 100% owner of “ShieldLiner Technology”.

The Board of Vortex Pipes Ltd (“Vortex” or the “Company”) is pleased to announce that in line with sourcing strategic partners to commercialize its wholly owned “ShieldLiner Technology”, discussions have now commenced with interested parties from North America, related to the water, oil and gas pipe line infrastructure industries.
Trenchless Technology is Evolving

Industries around the world now recognize the tremendous advantages of trenchless pipe line rehabilitation which is sometimes the only solution possible. The traditional open cut pipe replacement involves sending spoil from trenches to landfill, excavation of infrastructure, is costly, has longer permitting times, consumes far more time and has environment implications. (Refer Figures 1 & 2).

ShieldLiner’s International Award Winning Technology

The typical trenchless method requires two installation pits which are up to 500 metres
apart. A remote tool enters the pipe to pressure clean and inspect via CCTV camera. The
same access points are used to feed a new wet resin cloth into the pipe. It can be cured
by various methods including hot air, UV or water to then form a new pipe within the old
damaged pipe - “a pipe within a pipe”. The moisture can remain and the corrosion and
root infestation can continue within the surrounding existing pipe.

ShieldLiner’s international award winning design was developed over 5 years. It utilizes
controlled pressures to impregnate structural resins through the new liner and the existing
damaged pipeline - this annuls moisture, significantly increases strength and the life cycle.
It is important to note, that pull tests of up to 700 kilograms, failed to remove the new ultrathin
liner from the existing pipe. (Refer Figures 3, 4 & 5)

Using today’s trenchless technology in water pressure pipes requires much stronger liners,
which significantly reduce the internal pipe diameter. The problem is far greater for the
higher pressure pipe lines used in the oil and gas industry. Investigations by Vortex to date
indicate the ShieldLiner system is the only trenchless system in the world which can
rehabilitate the existing damaged pipe line and bond the new ultra-thin liner. As
requested from interested parties, Vortex has engaged an independent consultant to
complete a condition inspection of three ShieldLiner installations completed for local
municipal councils in 2005 and 2008. It is expected these reports will be available for
release by the end of November.

Trillion Dollar Market
All around the world, society relies on the millions of kilometers of installed pipelines which
are responsible for transporting fluids such as water, sewage, oil and liquid natural gas.
More than five million miles of pipeline exist in the United States alone.

Age is particularly worrisome with more than half of the pipelines in the United States at
least 50 years old. Pipelines are more likely to have problems as they get older. According
to the Pipeline and Hazardous Materials Safety Administration (PHMSA), corrosion causes
up to 20 percent of all pipeline incidents that resulted in extensive environmental and
property damage, injury or death. (Refer figures 6 & 7 below).



Conference of Mayors estimated that investment needs for US water infrastructure over the 20 year horizon (2008 - 2028) is up to US$4.8 trillion. Much of US water infrastructure is nearing or at the end of its useful asset life-cycle, as evidenced by an estimated 240,000 water main breaks and 2 trillion gallons of treated water leakages per year. US Oil and gas distribution and transmission pipe lines are the longest in service infrastructure and are also receiving the greatest investment in the next 5 years, as shown in the table above. Reports from US resin distributors indicate that the trenchless pipe rehabilitation market is their fastest growing industry and that the global market for clean technology is estimated to be approximately $300 billion annually.