PMCap;
First off, thanks for the kind words. I figured the devil is in the details, which is why I became confused with your original post and response. Not an easy problem because of FAC.
By the way, this is considered a repair to an existing vessel, and as such, the National Board Inspection Code or API would be most applicable versus using the Code of Construction. I have seen this encapsulation concept when it was presented to the NBIC main committee some time ago for acceptance. The Code is silent on this but I do remember a number of Chiefs did not support the concept.
So, first off let me offer some advice;
1. You should have this repair reviewed and approved by the Jurisdiction or regulatory agency before you do anything. Also, the insurer of the vessel should be involved for concurrence.
2. If you have concurrence, I would use carbon steel filler metal to weld all of the EC full penetration welds and weld between the carbon steel shell and that of the P4 pipe. If you have Cr-Mo liner material projecting slightly into the weld root region, there should be enough dilution from weld root tie in to provide the minimum chromium content needed to prevent FAC. All you need is greater than 0.10% by mass content to significantly increase FAC resistance. This would certainly apply to the P4 to P1 nozzle weld. Once the root is pulled between the P4 to P1 butt weld, there will be chromium in the weld root from dilution with the adjacent P4 pipe material.
Last question - Has the shell surrounding the original nozzle been evaluated? If not, this better be performed before any weld repair is executed.