Pipeline capital cost

The only practical way to move synthesis gas around is by pipeline, and even in two-party transactions, the pipelines are usually no longer than a mile or two. Beyond that, the pipeline capital cost starts to affect the economics of the applications. 

Gaseous hydrogen may be carried widely by pipelines. Pipeline transportation costs are divided into three components energy, compressor capital cost, and pipeline capital cost. Pipeline transportation costs are affected by the pipeline characteristics, compressor characteristics, production rate, transportation distance, and hydrogen properties. Unlike other transportation options, the methodology used in HjSim to determine pipeline transportation costs is not drawn from Amos (1998) work, as it offers users considerably more options than just a single pipeline. The basic assumptions regarding the pipeline and compressor characteristics are summarized in Table 7.9. 

Drilling Engineering Drilling and completion costs Capital costs -platforms -pipelines -compression/pumps... 

A pipeline of 100 mm outside diameter, carrying steam at 420 K, is to be insulated with a lagging material which costs 10/m3 and which has a thermal conductivity of 0.1 W/m K. The ambient temperature may be taken as 285 K, and the coefficient of heat transfer from the outside of the lagging to the surroundings as 10 W/m2 K. If the value of heat energy is 7.5 x 10 4 /MJ and the capital cost of the lagging is to be depreciated over 5 years with an effective simple interest rate of 10 per cent per annum based on the initial investment, what is the economic thickness of the lagging ... 

The objective function is comprised of the sum of the annual operating and maintenance costs of the compressors and the sum of the discounted capital costs of the pipeline segments and compressors. The annualized capital cost for each pipe section is assumed to be proportional to its length and its diameter. Similarly the annual operation and maintenance charges of a compressor is assumed to be proportional to the horsepower which is given by... 

The total cost of a pipeline or piping system includes the capital cost of both the pipe and pumps as well as operating costs, i.e. the cost of the energy required to drive the pumps ... 

Although the energy cost is continuous and the capital costs are one time, it is common to spread out (or amortize) the capital cost over a period of Y years i.e., over the economic lifetime of the pipeline. The reciprocal of this (X = 1/ Y) is the fraction of the total capital cost written off per year. Taking 1 year as the time basis, we can combine the capital cost per year and the energy cost per year to get the total cost (there are other costs, such as maintenance, but these are minor and do not materially influence the result). 

Because of high capital costs and potential HE of steel pipelines for high-pressure hydrogen transport, the investigation of fiber reinforcement or other plastic composites as substitutes for steels is one of the major R D tasks within the DOE hydrogen delivery program. The purpose of the work is to achieve reduction in installation costs, better reliability, and safer operation of hydrogen pipelines. 

The initial evaluation showed that utilizing fiber-reinforced polymer (FRP) for pipelines is a feasible alternative to steel pipelines with regard to performance and cost [35]. From the cost analysis, an FRP pipe is quite attractive, especially in the regional or distributed service. Currently, spoolable piping manufacturers could install a composite pipeline for serving a 100,000 population for a cost of 250,000-500,000/mi. (does not include the cost for right-of-way), which is well below the DOE s capital cost target in 2017 of 800,000/mi. [35]. From this estimate and cost analyses, it is seen that FRP pipe economics is very attractive, especially for the distribution service. 

In this respect, the specific investments for pipelines assumed here are rather conservative. Owing to the high steel prices, for typical long-distance natural gas pipelines (with a diameter of 10 inches or 25 cm) capital costs are currently... 

Generally, distance and volume are decisive factors. For a short distance, a pipeline can be very economic because the capital expense of a short pipeline may be close to the capital cost of trailers, and there are no transportation or liquefaction costs. As the distance increases, the capital cost of a pipeline increases rapidly, and the economics will depend on the quantity of hydrogen pipelines will be favoured for larger quantities of hydrogen. For small... 

For large quantities of hydrogen, pipeline delivery is cheaper than any other option. Pipelines are characterised by very low operating costs, mainly for compressor power, but high capital costs. The investment for pipelines is in proportion to the delivery distance, while the influence of capacity is lower. 

Chapter 8 gives the evidence that plugs dissociate first at the pipewall, thus becoming a projectile in a pipeline with substantial momentum, relative to the gas phase. Lysne (1995, p. 78) lists three such incidences in which hydrate projectiles erupted from pipelines at elbows and caused the loss of three lives and over US 7 million in capital costs. Where possible, depressurization from both sides of a plug is recommended. 

In contrast to base-load operation peak shaving differs from the large-scale LNG trains that are generally driven by cost of the LNG as a commodity in comparison with alternative fuels available in the market. Peak shaving on the other hand can be justified by the cost of omitted pipeline charges and the reduced capital cost pertaining to pipeline infrastructure [7]. 

We gratefully acknowledge the Poole family and Bud Kushnir, whose financial support made this research possible. Sean Sanders of Syncrude Canada provided insight into pump size and pressure drop in the slurry pipeline and also provided heavy gas oil for the experiments. Mark Coolen, woodlands operations superintendent for Millar Western Forest Products, provided wood chips for the experiments and valuable discussions. David Williams, Chief Estimator for Bantrel (an affiliate of Bechtel), provided valuable comments concerning capital cost estimation of pipeline. Vic Lieffers and Pak Chow of the University of Alberta helped carry out the experiments. All conclusions and opinions are solely the authors and have not been reviewed or endorsed by any other party. 

Once the H2 is available either as a pressurized gas or as a cryogenic liquid, it still has to be stored and transported to the users. In addition to transportation and storage, there are also infrastructure expenses. A National Renewable Energy Laboratory (NREL) reference provides dollar cost figures per kilogram of H2 These total costs include energy, freight, labor, and capital costs and have been developed for truck, rail, ship, and pipeline transportation of both gas and LH2 at various flow rates and over a variety of... 

The relation between cost per unit length C of a pipeline installation and its diameter d is given by C = a + bd where a and b are independent of pipe size. Annual charges are a fraction of the capital cost. Obtain an expression for the optimum pipe diameter on a minimum cost basis for a fluid of density p and viscosity p flowing at a mass rate of G. Assume that the fluid is in turbulent flow and that the Blasius equation is applicable, that is the friction factor is proportional to the Reynolds number to the power of minus one quarter. Indicate clearly how the optimum diameter depends on flowrate and fluid properties. 

The capital cost of a pipeline depends upon such factors as pipe diameter, distance and the amount of compression required. Undersea pipelines cost about double land-based pipelines. Operating costs reflect labour charges and fuel usage in compression if required. 

As a rule of thumb, a capital cost of 1 MM/km for land-based pipelines and 2 MM/km for undersea pipelines can be taken as a guide to the capital costs of new pipelines. 

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