As a key infrastructure for natural gas transmission, the cost analysis of natural gas pipelines is of great significance for project planning, investment decisions and operation management. The cost of natural gas pipelines covers multiple stages such as construction, operation and maintenance, and is affected by many factors. The following will analyze the cost of natural gas pipelines in detail.

I. Construction cost

(I) Preliminary planning and design cost

Survey cost: It is necessary to conduct a comprehensive survey of the geological conditions, topography, and surrounding environment along the pipeline route. Through geological drilling, geophysical exploration and other means, determine the soil type, rock characteristics, groundwater level and other information to evaluate the feasibility and safety of pipeline laying. At the same time, use high-precision surveying and mapping equipment to obtain terrain data and plan a reasonable pipeline route. The survey covers a wide range, involves professional equipment and technicians, and is expensive. For example, the cost of surveying in mountainous areas or geologically complex areas may increase significantly, and the survey cost of a single project can reach millions of yuan.

Feasibility study costs: Including technical feasibility, economic feasibility, environmental impact assessment, and social impact assessment. It is necessary to hire professional consulting agencies, scientific research teams and industry experts to conduct a comprehensive assessment of the project from different angles. The research content covers natural gas resources, market demand forecasts, pipeline transportation processes, investment estimates, environmental risks, etc. The feasibility study cycle is long, and the cost usually ranges from millions to tens of millions of yuan. For large-scale cross-regional natural gas pipeline projects, the cost may be higher.

Engineering design costs: Detailed engineering design is carried out based on the results of the survey and feasibility study. The design content includes the pipe diameter, wall thickness, material selection, pressure level design, line direction design, and the design of ancillary facilities such as valve stations, pressure regulating stations, and metering stations. The design unit must have rich experience in pipeline engineering design and use advanced design software and technical standards to ensure the scientificity and rationality of the design. The design cost generally accounts for 3% - 8% of the total construction cost of the project. For complex large-scale projects, the design cost may be as high as hundreds of millions of yuan.

(II) Material cost

Pipeline material

Steel pipe: It is the main material of natural gas pipelines. High-strength and high-toughness pipeline steel, such as X60, X70, X80 and other steel grades, is usually used to withstand the high pressure during natural gas transportation. The cost of steel pipes is affected by steel grade, pipe diameter, wall thickness and market steel price fluctuations. The price of high-grade steel pipes is relatively high, and the manufacturing process of large-diameter and thick-walled steel pipes is complex, and the materials used are more, which significantly increases the cost. For example, the price per ton of X80 steel pipes with a diameter of 1000mm and a wall thickness of 15mm is thousands of yuan higher than that of X60 steel pipes with a diameter of 600mm and a wall thickness of 10mm.

Anti-corrosion materials: In order to prevent corrosion of steel pipes, anti-corrosion treatment is required. Common anti-corrosion methods include three-layer polyethylene (3PE) anti-corrosion coatings, fused epoxy powder (FBE) anti-corrosion coatings, etc. 3PE anti-corrosion coatings have excellent performance and good protection effects, but the cost is high, and the cost per square meter can reach hundreds of yuan. In some areas with harsh corrosion environments, it is also necessary to combine cathodic protection systems, including sacrificial anodes (such as magnesium alloys, zinc alloys), reference electrodes, test piles, etc., which further increase material costs.

Pipe fittings and connection materials

Pipe fittings: elbows, tees, reducers and other pipe fittings are used to change the direction of pipelines, branches and connect pipelines of different diameters. The material, specifications and manufacturing process of pipe fittings determine their cost. Pipe fittings of special specifications and shapes, such as large-angle elbows and high-pressure tees, are difficult to manufacture and more expensive. The price of a single pipe fitting can reach tens of thousands of yuan. Pipe fittings are usually made of the same material as the pipeline to ensure the reliability and sealing of the connection.

Connection materials: including flanges, bolts, gaskets, etc. In order to meet the high pressure and sealing requirements of natural gas transportation, high-strength and corrosion-resistant connection materials are required. Stainless steel flanges and alloy bolts are widely used in natural gas pipelines, and their prices are several times higher than ordinary carbon steel connection materials. Gaskets generally use rubber or metal spiral wound gaskets that are resistant to oil and natural gas corrosion, and the cost is relatively high.

Valve and control equipment materials

Valves: There are many types of valves, such as gate valves, ball valves, butterfly valves, and regulating valves, which are used to control the flow, pressure and flow direction of natural gas. The cost of valves of different types and specifications varies greatly. High-performance imported valves are expensive. For example, the price of a large high-pressure regulating valve can reach hundreds of thousands of yuan. Domestic valves are relatively cheap, but they have also been greatly improved in quality and performance. The cost of valves is also related to brand, material and technical content.

Automation control equipment materials: such as pressure sensors, temperature sensors, flow sensors, data acquisition and transmission systems, remote monitoring center equipment, etc., are used to monitor and control the operating parameters of natural gas pipelines in real time. These equipment have high technical content, and brand and precision have a great impact on the price. The price of high-precision and high-reliability imported equipment is much higher than that of domestic equipment. The procurement cost of a complete set of automation control equipment materials may be as high as tens of millions of yuan.

(III) Construction cost

Construction equipment rental fee

Pipeline laying equipment: including excavators, pipelayers, welding equipment, etc. Excavators are used for trench excavation. The rental fee depends on the model and rental time. The daily rental fee of large excavators can reach thousands of yuan. Pipelayers are used to lift steel pipes and place them accurately in the trench. The rental fee of pipelayers with different lifting capacities is different, ranging from thousands to tens of thousands of yuan per day. Welding equipment is the key to ensuring the quality of pipeline connections. The rental cost of advanced automatic welding equipment is high. At the same time, professional welding technicians are required, and labor costs also increase accordingly.

Other auxiliary equipment: such as pressure test equipment, purging equipment, anti-corrosion patching equipment, etc. The pressure test equipment is used to perform pressure tests on pipelines to ensure the strength and sealing of the pipelines. Its rental cost is related to the pressure level and specifications of the equipment. The purging equipment is used to remove debris and dust in the pipeline, and the anti-corrosion patching equipment is used to repair the anti-corrosion coating at the pipeline welding point. The rental costs of these equipment also constitute part of the construction cost.

Construction personnel costs

Professional and technical personnel: including pipeline engineers, welding engineers, non-destructive testing personnel, etc. They need to have rich pipeline construction experience and professional skills, and have a high salary level. For example, a skilled welding engineer can earn tens of thousands of yuan per month, and the salary of non-destructive testing personnel is also considerable. In addition, construction personnel also need to pay additional construction subsidies, insurance costs, etc., which further increases labor costs.

Ordinary workers: such as trench digging workers, pipeline installation workers, auxiliary workers, etc., although the salary is relatively low, due to the large number of personnel required and the high work intensity during the construction process, their total cost also accounts for a large proportion of the construction personnel cost. At the same time, a certain amount of funds are also required for the living security and logistics services of construction personnel.

Construction auxiliary project costs

Temporary project construction costs: During the construction process, temporary camps, construction access roads and other temporary projects need to be built to facilitate equipment parking, material stacking and personnel operations. The construction of temporary camps needs to consider functions such as accommodation, catering, and office. The construction cost depends on the scale and standards, and may cost hundreds of thousands to millions of yuan. The construction cost of the construction access road depends on the terrain conditions and length. In mountainous areas or complex terrain areas, the construction of the construction access road is difficult and the cost is high.

Land acquisition and compensation costs: The laying of natural gas pipelines requires the occupation of land, and land acquisition fees and young crop compensation fees need to be paid to the land owner or user. In areas with dense populations or high land values, land acquisition and compensation costs will be relatively high. In addition, it may also involve compensation for the demolition of above-ground buildings and structures, which varies greatly from region to region.

Construction safety guarantee costs: There are certain safety risks in the pipeline construction process, and funds need to be invested in safety guarantee measures. This includes equipping safety protection equipment, setting up safety warning signs, conducting safety training, and formulating safety emergency plans. Safety guarantee costs generally account for a certain proportion of the construction cost, and the specific value varies from project to project. For large and complex projects, the safety guarantee costs may be higher.

(IV) Equipment procurement costs

Compressor unit procurement costs: In long-distance natural gas transportation, in order to increase the transmission pressure and overcome pipeline resistance, a compressor unit needs to be set up. The power size, type (such as reciprocating compressor, centrifugal compressor) and brand of the compressor unit determine its procurement cost. Large centrifugal compressor units can reach several megawatts of power and are expensive. The procurement cost of a single unit can reach tens of millions of yuan. The procurement of compressor units also needs to consider supporting equipment, such as cooling systems, lubrication systems, control systems, etc., which further increases the procurement cost.

Pressure regulating equipment procurement costs: The pressure regulating station is used to adjust the pressure of natural gas to meet the use requirements of downstream users. Pressure regulating equipment includes pressure regulators, safety valves, filters, etc., and its procurement cost is related to the specifications, models, materials and brands of the equipment. The price of high-precision, high-performance imported pressure regulating equipment is relatively high, and the price of domestic pressure regulating equipment is relatively affordable, but in some high-end application scenarios, imported equipment still has advantages. The procurement cost of a complete set of pressure regulating station equipment may be between several million yuan and tens of millions of yuan.

Procurement cost of metering equipment: The metering station is used to accurately measure the flow and volume of natural gas to ensure the fairness and justice of trade settlement. The main metering equipment includes ultrasonic flowmeters, turbine flowmeters, orifice flowmeters, etc., and its procurement cost is affected by factors such as accuracy level, measurement range, and brand. The price of high-precision ultrasonic flowmeters is relatively high, and the price of a single device can reach hundreds of thousands of yuan. In addition, metering equipment must also be equipped with a data acquisition and transmission system to achieve remote data monitoring and management, which also increases the procurement cost.

2. Operating cost

(I) Energy consumption cost

Compressor unit energy consumption: The compressor unit is the main equipment for energy consumption during the operation of the natural gas pipeline. Its energy consumption is closely related to the transmission pressure, gas transmission volume, compression ratio and the energy efficiency level of the equipment. In order to maintain the long-distance high-pressure transmission of natural gas, the compressor unit needs to operate continuously, consuming a large amount of electricity or other energy. For example, the annual electricity consumption of the compressor unit of a large natural gas compression station can reach tens of millions of kWh. According to the local electricity price, the electricity bill is a considerable expense. In some areas, the compressor unit may also use natural gas as fuel, and its fuel consumption cost cannot be ignored.

Pump unit energy consumption: In some natural gas transmission systems, it may be necessary to set up a pump unit, such as in wet gas transmission or when natural gas needs to be pressurized. The energy consumption of the pump unit is related to the nature, flow rate, head and efficiency of the transmission medium. Although the energy consumption of the pump unit in the natural gas pipeline is relatively small compared to the compressor unit, its energy consumption cost cannot be ignored in the long-term operation.

(II) Maintenance and repair costs

Daily maintenance costs

Pipeline inspection costs: Regular inspections of pipelines are carried out through manual inspections, intelligent detection equipment (such as intelligent pipe cleaners, magnetic flux leakage detection equipment), etc., to check the corrosion and leakage of pipelines and the operating status of ancillary facilities. The cost of manual inspection is relatively low, but the efficiency is low and is limited by factors such as terrain. Intelligent detection equipment can detect pipeline defects more accurately, but the equipment purchase and maintenance costs are high. The pipeline inspection costs also include the salaries of inspectors, transportation costs, etc. The annual inspection costs account for a certain proportion of the operating costs.

Equipment maintenance costs: Regular maintenance of equipment such as compressor units, pressure regulating equipment, metering equipment, valves, etc., including replacement of lubricating oil, filters, and wearing parts, cleaning and debugging of equipment, etc., to ensure the normal operation of the equipment. The equipment maintenance costs are related to the number, type, frequency of use and maintenance standards of the equipment. The maintenance costs of large equipment are relatively high. Regular maintenance can extend the service life of the equipment and reduce the failure rate of the equipment, but it also requires corresponding funds.

Anti-corrosion maintenance costs: Regularly inspect and maintain the anti-corrosion coating of the pipeline, such as reapplying anti-corrosion paint, replacing sacrificial anodes, etc., to prevent pipeline corrosion. The anti-corrosion maintenance costs are related to the degree of corrosion of the pipeline, the life of the anti-corrosion coating and the maintenance process. As the service life of the pipeline increases, the anti-corrosion maintenance costs may gradually increase. In some areas with severe corrosive environments, anti-corrosion maintenance work is more frequent and more expensive.

Maintenance costs

Emergency repair costs: When an emergency accident such as leakage or rupture occurs in the pipeline, emergency repairs must be carried out immediately. Emergency repair work is difficult and risky, and requires a lot of manpower, material and financial resources. During the maintenance process, professional emergency repair equipment may need to be used, such as leak plugging equipment, welding equipment, temporary pipeline connection equipment, etc. At the same time, it is necessary to organize emergency rescue teams and coordinate resources from all parties. Emergency repair costs are often difficult to estimate, and the cost of repairing a serious pipeline accident may be as high as millions or even tens of millions of yuan.

Planned maintenance costs: According to the service life and operating conditions of the equipment, formulate regular planned maintenance plans, conduct comprehensive inspections of the equipment, replace aging parts, etc. The planned maintenance costs are relatively controllable, but it is also necessary to make budget arrangements in advance to ensure the smooth progress of the maintenance work. The planned maintenance costs are generally related to the investment cost and maintenance cycle of the equipment, and usually account for a certain proportion of the equipment investment cost. Through reasonable planned maintenance, potential problems of the equipment can be discovered and solved in a timely manner to ensure the safe and stable operation of the natural gas pipeline.

(III) Personnel costs

Operation management personnel wages: including pipeline inspection personnel, equipment operators, dispatchers, technical management personnel, etc. These personnel need to have professional knowledge and skills and be familiar with the operation and management process of natural gas pipelines. The salary level of operation management personnel varies according to their position, experience and skill level, and the overall salary level is relatively high. For example, the monthly salary of pipeline inspection personnel can reach several thousand yuan, and the annual salary of technical management personnel can reach hundreds of thousands of yuan. In addition, employees also enjoy welfare benefits, social insurance, etc., which further increases personnel costs.

Training costs: In order to improve the professional quality and skill level of employees and ensure that they can master equipment operation and emergency response methods, regular training is required. The training content includes safety production knowledge, equipment operating procedures, new technology applications, emergency response drills, etc. The training costs include training teacher fees, training material fees, wages and benefits of employees during the training period, etc. The annual training costs also account for a certain proportion of personnel costs. Through continuous training, employees' work efficiency and safety awareness can be improved and operational risks can be reduced.

(IV) Safety and environmental protection costs

Investment in safety facilities

Upgrade costs of safety monitoring systems: In order to timely discover safety hazards of pipelines, it is necessary to continuously upgrade and improve the safety monitoring system, such as installing more advanced leak detection sensors, pressure monitoring equipment, combustible gas alarm devices, etc. The upgrade costs of the safety monitoring system depend on the purchase cost of the equipment, installation and commissioning costs, and subsequent maintenance costs, and usually require a large amount of investment. Advanced safety monitoring systems can monitor the operation status of pipelines in real time, warn of safety accidents in a timely manner, and ensure the safety of personnel and the environment.

Emergency rescue equipment update costs: Regularly update and maintain emergency rescue equipment to ensure that it can be used normally at critical moments. Emergency rescue equipment includes fire-fighting equipment, leak-proof equipment, personal protective equipment, emergency lighting equipment, etc. The update cycle of emergency rescue equipment is generally several years, and the cost of each update depends on the type and quantity of the equipment, which may cost hundreds of thousands to millions of yuan. At the same time, emergency rescue equipment must be inspected and maintained regularly to ensure its good performance.

Safety training and drill costs: Organize employees to conduct safety training and emergency drills to improve their safety awareness and emergency response capabilities. Safety training and drill costs include training instructor costs, drill material costs, site rental costs, etc., and annual expenses cannot be ignored. Through regular safety training and drills, employees can be familiar with the emergency response process, improve their ability to respond to emergencies, and reduce accident losses.

Environmental protection costs

Environmental monitoring costs: Regularly monitor the environment around the natural gas pipeline, including air quality, soil quality, noise, etc. Environmental monitoring requires professional monitoring equipment and technicians, and the monitoring costs are high, with annual monitoring costs ranging from hundreds of thousands to millions of yuan. Environmental monitoring can timely discover the impact of pipeline operation on the surrounding environment and provide a basis for taking corresponding environmental protection measures.

Pollutant treatment costs: Pollutants generated during pipeline operation, such as exhaust gas discharged from compressors, wastewater generated by equipment cleaning, and discarded anti-corrosion materials, are treated to ensure that they meet emission standards. Pollutant treatment requires the construction of special treatment facilities or entrusting professional environmental protection companies to treat them. The treatment costs are related to the type of pollutants, the amount of generation, and the treatment process. For example, the treatment costs of desulfurization, denitrification, and dust removal of compressor exhaust gas are relatively high.

Ecological compensation costs: If the construction and operation of natural gas pipelines cause certain damage to the surrounding ecological environment, such as occupying wildlife habitats and destroying vegetation, ecological compensation costs may need to be paid for ecological restoration and protection. The specific amount of ecological compensation costs depends on the degree of ecological damage and the provisions of relevant laws and regulations, and may involve hundreds of thousands to millions of yuan or even more.

III. Other costs

(I) Financing costs

Loan interest: Natural gas pipeline projects require huge investments, and companies usually need to raise funds through bank loans and other means. The level of loan interest depends on factors such as the loan amount, loan interest rate, and loan term. At present, the loan amount of large-scale natural gas pipeline projects can reach billions or even tens of billions of yuan. The loan interest rate generally refers to the market interest rate of the same period, and the loan term is relatively long, which can reach more than 10 years. Taking a loan amount of 5 billion yuan, an annual interest rate of 5%, and a loan term of 15 years as an example, the annual loan interest expenditure is as high as 250 million yuan. Loan interest is an important cost expenditure during the operation of the project and has a great impact on the economic benefits of the project.

Bond issuance costs: Some companies will raise funds by issuing bonds. During the bond issuance process, they need to pay a series of fees such as underwriting fees, rating fees, legal fees, and audit fees. Bond issuance costs generally account for a certain proportion of the bond issuance amount. The specific proportion depends on the size of the bond, credit rating, and market conditions, and is usually between 1% and 3%. For example, the issuance cost of a bond with a scale of 1 billion yuan may be between 10 million yuan and 30 million yuan. Although the bond issuance cost is a one-time expenditure, it also increases the financing cost of the project and needs to be considered in the project cost analysis.

(II) Insurance costs

Property insurance costs: In order to protect the property safety of natural gas pipelines and related facilities when they are hit by natural disasters (such as earthquakes, floods, typhoons, etc.) and accidents (such as fires, explosions, third-party damage, etc.), property insurance needs to be purchased. The cost of property insurance is related to the value of the insured object, the risk assessment results and the insurance terms. The insured value of the natural gas pipeline project is huge and the risk is high, so the cost of property insurance is relatively high. Generally speaking, the cost of property insurance accounts for a certain proportion of the total investment of the project, about 0.5% - 1.5%. For example, a natural gas pipeline project with a total investment of 10 billion yuan may have an annual property insurance cost of between 50 million yuan and 150 million yuan. Property insurance can reduce the property loss of the enterprise in the event of an accident and reduce the risk of the project.

Liability insurance costs: mainly include public liability insurance, third-party liability insurance, employer liability insurance, etc., which are used to bear the compensation liability for personal injury and property loss caused to third parties by accidents such as natural gas pipeline leakage and explosion, as well as the compensation liability for accidents that occur to employees during work. Liability insurance costs are also related to risk assessment results and insurance terms, and quotations from different insurance companies may vary. Liability insurance costs also account for a certain proportion of the total insurance cost.