ABSTRACT

Distribution covers all operations required for the transmission and storage of gas between the gas manufacturing plant or natural gas off-take point and the meter of the final consumer. Thus, investment in distribution includes major schemes for the extension, renewal and reinforcement of mains and storage as well as projects to provide new compressors, governors and other equipment. The analysis of distribution projects requires investment appraisal as well as operational research. Individual distribution projects cannot always be incorporated in a plan of the whole system. Distribution projects are either to connect new customers or to reinforce the existing pipes and storage. The revenue from new industrial and commercial projects is estimated as that from new domestic projects. Consumption is estimated from detailed information about the industrial and commercial appliances to be installed and the extent to which they will be used and, together with the current industrial or commercial tariff, this provides the required estimate of annual revenue.