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How To Estimate Capital Cost of Pipeline Project

In this post I want to share how to estimate capital cost of pipeline project. For your information, this procedure is for information and general guidance only. Source of this procedure is from Gas Pipeline Hydraulics by E. Shashi Menon. The book was published in 2005. So, the cost might need adjustment due to inflation.

Before we jump into estimation, we need to understand scope of pipeline project to easily define component of cost. There are ten (10) major cost components of pipeline project:

  1. Pipeline
  2. Compressor stations
  3. Mainline valve stations
  4. Meter stations
  5. Pressure regulating stations
  6. SCADA and telecommunication
  7. Environmental and permitting
  8. Right of way acquisitions
  9. Engineering and construction management
  10. Allowance for funds used during construction and contingency

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