Cost factors and statistical evaluation of gas transmission pipeline construction and compressor-station cost in the USA, 2014-2019

Abstract

The costs of constructing pipelines will vary widely from area to area depending on the length and diameter of the pipeline, population density, the terrain, number and type of crossings, right of way requirements, regulatory conditions, time of construction and the market conditions of equipment and materials. From 2014-2019, 2,063 miles of gas transmission pipeline and 1.9 million horsepower compression regulated by the Federal Energy Regulatory Commission were installed in the USA at a unit cost of $5.72 million per mile and $3,030 per horsepower. In this paper, pipeline construction cost factors are described and gas transmission construction and compressor-station cost statistics and regression models are evaluated. Aggregate metrics are the most stable and reliable statistic and probably the most representative, but for small samples significant restrictions apply. There are large cost deviations in pipeline construction compared to compressor-stations reflecting differences in material and service cost. Route length and line diameter are the only variables needed to develop robust linear models of pipeline construction cost. [Received: January 13, 2020; Accepted: January 13, 2020]