Distribution network costs

In this procedure, increasing the supply temperature is considered to reduce the investment cost for the distribution system and electrical energy required for pumping stations. However, this change increases heat losses in the distribution network. 

Besides the issue of cost relevance, interdependencies between production and distribution networks are often limited for companies already operating global networks. Distribution facilities usually serve major markets... 

Infrastructure and distribution raise similar problems. Capable third-party chemical distributors offering consistently high levels of service are not universally available. According to a 2002 study published by the State Council s China Development Research Centre, 70 percent of China s commercial enterprises have their own fleet of vehicles and 80 percent own their warehouse facilities. MNCs thinking about setting up their own (Western-style) nationwide chemical distribution network have soon been discouraged by the high risks and costs involved. 

Patents Strong brand names Good reputation with customers Cost advantage from proprietory know-how Exclusive high grade natural resources Favourable distribution networks Lack of patent protection A weak brand name Poor reputation with customers High cost structure Lack of access to natural resources Lack of distribution channels... 

Because of the obviously low cost of the principal local methane and ethane raw materials, and because the fixed costs of the installations are high with regard to variable costs, European petrochemical producers were afraid that Saudi Arabia with its low home consumption, would flood outside markets with its ethylene derivatives and methanol at cut prices. So far, however, Saudi exports have not shaken up the market because they have been carefully channeled through the distribution networks of Sabic s international partners. 

Studies should be made of the economics of building biomass-fuelled district heating networks for new residentiaiycommercial communities, and in particular of the comparative costs of these and natural gas distribution networks for the supply of fuel for heating. 

Water Transportation. Because of the chemical industry s requirements for high volume, low cost transportation, water plays a significant role in the chemical distribution systems both in the United States and internationally. This role should continue and expand in the 1970 s as U.S.-based chemical companies burgeon to global organizations. The chemical giants of the 1970 s will place a heavy reliance on water transportation to effect their worldwide raw material gathering and product distribution networks. 

As mentioned in Section 19.2, a mature distribution network already exists for ammonia. Combined with the fact that there are many types of salts that can store ammonia, and it is easy to imagine sustaining a reliable fuel supply. MgCl2 and CaCl2 are good examples of low-cost materials suitable for high-and low-temperature fuel cell applications. 

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