Objective China Oil and Gas Pipeline Network Corporation (PipeChina) boosts its revenue and enhances corporate performance by increasing natural gas offtake volumes. To accomplish this, existing offtake branches at in-service long-distance natural gas pipeline stations (valve chambers) are reconstructed to create new natural gas offload points. Given the surging demand for pipeline access from downstream users and the high expectations for returns on investments in PipeChina’s capital construction projects, studying the economic output limits for these new offload points has become essential.

Methods According to the pricing mechanism and parameters of “allowable cost plus reasonable income” for pipeline transportation rates established by the National Development and Reform Commission (NDRC), along with relevant provisions for the economic evaluation approach to PipeChina’s construction projects, a relational expression was established by leveraging the basic principles of technological economics. This expression incorporates total investment, total costs, and total income related to the construction of new offload points when the total profit equals zero. This relational expression was then used to develop a mathematical model for calculating economic output limits. In the calculation case based on a typical offload point in the central and eastern pricing zone, various parameters within the mathematical model were assigned specific values, taking into account relevant technical provisions regarding new offload points for PipeChina’s construction projects, as well as the actual conditions of the pricing zone where the offload point is located, and the economic output limit was ultimately yielded.

Results Comparing the calculated economic output limits with the outputs requested by offload point users provides a quick solution for determining the economic feasibility of investment projects for new offload points during the feasibility study stage. Specifically, an economic output limit less than the output requested by the offload point user indicates that the project is financially feasible. Conversely, if the output limit exceeds the user’s request, the project is considered infeasible. If the economic evaluation concludes that the project is infeasible, measures to ensure reasonable returns for the investment may include appropriately reducing the construction investment, cutting operating costs, optimizing the natural gas transportation route, and implementing additional improvement suggestions.

Conclusion Given the increasing number of requests from downstream users for offload points to PipeChina, rapidly evaluating the economic feasibility of these projects can enhance the leverage of fairness and openness within the pipeline network. This, in turn, promotes the transformation of the oil and gas market system from “3+X” to “X+1+X.” The establishment of the economic output limit model provides an important reference for PipeChina’s investment decision-making regarding the construction of new offload points, significantly increasing the company’s revenue and enhancing its economic performance.