Abstract:

It is quite imperative in early stage of the project (i.e. concept and FEED) to
preclude the risk of un-necessary cost. This saving can be achieved by
including the element of cost estimate/ economic evaluation for the key unit
operations along with the associated running annul cost.

One example is set forward in this post to illustrate different options for a 125
Km pipeline to transport a refined product.

Basis:
The key objectives within this optimization study are listed as follows:
 Pipeline rating is 300.
 Minimum flow is 480 m³/hr.
 Maximum flow is 1,200 m³/hr.

Methodology:
First attempt in this study is to understand the overall operation constraints
and avoiding any biased conclusion. This is probably by establishing an
operating envelop for the key unit operation(s) preferably P-Q relationship.
Practically speaking, there is no firm modeling convention fits all unit
operation as it varies from one system to another.

Once the operating envelope is established, the associated fixed and

operating cost to each option will surely give an insight to eventually conclude
the most viable option(s).

Outcomes:
Techno-economic study has eventually concluded the first and second best
options for the 18" and 20" sizes. 20" can operate wide range of flows close to
the maximum requirements compared to 18" for the same 300 rating .
The maximum attainable diesel flow within the mechanical constraints of 300
rating is tabulated as below.

18” Pipeline 20” Pipeline

Maximum Attainable Flow (m³/hr.) 800 1,100

It can be concluded from above table that 20” size is largely meeting the
process requirements whereas the 18” size admits only 66% of the target flow.
The following chart presents the pipeline material cost for each size.
The cost difference between 18” and 20” is nearly $ 4,400,000 and it seems the
18” may outweigh the 20” due to this big difference. Be that as it may, the
operating expenditure of the pump system could trade off the above
conclusion if the saving is high. Nonetheless, the 20” save $ 200,000 per
annum.
The following table shows the OPEX associated to each pipeline size.

18” Pipeline 20” Pipeline

OPEX $ 1,000,000 800,000
To sum up, the governing criteria for options assessment and option selection
are tabulated below:

 CAPEX.
 OPEX.
 Operational Needs.
 Safe Operation.

By utilizing the method of weightage score method, the 18” was reported as a
first best option although its flow capacitance is lower than the 20” pipeline.
Attachment-1
Print out of Weightage Score Method.
 About WSM

Tutorial

Option Decision Drivers Safety Operational Need CAPEX OPEX N/A N/A N/A N/A N/A TOTAL
No Analysis Results Weighted Process Evaluation
Weightage[%] 25 20 30 25 0 0 0 0 0 100

800
0 18" Pipeline 720
7 5 9 7 0 0 0 0 0
720
705
1 20" Pipeline 705 700
6 9 5 9 0 0 0 0 0

0 600
0 0 0 0 0 0 0 0 0

0
0 0 0 0 0 0 0 0 0 500

0
0 0 0 0 0 0 0 0 0 400

0
0 0 0 0 0 0 0 0 0 300

0
0 0 0 0 0 0 0 0 0
200
0
0 0 0 0 0 0 0 0 0
100
0
0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
0
0
0 0 0 0 0 0 0 0 0

0
0 0 0 0 0 0 0 0 0

Pairwise Comparison
m sis
tru ly
ec na
Sp e A
s
ar

Not Favourable Fairly Reasonable Most favourable

Co

0 to 3 4 to 6 7 to 10

Options Dashboard

Driver 18" Pipeline 20" Pipeline 0 0 0 0 0 0 0 0 0

Most Favourable Fairly Reasonable Not Favourable Not Favourable Not Favourable Not Favourable Not Favourable Not Favourable Not Favourable Not Favourable Not Favourable
Safety
Fairly Reasonable Most Favourable Not Favourable Not Favourable Not Favourable Not Favourable Not Favourable Not Favourable Not Favourable Not Favourable Not Favourable
Operational Need
Most Favourable Failry Reasonable Not Favourable Not Favourable Not Favourable Not Favourable Not Favourable Not Favourable Not Favourable Not Favourable Not Favourable
CAPEX
Most Favourable Most Favourable Not Favourable Not Favourable Not Favourable Not Favourable Not Favourable Not Favourable Not Favourable Not Favourable Not Favourable
OPEX
Not Favourable Not Favourable Not Favourable Not Favourable Not Favourable Long downTime Not Favourable Not Favourable Not Favourable Not Favourable Not Favourable
N/A
Not Favourable Not Favourable Not Favourable Not Favourable Not Favourable Not Favourable Not Favourable Not Favourable Not Favourable Not Favourable Not Favourable
N/A
Not Favourable Not Favourable Not Favourable Not Favourable Not Favourable Not Favourable Not Favourable Not Favourable Not Favourable Not Favourable Not Favourable
N/A
Not Favourable Not Favourable Not Favourable Not Favourable Most Favourable Most Favourable Not Favourable Failry Reasonable Not Favourable Not Favourable Not Favourable
N/A
Not Favourable Not Favourable Not Favourable Not Favourable MostFavourable
Not Favourable MostFavourable
Not Favourable Not Favourable FailryFavourable
Not Reasonable Not Favourable Not Favourable Not Favourable
N/A

18" Pipeline 20" Pipeline 0 0 0 0 0 0 0 0 0

ts
en
m
ire
qu
Re
n
tio
Op

Driver Safety Operational Need CAPEX OPEX N/A N/A N/A N/A N/A

18" Pipeline 7 5 9 7 0 0 0 0 0

20" Pipeline 6 9 5 9 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0