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OnshoreNaturalGasPipelineTransportationAlternatives:CapitalCostComparisons|CampbellTipoftheMonth

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InrecentTOTMs(JanuarythroughApril,August,andSeptember2012andagaininJanuary2013),we
discussedseveralaspectsofthephysicalbehaviorandtransportationofcarbondioxide(CO2 )andnatural
gasinthedensephase.Weillustratedhowthermophysicalpropertieschangeinthedensephaseand
theirimpactsonpressuredropcalculations.Thepressuredropcalculationutilizingtheliquidphaseand
vaporphaseequationswascompared.
IntheAugust2012(TOTM),westudiedtransportationofrichnaturalgasinthedensephaseregionand
comparedtheresultswiththecaseoftransportingthesamegasusingatwophase(gasliquid)option.
Ourstudyhighlightedtheprosandconsofdensephasetransportation.
InSeptember2012(TOTM),weanalyzedpipelinetransportationofaleannaturalgasatawiderangeof
operatingpressuresfromtherelativelylowpressuretypicalinmanygastransmissionpipelinestomuch
higherpressureswellintothedensephaseregion.

InJanuary2013(TOTM),weestimatedcapitalcosts(CAPEX)asatooltocomparethenselectedtheoperating
conditionsandassociatedfacilitiesforalongdistancehighvolumeflowgastransmissionpipeline.
InthismonthsTipoftheMonth(TOTM),wewillrevisittheJanuary2013(TOTM)andcontinuetoexplorealternatives
specificallyforonshorenaturalgastransportationinpipelines.Thismonthsfocusisalsoontheestimationofcapital
costsasatooltocomparethenselecttheoperatingpressuresandassociatedfacilitiesforalongdistance,highvolume
flowgastransmissionpipeline.

CaseStudy:
WewillcontinuetouseasimilarcasestudybasisasusedintheSeptember2012TOTM.Thegascompositionand
conditionsarepresentedinTable1.Forsimplicity,thecalculationsandsubsequentdiscussionwillbedoneonthedry
basis.Thefeedgasdewpointwasreducedto40C(40F)bypassingitthroughamechanicalrefrigerationdewpoint
controlplant.TheresultingcompositionandconditionsoftheleangasarealsopresentedinTable1.Theleangashas
aGrossHeatingValueof40.33MJ/Sm3(1082BTU/scf).Thepipelineparametersare:
Lengthis1609km(1000miles)long
Pipelineoutsidediameteris1067mm(42inches)forcasesAthroughC.CaseDoutsidediameteris:914mm
(36in)
Steadystateconditionsareassumed.
Pressureatdeliverypointandsuctionateachcompressorstationis7MPa(1015Psia)
Thisisahorizontalpipelinewithnoelevationchange.
OverallHeatTransferCoefficient:1.42W/m2 C(0.25Btu/hrft2 F).
Ambienttemperatureis18.3C(65F).
Compressorpolytropicefficiencyis75%.
Pressuredropincoolers35kPa(5Psia)
Simulationsoftware:ProMaxandusingEquationofStatefromSoaveRedlichKwong(SRK).

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Fourcasesofonshoretransportationofthisnaturalgasareconsideredandeachisexplainedbrieflybelow.The
numberofpipelinesegments,segmentlength,andinletpressureofeachsegmentforthefourcasesarepresentedin
Table2intheSI(SystemInternational)andfield(FPS,foot,poundandsecond)setsofunits.
HydraulicsSimulationResultsandDiscussions:
ThefourcasesaresimulatedusingProMax[3]todeterminethepressureandtemperatureprofiles,thecompression
horsepower,andtheaftercoolerduties.Table3presentsasummaryofsimulationresultsforthethreecasesinFPS
andSIsystemsofunits.

CaseA:HighPressure(DensePhase)

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Thispipelineisasinglecompressorstationconfiguration.Thepipelineinletpressureisinthedensephasezone.After
processingandpassingthroughthefirststagescrubber,theleangaspressureisraisedfrom4.24to9.363MPa(615to
1358Psia),thencooledto37.8C(100F).Thegasiscompressedfurtherinthesecondstageto20.684MPa(3000
Psia).Thehighpressurecompressedgasiscooledbackto37.8C(100F)andthenpassedthroughaseparator
beforeenteringthelongpipeline.

May2012
April2012
March2012

February2012

CaseB:IntermediatePressure

January2012
December2011

Thispipelinehasthreecompressorstationseachequallyspacedat536km(333miles).Thepipelineinletpressureis
nearthedensephasezone.Inthefirststation,thepressureisraisedfrom4.24to12.8MPa(615to1858Psia)andin
thesubsequenttwostations,thepressureisraisedfrom7to12.8MPa(1015to1858Psia)inonestage,thencooledto
37.8C(100F),andfinallypassedthroughaseparatorbeforeenteringeachpipelinesegment.

November2011

October2011
September2011

CaseC:LowPressure

August2011

Thispipelinehasfivecompressorstationsequallyspacedin322km(200mile)segments.Inthefirststation,the
pressureisraisedfrom4.24to10.9MPa(615to1577Psia)andinthesubsequentfourstations,thepressureisraised
from7to10.9MPa(1015to1577Psia)inonestage,thencooledto37.8C(100F),andfinallypassedthrougha
separatorbeforeenteringeachpipelinesegment.Thepipelineinletpressureiswellbelowthatfordensephase.

July2011
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CaseD:HighPressure

February2010

ThiscaseissimilartocaseBexceptitoperatesinthedensephaseandtheoutsidediameteris914mm(36inches).
Thispipelinehasthreecompressorstationseachequallyspacedat536km(333miles).Thepipelineinletpressureisin
thedensephasezone.Afterprocessingandpassingthroughthefirststagescrubber,theleangaspressureisraised
from4.24to8.67MPa(615to1257Psia),thencooledto37.8C(100F).Thegasiscompressedfurtherinthesecond
stageto17.72MPa(2570Psia).Thehighpressurecompressedgasiscooledbackto37.8C(100F)andthenpassed
throughaseparatorbeforeenteringthelongpipeline.Ineachsubsequentstation,thepressureisraisedfrom7to17.7
MPa(1015to2565Psia)inonestage,thencooledto37.8C(100F),andfinallypassedthroughaseparatorbefore
enteringeachpipelinesegment.

January2010

AscanbeseeninTable3,CaseAwithasinglecompressorstationrequirestheleasttotalcompressionpowerand
lowestheatdutyrequirements.ThepowerincreaseforCaseB(withthreecompressorstations)isabout38%compared
toCaseAand54%and89%forCasesC(with5compressorstations)andD(with3compressorstations),respectively.
Theseincreasesinpowerandheatdutyrequirementsaresignificant.Similarly,theheatdutyincreasesareabout6,1,
and59%forcaseBthroughDcomparedtocaseA,respectively.

August2009

VariationofgaspressuresisshownonFigure1forCasesAandB.AsdiscussedinthepreviousTOTM,whenthe
phasediagramandthepressureprofilesarecrossplottedusingthepressureandtemperatureprofilesthepipeline
outletconditionremainstotherightofthedewpointcurvewiththegasremainingassinglephase.

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MechanicalDesign(WallThicknessandGrade)

September2007

Pipelinewallthicknessisanimportanteconomicfactor.Pipelinematerialshavehistoricallyrepresentedapproximately
40%oftheCapitalExpense(CAPEX)ofapipeline.Constructionhashistoricallyaccountedforapproximately40%of
theCAPEXaswell.TheestimationoftheCAPEXisdevelopedlaterinthisTOTM.Oncethewallthicknessisdetermined,
thenthetotalweight(tonnage)ofthepipelinecanbecalculatedaswellascostsforthepipelinesteel.

August2007
July2007

May2007

Thewallthickness,t,forthethreecasesiscalculatedfromavariationoftheBarlowEquationfoundintheASMEB31.8
StandardforGasTransmissionPipelines:

April2007

June2007

March2007
February2007
January2007
December2006

November2006

October2006

Where,
Pismaximumallowableoperatingpressure,heresetto1.1timestheinletpressure,
ODisoutsidediameter,
Eisjointefficiency(assumedtobe1)sincethepipelinewillbejoinedwiththroughthicknessbuttweldsand
100%inspected,
Fisdesignfactor,(rangesfrom0.4to0.72)andheresettobe0.72(forremotearea),
Tisthetemperaturederatingfactorandisalso1.0withtheinlettemperaturesnomorethan37.8C(100F).
isthepipematerialyieldstress(GradeX70=70,000psior448.2MPa),and
CAisthecorrosionallowance(assumedtobe0inor0mm,forthisdrygas).
Aftercalculatingthewallthickness,thediametertowallthicknessratio(D/t)ischeckedagainsttheserulesofthumb:
OnshorepipelineswillhaveamaximumD/tof72.
IftheD/tcalculatedistoohigh,thewallthicknesswillbeincreasedtoyieldthemaximumallowedD/t.

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Usingthecalculatedpipelineinletpressuresfromthehydraulicsasthestartingpoint,theMAOP,andthenthewall
thicknesscanbecalculated.ThecalculatedwallthicknessisthencheckedagainstthemaximumD/tcriteria.Table4
summarizesthesecalculationsforthefourcasesofonshorelocations.
Knowingthewallthicknessanddiameterallowstheweightperlineallength(footormeter)tobecalculated.Thetotal
weightofthesteelforthe1609km(1000mile)longcanthenbecalculatedaswell.Theunitweightisgiveninkg/m
(lbm/ft)andthetotalweightinmetrictonnes(1000kg)andshorttons(2000pounds).Theresultsoftheseweight
calculationsareinTable5.

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Someobservationsfromthesecalculationsare:
Decreasingthepipelinediameterfrom42inchto36inchdoesNOTdramaticallyreducethetotalsteeltonnage.
Thisisduetotheincreasedpressuresneededtoflowthesamevolumeofgasinthesmallerdiameter,hence
increasingthewallthickness.
Increasingthesteelgrade(SMYSSpecifiedMinimumYieldStress)fromX70toX80woulddecreasethesteel
tonnageapproximately14%.Asthecostcalculationswillshow,thisreductionwouldlowerthecostsignificantly.
Thevolumeofsteelcombinedwiththediameterandwallthicknesseswillrequireamajorportionofpipe
manufacturingcapacity.Ifthiswereasanctionedproject,pipesteelprocurementwouldneedtobidwellin
advanceoftheplannedconstruction.
WallthicknessesareNOTraisedtonextstandardAPIthicknesses.Thelargequantityofsteelneededallowsthe
buyertodictateanonstandardthickness.Thepipemillswillbegladtoaccommodatesucharequirement.

EstimatedCapitalCosts
Thecapitalcosts(CAPEX)fortheseestimatesarebasedontwokeyvariables:pipelinewallthicknessandthe
compressionpowerrequired.Botharedependentofthepipelinepressureprofilewhichisdictatedbythenumberof
compressorstations.Theestimatedcostwillbecalculatedfromthefollowingassumptions:
LinepipeispricedatUS$1200pershorttonwitha15%adderforcoatings.
Pipelinetotalinstalledcostis2.5timesthepipesteelpluscoatingscost.Thisfactorhasbeensurprisingly
consistenthistoricallyforbothonshoreandoffshorelongdistanceandlargerdiameterpipelines.Projectspecific
factorssuchasmountainousterrainforonshorepipelinescanimpactthiscostmultiplier.
Noadditionalcostdifferenceistakenintoaccountforthisestimatemanyoftherealconditionsthataredealtwith
fortheonshoredesignconstruction.Inrealitythereisadifferencethatcanbesignificant.Thesedifferencesare
largelydependentontheprojectlocationwithfactorsthatcouldincludeweatherandseasonalchallenges,
terrainforonshoreprojects,availableinfrastructureanditsimpactonlogistics,andavailabilityofconstruction
equipmentandlabor.
Compressorsandassociatedequipment(drivers,coolers,andancillaries)arepricedatUS$1500perdemand
horsepower.
OnshorecompressorstationsarepricedatUS$25millioneachforsiteworks,buildingsandequipmentnot
directlyrelatedtogascompression.

Withthesecostassumptions,anorderofmagnitudeestimate(OME)forthetotalinstalledcost(TIC)isdevelopedforthe
pipeline,thenthecompressorstations,andfinallycombinedforthetotalONSHOREpipelinesysteminTable6
PipelineEstimate,Table7CompressorStationEstimate,andTable8TotalSystemOME.

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Theresultsareindicativeoffindingasetofoperatingpressures,pipediameterandnumberofcompressorstationsthat
showrelativelylittlechangewithdifferentcombinationsofthekeyparameters(CasesB,CandD).Theselectionofthe
optimumsystemconfigurationwillinvolvemoreengineeringdefinition,considerationofconstructionchallenges,and
evaluationofotherparameterssuchastheoperatingcosts(OPEX),environmentalandpermittingchallenges,andmore
depthinevaluatingtheconstructionplanandcosts.
ThetotalinstalledcostsforthisONSHOREsystemdeclineswithdecreasingoperatingpressure(MAOP),althoughthe
rateofdeclineisalsodecreasing,asmorecompressorstationsareneeded.Fortheonshoresystems,theoperating
cost,particularlyfuelcosts,maybeoneofthekeydecidingparametersfortheoperatingpressure/numberof
compressorstationsdecision.Itiscommonfortotallifecyclecosts(OPEXplusCAPEX)tobeginrisingatsomepointas
thenumberofcompressorstationsandtotalhorsepowerincreaseswithdecreasingoperatingpressure.

Often,withtheoperatingcostsincludedtheoptimumconfigurationfavorshigheroperatingpressuresandfewer
compressorstations.ThecostadjustmentsforprojectlocationonbothCAPEXandOPEXcanmovetooptimum
configurationeitherway.

FinalComments:
Wehavestudiedtransportationofnaturalgasinthedensephaseregion(highpressure)andcomparedtheresultswith
thecasesoftransportingthesamegasusingintermediateandlowpressures.Ourstudyhighlightsthefollowing
features:
1. Theremaybeseveralsystemconfigurations(pipediameter,operatingpressures,andnumberofcompressor
stations)thatshowrelativelysmallvariation.
2. AstheMAOPincreases,therequiredpowerandassociatedcoolingdutycansignificantlydecrease.
3. Thedecreasedcostsforcompressionareoffsetbyincreasingpipelinecosts.Thekeyisbyhowmuch.
4. Projectlocationcanhavesignificantimpactonthecosts,hencethekeydecisionsareonoperatingpressures,
andthenumberandpowerlevelsatthecompressorstations.
5. Withthehighpowerdemandsoflargediameterhighcapacitypipelines,theoperatingcostsforfuelcanbea
keyfactorintheconfigurationselection.Ifthegasatthesourceisnotathighenoughpressure,considerable
compressionpowerandcoolingdutymayberequiredifthedecisionistousethedensephase.

InfutureTipsoftheMonth,wewillconsideroffshoretransportationofnaturalgasaswellastheeffectofprojectlocation
andoperatingcostsonthelifecyclecostsandtheconfigurationselection.

Tolearnmore,wesuggestattendingourG40(Process/FacilityFundamentals),G4(GasConditioningand
Processing),G5(GasConditioningandProcessingSpecial),PF81(CO2 SurfaceFacilities),PF4(OilProductionand
ProcessingFacilities),andPL4(FundamentalsofOnshoreandOffshorePipelineSystems)courses.

JohnM.CampbellConsulting(JMCC)offersconsultingexpertiseonthissubjectandmanyothers.Formoreinformation
abouttheservicesJMCCprovides,visitourwebsiteatwww.jmcampbellconsulting.com,oremailusat
consulting@jmcampbell.com.
By:MahmoodMoshfeghianandDavidHairston
References:
1. Beaubouef,B.,Nordstreamcompletestheworldslongestsubseapipeline,Offshore,P30,December2011.
2. http://www.jmcampbell.com/tipofthemonth/
3. ProMax3.2,BryanResearchandEngineering,Inc.,Bryan,Texas,2012.

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WrittenbyDr.MahmoodMoshfeghianandDavidHairston
Dr.MahmoodMoshfeghianisaninstructorandconsultantwithJohnMCampbellandCompany(JMC).Heistheauthor
ofmostofCampbellTipsoftheMonthanddevelopstechnicalsoftwareforJMC.Hehas35yearsteachingexperiencein
universities(OklahomaStateUniversity,UniversityofShiraz,UniversityofSydneyandUniversityofQatar)aswellasfor
oilandgasindustries.Dr.MoshfeghianjoinedJMCin1990asaparttimeconsultantandthenasfulltime
instructor/consultantin2005.PrevioustojoiningJMC,Dr.MoshfeghianwasaSeniorResearchScientistatKuwait
InstituteforScientificResearchandProfessorofChemicalEngineeringatShirazUniversity.Dr.Moshfeghianisasenior
memberofAIChEandhaspublishednumeroustechnicalpapersonthermodynamicproperties,andProcess
Engineering.Dr.Moshfeghianhaspresentedinvitedpapersininternationalconferences.HeholdsaB.S.,anM.S.anda
Ph.D.inChemicalEngineering,allfromOklahomaStateUniversity.
Viewallpostsby:Dr.MahmoodMoshfeghianandDavidHairston
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1. MadlynPoxonsays:
April18,2014at6:36am
MybrotherrecommendedImaylikethiswebsite.Hewasoncetotallyright.Thisposttrulymademyday.You
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