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oil pipeline construction cost

oil pipeline construction cost

oil pipeline construction cost

How could I find the cost formula and factors to determine the capital and total cost of a pipeline coating,material and the tank?

Are there any formula or graphs that i could use them?

I found formula for the equipments such as pumps,joints...etc

RE: oil pipeline construction cost

God that depends on a ton of factors. For buried, welded steel pipe with a normal number of interruptions (i.e., places where the firing line has to stop and the welds made in a bell hole), then you can come up with a number that is specific to a given company in a given jurisdiction. One of my clients requires that the design pressure create stresses less than 20% of SMYS--that tends to increase wall thickness and per-weld cost. One client requires the entire crew to attend a week long safety school before starting the job (that time is billed to the project). Another requires a daily safety meeting in town prior to everyone going to location and beginning to warm up their equipment--their jobs are 28% more expensive than anyone else's. One jurisdiction requires a welding inspector, a ROW inspector, an archaeology inspector, and a QA/QC inspector on every job every day--the inspectors cost money and often show up late which starts work late.

If you are laying 8-inch and smaller, you have options to steel like RTP spoolable pipe that costs more for materials, but costs much less for labor. For most sizes you can use HDPE which costs less for materials, but costs a lot more for labor.

What I'm trying to say is if anyone posts what you are looking for, it will be wrong for your job, and it might be very wrong. I recently post appraised three big jobs that were priced via these rule of thumb tables and in one case budget was 5% of actual, in another it was 40%, and in the third it was 22%. I haven't ever come across one of these rule-of-thumb tables that gave me a number higher than we ended up spending. I developed a table once for my projects at my company, and actuals were generally within 10% of budget. A colleague at the same company used them and his project wasn't close to budget.

One thing that has seemed to hold true for steel jobs across companies and engineers is that the final non-engineering costs of a buried, welded steel job is going to be somewhere close to 60% labor and 40% materials. So if you get a quote for materials (include pipe, valves, fittings, coatings, and manufactured items) you can simply divide by 0.4 and get a pretty good feel for how big the non-engineering part project is. Before our addiction to PSM, I would add 15% to the materials-derived project cost for engineering, but today it should be closer to 40%. Finally I add a 15% contingency to the total of engineering, materials, and field labor for a budget number. Most of my projects are under budget by 3-10%.

David Simpson, PE
MuleShoe Engineering

In questions of science, the authority of a thousand is not worth the humble reasoning of a single individual. —Galileo Galilei, Italian Physicist

RE: oil pipeline construction cost

I agree with all zdas04 says. The other issue to be aware of is the very limited application of any of the $/km/inch numbers for any pipeline less than 50-70 km long. In these cases the fixed costs for a project become much more than the variable ones and any difficulties (special crossings, poor ground,poor access etc) can seriously screw up any general number.

PS, Not sure why this is posted in the chemical plant section and not the "pipelines" one?

My motto: Learn something new every day

Also: There's usually a good reason why everyone does it that way

RE: oil pipeline construction cost


I once applied the $/dia-in-mile approach to a short pipeline (5 km).

Turned out, as discovered in excavating the trench (since the Client would not pay for the recommended geotechnical along the ROW...blah blah blah), the line needed 2 km of rock shield.

A significant AFE supplement ensued.

The geotechnical assessment, in retrospect, would have been comparatively cheap. It wouldn't have eliminated the need for rock shield but at least the project economics could have been correctly evaluated prior to buying the pipe and opening up the trench.

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