ABSTRACT
In the previous chapters we explored different scenarios of pipe sizes and pressures to transport natural gas through pipelines from one location to another. Various pressure drop formulas, compression requirements, and HP required were calculated without delving too much into costs of facilities. In this chapter the economic aspects of pipelines will be reviewed. The economic pipe size required for a particular throughput will be arrived at considering the various costs that make up a pipeline system. The initial capital cost of pipeline and ancillary facilities will be discussed, along with the annual operating and maintenance costs. Since pipelines are generally designed to transport gas belonging to one company by another company, a methodology for determining transportation cost or tariff will be analyzed.
