Project Management Institute

Feasibility analysis of cross-country petroleum pipeline projects

a quantitative approach

Route selection for cross-country petroleum pipelines plays an important role in the entire feasibility analysis of pipeline projects, as all technical parameters of pipelines depend on the length and hydraulic gradient of the terrain through which they traverse. The present practice of feasibility analysis identifies the shortest route through reconnaissance survey on the basis of factors, such as constructability and approachability and minimal effects on the environment. It then identifies a few alternative projects for further study on the basis of technical parameters, such as throughputs, diameter of pipelines, and number of intermediate stations. The selection of the best project from these alternatives, through financial analysis, often results in a suboptimal project, as the shortest route may not be the optimal route.
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