PIPELINE TRANSPORTATION / CARRIER/

POSSIBILITY OF HIGH-SPEED IN THE

PHILIPPINES
Modes Of Transportation
 PIPELINE TRANSPORTATION

• is the long-distance transportation of a

liquid or gas through a system of pipes.
 Characteristics
• Pipeline is used to transport gas and liquid.

• They can be laid over difficult terrain as well as

under the sea.

• They are energy efficient and environmental

friendly.
 Two Major Types Of Pipeline
• Liquids pipelines - transport crude oil or natural gas in
liquid to refineries where they undergo distillation and
other production processes.

• Natural gas pipelines - are used solely for the transport

of natural gas to processing plants and are used for
distribution. Natural gas is also often delivered directly to
homes through pipelines
Usually underground
Uses compressors for
movement
Four other sub-categories of pipelines:
• Gathering Lines - These lines are 10-30 centimeters in diameter, and work to
transport natural gas, crude oil, and natural gas liquids short distances. They exist
mainly to gather products from wells and move them for processing.

• Feeder Lines - Feeder lines move crude oil, natural gas, and natural gas liquids
from storage tanks and processing facilities to transmission pipelines.

• Transmission Pipelines - These can range from 10 centimeters in

diameter to over a meter. They carry natural gas, natural gas liquids, crude oil, and
refined products (depending on whether they are liquids or natural gas pipelines).
These transport petroleum products long distances, including over international
boundaries.

• Distribution Pipelines - These range in diameter from 1-15 centimeters and are
used to distribute natural gas to homes and businesses.
 Pipeline in the Philippines
• Trans-ASEAN Gas Pipeline (TAGP)
• Malampaya Gas Field
• 500 MW San Lorenzo, 1,000 MW Sta.Rita and 1,200 MW
Ilijan power plants in Batangas province.
Nine other natural gas pipeline projects are in the construction
pipeline for Luzon from 2017 to 2022.
• The Batangas-Manila 1 (BatMan 1), BatMan 2, Bataan-Cavite
(BatCave), Subic Pipeline, Clark Pipeline, Subic-Fort Bonifacio
Pipeline, Sucat-Malaya, Sucat-Quirino lines and a city gas
distribution network—the EDSA-Taft Gas Pipeline.
Pipeline in the Philippines
 CARRIERS

• An individual or firm to whom freight is

shipped. A freight receiver.

• A firm that provides transportation services,

typically owning and operating transportation
equipment. Examples include: trucking
company, railroad, airline, steamship line,
parcel/express company.
 Types of Carries

• Common carriers - such as a railroad, airline, or

business that offers public transportation, customarily
transports property and individuals from one location to
another, thus offering its services for the hire of the
general population.

• Private carriers - is a company that transports only

its own goods. The carrier's primary business is not
transportation. Private carriers may refuse to sell their
services at their own discretion, whereas common carriers
must treat all customers equally.
 Gas Carriers
is a ship designed to transport LPG, LNG or liquefied
chemical gases in bulk. Cargoes carried on gas
• Fully pressurized gas carrier carriers
Compressed natural gas carrier • Butadiene
• Ethylene
• Semi-pressurised ships
• LPG
• Ethylene and gas/chemical carriers • LNG
• Fully refrigerated ships • Propylene
• Liquefied natural gas (LNG carrier) • Chemical gases such
as ammonia, vinyl
chloride, ethylene
oxide, propylene
oxide and chlorine.
Fully pressurized gas carrier
Compressed natural gas carrier
Semi-pressurised ships
Ethylene and gas/chemical carriers
Fully refrigerated ships
Liquefied natural gas (LNG carrier)
 Advantage and Disadvanatage

Advantage Disadvantage
• Low rates • Slow speed
• Good loss and damage • Fixed route
record • No door-to-door service
• Pipelines can function as • Depend on rail and motor
a warehouse carriers to deliver
• Mostly unaffected by • Limited type of
weather commodities
• Mechanical failures are • Limited to certain
rare geographic areas
 Commodities Hauled
• Very specialized carrier in that they transport a very
limited variety of products.

Four main commodities hauled are :

• Oil and oil products
• Natural gas
• Coal
• chemicals
 Commodity Movement
• Gathering lines bring oil from fields to a gathering station,
where the oil is stored in sufficient quantity to ship by trunk
line to a refinery.
• After refined, the various products are stored at a tank farm
before they are shipped via product line to another tank
farm. A motor carrier most frequently makes the last
segment of the trip, to the distributor or ultimate customer.
• Trunk lines are usually more than 30 inches in diameter and
are the major component of the pipeline system.
• Stations that provide the power to push the commodities.
• For oil movements, pumps are located at the stations, which
vary in distance from 20 to 100 miles, depending on the
viscosity of the oil and the terrain.
 Commodity Movement
• Pumping stations for large-diameter pipelines can provide 3,000-
6,000 horse-power.
• Compressors are used for natural gas and pumps are used for the
liquid items.
• Pipes are constructed of special high-quality alloy steel with a life
expectancy of 50 years or more.
• Safety
• Requiring pipeline operators to identify facilities located in
unusually sensitive areas and high density population areas
• Maintain maps and records detailing that information
• Provide those maps to federal and state officials upon request
• Pipeline is coated with protective paints and resins, and special
techniques are used to control corrosion after the pipeline is in
the ground.
 Commodity Movement
• Computers at the pumping stations continually monitor the flow
and pressure of the oil system. Any change indicating a leak is
easily detected.

• Routine visual checks and searches by airplane are sometimes

used to located leaks.

• 15 grades of crude oil and a range of products including jet fuel,

kerosene, and aviation fuel.

• Usually, products are scheduled one month in advance with

kerosene moving first, then high-grade gasoline, then medium-
grade gasoline, then various other products, then with home
heating oil last.
 Cost Structure
• Low labor costs – use of automation

• Low variable costs

• Do not require vehicles therefore pipelines do not have the additional

vehicle maintenance costs.

• High fixed costs

• Right-of-way

• Pipeline construction and power station (property taxes, depreciation,

and preventative maintenance)
• Depreciation and taxes for terminal facilities
Fixed V.S. Variable Cost Components
• High proportion of fixed costs with low capital turnover.
• Own right-of-way by purchasing or leasing land and
constructing the pipeline and pumping stations along the right-
of-way.
• Property taxes, amortization of depreciation, the return to
investors, and preventative maintenance all contribute to the
high ratio of fixed to variable expenses.
• The terminal facilities of pipelines contribute to the high level
of fixed costs.
• No vehicle helps to explain the low variable costs, because
vehicles are frequently a major source of variable expense.
• Labor costs are very low in the pipeline industry because of
the high level of automation.
 Rates
• Pricing is unique

• The nature of operation (one-way movement, limited

geographic coverage of points, limited products, etc.)
provides little opportunity to provide differential pricing
practices.

• Minimum shipment sizes, usually called tenders, are

required; these range from 500 barrels to 10,000 barrels(one
barrel equals 42 gallons).
• Pipeline rates are very low, which is reflected in the fact that
they carry more than 20 percent of the total intercity ton-
miles and receive only about two percent of the total
revenues

• Water carrier costs come closest to pipeline costs, in fact,

international supertankers have lower costs than most
pipelines. When considering pipelines with diameters of 30
inches or more, even ocean carriers have difficulty matching
pipeline costs.
 Current Issues
• Can have a powerful impact on the environment and the people
who live in it.

• A leak of oil products and chemicals could have disastrous effects.

• Increases in housing needs could create a situation in which

people would live close to the pipelines and be exposed to the
effects of a potentially harmful product leak (such as oil or
gasoline).

• Even when people would not be directly affected by a leak, a leak

could have a serious impact on wildlife living around the pipeline.
 Preventative Maintenance
• Limits loss/damages and protects the environment

• Protective paints and resins are used for corrosion control

• Electric currents neutralize the corroding electrical forces that

come naturally from the ground to the pipeline
Loss and Damage
• Pipeline’s have a record of limited loss and damage due
to the industry’s approach to operations.

• The pipes are constructed using a high-quality alloy steel

with a life expectancy of 50 years or more.

• The pipes are laid in long sections with a limited number

of seams and high quality electronic welding of seams to
prevent leakage.
 Benefit for the Country and Users
Benefit for the Country Benefit for Users
• Environmental friendly • Reducing energy cost by
resource prevents Air high efficient natural gas
Pollution equipment

• Stable Energy supply by LNG • Opportunity to use wide

from over the world
range of gas equipment
less maintenance
• Reducing energy required
consumption by high
efficient natural gas
equipment  Pipeline supply • Stable and convenient use
enables stable and of energy by pipeline gas
convenient use of energy
Possibility of High Speed in the Philippines

• High-speed “Bullet Train” to the Philippines