How are routes for new pipelines determined?
Natural Gas Pipelines
For natural gas pipelines, project planning begins with the basics of supply and demand. Generally, if there is a demand for natural gas, pipeline companies conduct a market analysis to estimate the size of the market. This gas supply requirement is typically expressed in terms of million cubic feet of gas per day. With this information engineers can begin to estimate the facilities required to transport the required volumes of gas and the cost to construct the pipeline facilities.
Engineers initially identify preliminary pipeline routes that will minimize impact to the public, public landowners and the environment. The pipeline company typically will go through a process of reviewing available maps of the region to be traversed, and available published environmental data to determine a number of possible alternatives, depending on the characteristics of the region. This desktop work will then be augmented by use of aerial and ground reconnaissance, to identify and select a preferred route.
Once a preferred route is identified, the pipeline company will begin contacting landowners to discuss the project and seek permission to conduct civil and environmental surveys. These surveys are required for use in the detailed pipeline design and for preparing local, state and federal permit applications. Even though pipeline officials may begin discussions with landowners at this point, it is important to remember that the project is undergoing a feasibility analysis, and neither the project nor the pipeline route is finalized at this time. Selecting a pipeline route often involves discussing and evaluating options with landowners, environmental agencies and regulatory officials. If the market analysis ultimately justifies the cost of pipeline construction, only then will the pipeline company begin seeking permits and preparing a detailed project application for the Federal Energy Regulatory Commission (FERC).
Oil Pipelines
For oil pipelines, potential routes are also initially suggested by demand patterns, including:
· The predicted required flow of crude oil from a producing field to a refinery complex.
· The expected flow of refined products from a refinery complex to population centers or markets.
Oil pipeline route alternatives are then determined on the basis of studies of the cost of construction, projected growth in population centers, demand for transportation service over a period of time, and rates that are competitive and provide a reasonable return on investment. Once alternatives have been analyzed, an environmental study helps to select the most feasible option in terms of protecting the safety of the environment and the safety of those who live in the vicinity of the proposed pipeline right-of-way. These environmental studies generally follow procedures set out by federal and state law, sometimes resulting in Environmental Impact Statements or Environmental Assessments that are published in draft form for public comment. Finally, permissions must be obtained to use an easement corridor, the pipeline right-of-way. Owners of private and public property negotiate with the pipeline companies and sign leases for the use of their land.