Capital Cost Calculations

The toolbar icon with a $ sign is used for quick estimation of pipeline capital costs, annual operating costs, the annual cost of service and transportation tariff.  On clicking this icon the following screen is displayed: 

The above screen displays a dialog box with tabs for Capital cost, annual operating cost and Tariff. Most of the data in the various fields have already been filled in as a result of the hydraulic calculations. In each tabbed dialog box, make changes as needed and click the Calculate button to calculate the Capital cost.

 Default values are used in calculating the capital costs, such as $700 per ton for pipe material,  $1,500 per HP installed for pump station cost and $50,000 per mainline valve installation. Tankage cost is calculated at $10 /bbl. These default values may be changed as needed and the capital cost re-calculated by clicking the Calculate button.  

For the current pipeline system, the pipe tonnage required, the number of pump stations, estimated main line valve installations, tankage in BBL and miscellaneous costs are shown.

Other costs such as ROW, engineering etc are percentage estimates based on the sub-total of the first 4 items.

Default values used are:

Miscellaneous                     - 10%
Right of Way    (ROW)         - 6%
Environmental                    - 5%
Permitting                         - 2%
Engineering                       - 10%
Construction management   - 5%
Contingency                     - 10%

To use a different value for any of the above indirect cost categories, make changes in the last column, titled Total cost.

Press Calculate, to recalculate the new capital cost.

To obtain a hard copy of the capital costs, click the Print button.