Title: Pipeline compressor station construction cost analysis

Authors: Yipeng Zhao; Zhenhua Rui

Addresses: Key Labor of Geo-detection, China University of Geosciences (Beijing), Ministry of Education, Beijing, 100083, China ' Project Research Division, Independent Project Analysis, Inc., 44426 Atwater Drive, Ashburn, Virginia 20147, USA

Abstract: This study aims to provide a reference for pipeline compressor station construction costs by analysing individual compressor station cost components using historical compressor station cost data between 1992 and 2008. Distribution and share of these pipeline compressor station cost components are assessed based on compressor station capacity, year of completion, and locations. Average unit costs in material, labour, miscellaneous, land, and total costs are $866/hp, $466/hp, $367/hp, $13/hp, and $1,712/hp, respectively. Primary costs for compressor stations are material cost, approximately 50.6% of the total cost. This study conducts a learning curve analysis to investigate the learning rate of material and labour costs for different groups. Results show that learning rates and construction component costs vary by capacity and locations. This study also investigates the causes of pipeline compressor station construction cost differences. [Received: March 25, 2012; Accepted; 20 February 2013]

Keywords: pipeline compressor stations; construction cost; distribution; unit cost; cost components; learning curve; cost analysis; material costs; labour costs; capacity; location.

DOI: 10.1504/IJOGCT.2014.064426

International Journal of Oil, Gas and Coal Technology, 2014 Vol.8 No.1, pp.41 - 61

Received: 04 Apr 2012
Accepted: 20 Feb 2013
Published online: 18 Sep 2014 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article