The cost of onshore oil pipelines mainly includes the following aspects:

Construction cost

Preliminary planning and design costs: including surveys of pipeline routes, feasibility studies, engineering design and other costs. It is necessary to consider factors such as topography, geological conditions, and surrounding environment to determine the optimal route, which may involve the use of professional geological exploration teams, surveying and mapping equipment, and the service fees of design units.

Material cost: The main material of oil pipelines is steel pipes, and their cost is affected by steel prices and pipeline specifications (diameter, wall thickness, etc.). In addition to steel pipes, it also includes valves, pipe fittings, flanges and other ancillary equipment materials, as well as anti-corrosion materials, insulation materials, etc. For example, oil pipelines in high-cold areas may require special insulation materials to prevent crude oil from solidifying, which will increase material costs.

Construction cost

Land acquisition and compensation costs: Pipeline laying requires the occupation of land, and land acquisition fees and young crop compensation fees must be paid to land owners or users. In densely populated areas or areas with high land values, this part of the cost will be relatively high.

Construction equipment and machinery costs: such as excavators, cranes, welding equipment, etc., and the rental, transportation, maintenance and fuel costs of equipment must also be considered.

Labor costs: involving a large number of professional and technical workers and ordinary workers, such as pipe fitters, welders, electricians, earthworkers, etc., whose costs are affected by local labor market prices and construction difficulty.

Auxiliary engineering costs: such as the cost of building construction access roads, setting up temporary camps, and setting up temporary water and electricity facilities.

Equipment procurement costs: In order to ensure the normal operation of oil pipelines, various equipment must be purchased, such as oil pumps for boosting, instruments for monitoring pipeline operating parameters, and automatic control systems. The technical content and brand of these equipment will affect the cost.

Operating costs

Energy consumption costs: The operation of equipment such as oil pumps consumes a lot of electricity or other energy. There is friction resistance in the transportation of crude oil in the pipeline, and power must be continuously provided to maintain transportation. The energy cost is related to factors such as transportation distance, transportation volume, and pipeline diameter.

Maintenance and repair costs

Daily maintenance costs: Regular inspection and testing of pipelines, maintenance of equipment, including anti-corrosion treatment of pipelines, operation and maintenance of cathodic protection systems, etc.

Maintenance costs: Pipelines may fail due to corrosion, external force damage, etc., and need to be repaired, including the cost of replacing damaged pipeline sections and repairing equipment.

Personnel costs: Including wages, benefits and other expenses of operators, technicians, managers, etc. Professional personnel are required to monitor and manage pipeline operations to ensure safe and stable transportation.

Safety and environmental protection costs

Investment in safety facilities: Installation of safety monitoring equipment, fire-fighting equipment, emergency rescue facilities, etc., as well as the cost of safety training and drills.

Environmental protection costs: Treatment of pollutants such as wastewater, waste gas, and waste residue generated during pipeline operation, as well as the cost of repairing possible ecological damage.

Other costs

Financing costs: The construction of onshore oil pipelines often requires a large amount of funds. Enterprises finance through loans, bond issuance, etc., and need to pay interest and other financing costs.

Insurance costs: In order to prevent risks such as natural disasters and accidents that pipelines may face, property insurance, engineering insurance, etc. need to be purchased. The insurance cost is related to the value of the pipeline and the degree of risk.

Management costs: The costs incurred by enterprises in managing oil pipeline projects, including office space rental, office equipment purchase, and travel expenses for management personnel.

Decommissioning cost: After the oil pipeline reaches the end of its service life, it needs to be dismantled, cleaned up and restored to the site, which will incur corresponding costs, such as the cost of dismantling equipment, the cost of handling abandoned pipelines and equipment, and the cost of restoring the original state of the land.

The material cost of onshore oil pipelines mainly includes the following aspects:

Pipeline materials

Steel pipe: It is the core material of the oil pipeline, and its cost accounts for a large proportion. The price of steel pipe is significantly affected by the fluctuations in the steel market price, such as changes in international iron ore prices, the supply and demand relationship of the steel industry, etc., which will be transmitted to the price of steel pipe. Steel pipes of different steel grades, such as X42, X65, X80, etc., have different strengths and performances, and their prices are also different. High-grade steel pipes are used for pipelines with higher requirements such as high pressure and large diameter, and the cost is higher. The diameter and wall thickness of the pipeline also determine the cost. The manufacturing process of large-diameter and thick-walled steel pipes is complex, and the materials used are more expensive. For example, the cost per meter of a steel pipe with a diameter of 1219 mm is much higher than that of a steel pipe with a diameter of 813 mm.

Anti-corrosion steel pipe: To prevent corrosion of steel pipe, anti-corrosion treatment is required, such as three-layer polyethylene (3PE) anti-corrosion coating, epoxy coal tar anti-corrosion, etc. The materials and processes of the anti-corrosion coating will increase the cost. 3PE anti-corrosion coating has good performance but high cost, while epoxy coal tar anti-corrosion cost is relatively low, but the performance such as anti-corrosion life is slightly worse.

Pipe fittings and connection materials

Pipe fittings: including elbows, tees, crosses, etc., used to change the direction of pipelines, branches, etc. The material, specifications and manufacturing process of pipe fittings affect the cost. Forged pipe fittings have high strength but higher cost than cast pipe fittings. Special materials such as stainless steel pipe fittings are used in areas with special anti-corrosion requirements, and the cost is higher than ordinary carbon steel pipe fittings.

Connection materials: such as flanges, bolts, gaskets, etc., although the individual value is not high, the amount is large, and the total cost cannot be ignored. High-strength, corrosion-resistant flanges and bolts are more expensive, such as stainless steel flanges, alloy bolts, etc.

Valves and control equipment

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 and pressure of oil in pipelines. The cost of valves of different types and specifications varies greatly. The price of imported high-performance regulating valves can reach tens of thousands of yuan or even higher, while ordinary small-diameter gate valves may only cost a few hundred yuan.

Automation control equipment: such as flow meters, pressure transmitters, temperature sensors, etc., are used to monitor and control pipeline operating parameters and realize automatic management. These equipments have high technical content, and the 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.

Auxiliary materials

Insulation materials: In cold areas or when transporting easily condensable crude oil, insulation materials such as polyurethane foam and rock wool are needed to reduce heat loss. Polyurethane foam has good insulation performance but high price, while rock wool has relatively low cost but slightly poor insulation effect.

Cathode protection materials: In order to prevent electrochemical corrosion of pipelines, cathodic protection systems are often used, including sacrificial anodes, reference electrodes, test piles and other materials. The price of magnesium alloy sacrificial anode is relatively low but it is consumed quickly, while the performance of zinc alloy sacrificial anode is better but the cost is higher.

Sealing materials: used for sealing of pipeline joints, valves and other parts, such as rubber sealing rings, graphite gaskets, etc. Sealing materials of different materials and performances have different prices, and high temperature resistant and oil resistant sealing materials are more expensive.

Other materials

Identification materials: In order to facilitate the maintenance and management of pipelines, identification materials such as identification signs and warning piles need to be set up, including metal identification signs, plastic warning piles, etc. Although the cost is relatively low, the large number also constitutes a certain cost.

Communication materials: If the pipeline is equipped with a communication system for transmitting monitoring data and other information, communication cables, optical cables, communication equipment and other materials are required. The cost of communication materials is related to the communication distance, communication technology requirements, etc.

The prices of various materials for onshore oil pipelines are roughly as follows:

Pipeline materials

Steel pipes: Ordinary spiral welded pipes such as Q235 material, with a diameter of 219mm and a wall thickness of about 6mm, cost about 4000-5000 yuan per ton. Large-diameter, thick-walled seamless steel pipes are more expensive. Seamless steel pipes with a diameter of 820mm and a wall thickness of 8mm may cost 5,000-7,000 yuan per ton.

Anti-corrosion steel pipes: The price of 3PE anti-corrosion steel pipes varies according to the specifications. For example, the price of 219mm diameter and 8mm wall thickness is 4,500-5,500 yuan per ton. Epoxy coal tar anti-corrosion steel pipes are relatively cheaper, with the same specifications costing about 4,000-4,800 yuan per ton.

Pipe fittings and connection materials

Pipe fittings: Ordinary carbon steel elbows with a diameter of 219mm cost 200-500 yuan each. Stainless steel tees with a diameter of 300mm may cost 800-1,500 yuan each.

Connection materials: Ordinary carbon steel flanges with a diameter of 200mm cost 100-300 yuan per piece. Matching bolts and gaskets cost 20-50 yuan per set.

Valves and control equipment

Valves: Ordinary DN200 gate valves, priced at 1,000-3,000 yuan. Imported high-performance DN150 regulating valves, priced at 5,000-15,000 yuan.

Automation control equipment: Ordinary domestic flow meters, DN100, priced at 2,000-5,000 yuan. High-precision imported pressure transmitters, priced at 8,000-20,000 yuan.

Auxiliary materials

Insulation materials: Polyurethane foam insulation materials, priced at 500-1,000 yuan per cubic meter. Rock wool insulation materials, priced at 200-500 yuan per cubic meter.

Cathode protection materials: Magnesium alloy sacrificial anodes, priced at 20-30 yuan per kilogram. Zinc alloy sacrificial anodes, priced at 30-40 yuan per kilogram.

Sealing materials: Ordinary rubber sealing rings, 300mm in diameter, priced at 50-150 yuan each. High temperature resistant graphite gasket, diameter 200mm, each price is 80-200 yuan.

Other materials

Signage materials: metal signboards, each price is 100-300 yuan. Plastic warning piles, each price is 50-150 yuan.

Communication materials: ordinary communication cables, the price is 5-20 yuan per meter. The price of optical cable is 8-30 yuan per meter. The price of optical communication equipment varies from 5000 to 30000 yuan according to different types and functions.

The above prices are for reference only. The actual prices will vary depending on market conditions, brands, origins, purchase quantities and other factors.