As new business opportunities present themselves in the pipeline industry, it becomes important to have a solid economic model from which to determine the potential success of a project. Two of the most critical variables in the model are project Total Installed Cost (TIC) and Project Schedule. With this information, business managers can calculate appropriate ratios to determine how the project compares to established criteria.
Mustang has provided a full range of services to clients for their economic evaluations. For the typical project, order of magnitude TIC and Schedule estimates can be prepared in a matter of hours while those having a threshold accuracy of ± 30% may take a few days to complete. This level of effort is initially useful for the client business manager or sponsor to determine if economics justify further examination of the project.
If justified by the client business model, Mustang can perform a full Feasibility Study for any type project in any geographic area. Mustang will provide the client with whatever information is requested during the study. However, typical deliverables include:
- Project/Route Description
- Constructability Report
- System Flow Diagram and Route Maps
- Right-of-way Line List
- Environmental Evaluation
- Permit Matrix
- Key Issues
- ± 10% Cost Estimate
- Project Schedule
The following are a few recent examples of studies performed by Mustang:
- Relocation of over 60 pipeline crossings of the Houston Ship Channel
- Construction of a 30 mile natural gas pipeline and compressor station in Indiana.
- Construction of a 275 mile crude oil pipeline in Louisiana and Texas.
- Construction of a 220 mile natural gas pipeline system crossing Florida.
- Construction of an 8 mile hydrogen pipeline in Texas.
- Construction of a 750 mile natural gas pipeline from Alabama to North Carolina.
- Feasibility Studies have also been performed for projects in Alaska, South and Central America, Africa, Europe, the Middle East, and Asia.