Cost analysis
Natural gas liquefaction
Article REF: J3601 V2
Cost analysis
Natural gas liquefaction

Authors : Béatrice FISCHER, Gilles FERSCHNEIDER

Publication date: June 10, 2010 | Lire en français

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5. Cost analysis

5.1 Comparison of pipeline (onshore) and LNG chain transportation costs

Pipeline costs vary almost linearly with distance, whereas LNG chain costs depend little on distance; costs are equal for a transport distance that depends on the quantities transported (table 3 ).

The specific cost of pipeline transport varies as the power (– 0.4) of the pipeline flow, whereas for the LNG chain it is barely a function of project size, and varies at most as the power (– 0.1) of size.

Note: We should also mention the use of submerged pipelines on the seabed. To date, only one Algerian gas pipeline has been built to transport gas to Italy via Tunisia: the...

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