Pipeline design to MAOP rating can skew project economics

Francis K. YipPipeSim EngineeringSugar Land, Tex.Designing pipeline systems solely on American National Standards Institute (ANSI) specifications gives too little consideration to dynamic market conditions and projects' cost variations.Although the approach simplifies the selection process and yields a conservative design, the economic results can be detrimental.In what is known as the "death spiral," the high transportation rates produced from an over-sized, poorly configured system result in lower demand which then leads to higher transportation rates in the future, which further suppresses transportation volumes and ultimately diminishes the project's value.Conservative approac...

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