Impact of Compressor Station Availability on the Techno-Economics of Natural Gas Pipeline Transportation

Oluwatayo Babatope Ojo (), Abdelrahman Hegab and Pericles Pilidis
Additional contact information
Oluwatayo Babatope Ojo: Centre for Propulsion and Thermal Power Engineering, Cranfield University, Cranfield, Bedford MK43 0AL, UK
Abdelrahman Hegab: Centre for Propulsion and Thermal Power Engineering, Cranfield University, Cranfield, Bedford MK43 0AL, UK
Pericles Pilidis: Centre for Propulsion and Thermal Power Engineering, Cranfield University, Cranfield, Bedford MK43 0AL, UK

Energies, 2025, vol. 18, issue 16, 1-28

Abstract: This study aims to examine the impact of compressor station availability on the techno-economic aspects of natural gas pipeline transportation, using the proposed Trans-Saharan Gas Pipeline (TSGP) project as a case study. A scenario-based technical and economic analysis was conducted to highlight the economic sensitivities of the systems to availability. The economic assessment of the project was performed using a discounted cash flow method, considering lifecycle costs. The techno-economic model was developed using MATLAB R2020b, accounting for variations in ambient temperatures at the compressor station under different flow conditions. Findings indicate an 8.41% increase in project lifecycle cost in one scenario compared to the baseline, assuming a 15% discount rate. However, the baseline case with a 100% compressor station availability assumption appears unrealistic, as shown by its lifecycle cost and net present value estimates. This is because constant operating conditions throughout the project lifecycle are impossible. Additionally, when station availability increases by 7.87% and the cost of standby units rises by 10.24%, avoided income loss due to station unavailability increases by 14.06%. This reveals a trade-off between the extra capital expenditure on standby units and the savings from avoiding income loss. Furthermore, the impact of 2% and 4% escalation rates of fuel and maintenance costs on lifecycle costs results in a rise of 2.70% and 6.15%, respectively, in one scenario compared to the 0% escalation rate. The results demonstrate the significant influence of compressor station availability analysis on pipeline projects, particularly in reducing engine downtime costs and enhancing project revenue. Therefore, the methods presented here help in understanding the importance of compressor station availability in pipeline techno-economics, leading to more effective resource and financial management.

Keywords: gas turbine; gas compressor; net present value; lifecycle cost; maintenance cost; fuel cost; capital cost; TERA; downtime; revenue; escalation rate; inflation (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/1996-1073/18/16/4243/pdf (application/pdf)
https://www.mdpi.com/1996-1073/18/16/4243/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jeners:v:18:y:2025:i:16:p:4243-:d:1721113

Access Statistics for this article

Energies is currently edited by Ms. Agatha Cao

More articles in Energies from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().