The development of natural gas and hydrogen pipeline capital cost estimating equations

Abstract

Natural gas pipeline cost data collected by the Oil and Gas Journal (O&GJ) [1] for interstate pipelines constructed from 1980 through 2017 were used to develop capital cost estimating equations that are a function of pipeline diameter, length, and U.S. region. Equations were developed for material, labor, miscellaneous, and right-of-way costs, the four cost components in the O&GJ data, for six different regions of the United States (U.S.). Each equation is a function of pipeline diameter and length.Adjustment mechanisms were then developed for converting the natural gas pipeline equations into equations for estimating the costs of hydrogen pipelines. These adjustments were based in part on an analysis completed by the National Institute for Standards and Technology (NIST) [2,3]. The results of this work were used to update cost models in the Hydrogen Delivery Scenario Analysis Model (HDSAM) [4], developed by Argonne National Laboratory for the U.S. Department of Energy's Hydrogen Program. Our analysis shows a wide range of pipeline cost across different U.S. regions, especially with respect to labor and right-of-way costs. The developed cost formulas for hydrogen pipelines are both important and timely as hydrogen is being considered as a zero-carbon energy carrier with the potential to decarbonize all energy sectors, and the cost of hydrogen transportation is essential for techno-economic analysis of its potential use in these sectors.