Hot water heater vent - cement/asbestos transite pipe

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I understand the health concerns related to asbestos, and I am prepared to take all precautions and liability that comes with.

I recently purchased a home built in the 50's and one of the tasks I plan on tackling myself is partial replacement of the hot water heater vent pipe. The vent pipe passes through the wall via an oval asbestos/cement transite vent pipe. Connections into and out of the asbestos pipe are single wall metal.

At somepoint in the past, the vent pipe had a leak from the roof which caused some corrosion. The pipe is in pretty good shape except for the reminisce of the water leak. I intend to leave the asbestos pipe in place and connect to it with Type B venting.

The portion of the venting from the attic to the roof has been properly replaced, the feed from the hot water heater to the asbestos vent has not. My question is related to how best to prepare the asbestos pipe prior to replacing the vent.

I plan to wrap the bottom of the asbestos pipe with a row of heat tolerant tape, then paint as much of the asbestos pipe as I can to encapsulate it prior to disturbing it to attach the type B vent pipe.

What kind of paint should be used to properly encapsulate the pipe? Has anyone connected type b venting to a oval pipe like this? I have found the proper connections, but I have concerns related to 'fit'.

Pictures are attached.

Thank you in advance for your advice and direction.
 

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